It is expected that by the end, the growth of the halal e-commerce sector will be very noticeable, and this is reflected in market demand. Global spending on halal products has reached over $2 trillion in 2023. In 2025, it is expected to expand to $1.67 trillion and $2.8 trillion, and the growth is expected to continue, more so online.
As Muslims and non-Muslim consumers look for more ethical products, online businesses have a great opportunity to satisfy this growing demand. Here’s a close look at the top halal e-commerce opportunities of 2025.
1) Halal Food & Beverage
The halal food market is expected to grow significantly in the coming years. It is anticipated that the global halal food market will grow to trillions of dollars by 2025, with an average annual growth rate of about 10%. Increasing consumer demand for healthy, ethically sourced, and certified food has also made halal products more popular worldwide.
Given that the online grocery and food delivery markets grow by a strong number, and many Muslim consumers are increasingly shopping for groceries online, this appears to be the halal food market getting ready to rise. However, the major driver of the growth for the halal e-commerce comes in the form of growth sectors.
2) Halal Beauty & Fashion
The global halal beauty market is projected to reach $47.14 billion by 2025, growing at a compound annual growth rate (CAGR) of 13.9%, according to the Business Research Company. This growth is driven by increasing consumer demand for halal-certified products, particularly in regions like Southeast Asia and the Middle East. Consumers are seeking products that are alcohol-free, cruelty-free, and made from ethically sourced ingredients, boosting the popularity of halal beauty brands.
Similarly, the global halal fashion market, valued at $407.3 billion in 2023, is expected to grow at a CAGR of 5.0% from 2024 to 2030. The halal fashion market is fueled by rising demand for modest clothing and lifestyle products that align with Islamic values.
With this growth in halal beauty and fashion, e-commerce businesses are well-positioned to capitalize on this expanding market, especially by catering to the unique preferences and needs of consumers in regions like Southeast Asia, the Middle East, and Africa.
3) Halal E-Commerce Platforms
The emergence of e-commerce sites targeting the sales of halal products is now a trend. Websites such as Salaam Market, HalalTrip, and Muzmatch have already generated enough interest for a carefully crafted online halal-friendly shopping experience.
Though information about the growth rate of the global halal e-commerce market is limited, the food and beverage halal market is estimated to grow enormously. For example, the global halal food market is anticipated to reach $1,063.11 billion by 2030 at a CAGR of 3.6% from 2022, reflecting increasing demand for halal products, hence opening wider opportunities for e-commerce dealing with such products.
4) Tech and Data Analytics
In 2025, leveraging technology and data analytics will be key to the growth of any halal e-commerce business. AI-driven shopping experiences are expected to make up 50% of all online retail sales by 2025. This enables businesses to offer personalized shopping experiences through their capability to collect and analyze customer data.
In addition, AI in giving product recommendations and targeted marketing would further create up to $1.2 trillion in additional retail revenues worldwide by 2025. E-commerce business firms that engage in investments regarding technology, data analytics, and AI will be at their best competitive strengths and rapid scaling within the halal e-commerce market.
Conclusion
Halal e-commerce is growing. This could range from halal food and beauty, tapping into the emerging market, to embracing technology in businesses. The year 2025 presents endless opportunities. By aligning business to ethical standards of offering tailored solutions and leveraging technology, it’s possible for businesses to cut a niche for themselves in this market.
