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Halal Pharmaceuticals Manufacturing 2025–2030: Unveiling the Next Wave of Global Growth & Innovation

ByLaura Chen

2025-05-23
Halal Pharmaceuticals Manufacturing 2025–2030: Unveiling the Next Wave of Global Growth & Innovation

Halal Pharmaceuticals Manufacturing in 2025: Navigating Regulatory Shifts, Market Expansion, and Technological Breakthroughs. Discover How This Sector is Redefining Global Healthcare Standards for the Next Decade.

The halal pharmaceuticals manufacturing sector is experiencing robust growth in 2025, driven by rising global demand for Shariah-compliant medicines, increasing Muslim populations, and heightened consumer awareness regarding product ingredients and ethical sourcing. The sector’s expansion is underpinned by regulatory developments, investments in certification infrastructure, and strategic moves by leading pharmaceutical companies to capture a share of the burgeoning halal market.

A key trend in 2025 is the mainstreaming of halal compliance across pharmaceutical supply chains. Major manufacturers are reformulating products to exclude porcine- and alcohol-derived ingredients, and are investing in dedicated halal-certified production lines. This is particularly evident in Southeast Asia and the Middle East, where governments and regulatory bodies are strengthening halal pharmaceutical standards. For example, Malaysia’s National Pharmaceutical Regulatory Agency (NPRA) and the Department of Islamic Development Malaysia (JAKIM) continue to set benchmarks for halal certification, influencing regional and global practices.

Industry leaders such as Duopharma Biotech Berhad and Chemical Company of Malaysia Berhad (CCM) are at the forefront, expanding their halal-certified product portfolios and investing in R&D to address both chronic and acute therapeutic needs. Duopharma Biotech Berhad has reported increased demand for its halal-certified medicines, particularly in export markets across ASEAN, the Middle East, and Africa. Similarly, CCM continues to enhance its manufacturing capabilities to meet stringent halal standards and global Good Manufacturing Practice (GMP) requirements.

Another significant driver is the growing role of international pharmaceutical companies in the halal space. Firms such as Sanofi and GSK are collaborating with local partners and certification bodies to develop halal-compliant vaccines and therapeutics, recognizing the commercial and ethical imperatives of serving Muslim-majority markets. These collaborations are expected to accelerate technology transfer, capacity building, and the global harmonization of halal pharmaceutical standards.

Looking ahead, the outlook for halal pharmaceuticals manufacturing remains highly positive. The sector is poised for continued double-digit growth, supported by government incentives, increasing consumer trust in certified products, and the expansion of halal logistics and supply chain solutions. As regulatory frameworks mature and more countries adopt formal halal pharmaceutical guidelines, the industry is expected to see greater standardization, transparency, and international trade opportunities in the next few years.

Global Market Size, Growth Forecasts, and Regional Hotspots (2025–2030)

The global halal pharmaceuticals manufacturing sector is poised for robust growth between 2025 and 2030, driven by rising demand from Muslim-majority countries, increasing consumer awareness, and regulatory support for halal-certified medicines. As of 2025, the global Muslim population exceeds 1.9 billion, representing a significant and growing market for halal-compliant healthcare products. The sector’s expansion is further catalyzed by the increasing prevalence of chronic diseases and a heightened focus on ethical and traceable sourcing of pharmaceutical ingredients.

Southeast Asia, particularly Malaysia and Indonesia, continues to be a regional hotspot for halal pharmaceutical manufacturing. Malaysia has established itself as a global leader, with a comprehensive halal certification system and a strong government-backed ecosystem. The Duopharma Biotech Berhad is a prominent example, being one of the first pharmaceutical companies globally to receive halal certification for a wide range of products. The company’s ongoing investments in research and development, as well as its partnerships with local and international firms, underscore Malaysia’s ambition to be a global halal pharma hub.

Indonesia, home to the world’s largest Muslim population, is also scaling up its halal pharmaceutical capabilities. The government’s implementation of mandatory halal certification for pharmaceuticals, which is being phased in through 2026, is expected to significantly boost domestic production and attract foreign investment. Companies such as Kimia Farma, a state-owned enterprise, are expanding their halal-certified product portfolios and modernizing manufacturing facilities to meet both local and export demand.

In the Middle East, the United Arab Emirates and Saudi Arabia are investing heavily in local pharmaceutical manufacturing, with a focus on halal compliance to serve both domestic and regional markets. The Saudi Pharmaceutical Industries & Medical Appliances Corporation (SPIMACO) is a key player, actively pursuing halal certification and expanding its product lines to cater to the growing demand for ethical medicines.

Looking ahead to 2030, the halal pharmaceuticals market is expected to see double-digit annual growth rates in key regions, with global market value projected to reach tens of billions of US dollars. Growth will be underpinned by regulatory harmonization, increased cross-border trade, and the entry of multinational pharmaceutical companies seeking to tap into the halal segment. Companies such as CCM Berhad (now part of Duopharma) and Duopharma Biotech Berhad are likely to play pivotal roles in shaping the industry’s future landscape, alongside emerging players in South Asia, the Middle East, and Africa.

Regulatory Landscape: Halal Certification Standards and Compliance

The regulatory landscape for halal pharmaceuticals manufacturing is rapidly evolving in 2025, driven by increasing global demand for halal-certified medicines and the need for harmonized standards. Halal pharmaceuticals are defined as medicinal products that comply with Islamic law, particularly in terms of ingredient sourcing, manufacturing processes, and handling. The sector is witnessing significant regulatory developments, especially in countries with large Muslim populations and in export-oriented pharmaceutical hubs.

Malaysia remains a global leader in halal pharmaceutical regulation, with its Department of Islamic Development Malaysia (JAKIM) setting comprehensive standards under the MS 2424:2019 Halal Pharmaceuticals – General Guidelines. These standards cover the entire supply chain, from raw material sourcing to packaging, and are recognized by many countries as a benchmark for halal compliance. In 2025, Malaysia continues to strengthen its position by collaborating with international bodies to promote mutual recognition of halal certification, aiming to facilitate cross-border trade and reduce duplication of audits.

Indonesia, home to the world’s largest Muslim population, has implemented the Halal Product Assurance Law, which mandates halal certification for all pharmaceutical products sold domestically. The Halal Product Assurance Organizing Agency (BPJPH) oversees certification, working closely with the Indonesian Ulema Council (MUI) for religious compliance. In 2025, Indonesia is focusing on streamlining its certification process and increasing the capacity of halal auditors to meet the growing demand from both local manufacturers and multinational companies seeking market access.

The Gulf Cooperation Council (GCC) countries, particularly Saudi Arabia and the United Arab Emirates, are also advancing their halal pharmaceutical frameworks. The Saudi Food and Drug Authority (SFDA) has issued guidelines for halal pharmaceuticals, emphasizing traceability and the exclusion of prohibited substances such as porcine derivatives and alcohol. The UAE, through its Emirates Authority for Standardization and Metrology (ESMA), is working towards harmonizing halal standards across the region, with a focus on facilitating exports and attracting foreign investment in halal pharma manufacturing.

Major pharmaceutical manufacturers are responding to these regulatory shifts by investing in halal-compliant production lines and seeking certification from recognized bodies. Companies such as Duopharma Biotech in Malaysia and CCM Berhad are at the forefront, with dedicated halal-certified facilities and active participation in standard-setting initiatives. These companies are also engaging in research to develop alternatives to non-halal excipients, further supporting compliance and innovation in the sector.

Looking ahead, the outlook for halal pharmaceuticals manufacturing is shaped by ongoing efforts to harmonize standards internationally, the digitalization of certification processes, and the increasing role of blockchain for supply chain transparency. As regulatory bodies and industry leaders collaborate, the sector is expected to see greater efficiency, reduced barriers to trade, and enhanced consumer trust in halal-certified medicines over the next few years.

Major Players and Strategic Partnerships in Halal Pharma

The halal pharmaceuticals manufacturing sector is experiencing significant growth and transformation in 2025, driven by increasing demand from Muslim-majority countries and a rising global awareness of halal-certified healthcare products. Major industry players are expanding their halal-certified product lines and forging strategic partnerships to strengthen their market positions and ensure compliance with stringent halal standards.

Among the global leaders, CCM Duopharma Biotech Berhad (Duopharma Biotech) stands out as a pioneer in halal pharmaceuticals. Headquartered in Malaysia, Duopharma Biotech has been at the forefront of halal certification, with a broad portfolio of halal-certified medicines and supplements. The company collaborates closely with Malaysia’s Department of Islamic Development (JAKIM) to maintain rigorous halal compliance and has announced ongoing investments in research and development to expand its halal offerings through 2025 and beyond.

Another key player is Sime Darby, which, through its healthcare subsidiaries, has entered the halal pharmaceutical space, leveraging its established presence in the region. The company is actively pursuing joint ventures and technology transfers with international partners to enhance its halal manufacturing capabilities and distribution networks.

In Indonesia, Kimia Farma is a state-owned enterprise that has made significant strides in halal pharmaceuticals. The company operates one of the largest pharmaceutical manufacturing facilities in Southeast Asia and has secured halal certification for a substantial portion of its product range. Kimia Farma is also engaged in strategic collaborations with local and international firms to develop new halal-compliant formulations and expand its export footprint, particularly targeting the Middle East and Africa.

The Middle East is witnessing increased activity, with Saudi Pharmaceutical Industries & Medical Appliances Corporation (SPIMACO) leading efforts to produce halal-certified medicines for both domestic and export markets. SPIMACO has invested in upgrading its manufacturing processes to align with halal standards and is exploring partnerships with Southeast Asian companies to share best practices and technology.

Strategic partnerships are a defining trend in 2025, as companies seek to navigate complex regulatory environments and tap into new markets. For example, cross-border collaborations between Malaysian and Indonesian manufacturers are facilitating knowledge exchange and harmonization of halal certification processes. Additionally, pharmaceutical giants are increasingly working with Islamic certification bodies to ensure global recognition of their halal products.

Looking ahead, the halal pharmaceuticals manufacturing sector is expected to see continued consolidation and innovation, with major players investing in advanced technologies, supply chain transparency, and international partnerships to meet the evolving needs of the global Muslim population.

Technological Innovations: From Ingredient Sourcing to Manufacturing Automation

The halal pharmaceuticals manufacturing sector is undergoing rapid technological transformation in 2025, driven by the dual imperatives of compliance with stringent halal standards and the need for operational efficiency. Innovations span the entire value chain, from ingredient sourcing to advanced manufacturing automation, as companies respond to growing global demand for halal-certified medicines and supplements.

A key area of innovation is the traceability and verification of raw materials. Pharmaceutical manufacturers are increasingly adopting blockchain and digital ledger technologies to ensure the halal integrity of ingredients throughout the supply chain. This is particularly critical for gelatin, enzymes, and excipients, which often have animal origins. For example, Duopharma Biotech, a leading halal pharmaceutical producer in Malaysia, has implemented digital systems to track ingredient provenance and certification, ensuring compliance with both local and international halal standards.

Ingredient innovation is also accelerating. Companies are investing in the development of plant-based and synthetic alternatives to traditionally animal-derived substances. CCM Pharmaceuticals (now part of Duopharma Biotech) has pioneered the use of plant-based capsules and halal-certified excipients, reducing reliance on animal sources and simplifying the certification process. This trend is expected to intensify as regulatory bodies and consumers demand greater transparency and assurance of halal status.

On the manufacturing floor, automation and digitalization are reshaping production processes. Robotics, Internet of Things (IoT) sensors, and AI-driven quality control systems are being deployed to minimize human error, enhance hygiene, and ensure consistent adherence to halal protocols. Cipla, a major global pharmaceutical manufacturer with halal-certified product lines, has invested in smart manufacturing technologies that enable real-time monitoring of critical control points, from ingredient mixing to packaging. These systems not only improve efficiency but also generate digital audit trails that facilitate halal certification and regulatory compliance.

Looking ahead, the integration of advanced analytics and machine learning is expected to further optimize halal pharmaceutical manufacturing. Predictive maintenance, automated batch release, and digital documentation are set to become industry standards, reducing costs and accelerating time-to-market for halal medicines. As the sector expands, collaboration between manufacturers, certification bodies, and technology providers will be crucial in setting new benchmarks for halal integrity and operational excellence.

In summary, 2025 marks a pivotal year for technological innovation in halal pharmaceuticals manufacturing, with digital traceability, ingredient innovation, and automation at the forefront. Leading companies such as Duopharma Biotech, CCM Pharmaceuticals, and Cipla are setting the pace, shaping a future where halal compliance and cutting-edge technology go hand in hand.

Supply Chain Integrity and Traceability Solutions

Ensuring supply chain integrity and traceability is a critical challenge in halal pharmaceuticals manufacturing, especially as the sector expands globally in 2025 and beyond. The halal pharmaceutical market is driven by the need for products that comply with Islamic law, which prohibits certain ingredients and requires strict segregation from non-halal substances throughout the supply chain. This has led to the adoption of advanced traceability solutions and robust certification processes to maintain consumer trust and regulatory compliance.

Key industry players are investing in digital technologies to enhance transparency and traceability. For example, Duopharma Biotech Berhad, a leading Malaysian halal pharmaceutical manufacturer, has implemented end-to-end supply chain monitoring systems to ensure that all raw materials, production processes, and distribution channels comply with halal standards. Their approach includes digital batch tracking and integration with halal certification bodies, allowing for real-time verification of product status and origin.

Similarly, CCM Berhad (Chemical Company of Malaysia Berhad), another major player, has focused on blockchain-based traceability solutions. By leveraging blockchain, CCM aims to create immutable records of every step in the supply chain, from sourcing to final delivery, which can be audited by both regulators and consumers. This technology is expected to become more widespread in the next few years, as regulatory bodies in key markets such as Malaysia, Indonesia, and the Gulf Cooperation Council (GCC) countries tighten requirements for halal pharmaceutical imports.

The role of recognized halal certification organizations is also expanding. The Department of Islamic Development Malaysia (JAKIM) continues to set rigorous standards for halal pharmaceuticals, including requirements for traceability and supply chain segregation. In 2025, JAKIM and similar bodies are increasingly collaborating with manufacturers to develop digital certification platforms, which streamline the audit process and reduce the risk of non-compliance.

Looking ahead, the outlook for supply chain integrity in halal pharmaceuticals is shaped by both regulatory evolution and consumer demand for transparency. Companies are expected to invest further in digitalization, including Internet of Things (IoT) sensors for real-time monitoring and artificial intelligence for predictive risk management. As halal pharmaceutical products gain traction in new markets, especially in Europe and North America, robust traceability solutions will be essential for market access and brand reputation.

Consumer Demand, Awareness, and Evolving Preferences

The demand for halal pharmaceuticals is experiencing robust growth in 2025, driven by increasing consumer awareness, evolving preferences, and demographic shifts in Muslim-majority and minority markets. As the global Muslim population is projected to reach nearly 2.2 billion by 2030, the need for pharmaceutical products that comply with halal standards is becoming more pronounced. Consumers are not only seeking assurance that medicines are free from prohibited substances such as porcine derivatives and alcohol, but also that the entire manufacturing process—from sourcing to packaging—adheres to Islamic principles.

This heightened awareness is reflected in the strategies of leading pharmaceutical manufacturers. For example, Duopharma Biotech Berhad, headquartered in Malaysia, has expanded its portfolio of halal-certified medicines and actively promotes transparency in its supply chain. The company collaborates with local and international halal certification bodies to ensure compliance and has reported increased demand for its halal products in Southeast Asia and the Middle East. Similarly, Chemical Company of Malaysia Berhad (CCM) has positioned itself as a pioneer in halal pharmaceuticals, investing in research and development to create formulations that meet both therapeutic and religious requirements.

Consumer preferences are also shifting towards greater scrutiny of product labeling and certification. Patients and healthcare providers are increasingly requesting documentation of halal status, prompting manufacturers to seek certification from recognized authorities such as the Department of Islamic Development Malaysia (JAKIM) and the Indonesian Ulema Council (MUI). This trend is particularly evident in countries with large Muslim populations, but is also gaining traction in Western markets with significant Muslim communities, such as the United Kingdom and Canada.

In response, multinational pharmaceutical companies are beginning to adapt. Sanofi has established halal production lines in select facilities and collaborates with local partners to ensure compliance with regional halal standards. Meanwhile, GSK has engaged in dialogue with certification bodies to explore the feasibility of halal-compliant vaccines and over-the-counter products.

Looking ahead, the outlook for halal pharmaceuticals manufacturing is positive. The sector is expected to benefit from continued consumer education, government support, and harmonization of halal standards across borders. As awareness grows and preferences evolve, manufacturers that prioritize transparency, certification, and innovation are likely to capture a larger share of this expanding market.

The halal pharmaceuticals manufacturing sector is experiencing a notable surge in investment, mergers and acquisitions (M&A), and funding activity as global demand for halal-certified medicines and healthcare products accelerates into 2025. This momentum is driven by the expanding Muslim population, increasing regulatory clarity, and the strategic positioning of pharmaceutical companies to capture a share of the estimated $100+ billion global halal pharma market.

In recent years, Southeast Asia and the Middle East have emerged as key hubs for halal pharmaceutical manufacturing. Malaysia, in particular, has positioned itself as a global leader, with government-backed initiatives and incentives to attract both domestic and foreign investment. The Duopharma Biotech Berhad, one of Malaysia’s largest pharmaceutical manufacturers, continues to expand its halal-certified product portfolio and has attracted institutional investment to scale up its production capacity. The company’s ongoing collaborations with regional and international partners underscore the sector’s cross-border investment appeal.

Indonesia, the world’s largest Muslim-majority country, is also witnessing increased capital inflows into its halal pharma sector. State-owned Kimia Farma has invested in upgrading its manufacturing facilities to comply with halal standards, while also seeking joint ventures with international firms to enhance technology transfer and market reach. The Indonesian government’s push for mandatory halal certification for medicines by 2026 is expected to further stimulate investment and M&A activity as companies race to comply and consolidate.

In the Middle East, the United Arab Emirates and Saudi Arabia are channeling significant resources into building local halal pharmaceutical manufacturing capabilities. The Saudi Pharmaceutical Industries & Medical Appliances Corporation (SPIMACO) is expanding its halal-certified product lines and exploring strategic partnerships to access new markets. These moves are often supported by sovereign wealth funds and government-backed investment arms, reflecting the sector’s strategic importance.

On the global stage, multinational pharmaceutical companies are increasingly entering the halal market through acquisitions, joint ventures, and minority investments. For example, Sanofi and GSK have both announced initiatives to develop and market halal-compliant products in collaboration with local partners in Asia and the Middle East. These partnerships often involve technology transfer, co-development, and shared distribution networks, accelerating the pace of halal pharma innovation and market penetration.

Looking ahead to 2025 and beyond, the halal pharmaceuticals manufacturing sector is expected to see continued growth in investment and M&A activity. The convergence of regulatory mandates, consumer demand, and government support is likely to drive further consolidation, cross-border deals, and the entry of new players, particularly as halal certification becomes a key differentiator in the global pharmaceutical landscape.

Challenges: Raw Material Sourcing, Certification Bottlenecks, and Global Harmonization

The halal pharmaceuticals manufacturing sector faces several persistent and emerging challenges in 2025, particularly in the areas of raw material sourcing, certification processes, and the global harmonization of standards. As the demand for halal-certified medicines grows—driven by expanding Muslim populations and increasing awareness of halal integrity—these challenges have become more pronounced and critical to address.

One of the foremost challenges is the sourcing of halal-compliant raw materials. Many pharmaceutical excipients and active pharmaceutical ingredients (APIs) are derived from animal sources or may be processed using alcohol or other non-halal substances. Ensuring the halal status of these inputs requires rigorous supply chain scrutiny and traceability. Major manufacturers such as Duopharma Biotech and Chemical Company of Malaysia Berhad (CCM) have invested in dedicated halal supply chain management systems to mitigate risks of contamination and to ensure compliance from raw material procurement through to finished product. However, the global nature of pharmaceutical supply chains means that sourcing halal-certified ingredients—especially gelatin, enzymes, and certain excipients—remains a significant bottleneck, with limited suppliers able to provide the necessary documentation and assurances.

Certification bottlenecks further complicate the landscape. The process of obtaining halal certification for pharmaceuticals is more complex than for food products, as it requires not only ingredient verification but also scrutiny of manufacturing processes, equipment, and even packaging. In Malaysia, the Department of Islamic Development Malaysia (JAKIM) is recognized as a leading authority, but its rigorous standards and limited certifying capacity can result in lengthy approval times. Similar challenges are reported in Indonesia, where the Halal Product Assurance Agency (BPJPH) oversees certification. Pharmaceutical companies often face delays and increased costs due to the need for multiple certifications when exporting to different markets, each with its own regulatory requirements.

Global harmonization of halal pharmaceutical standards remains an unresolved issue. While organizations such as the Organisation of Islamic Cooperation (OIC) have initiated efforts to standardize halal requirements, significant differences persist between national and regional standards. This lack of harmonization creates barriers for multinational manufacturers and complicates international trade. Industry leaders, including Duopharma Biotech and CCM, have called for greater collaboration among certifying bodies and regulatory agencies to streamline processes and facilitate mutual recognition of halal certificates.

Looking ahead, the sector is expected to see incremental progress in addressing these challenges, with increased investment in halal-compliant ingredient production and ongoing dialogue toward standardization. However, without coordinated global action, raw material sourcing difficulties, certification bottlenecks, and regulatory fragmentation are likely to persist as key hurdles for halal pharmaceutical manufacturing in the coming years.

Future Outlook: Opportunities, Risks, and Strategic Recommendations

The future of halal pharmaceuticals manufacturing is poised for significant growth and transformation in 2025 and the coming years, driven by rising global demand, regulatory advancements, and increasing investments from both established pharmaceutical giants and specialized halal manufacturers. The global Muslim population, projected to reach nearly 2.2 billion by 2030, continues to fuel demand for halal-certified medicines, especially in Southeast Asia, the Middle East, and parts of Africa. This demographic trend, coupled with heightened consumer awareness and government support, is creating substantial opportunities for industry players.

Key pharmaceutical companies are actively expanding their halal-certified product lines and manufacturing capabilities. Duopharma Biotech, a leading Malaysian pharmaceutical manufacturer, has been at the forefront, operating dedicated halal-certified facilities and collaborating with local and international partners to develop new halal-compliant formulations. Similarly, Chemical Company of Malaysia Berhad (CCM) has invested in halal pharmaceutical production, leveraging Malaysia’s robust halal certification infrastructure. In Indonesia, Kimia Farma is expanding its halal portfolio to meet both domestic and export market needs, reflecting a broader trend among ASEAN manufacturers.

Regulatory bodies are also playing a pivotal role. The Malaysian government, through the Department of Islamic Development Malaysia (JAKIM), continues to refine halal certification standards for pharmaceuticals, while Indonesia’s Halal Product Assurance Agency (BPJPH) is enforcing mandatory halal certification for medicines by 2026. These regulatory developments are expected to drive compliance investments and encourage multinational pharmaceutical companies to seek halal certification for their products intended for Muslim-majority markets.

Despite these opportunities, the sector faces notable risks. The complexity of sourcing halal-compliant raw materials, especially for excipients and animal-derived ingredients, remains a challenge. Supply chain disruptions, regulatory differences between countries, and the need for specialized knowledge in halal assurance can increase operational costs and slow product development. Furthermore, the lack of harmonized global halal standards for pharmaceuticals may hinder international trade and market access.

Strategically, companies should invest in robust halal assurance systems, transparent supply chains, and partnerships with local certification bodies. Collaboration with research institutions and technology providers can accelerate the development of innovative, halal-compliant formulations. Multinational firms are advised to localize production and certification processes in key markets, while smaller manufacturers can differentiate by focusing on niche therapeutic areas with high halal demand. Overall, the sector’s outlook remains positive, with growth underpinned by demographic trends, regulatory momentum, and increasing industry commitment to halal integrity.

Sources & References

Hannover Messe 2025 - Innovations in Pharma Manufacturing with Generative AI

ByLaura Chen

Laura Chen is a distinguished author specializing in new technologies and fintech. She holds a Master’s degree in Financial Engineering from the prestigious New York Institute of Technology, where she honed her analytical skills and deepened her understanding of the intersection between finance and technology. With over a decade of experience in the industry, Laura has worked at Digital Dynamics Inc., a leading firm renowned for its innovative solutions in digital finance. Her writing is characterized by meticulous research and an ability to distill complex concepts into engaging narratives. Through her work, Laura aims to empower readers to navigate the rapidly evolving technological landscape and to understand its implications for the future of finance.

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