Report Overview

Rising awareness about Halal certified products among the country’s large Muslim population and the Indonesian government’s growing support and stringent regulations on Halal certification are expected to drive Indonesia Halal Food Market during the forecast period between 2025 and 2031.

Indonesia Halal Food Market – Industry Trends & Forecast Report, 2031

Indonesia Halal Food Market size was estimated at USD 282.92 billion in 2024. During the forecast period between 2025 and 2031, Indonesia Halal Food Market size is projected to more than double its value at a robust CAGR of 12.5% reaching USD 645.25 billion by 2031. Prominent drivers of the market include rising domestic demand, a growing middle class, and stringent government regulations that mandate Halal certification for all consumables. The food and beverage sector is the dominant force in the industry, with consumer spending on Halal products reaching approximately USD 149 billion in 2022 and expected to grow to USD 258.02 billion by 2030. High awareness of Halal standards, coupled with lifestyle shifts and rising incomes, has significantly boosted demand for quality, Halal-certified products such as processed snacks, functional beverages, and ready-to-eat meals. The growing preference for protein-rich diets has also increased the consumption of beef, with Indonesia becoming a major importer of Australian cattle and boxed beef. International fast-food brands like McDonald’s and KFC have successfully localized their offerings by complying with Indonesia’s strict Halal requirements, highlighting the importance of certification in gaining consumer trust. These trends reflect the broader transformation in Indonesia’s food consumption patterns, driven by convenience, quality, and religious adherence. Supported by a robust regulatory framework led by the Halal Product Assurance Organizing Agency (BPJPH) and recent updates like Government Regulation No. 42 of 2024, the Halal food market is well-positioned for continued growth, making Indonesia a key player in the global Halal food economy.

Halal Food – Overview

Halal food refers to food and beverages that are permissible for consumption under Islamic law as defined in the Quran. The term "halal" means "lawful" or "permitted." To be considered halal, food must meet specific criteria, including the humane slaughter of animals by a sane adult Muslim while invoking the name of Allah. Pork and its by-products, alcohol, and animals not slaughtered according to Islamic guidelines are strictly prohibited (haram). Halal certification ensures that food is prepared, processed, and stored using utensils and equipment free from contamination by non-halal substances, ensuring it aligns with religious dietary requirements.

Indonesia Halal Food Market

Growth Drivers

Rising Awareness and Certification

Rising consumer awareness and growing demand for Halal certified products are key drivers of Indonesia Halal Food Market. As more consumers, particularly from the expanding middle class, prioritize religious compliance and food safety, the demand for Halal-certified products has surged. This shift is reflected in the dominance of the food and beverage sector within the Halal industry, supported by evolving dietary preferences and increased access to higher-quality, certified goods. International fast-food chains like McDonald’s and KFC have adapted their operations to comply with Indonesia’s stringent Halal standards, highlighting the importance of certification in gaining consumer trust. Additionally, the government’s comprehensive regulatory framework, including the Halal Product Assurance Law and recent updates under Government Regulation No. 42/2024, has streamlined certification processes and reinforced the significance of Halal compliance. These efforts, combined with changing consumer lifestyles and a rising preference for processed foods, functional beverages, and protein-rich options, continue to boost the demand for Halal-certified food across Indonesia.

Challenges

Complex Halal Certification Processes

Complex processes for obtaining Halal certification pose a significant challenge to the growth of Indonesia Halal Food Market. The stringent requirements, detailed documentation, and coordination with multiple regulatory bodies often result in delays and increased operational costs, particularly for small and medium-sized enterprises (SMEs). Navigating the certification landscape—overseen by agencies such as BPJPH, MUI, and LPH—can be time-consuming and resource-intensive. Moreover, frequent regulatory updates and a lack of clarity in procedures further hinder smooth compliance. These challenges discourage new entrants and slow market expansion, limiting the ability of businesses to meet rising domestic and international demand for Halal-certified food products.

Impact of Escalating Geopolitical Tensions on Indonesia Halal Food Market

Escalating geopolitical tensions could significantly impact the growth of Indonesia Halal Food Market by disrupting global trade flows, affecting the import and export of key Halal-certified ingredients and products. Supply chain instability and rising tariffs and transportation costs may hinder timely access to raw materials, especially from major trading partners. Additionally, political conflicts can lead to stricter trade regulations and reduced investor confidence, slowing market expansion. Tensions in OIC countries, which are key export destinations, may further limit Indonesia’s Halal food export potential. These uncertainties can challenge industry growth, despite rising domestic demand and strong government support for Halal certification and market development.

Indonesia Halal Food Market

Segmental Coverage

Indonesia Halal Food Market – By Product Type

Based on product type, Indonesia Halal Food Market is divided into Meat & Poultry, Dairy Products, Grain Products, Beverages, Confectionery & Snacks, Processed & Packaging Foods, and other product types segments. Given Indonesia’s rising demand for Halal-certified protein sources and its efforts to strengthen global trade partnerships, the Meat & Poultry segment is a key focus and likely dominates the Indonesia Halal Food Market by product type. As the country with the world’s largest Muslim population, adherence to Halal dietary laws is central to daily consumption habits, making meat and poultry essential components of the national diet. The increasing import of live cattle and boxed beef from countries like Australia, along with Indonesia’s strategic halal meat trade discussions with nations such as Pakistan, highlight the segment's economic and cultural significance. Additionally, evolving consumer lifestyles and higher disposable incomes have led to increased consumption of premium and processed meat products that meet Halal certification standards. Backed by government regulations, growing urbanization, and expanding middle-class preferences for quality-assured animal protein, the Meat & Poultry segment continues to lead the market and is expected to maintain its dominance during the forecast period.

Indonesia Halal Food Market – By Distribution Channel

By distribution channel, Indonesia Halal Food Market is divided into Supermarkets & Hypermarkets, Specialty Stores, Online Retail, and Convenience Stores segments. The supermarkets & hypermarkets segment holds the highest share in Indonesia Halal Food Market by distribution channel. These large retail outlets offer a wide variety of Halal-certified products under one roof, making them a preferred choice for consumers seeking convenience, product variety, and assurance of authenticity. The growing presence of modern retail chains in urban and semi-urban areas, coupled with rising consumer preference for hygienically packaged and clearly labeled Halal goods, has significantly boosted footfall in these outlets. Supermarkets and hypermarkets also serve as trusted platforms for both local and international Halal brands to reach a broad consumer base. Furthermore, as Indonesia's middle class expands and urbanization accelerates, the demand for organized retail formats continues to grow, reinforcing the dominance of this segment in the Halal food distribution landscape.

Indonesia Halal Food Market – By End User

On the basis of end user, Indonesia Halal Food Market is divided into Households, Foodservice Providers, and Institutions segments.

Competitive Landscape

Major players operating in Indonesia Halal Food Market include Indofood Sukses Makmur, Mayora Indah, Ultrajaya Milk Industry, Nestlé, Unilever, McDonald’s, KFC, GarudaFood, Wings Group, and Kalbe Farma. To further enhance their market share, these companies employ various strategies, including mergers and acquisitions, partnerships, joint ventures, license agreements, and new product launches.

Recent Development

• In August 2024 - The Jakarta Halal Expo and Conference 2024, held from August 30 to September 1 in Banten, Indonesia, showcased innovations and opportunities in the global halal industry. Organized by the Halal Development Institute of Indonesia, the event brought together leaders from various sectors including food, tourism, finance, and fashion. Through exhibitions, panel discussions, and workshops, it facilitated networking, promoted halal-certified products, and reinforced Indonesia’s position as a key player in the global halal economy, while encouraging investment and collaboration across the sector.

Scope of the Report

By Product Type

• Meat & Poultry

• Dairy Products

• Grain Products

• Beverages

• Confectionery & Snacks

• Processed & Packaging Foods

• Others

By Distribution Channel

• Supermarkets & Hypermarkets

• Specialty Stores

• Online Retail

• Convenience Stores

By End User

• Households

• Foodservice Providers

• Institutions