Industry News

Germany's growing Muslim population The country – which has the largest Muslim population in Europe – has created a niche market for halal food and with it the need for a well-functioning halal logistics network.

Logistics industry players have recognised the inherently strong demand for halal products as a growing niche market in Germany and other countries eager to penetrate the European halal market.

Studies have been commissioned to assess the market potential of halal products in a number of European countries. One of the studies was conducted by the Frankfurt University of Applied Sciences (FrankfurtThe study was conducted by Professor Yvonne Ziegler of the University of Southern California (UAS) who specializes in air transport management.

The "Halal Logistics - Air Freight" study examined the level of demand for halal products and established halal supply chains within Germany's over five million Muslim population. According to Islamic principles, the word "halal" in Arabic means "permitted." The production and supply chains of these products—besides food, the term also applies to cosmetics and pharmaceuticals—are also required to comply with halal guidelines. The study was conducted in collaboration with the Halal Committee, a halal certification organization, and Lufthansa Cargo.

The study examined the willingness of Muslims to pay higher prices for halal food andThe survey of 772 Muslims found that almost all said halal food was very important (88%) or moderately important (9%) to them. About 94% of respondents said they preferred food that was halal-certified, while more than half (59%) said they were willing to pay more for food prepared according to halal guidelines.

An interesting finding is that regardless of their income capacity, they are willing to pay higher prices.80% of people are willing to pay 5% to 20% more for halal products. In fact, the remaining 20% ​​are willing to pay 50% more for halal products than non-halal products.

The study also analyses various aspects of halal logistics in the air cargo sector, with a particular focus on Frankfurt Airport. It examines Frankfurt Airport’s potential as a European hub for halal products and the conditions that need to be met to create such a hub.

Germany has also become a major meat exporter to Islamic countries. Germany exports more than 100 million tons of air-grilled meat to the world's top ten Muslim countries each year.The study, which also interviewed 20 exporting companies, found that in order for a supply chain to comply with halal standards, all equipment and tools used in transportation should be dedicated to halal products.

Meanwhile, various ports in Europe have already been certified, but project partnersMahmoud Tatari, Managing Director of Halal Control, sees good potential in air trade. He believes that perishable and high-value food products should continue to be transported by air, which will provide business opportunities for airports and airlines and enable them to further strengthen their expertise in halal logistics.

Halal products and services are an important part of Germany's foreign trade.“German logistics companies are increasingly focusing on the halal niche market… There is a huge consumer base of approximately 2 billion Muslims worldwide, not including Germany’s own 5 million Muslim population. They (German logistics and trading companies) are not only focusing on halal imports into Germany, but also on the export of halal products outside of Germany. In fact, suppliers of halal products are competing with each other to increase their market share. For example, many German exporters of Turkish origin are actively exporting products not only to the Mediterranean region, but also to the Middle East,” Mathias Schmidt, who works for a freight company outside Frankfurt, toldAmerican Transportation Magazine。

Turkish Airlines, other Middle Eastern carriers unload large quantities of halal cargo at European airports German halal exporters are keen to enter new markets. Traditional halal exporters such as Turkey, Malaysia, Saudi Arabia, and the UAE are eager to build a customer base in Europe, particularly in Germany. Malaysia, for example, even organizes a special halal trade show called MIHAS, which will be held in Kuala Lumpur from September 7 to 10 this year.

Malaysia's official trade promotion agencyMATRADE’s Frankfurt office recently launched a strong campaign for MIHAS 2022 through a recent webinar in Frankfurt, attended by 45 business representatives. The webinar, titled “Halal as a Catalyst for Innovation and Sustainability for Manufacturers,” was held in conjunction with the Hanover Chamber of Commerce; Hanover itself is home to a trade show dedicated to the halal industry, called “Halal Hannover.”

The webinar speakers included FrankfurtZuhaila Sedek, Trade Commissioner at MATRADE; Professor Dr. Yus Aniza Yusof, Deputy Director of the Institute of Halal Products, Universiti Putra Malaysia; Professor Dr. Katharina Riehn, German Agricultural Society; and Romzi Sulaimen, Senior Manager for International Cooperation, Halal Development Corporation. Opening the webinar, Farzamie Sarkawi, Consul General of Malaysia in Frankfurt, described halal as "a universally attractive business value proposition as it aims to ensure the highest level of care in product manufacturing – not only avoiding the use of banned ingredients, but also caring about the environment, social well-being and good governance."

Zuhaila Sedek stated that the halal industry is a multi-billion dollar industry with significant consumer purchasing power. "As shown in the 2022 State of the Global Islamic Economy report, spending by the global Muslim population was valued at US$2 trillion in 2021 and is projected to grow to US$2.8 trillion by 2024. In Germany, halal food is seen as a value proposition that shares many similarities with organic and vegan products and can meet the needs of the 5.3 to 5.6 million Muslims living in the country," she insisted, urging German businesses to collaborate with Malaysia on innovation and sustainable supply chain management.