Halal Logistics

Halal logistics can be defined as the transport, warehousing, and distribution of products following the provision of Shariah law and do not revert to non-Halal status while being in transit or in storage awaiting to be utilized. This is done through the use of distinct vehicles and warehouses, as well as dealing with the non-halal products carefully. It helps to protect the authenticity of products that have been accorded the halal label, especially foods, drugs, and cosmetics.

The Halal Logistics Market is expected to grow with a significant CAGR of 7.8% during the forecast period (2024-2032). The factors responsible for the growth of halal logistics are the global Muslim population which has been estimated to be growing to 2.2 billion in 2030, making the demand for halal products in food, pharmaceuticals, and cosmetics, among others, to increase. Enhancing governmental policies and institutional demands in regions such as Southeast Asia and the Middle East to go for the Halal supply chain flow is accelerating company pressure. Also, the growth of e-marketplaces creates a demand for traceable and reliable halal logistics solutions that would meet consumer demand for genuine products and their delivery.

For instance, on March 5, 2021, Nippon Express Co., Ltd. (Mitsuru Saito, President) expanded its domestic halal logistics services in Japan with the start of a new halal-certified domestic air cargo transport service on March 8.Japan's Muslim population numbers about 200,000 and, with an increase in foreign visitors/residents from a diversity of cultural backgrounds anticipated, demand for halal products in Japan is expected to rise. High certification standards for quality assurance and hygiene control have also expanded interest in halal products among health- and safety-conscious consumers.

• Based on the service type, the market is segmented into transportation {roadways, railways, airways, seaways}, warehousing, and end-to-end supply chain solutions. The transportation held a significant share of the market in 2023. It plays a vital role in the development of halal logistics by guaranteeing that products, specifically perishable items such as halal meat and food, are transported without coming into contact with non-halal items. This is due to the growing need for Halal foods in international trade and the advancement of internet food-selling platforms in various Muslim-dominated countries. Manufacturers respond by using exclusive halal-certified vehicles, sealed containers, as well as GPS to track the vehicles used in the transport of the products. Furthermore, the establishment of temperature-controlled halal supply chain logistics is also gaining more investments as the various parties in the supply chain strive to meet halal requirements from end to end.
• Based on end-user industry, the market is segmented into food & beverage, pharmaceuticals, cosmetics, and others. The pharmaceuticals are expected to grow with a significant CAGR during the forecast period (2024-2032). The pharmaceuticals segment plays a big role in the evolution of halal logistics since Muslim consumers only expect halal products to be cleansed from such ingredients as gelatin or alcohol. This is due to the factors such as the enhancement of health consciousness and compliance with the legislation in nations such as Malaysia and Indonesia. This is done through establishing a separate system network of supply, halal-warehousing, and halal-Packaging especially in pharmaceutical industries.
• For a better understanding of the market adoption of Halal Logistics, the market is analyzed based on its worldwide presence in countries such as North America (U.S., Canada, and the Rest of North America), Europe (Germany, France, U.K., Spain, Italy, Rest of Europe), Asia-Pacific (China, Japan, India, Rest of Asia-Pacific), Rest of World. North America is expected to grow with a significant CAGR during the forecast period (2024-2032). The increase in the Muslim population and their need for Halal foods and medicine products drive the development of the Halal logistics market in North America. The consumers’ trend toward the desire for authenticity and concern over the origin of their goods exerts pressure on logistics services. Firms approach halal logistics by acquiring certification, creating appropriate transport channels, and using technology in end-to-end tracking such as blockchain. They also provide some other essential services like Halal-approved cold chains and warehousing for stock preservation in the food chains.

For instance, on January 20, 2022, The nation's foremost American pioneer in premium, Halal hand-cut meat and poultry products, Crescent Foods, announced a strategic partnership with Texas-based retailer, H-E-B. The program includes a wide variety of fresh, Halal hand-cut chicken, beef, and lamb products as well as breaded, frozen offerings. Now available in select Houston, Texas locations, the program is expected to quickly expand throughout Texas.

• Some of the major players operating in the market include Nippon Express Co., Ltd.; YUSEN LOGISTICS CO., LTD.; DB SCHENKER; MABKARGO SDN BHD (Malaysia Aviation Group); Hatnetwork; SEJUNG SHIPPING CO., LTD.; Kontena Nasional Berhad; Quanterm Logistics; Al Furqan Shipping & Logistics LLC; FORWARD FREIGHT SERVICES SDN BHD.