Halal Logistics Market Size, Share & Trends Analysis Report By Component (Storage, Transportation, Monitoring Components, Software, Services), By End-use Industry, By Region, And Segment Forecasts, 2020 - 2027

Report Overview

The global halal logistics market size was valued at USD 286.96 billion in 2019. It is expected to expand at a compound annual growth rate (CAGR) of 8.4% from 2020 to 2027. The growing Muslim population increased spending on halal products, and the growing trade of halal food worldwide is collectively contributing to the growth. The purchasing power of Muslim consumers has increased significantly over the past few years due to better education and job opportunities, and a much younger population as compared to any other religion worldwide. In 2018, Muslims spent over USD 2 trillion on the halal and Islamic lifestyle. The concept of halal is generally associated with food products, which are high in terms of sanitation, cleanliness quality, and compliance with religious requirements. Thus, halal logistics is the process of managing the transportation of products across the supply chain complying with the Halal standards implemented.

In recent years, with the rise in the number of affluent Islamists, the halal industry has expanded beyond halal food into various lifestyle offerings such as halal fashion, hospitality, and travel services, among others. This expansion has been triggered by the changing mindset of both Islamic and non-Islamic consumers worldwide. Thus, with the increasing number of non-Muslim consumers from diverse religious beliefs and races preferring halal-certified products, the demand for halal products is not restricted to the Muslim population anymore.

Halal logistics has emerged as a potential growth opportunity for logistic service providers. To offer efficient and complete turn-key service to their customers, service providers are investing in developing the necessary dedicated infrastructure including halal warehousing, halal seaport, halal audit teams, and halal transportation and carrier. Also, the supply chain participants, such as port operators, are engaging in collaborative agreements with logistics providers to build an international halal value chain. For instance, in February 2019, NL Cold Chain Network (M) SDN BHD and Sojitz (Malaysia) SDN BHD announced that they had signed a Memorandum of Understanding (MoU) for establishing a halal value chain between Japan and Port Klang, Malaysia. The initiative is aimed at creating an end-to-end logistics network and thereby enabling halal trade between Japan and Malaysia.

The handling of halal products has always been a major concern for logistics service providers. The halal products are required to be handled with utmost care so that they can be consumed as per the standards of the Sharia Law and other guidelines established by the various Muslim governing authorities. Therefore, the logistics service providers must abide by the laws and standards throughout the products' supply chain, beginning from raw material suppliers to the end-user.

The ongoing coronavirus (COVID-19) pandemic has resulted in disruptions in the supply chain and a shortage of laborers across the logistics ecosystems. The global lockdown and temporary closure of international trading activities had a severe dent in the financial reserves of service providers operating in the halal industry. Also, the movement restrictions enforced by the governments in the wake of COVID-19 have put more burden on the logistic service providers, who are facing uncertainty regarding the transportation of goods due to the mandated lockdown across several countries.

End-use Industry Insights

The food and beverage segment led the halal logistics market and accounted for more than 57% of the global revenue share in 2019. The high share of the segment is primarily attributable to the rapid growth in the Muslim population coupled with the growing popularity of halal food products among the non-Muslim population. Initially, halal food products were consumed only by the Muslim population. However, over the years, halal food has become popular among consumers regardless of race, culture, and religion owing to the perception of it being of high quality and safe. Moreover, Muslims while traveling usually prefer restaurant brands serving halal-certified food and beverages, as the certification specifies that products comply with the Islamic dietary requirements and do not include any haram preservatives such as colorants and alcohol.

On the other hand, pharmaceuticals represent the second largest industry segment, constituting more than 23% of the total global market revenue share. Halal medicines are drugs that do not contain ingredients such as alcohol or animal products prohibited under Islamic guidelines. Since Muslims are the largest consumers of halal medicines, their rising population is likely to boost up the demand for halal pharmaceuticals over the forecast period. Therefore, increased demand for halal drugs coupled with stringent regulations regarding its handling procedures is anticipated to drive the segment growth over the forecast period.

Component Insights

The storage segment led the market and accounted for over 60% of the global revenue share in 2019. The high share of the segment is attributable to the increasing need to sort and separate halal and non-halal products in warehousing and during transportation activities to avoid any possible contaminations. The storage segment is further segregated into two sub-segments, namely warehouse, and container. The warehouse sub-segment accounted for the largest share, accounting for over two-thirds of the storage segment revenue in 2019. In halal warehousing, food handling operations are of significant importance, necessary for ensuring the halal integrity of the food.

The monitoring components segment is expected to emerge as the fastest-growing segment registering a CAGR of around 9% from 2020 to 2027. The growth is primarily characterized by the need to ensure the safety, quality, and integrity of halal products.  Monitoring components including sensors, RFID devices, telematics, and networking devices allow logistics providers to gain full control over the supply chain by tracking the vehicles and monitoring the humidity and temperature levels of the environment during the transit. The monitoring component segment is further divided into services, software, and hardware components.

Regional Insights

The Asia Pacific dominated the market and accounted for over 49% of the global revenue share in 2019 and is forecasted is remain the largest revenue contributing regional market throughout the forecast period. The migration of the Muslim population from Muslim-dominated nations to India, China, and Southeast Asian countries is one of the major reasons responsible for the rise in the Muslim population in the region. With a significant rise in the number of Muslims in the region, the demand for halal food products has also increased, which, in turn, is driving the need for halal logistics. The trend is expected to continue over the forecast period, propelling the regional market growth. Moreover, the continued rollout of warehousing and transportation networks and rapid economic growth in emerging countries such as India and China is further expected to boost the regional market growth.

Europe accounted for over 13.5% of the global revenue share in 2019. Germany is one of Europe’s biggest meat producers. Germany also produces halal beef, marketed in the country, and exported to other countries worldwide, driving the need for logistics services. Furthermore, service providers in countries such as Netherlands, Belgium, and France are offering their services through halal-certified seaports, including the Port of Rotterdam, the Belgian port of Zeebrugge, and Port of Marseille. Increasing demand for Europe’s halal-certified food products in countries including the UAE, Malaysia, and Indonesia is expected to support the regional market growth in the forthcoming years.

Key Companies & Market Share Insights

Some of the prominent players in the market include Nippon Express, TIBA Group, MASkargo, Yusen Logistics Co., Ltd., and TASCO Berhad. In a bid to sustain and achieve profits in this highly competitive market environment, halal logistics service providers are focusing on strengthening their market presence through service portfolio expansion. For instance, in September 2019, MASkargo announced the launch of its halal logistics services after receiving the MS2400-halal certification from Jakim (Jabatan Kemajuan Islam Malaysia) in May. The certification shall help the company offer services including transportation, storage, and handling of both food and non-food material, thereby fulfilling the needs of the halal industry through secure, reliable, safe air cargo handling. Some prominent players in the halal logistics market include:

• Nippon Express

• TIBA Group

• YUSEN LOGISTICS CO., LTD. 

• TASCO Berhad

• Kontena Nasional BHD (KNB)

• MASkargo

• SEJUNG SHIPPING CO., LTD.

• DB Schenker

• Al Furqan Shipping & Logistics LLC 

• Northport (Malaysia) BHD

• HALA 

• Freight Management Holdings Berhad

• HAVI

Halal Logistics Market Report Scope

Segments Covered in the Report

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2016 to 2027. For this study, Grand View Research has segmented the global halal logistics market report based on component, end-use industry, and region:

• Component Outlook (Revenue, USD Billion, 2016 - 2027)

  • Storage

    • Warehouse

    • Container

  • Transportation

    • Maritime Logistics

    • Air Logistics

    • Land Logistics

  • Monitoring Components

    • Hardware

      • Sensors

      • RFID Devices

      • Telematics

      • Networking Devices

    • Software

    • Services

      • Installation & Integration

      • Support and Maintenance

• End-Use Industry Outlook (Revenue, USD Billion, 2016 - 2027)

  • Food and Beverages

  • Pharmaceuticals

  • Cosmetic / Personal Care

  • Chemicals

  • Others

• Regional Outlook (Revenue, USD Billion, 2016 - 2027)

  • North America

    • U.S.

    • Canada

  • Europe

    • U.K.

    • Germany

    • Russia

    • Turkey

  • Asia Pacific

    • Indonesia

    • Malaysia

    • China

    • India

    • Oceania

  • South America

    • Brazil

  • Middle East & Africa

    • UAE

    • Saudi Arabia

    • Egypt