Daegu City to Invest 5 Billion KRW Over 5 Years in Halal Food Market ... $200 Million Export Target

Daegu City has decided to significantly expand the halal food market, which accounts for a major segment of the global food market. The city plans to increase the number of halal-certified companies from 5 to 50 by 2028, a tenfold increase, and aims to triple export revenue from $71.1 million to $200 million through the implementation of the "Halal Food Revitalization Project."

The global halal food market was valued at $1.9 trillion in 2021, representing 26% of the worldwide food market, and is expected to grow approximately 10% annually. This growth rate is significantly higher compared to the global food market’s average annual growth of 2-3%.

A foreigner in Daegu is visiting a store that sells halal food and is talking with the clerk.

The high growth rate of the halal market is attributed to the increasing Muslim population. In 2022, Muslims accounted for 24.7% of the global population, totaling 1.96132 billion people. The average birth rate among Muslims is 2.9, higher than the global average of 2.4, and the Muslim population is projected to reach 3 billion by 2060.

In 2022, Daegu’s food exports showed strong growth, increasing by 13.6% year-on-year to $71.1 million. However, this accounts for only about 3% of the total sales in Daegu’s food industry, indicating a domestic market-oriented structure.

Daegu’s main food export destinations are Asian countries such as China, Japan, and Taiwan, which account for 55.3% of total exports, or $39.3 million. Among these, exports to Southeast Asia amount to $10.5 million, mostly consisting of non-halal products.

To overcome the limitations of the region’s domestic market-oriented food industry, the city has designated this year as the inaugural year for halal food revitalization. It has formed the "Southeast Asia Export Council for the Promotion of Daegu Food," which includes food industry representatives, academia, and halal experts to provide advice and gather opinions. To establish a halal market distribution network, Daegu will also sign an MOU with the "KOFIA (Korean Food Importers Association)"?an association of Asian-Pacific Korean food importers?during the Daegu International Food Industry Exhibition in September, preparing the groundwork for full-scale project implementation.

The "Halal Food Revitalization Project," which will invest 5 billion KRW over five years from 2024 to 2028, targets local food companies that wish to enter the halal market but face difficulties due to lack of capital, technology, and information. The project will support halal certification costs essential for market entry by providing 50 million KRW annually, aiming to increase the number of halal-certified companies from the current 5 to 50 by 2028.

Additionally, the city plans to invest 730 million KRW in four initiatives: developing halal foods tailored to specific Muslim countries, providing market trends and information on halal foods, hosting buyer invitation consultation meetings targeting high purchasing power buyers, and participating in the Daegu joint pavilion at MIHAS (Malaysia International Halal Showcase), the world’s largest halal expo, to promote D-Food. These efforts aim to help Daegu’s food industry successfully enter the Southeast Asian halal market, increasing export revenue from the current $71.1 million to $200 million by 2028, a 181% growth, and transforming Daegu’s food industry structure from domestic market-oriented to export-focused.

Through the "Halal Food Revitalization Project," Daegu City aims to establish a new growth foundation for the local food industry by prioritizing the development of the Southeast Asian halal market, which has good geographic accessibility and increasing demand for Korean food driven by the explosive popularity of K-pop. The city also plans to expand into the Middle Eastern market in the future.

Mayor Hong Jun-pyo stated, “The global halal food market is a massive market that cannot be ignored, and many companies have already expanded exports by obtaining halal certification. Daegu will also transform its food industry structure from domestic market-oriented to export-focused and actively pursue market development in global halal markets such as Southeast Asia and the Middle East.”