Sustained migration flows from majority-Muslim countries to Western Europe, combined with the favorable demographic dynamics of Muslim populations in Europe, will create strong demand for halal goods and services, which are growing from a low base in the region. Food will remain the most developed segment, but other segments such as Islamic clothing and financial products will also see growing interest.

Western societies have become much more multicultural over recent decades, and we expect this trend to continue over the coming decades, amid migration flows and more favorable demographic dynamics among minority groups. Given weak demographic dynamics in most developed markets – characterized by low or negative population growth and aging consumers – this will provide a bright spot to consumer-oriented industries. While there is no single ethnic group emerging in Western Europe – unlike in the United States where Hispanics are the dominant minority ethnic group – we see strong opportunities in targeting Muslim consumers in Western Europe by increasing the offering of halal goods and services.