The report discusses the many similarities between kosher and halal foods:
Important differences are also addressed:
In MarketTrend: Kosher- and Halal-Certified Foods in the U.S., Packaged Facts maintains that the number of mainstream products that have obtained kosher certification has reached critical mass, and so has the share of consumers who deliberately seek out kosher foods. As for halal, few Americans have even heard of it. In order to grow these markets, companies must educate consumers about the benefits that define these foods and third-party certification thereof. Among the most promising prospects:
The kosher foods market has is many-faceted and no definitive parameters, so accurate sales data are difficult to come by. Packaged Facts unravels the complexities of the kosher foods market by synthesizing information from government agencies, syndicated research services, and interviews with industry executives and consumers. Packaged Facts provides you with sales data of the certified kosher foods market's diverse segments.
Packaged Facts estimates that sales of certified kosher foods swelled from nearly $150 billion in 2003 to more than $200 billion in 2008, demonstrating a compound annual growth rate twice that of the overall u.s. food market. The increase is largely attributable to the rising number of certified products, as well as a growing number of consumers who deliberately seek out kosher foods. Packaged Facts does not see traditional or "ethnic" kosher foods contributing to market growth.
Packaged Facts forecasts the total market for certified kosher food will approach $260 billion, while sales of products that are purchased because they are kosher will fall between $14 billion (low estimate) and $17 billion (high estimate).
The concept of a certified halal foods market is a fairly new phenomenon. Additionally, Muslims compose a very small share of the U.S. population, and many of the countries that are home to large Muslim populations have just begun to monitor and quantify sales, meaning hard data are virtually nonexistent. In MarketTrend: Kosher- and Halal-Certified Foods in the U.S., Packaged Facts examines all of the available data to draw a portrait of Muslims in the U.S as followers of Islam, as Americans, and as consumers.
No other market research report provides the comprehensive analysis, extensive data, and unique insights on the similarities and differences in these two traditions of faith-based consumption. In particular, Packaged Facts analyzes opportunities for U.S. kosher and halal food producers to target mainstream Americans as well as promising niches like Asian Americans, ethical consumers, and "foodies."
Read an excerpt from this report below.About the Author
As a research analyst and business-to-business consultant since 1987, Lisa Schinhofen has written several dozen syndicated studies for Packaged Facts and for FIND/SVP (now Guideline), as well as monthly newsletters on several different topics, including credit cards, prepaid cards, and alternative payments.
Market Insights: A Selection From The Report
Why certify? A marketing claim with teeth
Certification enhances the desirability of a company's products to a broader customer base in the U.S. - provided marketers ensure consumers are made aware of the third-party endorsement - as well as expanding export opportunities.
Rabbi Eliyahu Safran, Orthodox Union Kosher's Vice President of Communications & Marketing, shared with Packaged Facts the results of an online survey conducted in 2007. Respondents were over 1,700 randomly selected Jewish and non-Jewish consumers who bought kosher foods at least some of the time. Asked to rate the importance of a certification symbol on a scale of 1 to 10, even non-observant kosher shoppers deemed it a fairly important factor in making a purchase decision. In fact, respondents who purchase kosher foods primarily for reasons other than the observance of Jewish dietary laws value certification even more highly than those who keep kosher intermittently. [Table 1-1]
As a market, halal is in its infancy; growth is nurtured by nations with much to gain
The concept of certifying halal foods as authentic by an objective party is new. In addition, many of the countries that are home to large Muslim populations do not have the infrastructure in place to monitor and quantify sales. Therefore, there is currently a dearth of reliable market data.
Recognizing the vast opportunities in the halal market, nations with significant Muslim populations are forming alliances to investigate ways to research, standardize, and promote products and services, domestically and internationally. Most of these coalitions take the broader view of halal - not just food, but toiletries and cosmetics, pharmaceuticals, even financial services and travel packages.
Malaysian Ministry puts U.S. market at almost $12 billion
Malaysia, for one, is taking aggressive steps to fashion itself as the hub of halal trade. In this capacity, the Ministry of International Trade and Industry recently produced its Third Industrial Master Plan, 2006-2020, or IMP3. According to IMP3, the market for halal foods is worth $11.6 billion in the United States, and $548 billion worldwide.
Canadian government urges businesses to enter halal food market
In June 2008, Agriculture and Agri-Food Canada/Agri-Food Trade Service published a Global Halal Food Market Brief to highlight and publicize the significant opportunities in the halal market. The government expects the population of Canadian Muslims to double between 2000 and 2010 from 600,000 to 1.2 million. In addition to the growing customer base, the lack of convenient access to halal foods gives this market strong growth potential.In the News
Kosher, Halal Foods Meet Demands of Today's Consumers - But Most Don't Know It Yet
New York, April 15, 2009 - Kosher and halal foods - as defined by the sacred dietary laws of Jews and Muslims, respectively - must be produced and processed according to standards that far exceed those imposed by the U.S. government. In kosher and halal food production, sanitation requirements are more exacting, supervision is more rigorous, inspection is more frequent, prohibitions against certain ingredients and contaminants are stricter, and label information is more forthcoming than required by federal law. And unlike federal law, these ancient standards are not subject to negotiation.
There is every reason, then, to expect the increasingly discerning U.S. food shopper to choose these products over their conventional counterparts. Indeed, according to Packaged Facts' new report, MarketTrend: Kosher- and Halal-Certified Foods in the U.S., sales of certified kosher foods through grocery stores swelled from nearly $150 billion in 2003 to more than $200 billion in 2008, demonstrating a compound annual growth rate twice that of the overall food market.
"U.S. consumers who are not followers of Judaism or Islam are largely unaware of the specific qualities that distinguish kosher and halal from conventional foods," says Packaged Facts Publisher Tatjana Meerman. "However, factors related to safety, quality, and 'truth in labeling' should prompt these mainstream consumers to seek out kosher/halal more often, although marketers and third-party certifiers must make a greater effort to educate consumers before that can happen. Shoppers already read food labels," she continues. "So, a kosher/halal certification seal should be one of the things they are looking for."
The potential customer base is vast, and includes the large segment of the American population anxious about the safety of the food supply as well as the growing number of people on gluten-free, dairy-free, vegetarian, or other special diets who demand clarity in food labeling. In addition, because the sacred teachings of both Judaism and Islam emphasize respect for the land and living things, kosher and halal foods also address the concerns of the ethical consumerism movement. In an unexpected finding, the segment of consumers Packaged Facts has identified as "foodies" is shown to be an exceptionally promising prospect for kosher/halal marketers.
MarketTrend: Kosher- and Halal-Certified Foods in the U.S. is an all-new report that delivers unique insights into the market for kosher and halal foods in the United States, with an emphasis on opportunities in the mainstream market. In this report, Packaged Facts synthesizes hard data from syndicated research providers and U.S. government sources with unique perspectives provided by industry insiders and the insightful analyses contained in related Packaged Facts reports to fashion a portrait of the U.S. market for kosher and halal foods and the products' current and prospective consumers, with an emphasis on emerging market trends and prospects. The report also discusses the use of third-party certification and consumer education to promote products to the faithful as well as to the mainstream and to capitalize on the extraordinary export opportunities.
About Packaged Facts - Packaged Facts, a division of Market Research Group, publishes market intelligence on a wide range of consumer industries, including consumer goods and retailing, foods and beverages, demographics, pet, and financial products. Packaged Facts also offers a full range of custom research services.