Halal Logistics Market Analysis

Halal Logistics Market Analysis

To get key market trends

  Download Free Sample

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.