Market Trends of Halal Logistics Industry
The Global Need for Halal Logistics is Rising as Halal Product Demand Rises
The halal industry is on the rise as a result of rising demand for halal products from Muslim and non-Muslim countries. Favourable population demographics, governmental measures, and private sector initiatives are the key drivers of the halal industry. As halal food is associated with safe and healthful eating, non-Muslim demand for it will increase. Halal fashion and tourism should also gain popularity among more traditional non-Muslim consumers.
In recent years, the demand for halal products and services has expanded beyond food and finance to other aspects of Muslim life in the West as well as in Muslim-majority countries in Asia, Africa, and the Middle East. A leading example of the halal-conscious consumer can be found in the modest fashion and apparel industry.
Halal or modest fashion is not only seen in the sales value of abayas, burkinis, headscarves, and niqabs but also in the need for everyday garments, not only in Muslim-majority countries but also in Europe and North America. This has been recognized by leading fashion labels such as H&M, Zara, and Mango, who try to include modest fashion in their collections. Amongst consumer goods, the food and beverage segment is leading in the halal sector. Though halal meat is the leading product amongst the halal conforming food items, Muslims also have halal demands for other food items such as dairy and produce.
Increasing Investments in the Halal Food Sector
While the pandemic deeply impacted Hotel, Restaurant, and Catering sectors, other sectors such as Ready-to-Eat meals and food delivery witnessed explosive growth. In terms of total deal value, halal food grew by 219% to USD 6.3 billion. Two deals accounted for over 70% of the halal food sector's total deal value.
The USD 2.9 billion acquisition of Indomie noodles manufacturer Pinehill by Indonesia's Indofood and Gojek, Indonesia's largest food delivery company, raised USD 1.5 billion in late-stage venture capital funding. Private equity-owned French company Isla Delice acquired Belgium's Hoca Meats, which specializes in manufacturing and processing meat products. Investments in the halal food sector are expected to continue, especially in delivery, health-based and functional food, and Ready-to-Eat/Ready-to-Cook segments.
The creation of the OIC Halal Accreditation Centre and the publication of a manual on importing Halal food products by the Ministry of Public Health (MoPH) serve as prominent examples of Qatar's efforts in both international and national Halal accreditation.
Players from a variety of industries support the country's halal economic value chain, which includes buying halal inputs, certifying and accrediting products for halal standards, and logistics and distribution to end consumers. Through programmes like the "Halal Livelihood" campaign of the Ministry of Commerce and Industry (MOCI), which aims to increase public knowledge of halal living and the significant potential of Qatar's Islamic banks in takaful, green investments, and Sukuk issuance, the country is cultivating a spirit of cooperation.
Qatar presents foreign investors with a welcoming and competitive business environment thanks to its strong and resilient economy, business-friendly environment, vibrant knowledge ecosystem, and rich cultural heritage. As part of its expansive Qatar National Vision 2030, the nation seeks to establish itself as a major regional hub for trade, tourism, and investment, including in its halal economy, which is among the top ten according to the Global Islamic Economy Indicator (GIEI).
