South America has the smallest share in the Global Halal food and beverages market. Accounting for less than 0.5% of the global market share, South America however plays significant role in the international trade of halal foods and beverages products. Brazil which happens to be South America’s biggest halal foods and beverages market is the world’s largest exporter of halal meat. Brazil exports almost double the halal meat exported by the 2nd largest halal meat exporter- Australia. Brazil has strong ties with the Arab world- OIC countries to fulfil their halal foods and beverages trade engagements. As Arab economies grow, one of the major beneficiaries is the countries in South America and especially Brazil for their export of halal food and beverages. Brazil has a robust halal certification system which was first established by the Arab migrants to South America about 50 years ago. Even though the region has a very less Muslim population, the respective Governments see halal exports as one of the key strategic opportunities for growth of growth. Not just Brazil but Argentina is also one of the major halal meat exporters to the Middle East African and Asian nations.
According to the research report, “South America Halal Food and Beverage Market Outlook, 2029” published by Bonafide Research, the market is expected to grow with 8.78% CAGR by 2024-29. However, it is also imperative to note that the most of the halal players in the South American region are small and medium scale enterprises and to some degree unorganized. One of the reasons the domestic halal foods and beverages market in the region is small is because of a very small and concentrated Muslim population in the region. Less than 1% of the population living South America belong to the Muslim community. However, there is an increase in Muslim population due to migration. Most of the Muslims who earlier came to Brazil in hope for employability in the halal sector. However, their entry into Brazil was majorly due to trafficking. As Halal foods and beverages are getting more popular worldwide, the non-Muslims in the region are also exploring the halal foods and beverages products for taste and a more diverse culinary experience. Recently Saudi Arabia has banned halal imports from 11 Brazilian poultry plants with no warning or explanation according to a joint statement from Brazil’s agriculture and foreign ministries. JBS SA which is world’s largest meat company, confirmed that it was affected by the ban.
In South America, Brazil is the dominant leader in the halal food and beverage market, primarily due to its strong meat export industry. As one of the world’s largest halal meat suppliers, Brazil exports significant amounts of halal-certified beef and poultry to Muslim-majority countries in the Middle East, Asia, and North Africa. The country has a well-established halal certification system, ensuring compliance with Islamic dietary laws, which boosts its global competitiveness. Apart from Brazil, Argentina and Uruguay also play key roles in the halal meat and dairy sector, leveraging their livestock industry and increasing certification processes. The Muslim population in South America is relatively small, but growing demand from non-Muslim consumers interested in high-quality, ethical, and clean-label products is supporting the market’s expansion. The South American halal food industry is also seeing growth in processed halal foods, dairy products, and beverages, with local manufacturers expanding their halal-certified product lines. As awareness increases and export markets expand, Brazil and its neighboring nations are expected to further strengthen their position in the global halal food and beverage supply chain.
The South American halal food and beverage market is primarily driven by halal meat, poultry, and seafood, with Brazil leading as one of the world’s largest halal meat exporters. The country supplies significant volumes of halal-certified beef and poultry to Middle Eastern and Asian markets, ensuring compliance with Islamic dietary laws. Other countries, such as Argentina and Uruguay, are also expanding their halal meat and dairy production to tap into the growing international demand. Halal milk and milk products are gaining traction, particularly in Argentina and Uruguay, known for their strong dairy industries. The halal fruits and vegetables segment is also experiencing growth, supported by the region’s rich agricultural resources and increasing demand from global markets. Halal grain products, including rice, wheat, and other cereals, are becoming more prominent due to rising exports to Muslim-majority countries. The halal beverage sector, including juices, soft drinks, and non-alcoholic beverages, is also expanding, driven by a preference for ethical and high-quality food choices. With Brazil and Argentina leading in halal certification processes, South America is poised to strengthen its global presence in the halal food and beverage industry.
The South American halal food and beverage market is experiencing significant growth across various sales channels, with hypermarkets and supermarkets being the dominant retail outlets. Major retail chains in Brazil, Argentina, and Chile have dedicated halal-certified product sections, catering to both Muslim and non-Muslim consumers looking for high-quality, ethically sourced food. Traditional retail stores, including local butcher shops and grocery stores, continue to play an essential role, especially in rural and smaller urban areas where consumers prefer freshly sourced halal meat and poultry. These stores often partner with local halal-certified suppliers to meet demand. The online sales channel is witnessing rapid growth, fueled by e-commerce platforms and digital grocery services. Consumers are increasingly turning to online halal food retailers, particularly for specialty and imported halal products. Brazil, in particular, has seen a rise in halal-certified online marketplaces, allowing easier access to a wide range of halal food and beverages. Other sales channels, including wholesale distributors and specialty halal stores, are also expanding as demand for halal-certified products continues to grow in both domestic and export markets. With a strong retail infrastructure and digital transformation, South America is set to further develop its halal food and beverage sector.