Halal Logistics Market Size - By Component (Storage, Transportation and Monitoring Components), By Application (Food and Beverage, Pharmaceuticals, Cosmetics and Personal Care, Chemicals, Others), By Storage Type & Forecast, 2024 – 2032

Halal Logistics Market Size

Halal Logistics Market size was valued at USD 365 billion in 2023 and is anticipated to grow at a CAGR of over 5% between 2024 and 2032. There is an increasing effort to harmonize Halal standards across different countries and regions. This trend aims to create a more unified framework for Halal certification, making it easier for companies to comply with requirements and trade Halal products internationally.
 

The scope of Halal certification is expanding beyond traditional food products to include cosmetics, pharmaceuticals, logistics services, and other consumer goods. This trend is driven by increasing consumer demand for comprehensive Halal-certified products. For instance, in May 2024, Nippon Express Co., Ltd., a subsidiary of NIPPON EXPRESS HOLDINGS, INC. announced that it has obtained Halal logistics certification from the Nippon Asia Halal Association (NAHA) for its Fukuoka Chuo Logistics Center at the Fukuoka Air Service Branch.
 

The growing halal food market necessitates an increase in Halal logistics services to ensure that products are transported, stored, and handled according to Halal standards. As more food products require Halal certification, the logistics industry must adapt to meet these specific requirements. This includes ensuring that Halal products are not contaminated with non-Halal items (haram) at any stage of the supply chain, from processing to distribution.
 

Halal logistics providers must ensure that all stages of the supply chain comply with Halal certification requirements. This has led to the adoption of advanced technologies, such as blockchain and RFID, to monitor and document the movement and handling of Halal products. Enhanced traceability ensures transparency and builds trust among consumers and regulatory bodies, reinforcing the credibility of Halal certification.
 

Maintaining the segregation of Halal and non-Halal products throughout the supply chain is crucial to prevent contamination and uphold Halal integrity. This segregation requires careful planning and implementation, including dedicated storage facilities, transportation vehicles, and handling procedures. Any lapses in segregation can lead to contamination, which not only compromises the Halal status of the products but also risks regulatory non-compliance and damage to the company's reputation.
 

Halal Logistics Market Trends

Investment in new logistics infrastructure, such as large-scale logistics parks, significantly increases the capacity for storing and distributing Halal products. This infrastructure typically includes state-of-the-art facilities with specialized storage options to accommodate various types of Halal goods, including perishable foods, pharmaceuticals, and consumer products. New logistics infrastructure supports rigorous Halal certification and compliance processes. This includes dedicated facilities for segregating Halal from non-Halal products, adhering to hygiene standards, and maintaining records for traceability.
 

For instance, in November 2022, Agility, a company specializing in supply chain services, infrastructure, and innovation, announced plans to construct a large logistics park near Jeddah. This project is part of a land-concession agreement with Saudi Arabia’s State Properties General Administration (SPGA). Enhanced supply chain efficiency facilitates faster and more reliable distribution of Halal products. This is particularly crucial for perishable items that require strict temperature control.
 

The globalization of trade and the rise of cross-border e-commerce have broadened market access for Halal products. Businesses can now sell Halal-certified goods to international customers via online platforms, reaching markets that were previously inaccessible. This trend enables Halal product manufacturers and suppliers to tap into a global consumer base, significantly expanding their market reach. With increased access to global markets, there is a heightened demand for efficient Halal logistics solutions that can manage international shipments while adhering to Halal certification requirements.
 

This includes the need for logistics providers to ensure that Halal products are handled and transported in compliance with various international standards, thus fostering growth in the Halal logistics sector. The expansion of trade relationships creates opportunities for Halal logistics companies to build strategic partnerships and expand their service offerings. By developing expertise in handling cross-border trade and establishing strong relationships with international partners, logistics providers can enhance their competitive edge and capture a larger share of the market.
 

Halal Logistics Market Analysis

Based on the application, the halal logistics market is segmented into food and beverages, pharmaceuticals, cosmetic / personal care, chemicals, and others. The pharmaceuticals segment represents the fastest growing segment, with a CAGR of over 8.5% between 2024 and 2032.
 

• There's an increasing focus on maintaining precise temperature control throughout the supply chain for Halal pharmaceuticals. This includes cold chain logistics for vaccines and other temperature-sensitive medications. As more countries develop their Halal pharmaceutical manufacturing capabilities, there's an increased need for sophisticated in-country logistics solutions.
   
• There's a rising demand for Halal-certified vaccines, driving the need for specialized logistics solutions that can handle these sensitive products while maintaining Halal compliance. Increasing trade of Halal pharmaceuticals between Muslim-majority countries is leading to the development of specialized international logistics networks.
   

Based on the component, the market is segmented into storage, transportation, and monitoring components. The storage segment dominated the market in 2023 and is expected to reach over USD 300 billion by 2032.

• There's a growing trend towards establishing dedicated Halal warehouses that exclusively handle Halal products. These facilities ensure strict compliance with Halal requirements, preventing cross-contamination with non-Halal goods. As the Halal market expands to include more perishable goods, there's an increasing demand for temperature-controlled storage facilities. This is particularly important for Halal meat, dairy, and pharmaceutical products.
   
• Major Muslim-majority countries are developing dedicated Halal logistics hubs, which include large-scale storage facilities to support the growing Halal trade. There's an increased emphasis on obtaining and maintaining Halal certifications for storage facilities, with stricter auditing and compliance processes being implemented.
   

The North America halal logistics market size is expected to reach USD 220 billion by 2032. The U.S. boasts a well-developed logistics infrastructure, which supports the efficient handling and distribution of Halal goods. The presence of Halal certification bodies and clear regulatory guidelines facilitate compliance and market growth. Canada's multicultural population contributes to rising demand for Halal products.

The expanding Muslim population in Germany, the country with the largest Muslim community in Europe, has generated a significant demand for Halal food products. This increased demand has, in turn, created a niche market for Halal logistics solutions, underscoring the need for a robust and efficient Halal logistics network to meet consumer needs.
 

There is a growing number of Halal certification bodies in the APAC region, along with the development of comprehensive Halal standards. Countries such as Malaysia, Indonesia, South Korea and Thailand are strengthening their Halal certification processes to meet both local and international demands. In June 2023, South Korea's Ministry of SME began assisting small and medium-sized enterprises (SME) looking to export to Indonesia in obtaining Halal certification.
 

The Ministry of Agriculture, Food and Rural Affairs reported that two domestic Halal certification organizations had applied for mutual recognition with the Indonesian Halal Agency, completed an on-site audit last year, and are now awaiting a response from the Indonesian government.

Halal Logistics Market Share

Nippon Express Co., Ltd and TIBA Group collectively held a significant share of the halal logistics industry in 2023. Nippon Express has demonstrated a strong commitment to meeting the unique requirements of Halal logistics, positioning itself as a key player in this niche sector. Nippon Express has made significant strides in obtaining Halal logistics certifications, reflecting its dedication to adhering to the specific requirements for handling and transporting Halal products.
 

TIBA Group is a prominent player in the logistics and supply chain management sector, known for its comprehensive range of services across various industries. With a strong emphasis on innovation and customer-centric solutions, TIBA Group has established itself as a key provider of logistics services that cater to diverse market needs, including the Halal logistics sector.
 

Halal Logistics Market Companies

Major players operating in the halal logistics industry are:

• Nippon Express Co., Ltd
• TIBA Group
• YUSEN LOGISTICS CO., LTD.
• SEJUNG SHIPPING CO., LTD.
• DB Schenker
• Al Furqan Shipping & Logistics LLC 
• Northport (Malaysia) BHD
   

Halal Logistics Industry News

• In May 2024, the Bolloré Logistics Aid & Relief team in the UAE secured a contract to manage the transportation of temperature-controlled medicine from Dubai to Kabul for a humanitarian organization. This contract involved the shipment of 180 tons of temperature-sensitive medication, requiring precise planning and execution to ensure efficiency and cost-effectiveness.
   
• In February 2022, Gethalal, a company specializing in food services, launched its new Halal food delivery service. This initiative marks the company's entry into the German market, where it will initially focus on supplying households with a variety of Halal food products.
   

The halal logistics market research report includes in-depth coverage of the industry with estimates & forecast in terms of revenue (USD billion) from 2024 to 2032, for the following segments:

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Market, By Component

• 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

Market, By Storage Type

• Cold storage
• Ambient storage
• Dry storage

Market, By Application

• Food and beverages
  • Meat and poultry
  • Dairy products
  • Beverages
  • Processed food
  • Fruits and vegetables
• Pharmaceuticals
  • Medications
  • Medical devices
  • Vaccines
• Cosmetic / personal care
  • Skincare products
  • Haircare products
  • Makeup products
  • Personal hygiene products
• Chemicals
  • Industrial chemicals
  • Consumer chemicals
• Others

The above information is provided for the following regions and countries:

• North America
  • U.S.
  • Canada
• Europe
  • Germany
  • UK
  • France
  • Italy
  • Spain
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • ANZ
  • Rest of Asia Pacific 
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• MEA
  • UAE
  • Saudi Arabia
  • South Africa
  • Rest of MEA