Market Trends of Halal Logistics Industry
Government Support for Halal Certification and Trade
Government support for halal certification and trade is significantly shaping the halal logistics market, especially in countries with large Muslim populations. For example, Malaysia, a long-time leader in halal certification, is not only investing in but also enhancing its halal certification processes. The aim is to enable businesses to meet the growing demand for halal products, both domestically and internationally.
Looking to 2025, the Malaysian government forecasts a 7.5% increase in halal exports, driven by strong trade agreements and active measures to promote halal certification among local businesses. This rising government support is encouraging both producers and logistics providers to adopt halal-compliant practices, boosting the demand for specialized halal logistics services. To further this initiative, the Malaysian government has rolled out training programs and workshops, emphasizing the significance of halal certification and the necessary steps to obtain it. They are also partnering with global halal certification bodies to ensure worldwide recognition of Malaysian halal standards, facilitating smoother exports of halal products.
Similarly, the Gulf Cooperation Council (GCC) countries are making strides in this direction. As of February 2024, the UAE is rolling out a comprehensive policy framework aimed at standardizing and promoting halal certification. Their focus isn't limited to food; it encompasses pharmaceuticals, cosmetics, and a wide range of consumer goods. By emphasizing halal certification, these governments are broadening international market access for their businesses, particularly in regions like Southeast Asia and Africa, where demand for halal-certified products is strong.
As a result, logistics companies handling halal-certified goods are broadening their service offerings, aligning with the increased certification and quality control standards of this expanding market. To facilitate this growth, the UAE government has set up dedicated halal zones and logistics hubs, equipped with advanced facilities to ensure adherence to halal standards, thus boosting the efficiency and trustworthiness of halal logistics services.
Growth of Halal E-Commerce and Cross-Border Logistics
The booming halal e-commerce and rising demand for cross-border logistics solutions are significantly driving the halal logistics market. In regions like the Middle East and Southeast Asia, governments are promoting digital platforms to enhance the global trade of halal-certified products. The UAE government, in particular, has rolled out multiple initiatives to elevate halal e-commerce, focusing on sectors like food and healthcare, and addressing the growing global consumer interest in halal products.
By 2024, e-commerce platforms in the UAE, with government backing, have seen a notable uptick in halal-certified products, cementing the UAE's role as a key logistics hub for cross-border halal goods. The rise of halal e-commerce is closely linked to the escalating demand for effective cross-border logistics, vital for the worldwide distribution of halal products. Southeast Asian governments, led by Malaysia, are implementing policies to facilitate halal product exports, making it easier for businesses to access global markets online.
The Malaysian government is pushing for a strong logistics framework, emphasizing air and sea freight, to enhance the export of halal-certified products. As of September 2024, Malaysia is experiencing a notable uptick in cross-border halal trade, with e-commerce exports making significant inroads into European and African markets. This trend highlights the growing demand for specialized logistics services that not only uphold halal certification standards but also ensure timely cross-border deliveries.
