Expanding Halal Market Registers a 5.5% Annual Increase, Reaching £1.77 Trillion Globally
The growing interest of Muslim consumers in ethical consumerism is significantly influencing the global market, particularly in the Islamic economy sectors. This trend, which has gained traction since 2024, is reshaping the landscape of various brands across multiple sectors.
The Global Islamic Economy, valued at over £3.6 trillion in Islamic-finance assets, experienced a 9.2% growth from 2022 to 2025. Muslim consumer spending on halal goods and services reached approximately £1.77 trillion in 2023, contributing to an annual sector growth of 5.5% despite global economic challenges like inflation and conflicts.
This growth is not solely due to the rising Muslim population—projected to reach 2.76 billion by 2050—but also by increasing disposable incomes in Muslim-majority countries such as Indonesia, Malaysia, and Saudi Arabia.
The rise of ethical consumerism among Muslim consumers is partly linked to geopolitical events, such as Israel’s attacks on Gaza, and heightened scrutiny of multinational corporations. This sensitivity to ethics has prompted consumers to favour brands that align with their values of fairness, halal compliance, and social justice.
Beyond the Muslim demographic itself, non-Muslim consumers are increasingly attracted to halal products because of their perceived ethical production, safety, and quality standards, boosting demand in Western markets like Europe and North America.
Smaller, independent Muslim-owned brands like Mecca Cola, Qibla Cola, Salaam Cola, Aqsa Cola, and Gaza Cola are emerging as strong competitors to multinational giants by positioning themselves as ethical, faith-driven alternatives. These brands emphasize halal-certified ingredients, cultural relevance, and social justice, creating emotional connections with socially conscious and younger Muslim consumers.
These brands rely heavily on authentic storytelling and purpose-driven marketing to build loyalty and trust, contrasting with the mass advertising approaches of global corporations. Platforms such as the Muslim Ad Network amplify these voices to their target audience, highlighting a marketing strategy rooted in community and faith values.
Brands that work to meet Islamic standards can appeal to non-Muslim shoppers as well. For instance, Coop Alleanza shops in Italy stopped stocking Israeli products, and the UK-based Gaza Cola was launched to raise money for rebuilding al Karama hospital in northern Gaza.
Iba Cosmetics, an India-based vegan and halal brand, attracts both Muslim and non-Muslim consumers, demonstrating the crossover appeal of halal products. The beverage sector has seen a shift towards alternative brands in Muslim-majority countries, with Gaza Cola selling more than half a million cans by the end of 2024.
Malaysia remains the top-ranked country in the Global Islamic Economy Indicator Score, while the UK is ranked 14th. Dinar Standard predicts that Muslims will spend more than £86bn on cosmetics by the end of 2028.
This trend is anticipated to continue accelerating, influencing not only the size and scope of the Islamic economy but also how global brands position themselves in an increasingly ethics-conscious marketplace.
The surging value of the Global Islamic Economy, currently standing at over £3.6 trillion in Islamic-finance assets, is a testament to the growth in this sector, experiencing a 9.2% rise from 2022 to 2025. This expansion is not just attributable to the increasing Muslim population but also to the growing business interest in ethical consumerism, particularly in the Islamic economy sectors.
