Indonesia’s halal product market is experiencing robust growth across multiple categories, with ProSpace Indonesia’s Halal Economy Report projecting market value to reach $28 billion by 2026, representing 23% growth from current levels. The expansion creates significant opportunities for both domestic and international manufacturers.
Food and beverage products dominate the halal market with 63% share, followed by cosmetics and personal care at 17%, pharmaceuticals at 12%, and modest fashion at 8%. Halal tourism, finance, and media represent smaller but rapidly growing segments within the broader halal ecosystem.
“Indonesia’s halal market is evolving from basic compliance to sophisticated product differentiation and premium positioning,” explains Dr. Fatima Azzahra, Halal Industry Specialist at ProSpace. “Consumer awareness and expectations regarding halal certification have increased substantially, particularly among middle-class and younger demographic segments.”
Mandatory halal certification requirements implemented in stages since 2024 have standardized market practices while creating adjustment challenges for some manufacturers. The Indonesia Halal Industry Masterplan continues guiding development with targets to position Indonesia as a global halal production hub.
Export opportunities show particular promise, with Indonesian halal products gaining traction in Middle Eastern, Southeast Asian, and select Western markets with significant Muslim populations. Halal-certified food exports increased by 28% in 2024, reaching $7.2 billion in value.
Digital platforms specializing in halal products have proliferated, with five dedicated marketplaces now serving over 12 million monthly active users. These platforms verify certification status while connecting consumers with a comprehensive range of halal lifestyle products.
For halal market intelligence: Phone: +62 21 5799 8989 Email: info@prospaceindonesia.com Follow @prospace.indonesia on Instagram for updates