Halal Logistics Market

Halal Logistics Market Outlook (2023 to 2033)

The global halal logistics market is predicted to expand at a CAGR of 5.1% and increase from a market valuation of US$ 321.2 billion in 2023 to US$ 528.2 billion by the end of 2033. Halal product storage accounts for 60% share of the global market.

The sorting of halal products during warehousing is of utmost importance to ensure the upstream and downstream logistics are aligned with halal regulations. From storage points, products emanate and go along the supply chain; halal compliance ensures that the product and packaging are halal-certified.

Moving products and information between a supplier and a recipient is referred to as "logistics." To accomplish efficient and successful delivery, logistics companies also handle warehousing and transportation. The process of buying, shipping, storing, and processing raw materials, animals, and finished goods through the supply chain according to halal standards is referred to as "halal logistics."

The halal sector has developed beyond halal food to include a range of lifestyle products and services, such as halal hair care, clothing, and hospitality. Spending on halal items has expanded as the Muslim population has grown, and the worldwide halal food trade is predicted to develop at a faster rate than the global halal logistics sector.

The food and beverage industry will continue to be the most prominent end user of halal logistics across regions. Opportunities for the halal logistics industry include the growth of international trade in developing economies, an increase in trade-related contracts, a global infrastructure for logistics, and advancements in information technology and transportation.

Monitoring the supply chain is a crucial factor in ensuring that the products that the Muslim population uses are halal. Recent years have shown that halal integrity issues have become more prominent than before, owing to the complexity of the modern supply chain.

Cost cutbacks at upstream and downstream logistics levels have brought to the fore the dilemma and confusion of mixing halal with haram. These factors have aggravated the need for halal logistics management. Key factors assisting market growth include an increase in high-net-worth Muslim individuals, a rise in halal certification agencies, as well as a surge in halal warehousing, halal transportation, and audit personnel.

Meeting Sharia requirements (rules & regulations followed by the Muslim community) has become of utmost importance for the Muslim population. Although continuous monitoring and observation of the supply chain increase the final price of the product, demand for halal logistics is expected to increase at a faster pace over the coming years as compared to earlier times.

Report Attributes	Details
Halal Logistics Market Size (2023)	US$ 321.2 Billion
Forecasted Market Value (2033)	US$ 528.2 Billion
Global Market Growth Rate (2023 to 2033)	5.1% CAGR
Market Share of Halal Product Storage (2023)	60%
GCC Countries Market Growth Rate (2023 to 2033)	5.2% CAGR
Market Share of Food and Beverages (2023)	46%
Turkey Market Value (2033)	US$ 103.5 Billion
Indonesia Market Growth Rate (2023 to 2033)	5.4% CAGR
Key Companies Profiled	DB Schenker Hala Group HAVI Logistics Tasco TIBA Group Al Furqan Shipping & Logistics LLC dnata Yusen Logistics Co., Ltd. Freight Management Holdings Bhd Kontena Nasional Berhad MASkargo Nippon Express

What are the Key Drivers of the Halal Logistics Market?

“Increase in High-net-worth Muslim Population”

Rising halal food trade globally and growth in the Muslim population has led to an increase in halal product spending. Due to superior educational and employment prospects, Muslim consumers' spending power has expanded significantly over the past several years. The term "halal" is typically used to refer to foods that meet strict standards for hygienic practices, cleanliness, and religious observance.

The halal sector has grown rapidly due to an increase in affluent Muslims. However, demand for halal products is no longer strong just among Muslims as more non-Muslim customers of various ethnicities and religious beliefs are showing a preference for halal-certified goods.

“Rising Investments by Service Providers for Specialized Infrastructure”

The motivation of employees involved in halal storage logistics remains a crucial factor in the success of this business. Halal logistics industry stakeholders can make repeat business a factor in the satisfaction of their customers. Besides, formulating a halal logistics framework with a defined marketing mix has the potential to generate more trust among consumers in halal processes, consequently leading to a growing market.

A promising area of growth for logistic service providers is halal logistics. Service providers are investing in creating the appropriate specialized infrastructure to deliver efficient and comprehensive turnkey services to their clients. Additionally, to create a global halal value chain, supply chain participants, including port operators are collaborating with logistics companies.

• In 2019, A Memorandum of Understanding (MoU) for the construction of a halal value chain between Port Klang, Malaysia, and Japan was signed, according to an announcement made by NL Cold Chain Network (M) SDN BHD and Sojitz (Malaysia) SDN BHD. The project aims to establish a complete logistical network, facilitating halal commerce between Malaysia and Japan.

What is Restricting Global Demand Growth for Halal Logistics?

“Lack of Uniformity of Halal Standards in Different Countries”

High inventory costs and a lack of warehouse space are the main factors hampering market growth. The major obstacle to the expansion of the global halal logistics sector is the lack of standardization in halal standards and regulations across different countries.

Illegal meat exports to the Middle East have negatively impacted the legality of halal items brought in from non-Muslim countries. This puts a lot of pressure on companies that offer halal logistics services to guarantee that the goods being carried and stored comply with accepted halal standards and rules.

Muslim communities throughout the world adopt stringent rules and norms. The expansion of the halal logistics business is hampered by the concentration of service providers on acquiring certification from pertinent local authorities. However, service providers may only acquire a certificate if specific requirements are met.

• In Singapore, the Administration of Muslim Law Act (AMLA) has the exclusive legal authority to grant Halal certifications. The AMLA Act's Section 88A details the procedures for issuing halal certifications and requires those who possess them to comply with Muslim law.

How Can Start-ups Establish Themselves in This Fiercely Competitive Market?

“New Companies Developing Inventory Analytics and Network of Warehouses”

New entrants are developing inventory analytics and a network of warehouses to stock items closer to resellers. The spread of fake items online and the numerous distribution layers that drive up prices are two factors that discourage many consumers from purchasing from e-Commerce platforms.

For resellers to assist customers in choosing the proper items more effectively, new businesses are attempting to address these issues by innovating with the social commerce model.

• Evermos is an Indonesian start-up that provides a platform to connect regional businesses and distributors selling Indonesian goods. It focuses on offering Sharia-compliant halal items in a variety of industries, such as fashion, cuisine, cosmetics, home goods, and business prospects. Inventory, logistics, and customer service are handled by Evermos.

Country-wise Insights

Why is Demand for Halal Logistics Strong in GCC Countries?

“Large Muslim Population in the GCC Countries Group”

• The market in GCC Countries is valued at US$ 75.8 billion in 2023.

The large Muslim population in GCC Countries and inclination towards halal-certified processes has led to large revenue generation. Rising disposable income and rapid expansion of the halal food sector are driving market growth.

Increasing need for innovative halal products, creating new business possibilities for producers of food and beverages, which is anticipated to propel market expansion in GCC Countries. Additionally, service providers in countries offer their services through seaports, which have received halal certification.

What is the Market Outlook for Halal Logistics in Turkey?

“Ever-growing Demand for Halal-certified Food Products”

• The market in Turkey is set to rise at a CAGR of 5.5% over the next ten years.

Being a Muslim-dominant country, Turkish consumers’ inclination has been growing toward halal-certified products. Halal-certified food products, especially halal meat, have garnered significant traction in the country. Turkey is an active member of the Organization of Islamic Cooperation (OIC).

• Around 85% of all meat and live animals imported by OIC countries are supplied by non-OIC countries. This makes halal-certified product logistics a crucial factor in the identification of halal products during the trade.

Why is Indonesia Likely to Be a Prominent Market?

“Rapid Expansion of Transportation and Warehousing Networks”

• The market in Indonesia is predicted to reach US$ 76 billion by 2033.

The Indonesian government has been focusing on promoting a halal ecosystem in the country. The country’s Halal Industrial Estate (KIH) has been directly linked to creating new jobs in the country and boosting domestic businesses. The expansion of the transportation and warehousing networks is also supporting market expansion in Indonesia.

• Recently, the Indonesian government named two KIH locations in East Java and Banten Industrial Estate. Besides, already four industrial estates namely Bintan Inti Industrial Estate, Batamindo Industrial Estate, Jakarta Industrial Estate in Pulogadung, and Surya Borneo Industrial Estate are in the process of inculcating halal clusters in them.

Category-wise Insights

Which Vertical Will Account for High Revenue Generation in This Market?

“High Demand for Food & Beverages That Comply with Islamic Sharia Laws”

The market is classified into food and beverages, pharmaceuticals, personal care & cosmetics, chemicals, and others based on the vertical.

• At present, the food and beverage industry holds 46% share of the global market due to the rising acceptance of halal cuisine among Muslims and non-Muslims.

Initially, the Muslim community was the only one who ate halal cuisine. However, due to the idea that halal food is of excellent quality and safety, it has grown in popularity among customers throughout time, regardless of race, culture, or religion.

Muslims tend to select restaurant chains that provide halal-certified food and drinks when they are traveling since the certification guarantees that the items meet Islamic dietary standards and are free of haram preservatives such as colorants and alcohol. The Islamic population is highly concerned about the halal nature of food products that they purchase or consume outside of the home. Halal-certified food products refrain from using synthetic ingredients, and alcohol.

Competitive Landscape

Key market players are focusing on pricing trends, quality control, product standards, new developments, and supply chain management to increase their market share. Leading businesses are actively investing in the creation of new halal-certified food products to expand their product lines.

For instance :

• In March 2021, Nippon Express launched halal air cargo in Japan for its domestic cargo transport services. This service will be linked to its Express Hi-Speed domestic air cargo transport service and will provide logistics services to around 200,000 Muslims in Japan.
• In April 2021, dnata, a provider of air services, received ISO 9001:2015 certification for cargo handling services, including an award for halal certification by Majlis Ugama Islam Singapura (MUIS). This certification is offered for its special storage room in its Coolchain facility.

Key Segments of Halal Logistics Industry Research

• By Component :

  • Storage
    • Warehouses
    • Containers
  • Transportation
    • Maritime Halal Logistics
    • Air Halal Logistics
    • Land Halal Logistics
  • Monitoring Components
    • Hardware
      • Sensors
      • RFID Devices
      • Telematics
      • Networking Devices
    • Software
    • Services
      • Installation and Integration
      • Support & Maintenance

• By Vertical :

  • Food and Beverages
  • Pharmaceuticals
  • Personal Care & Cosmetics
  • Chemicals
  • Others

• By Region :

  • North America
  • Europe
  • Asia Pacific
  • Latin America
  • Middle East & Africa