South America Halal Food & Beverage Market Outlook, 2027

The South American halal food and beverages market is the fastest growing halal market in the world. Even though the Muslim population in the region is less than 1% of the total population, the region plays a crucial role in facilitating the world trade of halal foods and beverages products in the world. The demand for halal certification has been driving the South American halal products market. The rise of the request for halal products is due to the new trend followed by consumers such that the halal certification helps in meeting the increased need for quality assurance, where food security issues are being faced by a lot of countries in this region, thus, driving the demand for the South American halal food. The region lacks in the Muslim population, which hampers the market growth. However, there are various initiatives taken by governments and other agencies to promote halal food. For instance, South America hosted a halal industry show to promote the penetration of halal food & beverage products. In recent years, the region has witnessed considerable growth in the production of these products. In the research report prepared by Bonafide Research titled- South America Halal Food and Beverage Market Outlook, 2027, study has been presented discussing various intricacies of the halal food and beverages market backing with sufficient data points to support qualitative judgments. The South American halal foods and beverages market grew by USD 1 Billion during the period of 2016 to 2021. During the period of 2021 to 2027, it has been further estimated that the market will be growing at a CAGR of more than 8% making it the fastest growing region in the world during the forecast period.

The halal foods and beverages market in the South America region is primarily driven Brazil which has a little more than 1/3 share in the regional market. It is however imperative to know that the rest of the South America other than Brazil and Argentina accounts for almost 50% of the total regional market. Most of the market players are small and medium sized enterprises which focus on export prospects due to small domestic demand. Almost 40% of the halal market sales constitute of traditional halal meat, poultry, and seafood products. However, following the industrial trend, halal products in form of Bakery, confectionery and other items are the fastest growing product segment in the region growing at a CAGR of roughly 8% to 9%. Most of the sales of halal foods and beverages products are made through hypermarkets and supermarkets accounting for almost 50% of sales but online sales channels in the region show promising share of about 12% during the review period. As the halal products are seeing increased demand, the traditional retail channels are also showing strong growth in the region. In emerging economies, such as Brazil, there has been an increasing interest in the consumption of organic and natural food products, which represents a strong adjacent market for halal food products to address. Halal food companies in South America have also been focusing on expanding its offering by developing flavors that suit a particular South American country cuisine, thus, increasing its reach in the other South American countries. The halal market has witnessed a universal shift in the demand and supply chains of halal food products. They are increasingly made available in Western-style grocery stores, including supermarkets and hypermarket chains, which have been getting a strong presence in Brazil, where its economy has been emerging forward. In South America, supermarkets and food producers have been starting to reach out to Muslim and non-Muslim consumers by offering a wider selection of halal food products. As the dynamics within the Muslim world change and globalization trends continue to shape consumers’ tastes, habits, and spending patterns across the world, the halal-based foods, and beverage acceptance are poised to grow in South America during the forecast period. Brazil is one of the largest export markets of halal-certified food products around the world and is the third greatest exporter of Halal products in the world, just behind China and the United States. Halal food has been extended to non-Muslim economies, where Halal food has become the new benchmark as a safe and hygienic form of food for consumers looking for alternative healthy and high-quality products. The factors responsible for growth are new market entrants, established players making inroads abroad through franchising and multinationals making major investments in Muslim-majority markets by anticipating demand. In Brazil, halal food has been receiving recognition among the non-Muslim population due to the increasing awareness about halal food and its consumption. The country is a major beef exporter in South America. Brazil’s beef exports to the Middle Eastern countries have been increased after the lifting of a ban by Saudi Arabia in 2016. Additionally, Brazil is making efforts to resolve issues such as trade disputes with Indonesia, which is expected to boost the growth of the halal food & beverage market. Moreover, the growing number of Islamic tourists in Brazil is also predicted to fuel market growth. Allanasons Private Limited is a leading exporter of branded agro commodities and processed food products. The company exports products that include frozen & chilled meat, spices & coffee, aseptic & frozen fruits, and vegetable products. The main business segment of the company includes proteins, rendered products, coffee, FMCG, leather, and pet food. The company is known for its boneless buffalo meat cuts and exporting around 1 million metric tons of agro commodities annually. The African and Arab market maintains its importance for companies all over the world. However, Halal certificates put companies that want to take place in this market one step ahead. Brazil, the world's largest Halal Food exporter, is trying to think of ways to to expand business with countries on the Arab-Muslim axis. The expectations from the world Halal market are promising. Brazil has gained the trust of countries in the Halal Food market thanks to the quality and meticulousness in its legislation and production. Brazilian companies also see halal certification as a necessity. For instance, In January 2017, BRF, the Brazilian meat packaging giant, launched OneFood in Dubai. One Food is the new BRF subsidiary that owns all of BRF's assets associated with halal meat production. Covid-19 Impacts: The corona-virus has affected the food industry globally, causing home seclusion, channel shifts and stockpiling of packaged food, especially in markets facing supply chain disruptions and lockdown measures. The COVID-19 pandemic remains a major threat for most Halal Food and Beverages market outlook in addition to concerns of inflation, supply-chain disruptions, and weak consumer demand.

Major Companies Present In the Market Unilever, Cargill, Nestle S.A., BRF S.A. Considered In the Report • Geography: South America • Historical year: 2016 • Base year: 2021 • Estimated year: 2022 • Forecasted year: 2027 Countries covered: • Brazil • Argentina Aspects Covered In the Report • Market Size By Value for the historic time period (2016-2021) • Market Size By Value for the forecast time period (2022-2027) • Market Share by Product (Halal Meat, Poultry & Seafood, Halal Milk & Milk Products, Halal Fruits & Vegetables, Halal Grain Products, Beverage Products, Others) • Market Share by Sales Channel (Hyper Market/ Supermarket, Traditional Retail, Online, Others) • Market Share by Country (2016, 2021 & 2027F) The approach of the report: We keep an eye on evolving markets and try to evaluate the potential of the products and services. If we find the market interesting, we start working on it and create the desired table of content, considering all aspects of the business. We start by creating separate questionnaires for C-level executives, national/regional sales personnel, company owners, dealers, distributors, and end-users. Once the questionnaires have been finalized, we start collecting the primary data (mostly through phone calls) and try to understand the market dynamics regionally or tier-wise. This process gives us in-depth details of the market, including all present companies, the top-performing products with reasons why they dominate; we get the details of new players and their innovative approaches; market trends; dynamics; and all the small details of the market. After the collection of primary inputs, we then cross-check the same with secondary sources that include associations, trade journals, annual reports, paid databases, newspapers, magazines, press releases, government sources, etc. From this, we get a rough estimate of the market and start checking existing product price variants, trade, production, raw material scenarios, policies and regulatory landscape, etc. Then, to finalize the market, we start collecting financials of each player present in the market, including limited, private limited, and LLPs. Moreover, we perform cross-industry and cross-region analysis of the product, and based on collected primary inputs and using statistical modeling, we start forecasting the market. We follow our forecasting algorithm, which is unique for each product but gives more weight age to primary inputs. At the same time, the content team starts preparing company profiles, market dynamics, market trends, five forces, PEST analysis, etc. Once the data is verified by the data expert, the team (primary team, content team, and data team) together crosscheck the segmentations, validate the market, and then the designing team starts plotting the graphs. Once the file is ready, the content team completes the report and makes sure that all the discussed points have been covered and provides their valuable inputs in the form of strategic recommendations for new as well as existing players. The QC team then checks the overall report that includes spell check, data verification, and makes the same dispatch ready and error-free. Intended Audience This report can be useful to industry consultants, manufacturers, suppliers, associations & organizations related to the halal food & beverage industry, government bodies, and other stakeholders to align their market-centric strategies. In addition to marketing & presentations, it will also increase competitive knowledge about the industry.