Global Halal Logistics Market

6/8/2021

A number of countries are trying to capture a slice of Japan’s US$800 billion-dollar food and beverage market. Malaysia in particular, using Tokyo Olympic 2021 as a launchpad, has been banking on the Games to export its halal products and services worth up to US$300 million-dollar.

The government of Indonesia on the other hand, to promote and preserve its position in the international market, issued a regulation 31/2019 regarding -

compulsory Halal labelling law which must be carried out in the next five years by October 2026. Affected by such activities, Asia Pacific is considered the leading region across the world in terms of Halal market share, owing to the migration of the Muslim population from Muslim-dominated nations.

Global Halal Logistics Market

In 2019, the Global Halal Logistics Market size was valued approximately US$286.96 billion-dollar, and anticipated to grow at a compound annual growth rate of 8.4% from 2020 to 2027 to reach US$ 525.09 billion-dollar by 2027.

Japan has a small but fast-growing Muslim population, and as the population grows more demand for Halal products and services is created naturally. Japanese firms not only are getting engaged in production of Halal products, they are also offering variety of Halal services including Halal logistics.

Halal logistics has emerged as a potential growth opportunity for logistics service providers. The food & beverages end-use industry segment dominated the halal logistics market with a share of 60.0% in 2019. This is the direct result of the standard guidelines laid by the Muslim community for ensuring the integrity of halal food across various modes of transportation and during warehousing.

In terms of transport services, one of the major market player in Japan is Nippon Express Co., Ltd., which recently has added a new service aimed at enhancing Halal logistics services in the country.

Nippon Express Halal Certified Domestic Air Cargo Transport Service

Nippon Express Co., Ltd. is expanding its domestic halal logistics services in Japan with the start of a new halal-certified domestic air cargo transport service on Monday, March 8, 2021.

Japan's Muslim population numbers about 200,000 and, with an increase in foreign visitors/residents from a diversity of cultural backgrounds anticipated, demand for halal products in Japan is expected to rise. High certification standards for quality assurance and hygiene control have also expanded interest in halal products among health- and safety-conscious consumers.

In 2014 Nippon Express became the first Japanese company to obtain halal logistics certification in Malaysia, and it has since been developing global halal logistics services. After obtaining its first halal certification for warehousing in Japan in 2016, the Company introduced halal-only roll boxes for consolidated transport of small-lot cargo amounting to less than a full truckload as well as halal-only rail containers for large-lot cargo into its warehouse-based transport services as it expanded its handling of halal products.

By incorporating halal logistics system-certified work procedures into its "Express Hi-Speed" domestic air cargo transport product, the Company has created a rapid halal transport service capable of handling shipments as small as a single cardboard box.

With interest in halal products growing in Japan, Nippon Express has been constructing a halal logistics service network to support customers' supply chains and provide safety and peace of mind to Muslim customers and others.

Features Of "Express Hi-Speed" Halal Transport

Improved visibility for halal products (special labels affixed on cargo)
Halal education for employees engaged in operations
Delivery modes tailored to specific needs
(Nationwide next-day delivery service, specified delivery time service, charter delivery service)
Easy-to-use product design
(Packaged fees (by region/weight), multiple-item shipments, business office stop-off service)
Visualization of transport status through centralized management
(Trace control through up to seven transit points, confirmations via Nippon Express's website)

Conclusion

The rising Muslim population coupled with their preference to consume halal ingredients have accelerated the growth of Halal industry. High certification standards for quality assurance and hygiene control led to the widespread adoption of halal ingredients in food and beverage, also healthcare and pharmaceutical sector, which resulted in fostering the growth of halal logistics market.

Consuming Halal products by the community and Halal fans, not only helps their easier availability in future, but it will also help the market to experience lower prices, as the supply chain improves by restructuring itself according to the market needs.

For Higher Standard, Healthier Foods And Better Services Support Halal Market By Consuming Halal

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1 Comment

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