Navigating China’s Halal Food Market: Opportunities and Compliance for Foreign Investors

China’s halal food market is rapidly expanding, valued at over US$77 billion in 2024 and projected to grow at 10.8 percent annually through 2034. Demand is driven by a sizable Muslim population, rising incomes, and growing consumer trust in halal-certified products.

China is home to about 20-25 million Muslims, primarily from ethnic minority groups such as the Hui, Uighur, Kazakh, and Dongxiang communities, according to data from the State Council Information Office and the National Bureau of Statistics.

Concentrated in provinces like Ningxia Hui Autonomous Region, Xinjiang Uyghur Autonomous Region, Gansu, and Qinghai, these populations have cultivated a sizable and distinct halal food market, governed by Islamic dietary laws and longstanding cultural traditions.

As domestic consumption trends shift and the Chinese government promotes rural revitalization and ethnic integration policies, the halal food sector is becoming strategically important—not only for internal food security and social cohesion but also as a potential export segment aligned with the Belt and Road Initiative (BRI).

For instance, the central government has encouraged provinces and areas with strong Muslim populations, particularly Ningxia and Xinjiang, to develop halal industries with both domestic and international reach.

For foreign investors, China’s halal market presents both opportunity and complexity. The regulatory environment is fragmented, with halal certification managed differently across provinces and lacking a national standard, posing compliance challenges for producers and exporters.

At the same time, provinces such as Ningxia are building halal food industrial parks and actively participating in trade promotion platforms like the China-Arab States Expo, providing a policy-backed entry point into both China’s inland consumer markets and its halal trade with countries in the Organization of Islamic Cooperation (OIC).

This article explores the structure and regulatory framework of China’s halal food market, highlights key regional initiatives, and outlines practical strategies for foreign businesses seeking access to this specialized and growing segment of China’s food economy.

China’s halal food market overview

China’s halal food market is large and growing rapidly. Industry analysts estimate it in the tens of billions of dollars: for example, Fortune Business Insights valued China’s halal food & beverage market at about US$77.7 billion in 2024, up from roughly US$68 billion in 2023, with a projected CAGR of about 10.8 percent through 2034.

Meanwhile, domestic sources report similarly high figures: one Chinese report predicted the market will surpass RMB 3 trillion (US$418.75 billion) by 2025. This expansion is fueled by China’s sizable Muslim population and rapidly rising incomes. In many cases non-Muslim consumers prefer halal-certified foods as a marker of quality and safety.

China’s halal market spans most food sectors, but key categories include:

• Meat and poultry: Halal-certified beef, lamb/mutton and poultry products are the largest segment, reflecting traditional dietary norms. Specialized halal processing in regions like Xinjiang and Henan supply both local markets and exports.
• Dairy: Milk, yogurt and other dairy products are widely consumed by Muslims and increasingly by non-Muslims seeking “premium” quality. Leading Chinese dairy firms (for example, Yili, Mengniu) now offer halal-certified lines.
• Snacks and convenience foods: There has been strong growth in ready-to-eat snacks, baked goods, and packaged foods that meet halal standards. For example, manufacturers have launched many frozen ready meals and instant products (such as dumplings or noodles) to appeal to time-pressed consumers. These convenient foods help extend halal diets to busy urban families.
• Beverages: Non-alcoholic drinks, from juices and teas to bottled health drinks, are another important segment. Many popular beverage companies now produce halal-certified versions, catering to Muslim travelers and domestic demand.

Together these categories form a complete halal food supply chain, including ingredient firms (grains, oil, spices) and ready-to-eat food chains.

Notably, Qinghai and other provinces have developed up to 300 halal processing factories and thousands of restaurants to serve local demand.

Drivers behind the surging demand

The steady expansion of China’s halal food industry is underpinned by a convergence of socioeconomic, policy, and cultural factors. While Muslim consumers remain the core demographic, a growing number of non-Muslim Chinese are also driving demand for halal-certified products, attracted by perceptions of superior quality and safety. Below, we examine the principal forces shaping this demand landscape.

Rising incomes and demographic concentration

China’s growing middle class is a significant force behind increased halal food consumption. With higher disposable incomes, more consumers, including within the country’s estimated 25 million Muslims, can afford branded and imported halal products. Importantly, many Muslim communities are concentrated in provinces experiencing rapid economic growth, such as Henan, Ningxia, and Xinjiang.

This overlap between demographic concentration and economic development enhances purchasing power and creates strong localized demand for halal-certified foods, particularly in urban and peri-urban areas.

Government support and strategic promotion

Both Central and provincial governments have identified the halal food sector as a strategic industry, especially in regions with large Muslim populations. This is evident in a broad array of policy measures aimed at fostering both domestic development and international competitiveness. These include:

• Subsidies for halal certification and facility upgrades;
• Investments in dedicated halal food processing zones or so-called “Halal Industry Parks;” and
• Export facilitation initiatives aligned with BRI goals.

For instance, authorities in Xinjiang and Ningxia have issued specific programs to support local halal producers in obtaining certification, scaling production, and accessing overseas markets. Such policy backing has created an enabling environment for halal businesses to thrive, particularly in inland and western provinces.

Health, safety, and quality perceptions

Among Chinese consumers, halal-certified products are beginning to being perceived as symbols of cleanliness, safety, and strict quality control, attributes that resonate strongly in a market still sensitive to past food safety scandals.

The halal label, which ensures food is free from pork, alcohol, and contamination through improper slaughter, appeals not only to religious consumers but also to health-conscious buyers.

This perception has been particularly beneficial for categories such as dairy, snacks, and baby food, where halal certification is increasingly marketed as a sign of premium quality. For many urban consumers, choosing halal foods is less about religion and more about assurance in product standards.

Growth of halal tourism and hospitality

China’s halal food sector is also benefiting from a sharp rise in halal-oriented tourism and hospitality services. The increase in both domestic Muslim tourism and inbound travel from Muslim-majority countries has led to the proliferation of halal-friendly hotels, restaurants, and transportation services.

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In major cities like Shanghai, Beijing, Xi’an, and Guangzhou, the number of halal-certified eateries and cafés is rising, with Shanghai alone hosting hundreds of Muslim restaurants. This trend is further amplified by initiatives to integrate Muslim-friendly services into BRI tourism corridors, including targeted campaigns to attract travelers from Southeast Asia and the Middle East.

China’s halal food imports potential

China’s reliance on imports to satisfy growing halal demand presents a clear opportunity for foreign exporters. In 2024, the country imported approximately US$4.2 billion worth of halal‑certified food and beverage products, distributed as shown in the table below:

Key supplier countries include:

• Malaysia: Remains China’s largest halal food supplier, exporting mainly palm oil–based snacks, confectionery, and processed meats certified by the Department of Islamic Development Malaysia (JAKIM).
• Saudi Arabia: Saudi exporters focus on dates, dairy (labneh, yogurt), and halal‑certified poultry, leveraging longstanding trade agreements under China’s (BRI) framework.
• Oceania: Australia and New Zealand supply high‑quality lamb, beef, and dairy ingredients. Since the 2020 opening of Australian meat to China, halal‑certified red meat exports have surged 35 per cent year‑on‑year.
• Europe: The Netherlands and Germany chiefly export halal‑certified baked goods, confectionery, and infant formula. European suppliers often partner with Chinese distributors to secure local halal certification.
• Others: This segment includes smaller contributions from Turkey, the United Arab Emirates, and African producers, primarily in spices, nuts, and specialty snacks.

China’s diverse import base underscores the value of targeting established halal‑certified exporters and aligning with Chinese certification requirements. For investors and exporters, these figures highlight the importance of strategic partnerships and local‐certification alignment to capture an increasing share of China’s US$4 billion‑plus annual halal import market.

Major hotspot for halal food consumption in China

China’s halal food market is highly regionalized, shaped by the geographic distribution of its Muslim population, and the presence of institutional support in key provinces. While Muslim communities are found across China, the northwest and central regions remain the core consumption and production hubs for halal food products. Understanding the dynamics of these regions is essential for investors evaluating market entry or supply chain opportunities.

Xinjiang Uyghur Autonomous Region

Xinjiang represents the single most important province in China’s halal food ecosystem. Home to over 12 million Uyghurs, who make up the majority of the region’s population, Xinjiang accounts for approximately 17.1 percent of the country’s total halal food sales, according to local industry estimates.

Traditional dietary preferences—rooted in halal-compliant meat, dairy, and wheat-based staple foods—drive consistent local demand. At the same time, the region’s strategic position within China’s BRI has prompted significant government investment into halal processing zones, logistics hubs, and trade facilitation with Central Asian and Middle Eastern markets.

The regional government actively promotes halal certification and exports, especially in cities like Urumqi and Kashgar, where dedicated halal industrial parks have been established. These policy efforts are designed to transform Xinjiang from a consumption-heavy market into a competitive halal production and export base for western China.

Henan Province

Though not traditionally associated with China’s Muslim heartland, Henan has emerged as a major halal food production center due to its large Hui Muslim population—estimated to be the largest among all provinces.

As of 2019, Henan hosted more than 47,500 halal food enterprises, including over 1,000 large-scale producers and 10,000 halal restaurants, reflecting a well-developed supply chain that spans from agriculture to distribution.

Henan is also a beneficiary of central government policy that seeks to elevate inland provinces as food processing hubs. Its halal food sector contributed roughly 14.2 percent of national halal food sales, making it one of the most commercially significant regions in the country. Cities like Zhengzhou and Kaifeng have become hotspots for halal-certified packaged foods, particularly meat, noodles, and prepared dishes aimed at both domestic and overseas markets.

Ningxia Hui Autonomous Region, Gansu, and Qinghai

These three northwestern provinces are historically and culturally tied to China’s Hui Muslim population and form a contiguous halal consumption belt. Despite their relatively smaller populations compared to Xinjiang or Henan, they collectively account for a substantial share of halal food consumption and production.

Government policy has played a central role in this development, especially in Ningxia, where the regional administration has established an International Halal Certification Center and laid out a long-term plan to build halal food into a regional pillar industry.

Local governments in Gansu and Qinghai have also prioritized halal food processing and branding, creating industrial parks focused on meat and dairy production that cater not only to regional markets but also to China’s eastern cities. The central government’s strategy to integrate these provinces more closely with Muslim-majority countries through BRI projects has further elevated their relevance in the halal trade landscape.

Other regions with growing demand

Halal food demand is also present in eastern and central cities with sizable Hui communities, such as Beijing, Tianjin, Shanghai, and Xi’an. These urban centers, though not primary production hubs, support thriving halal restaurant scenes and host large floating populations of Muslim migrant workers, students, and travelers.

In Yunnan, Inner Mongolia, and Shaanxi, growing tourism and urbanization are boosting interest in halal-certified packaged foods and catering services.

While the market remains concentrated in the western and central provinces, these other regions offer entry points for companies targeting China’s rising demand for halal convenience foods and high-quality branded products—particularly in the hospitality, retail, and e-commerce sectors.

China’s halal food regulatory framework

China does not have a single national halal law or standard. Halal food rules are administered through a mix of national agencies and local authorities. At a national level, the State Administration for Market Regulation (SAMR) oversees food safety standards generally, but there is no unified national “halal certification” mandate. Instead, halal certification is handled by government-backed Islamic associations and ethnic affairs bureaus at local and provincial levels.

In practice, businesses apply to the Islamic Association of China (CIA, 中国伊斯兰教协会) or its regional branches for product certification according to local criteria. Meanwhile, the Ethnic and Religious Affairs Commission (民族宗教事务局) at each level, under the National Ethnic Affairs Commission, enforces halal rules. Each major city or region has a Halal Food Management Office (清真食品管理办公室) staffed by the local Ethnic Affairs bureau. This office licenses and inspects halal food firms.

For example, a city-level Ethnic Affairs Commission in Gansu province explicitly “manages all halal food production, processing and sales enterprises by law” and “undertakes halal food labeling and certification supervision”.

In short, China’s halal system is administered by state authorities (SAMR and the Ethnic Affairs Commission) in cooperation with Islamic association committees, rather than by independent religious bodies.

Provincial vs. national schemes

There is no national halal certification scheme in China. Instead, provinces and municipalities have developed their own halal standards and certification processes.

Since the 2000s, several Northwestern provinces (in particular, Ningxia, Gansu, Shaanxi, Qinghai, Yunnan) have formed regional alliances to harmonize their local standards. For example, a 2015 Xinhua report noted that in 2012 five western provinces agreed on a common Halal Food Certification Code, and by 2013 they began joint implementation. By 2015, up to eight provinces (including Henan, Sichuan, Tianjin) had signed on to a regional “halal alliance” to develop standardized certification rules.

In practice, a provincial halal license is broadly valid elsewhere in China. Once a company obtains a local Halal Food Business License (清真食品准营证) and certification, other Chinese cities generally accept it. In our previous article focused on halal certification procedures in China, we noted that “the license obtained in one city is generally recognized in other Chinese cities”. This means a Gansu-certified product can usually be sold in Beijing, for example, without re-certification.

Still, the fragmented system remains an issue. Different provinces and regions have their own certification authorities and standards, creating extra steps and costs for businesses. In response, the central government is slowly pushing toward national harmonization: it has worked with Islamic associations to issue region-specific guiding standards and is collaborating with foreign halal bodies (like Malaysia’s JAKIM) to benchmark Chinese norms. Some provinces have even referenced Malaysian or Indonesian halal criteria in drafting their rules. But as of 2025, any product labeled “清真” in China is expected to hold a Chinese-issued certificate or license.

Key regulations and documents

The table below lists several important guidelines and standards to follow within China’s halal food market.

Foreign investment and trade opportunities in China’s halal food market

Participation in major halal trade events

China’s leading halal food expos offer unrivalled networking and deal‑making platforms:

• China–Arab States Expo (Ningxia): In its 2024 edition, the Expo attracted some 750 exhibitors from over 30 countries and facilitated RMB  6.8  billion (US$ 949.17 million) in signed agreements for halal food and beverage products. This annual event is the centerpiece for Middle Eastern suppliers seeking Chinese partnerships.
• China International Halal Industry & Products Expo (Beijing): The 2023 show saw 1,200 exhibitors and more than 80,000 professional visitors, including procurement teams from leading retail chains and e‑commerce platforms.

Foreign companies that staff these expos build vital connections with local distributors, gain direct feedback on consumer tastes, and often secure on‑the‑spot contracts for import, co‑manufacturing, or joint‑venture distribution.

BRI and OIC trade integration

Beijing’s BRI logistics corridors are lowering barriers for halal trade:

• The New Eurasia Land Bridge and China–Pakistan Economic Corridor (CPEC) have cut delivery times by up to 30 per cent for goods moving from Central Asia and the Middle East into western hubs such as Urumqi and Kashgar.
• In 2022, China was the ninth-largest halal exporter to OIC member states—shipping US$10.4 billion of halal goods, or 5.8 per cent of the global halal market, with Malaysia, UAE, and Indonesia among the top destinations.

For foreign exporters, this means that products routed through BRI corridors can serve both inland consumption in provinces like Xinjiang and Ningxia and onward exports to Muslim-majority markets, all under streamlined customs procedures in designated free‑trade zones.

Successful foreign entrants

Several overseas brands illustrate best practices in entering China’s halal arena:

• Almarai (Saudi Arabia) teamed up with a Ningxia dairy cooperative in 2022. By aligning with local certification bodies and leveraging Ningxia’s Halal Industrial Park, the joint venture posted RMB 150 million (US$20.93 million) in sales of halal milk products within its first year.
• Nestlé launched a halal‐certified infant formula in Shanghai in 2023, capturing eight percent of the city’s premium baby‑food segment in six months by partnering with local online retailers for direct‑to‑consumer sales.
• Halal Europe Foods (Netherlands) established a distribution hub in the Tianjin Free Trade Zone in 2024, handling US$20 million in annual throughput of European‐made halal snacks and confectionery.

Each case underscores critical success factors: securing Chinese halal certification, forming joint ventures or local partnerships, and targeting both brick‑and‑mortar and e‑commerce channels for rapid market penetration.

Exporting halal food to China from abroad

Exporting halal food to China involves more than simply obtaining a halal certification in your home country. Even if a product has been certified halal overseas, it must still comply with China’s domestic legal, regulatory, and market requirements before it can be imported and sold in the country. Below is a breakdown of the main compliance areas.

Firstly, all food products imported into China—including those labeled as halal—must comply with the Food Safety Law of the People’s Republic of China and related administrative measures. Key regulations include:

• Food Safety Law
• Administrative Measures on Import and Export Food Safety
• Regulations on the Registration of Overseas Production Enterprises of Imported Food

These laws set requirements for hygiene, ingredients, labeling, storage, transportation, and traceability. Importers should ensure that both the product and the manufacturer meet these standards before attempting to bring the product into China.

Secondly, according to Chinese law, all overseas producers of food products must register with the General Administration of Customs of China (GACC) before exporting to China.

This registration is a prerequisite for customs clearance. Without it, the product cannot legally enter the Chinese market. The process typically requires detailed information about the production facility, food categories, and quality control systems. In some cases, Chinese authorities may conduct an on-site audit or inspection.

Thirdly, China does not currently have a national mandatory halal certification system for imported products and foreign halal certifications are not automatically recognized as a legal basis for marketing a product as halal in China.

However, local halal administrations may have their own rules regarding:

• Approval of foreign halal certifiers.
• Pre-market approval or registration of halal-certified products.
• Distribution channels within Muslim communities.

For example, Ningxia Hui Autonomous Region requires halal imports to be reviewed by its Islamic Affairs Commission, and products sold as halal must comply with the Regulation on Halal Food Supervision specific to the region.

In addition, market expectations—especially in Muslim-majority regions like Ningxia, Xinjiang, Gansu, and Qinghai—often drive demand for China-based halal certification. Many importers voluntarily obtain halal certification through domestic bodies such as the CIA or local Islamic Affairs Commissions.

Last but not the least, imported halal food products are subject to both border inspection and post-market supervision. Customs authorities may carry out document reviews, sampling, and laboratory tests when products enter China. After entry, SAMR and its local counterparts may conduct random inspections in retail markets to ensure that products meet national standards. Products found to be unsafe, mislabeled, or falsely advertised as halal may be recalled, destroyed, or banned.

Businesses are advised to work closely with experienced Chinese importers or distributors and consult with relevant local authorities or halal certifying bodies in China to avoid delays and ensure smooth market entry.

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