Strategic Innovations in Halal Frozen Food Supply Chains: Enhancing Compliance, Sustainability, and Global Market Competitiveness

Strategic Innovations in Halal Frozen Food Supply Chains: Enhancing Compliance, Sustainability, and Global Market Competitiveness

Ariff Azly Muhamed, Habiel Zakariah, Mazuin Mat Halif, Nur Najjah Abd Rahim, Mohd Zamri Abu Bakar

 Faculty of Business and Management, University Technology MARA, Puncak Alam, Selangor

DOI: https://dx.doi.org/10.47772/IJRISS.2025.906000324

Received: 30 May 2025; Revised: 11 June 2025; Accepted: 14 June 2025; Published: 15 July 2025

ABSTRACT

The global Halal frozen food industry is expanding rapidly, driven by rising demand from both Muslim and non-Muslim consumers who value ethical and hygienic food standards. This study examines the strategic challenges and opportunities within Halal frozen food supply chains, focusing on compliance, sustainability, and global market access. Key issues include high certification costs, fragmented international standards, and supply chain vulnerabilities. The paper proposes strategic innovations such as adopting blockchain for traceability, enhancing sustainability practices, and forming international partnerships to meet diverse regulatory requirements. Emphasis is placed on integrating technology and transparency to build consumer trust and operational efficiency. The findings highlight the importance of moving beyond basic compliance toward holistic, innovation-driven strategies that align with global food trends. This research offers practical insights for Halal food producers, policymakers, and stakeholders seeking to strengthen competitiveness and integrity in the evolving global Halal market.

Keywords: Halal, Frozen Food, Supply Chain, SME, Malaysia

INTRODUCTION

Halal supply chain management (HSCM) plays a pivotal role in the Malaysian food and beverage (F&B) industry, particularly given the country’s status as a global leader in Halal certification [1]–[3] . The concept of “Halal,” which translates to “permissible” in accordance with Islamic law, encompasses a wide array of ethical, dietary, and operational standards. In the context of food production, this includes the sourcing of raw materials, production processes, packaging, logistics, and retailing. Malaysia’s commitment to Halal principles is not only a reflection of its religious demographics but also a strategic economic endeavor aimed at positioning itself as a dominant force in the international Halal market.

One of the standouts is frozen food sector, the sector is renowned for its vertically integrated operations that span from poultry breeding and processing to distribution and retailing. This integration enables frozen food industries to exercise tight control over its Halal compliance at every stage of the supply chain. Frozen food industries adhere rigorously to the Halal Assurance System (HAS) established by the Department of Islamic Development Malaysia (JAKIM), which oversees the certification and monitoring of Halal products in the country.

Despite its strengths, frozen food industries operates in an increasingly complex and competitive environment. Global supply chain disruptions, escalating certification costs, regulatory inconsistencies across countries, and the growing demand for sustainability and transparency present substantial challenges. These pressures necessitate a continuous reassessment of operational strategies to maintain compliance, competitiveness, and consumer trust.

The objective of this manuscript is to delves into the intricacies of Halal supply chain management in Malaysia through the lens of frozen food industries. It provides a comprehensive analysis of the company’s strengths, weaknesses, opportunities, and threats (SWOT), and offers strategic recommendations to enhance its operational effectiveness. Drawing on current industry trends and governmental policies, the discussion underscores the importance of technological adoption, cost efficiency, and global market expansion in sustaining industies leadership in the Halal food sector. The objective is to present a holistic understanding of how a well-structured Halal supply chain can serve as a critical enabler for business growth, religious compliance, and international competitiveness.

LITERATURE REVIEW

The Halal frozen food industry, which has emerged as a crucial segment of the global food and beverage (F&B) market, is deeply influenced by religious, ethical, and consumer-driven considerations. As the demand for Halal-certified products continues to grow, both in Muslim-majority nations and among non-Muslim consumers seeking quality assurance, the complexity of managing Halal compliance throughout the supply chain becomes increasingly apparent. This literature review synthesizes academic and industrial sources to examine the critical elements impacting Halal supply chain management in the frozen food sector, focusing on internal capabilities, external threats, and emerging strategic opportunities.

Strength of Halal Frozen Food Supply Chain

A key strength of companies operating in the Halal frozen food industry lies in obtaining and maintaining recognized Halal certification [4], [5] . Certification by authoritative bodies, such as Malaysia’s Department of Islamic Development (JAKIM), is considered the gold standard in many regions [3], [6]. The process involves detailed inspections, adherence to strict hygiene standards, and continuous monitoring. This certification not only ensures compliance with Islamic law but also builds consumer trust in product authenticity. According to [7], consumers are more likely to remain loyal to brands that demonstrate consistent Halal integrity, especially in markets with high religious sensitivity.

Vertical integration is another advantage for Halal food manufacturers. Companies that manage multiple stages of the supply chain from procurement to processing and retail are better positioned to uphold Halal standards consistently. Integrated operations reduce dependency on external suppliers, thereby minimizing the risk of non-compliant raw materials entering the production process. Supply chain traceability and control are essential in Halal logistics, especially when dealing with perishable goods like frozen food [8].

Brand reputation and consumer familiarity further strengthen companies in this sector. Established Halal food brands are often perceived as more reliable, not only because of their certification status but also due to their historical performance and visibility in the market. This reputation plays a significant role in consumer decision-making, as noted by [9], who found that perceived trust and brand loyalty significantly influence the purchasing behavior of Muslim consumers.

Emerging Opportunities in Global Market

Strategic partnerships also contribute to the resilience of Halal supply chains. Collaborations with government agencies, logistics providers, and certification organizations streamline operations and reduce barriers to compliance [10], [11]. For instance, partnerships with Halal-certified logistics providers ensure that storage and transportation meet religious and regulatory requirements. The involvement of state agencies like MATRADE and HDC provides access to training, financial incentives, and international networking platforms, thus facilitating growth and expansion.

Despite these strengths, the Halal frozen food industry faces several structural and operational weaknesses. Chief among them is the high cost of Halal compliance. The financial burden of certification, including infrastructure investment, employee training, and recurring audits, is significant [12]. Moreover, the need to maintain separate processing lines and storage facilities to avoid cross-contamination further escalates operational expenses.

Another challenge stems from the complexity of global supply chains. With increasing internationalization, companies often source ingredients and packaging materials from multiple countries. This multiplicity of sources complicates Halal verification, particularly when suppliers lack robust compliance documentation. A single non-compliant input can invalidate the Halal status of the final product, underlining the need for stringent supplier audits and centralized verification systems [13], [14].

Technological adoption is another area where many Halal food manufacturers lag behind. While blockchain and Internet of Things (IoT) technologies offer the potential for real-time traceability and automated compliance monitoring, their implementation remains limited in this sector. integration of these technologies to enhance transparency and operational efficiency. Blockchain, for instance, allows for immutable tracking of products throughout the supply chain, while IoT sensors can monitor environmental conditions during transportation and storage [15].

Market concentration and geographic focus also present limitations. Many Halal food companies prioritize domestic or regional markets, limiting their exposure to global opportunities. This narrow focus reduces diversification and increases vulnerability to regional economic shifts and policy changes. In contrast, diversified market strategies are more resilient and offer better protection against localized disruptions.

External Threat and Strategic Challenge

On the opportunity side, the Halal frozen food industry is poised for robust growth, fueled by demographic and lifestyle shifts. The global Muslim population is projected to exceed 2 billion by 2030, driving increased demand for Halal products [16]. Moreover, there is a rising interest in Halal-certified foods among non-Muslim consumers who associate Halal certification with cleanliness, safety, and ethical sourcing. This trend is particularly evident in Western countries where multiculturalism and ethical consumption are gaining prominence.

Technological advancement presents a powerful enabler for growth. The adoption of digital technologies—such as AI for predictive logistics, blockchain for compliance tracking, and mobile applications for consumer engagement—can significantly improve operational efficiency and brand transparency. These innovations support real-time monitoring, reduce human error, and provide consumers with access to detailed product histories.

Government initiatives and support systems also provide significant growth avenues. Countries like Malaysia, Indonesia, and the UAE have invested heavily in developing Halal ecosystems that support local producers. These investments include Halal parks, export incentives, and trade agreements that simplify international market entry. Government-backed organizations facilitate certification processes and provide SMEs with resources to scale operations while maintaining compliance.

Sustainability is another emerging dimension of consumer preference that aligns well with Halal principles. The ethical and environmental dimensions of Halal, such as animal welfare, waste reduction, and fair trade, resonate with global sustainability goals. Incorporating sustainable practices into Halal operations—like eco-friendly packaging, renewable energy use, and ethical labor practices can enhance brand appeal and open access to environmentally conscious consumers.

However, several threats continue to challenge the stability and scalability of Halal frozen food supply chains. One significant threat is increasing competition. As global brands enter the Halal space, local producers may find it difficult to compete on price and scale. Competitive pressure can lead to margin compression, pushing some firms to compromise on quality or compliance, thereby risking their certification and reputation.

Regulatory inconsistency is another critical threat. Different countries have diverse standards for Halal certification, many of which are not aligned with each other. This lack of harmonization complicates cross-border trade and increases the risk of non-compliance. For instance, a product certified as Halal in one country may not be accepted in another due to differing interpretations of Islamic law or procedural discrepancies. The absence of a universal Halal standard is a significant barrier to global Halal market integration [2].

Supply chain disruptions, such as those experienced during the COVID-19 pandemic, further expose vulnerabilities. Delays in transportation, shortage of raw materials, and increased logistics costs affect the timely delivery of products and compromise cold chain integrity. For frozen food products, maintaining a strict temperature-controlled environment is essential not only for quality but also for compliance with Halal hygiene standards. Risk management strategies, including supplier diversification and inventory buffers, are necessary to address these uncertainties.

Consumer expectations for transparency and traceability have also intensified. Modern consumers demand access to product information, including sourcing (Mohamed et al., 2020), processing, and logistics data. Failure to meet these expectations can lead to diminished brand loyalty. Companies must therefore invest in systems that allow consumers to trace their food from farm to table. Tools like QR codes, mobile tracking apps, and transparency reports are becoming standard in the industry.

Lastly, economic pressures and price sensitivity, especially in developing markets, can influence purchasing behavior. While Halal products are often associated with premium quality, cost-conscious consumers may prioritize affordability. This dynamic places pressure on producers to balance quality and compliance with cost efficiency. Strategic pricing, coupled with value-added services such as nutritional enhancements or convenience packaging, may help offset this challenge [17], [18].

In conclusion, the literature reveals that the Halal frozen food industry stands at a crossroads of opportunity and complexity. Strengths such as Halal certification, vertical integration, and government support position the industry for success. At the same time, high compliance costs, technological gaps, and regulatory diversity present formidable challenges. Addressing these issues requires a multifaceted strategy encompassing innovation, collaboration, and global alignment. Future research should explore how digital transformation and international standardization can further strengthen Halal supply chains, ensuring long-term sustainability and competitiveness in the global food market.

CONCLUSION.

The Halal frozen food industry stands at a transformative juncture marked by accelerating global demand, evolving regulatory landscapes, and increasingly informed consumer bases. The convergence of religious compliance, ethical considerations, and technological advancement presents both unprecedented opportunities and formidable challenges. As this essay has explored, Halal food producers must adapt strategically to maintain their market relevance, ensure product integrity, and expand their global foo…

The literature review highlighted the multifaceted nature of the Halal food supply chain, emphasizing the importance of vertical integration, technological advancement, and certification credibility. While these factors strengthen market positioning, weaknesses such as high operational costs, fragmented global standards, and technological gaps continue to impede growth. Strategic recommendations have underscored the urgency of embracing innovation—from blockchain for traceability to sustainable packaging

For producers of Halal frozen foods, the way forward is not merely a matter of compliance but of leadership in value-based food innovation. The adoption of AI, IoT, and mobile solutions for real-time Halal tracking, alongside cross-border collaboration with certification bodies, will be essential. Furthermore, success in global markets will depend on consumer-centric strategies that emphasize transparency, ethical sourcing, and sustainability.

As the Halal economy continues to expand and diversify, the companies that thrive will be those that treat Halal not as a limitation, but as a holistic framework for quality, ethics, and inclusiveness. A global Halal brand must move beyond basic compliance to set new standards for excellence. In doing so, the Halal frozen food industry will not only serve the dietary needs of Muslim consumers but also contribute meaningfully to global dialogues on food security, safety, and sustainability.

REFERENCES

1. E. Izberk-Bilgin, “Infidel Brands: Unveiling Alternative Meanings of Global Brands at the Nexus of Globalization, Consumer Culture, and Islamism,” J. Consum. Res., vol. 39, no. 4, pp. 663–687, 2012, doi: 10.1086/665413.
2. M. Tieman, “Establishing the Principles in Halal Logistics,” J. Emerg. Econ. Islam. Res., vol. Vol.1, pp. 1–13, 2013, [Online]. Available: http://www.jeeir.com/index.php/jeeir/article/view/32
3. A. A. Muhamed, M. Mat Halif, M. Z. Abu Bakar, M. F. Hassan, and N. N. Abd Rahim, “Non-Conventional Strategic Supply Chain Management towards Halal Perspective,” Int. J. Acad. Res. Bus. Soc. Sci., vol. 12, no. 1, 2022, doi: 10.6007/ijarbss/v12-i1/12078.
4. I. Giyanti, A. Indrasari, W. Sutopo, and E. Liquiddanu, “Halal standard implementation in food manufacturing SMEs: its drivers and impact on performance,” J. Islam. Mark., vol. 12, no. 8, pp. 1577–1602, Nov. 2021, doi: 10.1108/JIMA-11-2019-0243.
5. M. H. Ali, K. H. Tan, and M. D. Ismail, “A supply chain integrity framework for halal food,” Br. Food J., vol. 119, no. 1, pp. 20–38, 2017, doi: 10.1108/BFJ-07-2016-0345.
6. M. H. Ali and N. Suleiman, “Sustainable food production: Insights of Malaysian halal small and medium sized enterprises,” Int. J. Prod. Econ., vol. 181, pp. 303–314, 2016, doi: 10.1016/j.ijpe.2016.06.003.
7. K. Bonne, I. Vermeir, F. Bergeaud-Blackler, and W. Verbeke, “Determinants of halal meat consumption in France,” Br. Food J., vol. 109, no. 5, pp. 367–386, 2007, doi: 10.1108/0070700710746786.
8. M. Syazwan Ab Talib and A. Bakar Abdul Hamid, “Halal logistics in Malaysia: a SWOT analysis,” J. Islam. Mark., vol. 5, no. 3, pp. 322–343, 2014, doi: 10.1108/JIMA-03-2013-0018.
9. M. H. Kamali, “The Halal Industry from Shariah Perspective,” Islam Civilisational Renew., vol. 1, no. 4, pp. 595–612, 2010.
10. D. Yener, “Factors That Affect the Attitudes of Consumers Toward Halal-Certified Products in Turkey,” J. Food Prod. Mark., 2015, doi: 10.1080/10454446.2013.843483.
11. A. A. Muhamed, N. Salim, M. N. Ab Rahman, F. M. Hamzah, and M. H. Ali, “Effects of supply chain orientation on firm performance: insights from a Malaysian case study of halal-certified small and medium-sized enterprises,” J. Small Bus. Entrep., vol. 0, no. 0, pp. 1–17, Dec. 2020, doi: 10.1080/08276331.2020.1848328.
12. M. Nasir, A. Norman, S. Fauzi, and M. Azmi, “An RFID-based validation system for Halal Food,” Int. Arab J. Inf. Technol., vol. 8, no. 2, pp. 204–211, 2011.
13. S. Zayani, K. Kanapathy, M. Iranmesh, and M. Tieman, “Drivers of halal orientation strategy among halal food firms,” Br. Food J., vol. 117, no. 8, pp. 148–163, 2015, doi: 10.1108/BFJ-01-2015-0027.
14. M. Tieman and M. Ghazali, “Principles in halal purchasing,” J. Islam. Mark., vol. 4, no. 3, pp. 281–293, 2013, doi: 10.1108/JIMA-01-2012-0004.
15. M. H. Zulfakar, M. Mohamaed Anuar, and M. S. Ab Talib, “Conceptual Framework on Halal Food Supply Chain Integrity Enhancement Conceptual Framework on Halal Food Supply Chain Integrity Enhancement,” in International Halal Conference, 2014, no. March, pp. 58–67. doi: 10.1016/j.sbspro.2014.01.1108.
16. A. A. Muhamed, M. N. Ab Rahman, F. Mohd Hamzah, C. R. Che Mohd Zain, and S. Zailani, “The impact of consumption value on consumer behaviour: A case study of halal-certified food supplies,” Br. Food J., vol. 121, no. 11, pp. 2951–2966, 2019, doi: 10.1108/BFJ-10-2018-0692.
17. C. R. Cano, F. A. Carillat, and F. Jaramillo, “A meta-analysis of the relationship between market orientation and business performance : evidence from five continents,” Int. J. Res. Mark., vol. 21, pp. 179–200, 2004, doi: 10.1016/j.ijresmar.2003.07.001.
18. Y. Fernando et al., “Supply chain integration and halal frozen meat product returns,” J. Islam. Mark., vol. 14, no. 5, pp. 1369–1395, Apr. 2023, doi: 10.1108/JIMA-05-2021-0144.