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I AgreeAnalysis of Halal Logistics market covering 30 + countries including analysis of US, Canada, UK, Germany, France, Nordics, GCC countries, Japan, Korea and many more
The global halal logistics market is slated to ascend at a healthy CAGR of close to 9% over the 2021 to 2031 forecast period. The food & beverage industry will continue to be the largest end user of halal logistics across regions.
Monitoring of the supply chain is a crucial factor for assurance that the products that the Islamic 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.
Besides, cost cut-downs 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.
The foremost objective of the report by Fact.MR on the halal logistics industry is to pitch insights on the purchase growth scenario, demand generators, and development strategies in this space. The report provides a taxonomy elaborating on key segments.
The report also outlines visionary insights on the market dynamics, including the drivers, restraints, opportunities, trends, and pricing analysis, along with key success factors. Demand trends have been tracked in 20+ high-growth countries, with countries in South Asia, East Asia, and the Middle East and Africa holding bulk of the share.
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Historically from 2016 to 2020, use of halal logistics management systems increased at around 6.5% CAGR, and the key factors assisting this growth include the increasing number of high-net-worth Islamic individuals, the growing number of halal certification agencies, as well as surge in the number of halal warehousing, halal transportation as well as audit personnel.
The market is forecasted to expand at a CAGR of close to 9% over the coming 10 years. Meeting Sharia requirements has become of utmost importance for the Muslim population. Although continuous monitoring and observation of the supply chain increases final price of the product, demand for halal logistics is expected to increase at a faster pace during the forecast period.
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Motivation of employees involved in halal storage logistics remains a crucial factor for the success of this business. Halal logistics industry stakeholders can make repeat business a factor of satisfaction of their customers. Besides, formulating 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.
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South Asia accounts for over 30% of the global halal transportation logistics market. The region is expected to offer around US$ 170 Bn absolute dollar opportunity between 2021 and 2031. Large Muslim population in the region and inclination towards halal certified products and processes has led to large revenue generation from the region.
Indonesian government has been focusing on promoting a halal ecosystem in the country. Country’s Halal Industrial Estate (KIH) has been directly linked to creating new jobs in the country and boosting domestic businesses. Recently, the Indonesian government named two KIH located 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.
Being a Muslim-dominant country, Turkish consumers’ inclination has been growing towards halal-certified products. Halal-certified food products, especially halal meat, have garnered significant traction in the country. Turkey is an active member of the Organisation 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 towards identification of halal products during trade.
Sorting of halal products during warehousing is of utmost importance to ensure the upstream and downstream logistics are aligned to halal regulations. From storage points, products emanate and go along the supply chain; halal compliance ensures that the product and packaging are halal certified. Due to these factors, storage accounted for nearly 60% of the halal logistics revenue in 2020.
The Islamic population is highly concerned about the halal nature of food products that they purchase or consume outside of home. Halal certified food products refrain from using synthetic ingredients, alcohol etc. Besides, food products have more strict halal guidelines, as they are directly consumed. Food and beverage end use accounted for over half of market revenue in 2020.
Similar to standard logistics, a disruption was also felt by halal logistics warehouses across the globe. The market growth dropped by nearly 5% in 2020, when compared to previous projections. While this impact is also expected to show a ripple effect in 2021, the extent of loss is likely to be low as compared to 2020.
Majority of the companies discussed in the report have focused on establishing subsidiaries in developing regions. Strategies include product launches, collaborations with key players, partnerships, and mergers and acquisitions. Some of the key developments are:
Similarly, recent developments related to companies manufacturing halal logistics software have been tracked by the team at Fact.MR, which is available in the full report.
Attribute |
Details |
Forecast Period |
2021-2031 |
Historical Data Available for |
2016-2020 |
Market Analysis |
US$ Mn for Value |
Key Regions Covered |
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Key Countries Covered |
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Key Segments Covered |
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Key Companies Profiled |
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What is the expected growth rate for halal logistics solutions by 2031?
By value, Fact.MR has projected a CAGR of close to 9% for halal transportations logistics during 2021-2031.
Which region is expected to experience the highest growth?
As per Fact.MR’s projections, the Middle East & Africa will experience the highest growth rate of around 12%. The market in South Asia is also expected to witness a double digit growth.
Which Players are Prominent in the Halal Supply Chain Solutions Market?
Prominent players offering halal logistics systems include Al Furqan Shipping & Logistics LLC, DB Schenker, HALA, HAVI, Freight Management Holdings Berhad, Kontena Nasional BHD (KNB), MASkargo, Northport (Malaysia) BHD, Nippon Express, SEJUNG SHIPPING CO., LTD., TASCO Berhad, TIBA Group, and YUSEN LOGISTICS CO., LTD.
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Historically from 2016 to 2020, use of halal logistics management systems increased at around 6.5% CAGR.
The global halal logistics market is slated to ascend at a healthy CAGR of close to 9% over the 2021 to 2031 forecast period.
South Asia accounts for over 30% of the global halal transportation logistics market.