China has emerged as a major player in the global halal market, leveraging its manufacturing scale, logistics networks and trade links with Muslim-majority markets to expand exports, analysts said.

Home to about 25 million Muslims – including Hui, Uygur, Kazakh and Dongxiang communities – China’s halal industry had long been shaped by domestic demand. But the growth of online and offline distribution channels, together with rising demand from younger Muslim consumers worldwide, has accelerated a shift towards exports.

“It’s fascinating that such a small halal market domestically has created an outsized player in the halal export industry, especially in a nation that does not have a unified halal food law like many in Southeast Asia,” said Humphrey Ho, president of consumer marketing group Helios Worldwide.

China was the largest exporter to the 57 member states of the Organization of Islamic Cooperation in 2023, with total outbound shipments reaching US$32.5 billion, according to the latest available data from market research firm DinarStandard. This put China ahead of India at US$28.9 billion and Brazil at US$26.9 billion.

China’s halal-related exports span food, fashion, cosmetics, pharmaceuticals, media and recreational goods, while the halal economy encompasses the production, distribution and consumption of goods and services in accordance with Islamic law. US consulting firm Frost & Sullivan estimated the sector could grow to between US$9.5 trillion and US$10.5 trillion globally by 2030.

China’s flourishing industry is drawing on familiar strengths – vast manufacturing capacity, competitive pricing and well-developed distribution channels – as it expands exports to Muslim-majority markets across Southeast Asia, the Middle East and Central Asia.