MarketTrend: Kosher- and Halal-Certified Foods in
the U.S.
- Market – Food and Drink
- Published
Date – 01/04/2009 - Report Type –
Market Report - Country – US
- Number
of Pages – 104
- Electronic – £2,750.00
- Corporate
Licence – £5,500.00
Report Summary
MarketTrend: Kosher- and Halal-Certified Foods in the U.S.
delivers an in-depth analysis of the market for kosher and halal foods
in the United States, with an emphasis on opportunities in the
mainstream market.
The report discusses the many similarities
between kosher and halal foods:
Both involve dietary laws
derived from ancient sacred texts
Ritual slaughter emphasizes
respect for the animal
Forbidden ingredients include those
derived from human hair, bird feathers, and other unsavory sources that
are acceptable to U.S. government agencies
Standards for food
production are far more rigorous than those required by the U.S.
Important
differences are also addressed:
The Jewish population in the
United States is small – less than 2% – and is expected to decline, both
in the U.S. and worldwide.
A significant percentage of kosher
consumers in America are not Jewish. They buy kosher because they
believe it is safer, better, healthier.
Muslims represent less
than 1% of the U.S. population. Globally, on the other hand, one in five
individuals practice the faith.
“”Halal”” applies to all facets
of Islamic life, from banking to toothpaste.
Americans are
largely unaware of the halal concept and its attractive attributes
pertaining to food.
In MarketTrend: Kosher- and Halal-Certified
Foods in the U.S., 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 large number of consumers who are
concerned about food safety and are skeptical about food labeling
Those
on gluten-free or meatless diets
“”Foodies””
Asian
Americans, who eat less dairy and drink less alcohol compared to the
overall U.S. population
Those who practice ethical consumerism
The
kosher foods market has many facets and no definitive parameters, so
accurate sales data are difficult to come by. The report employs
innovative methodologies to unravel the complexities of the market. By
synthesizing information from government agencies, syndicated research
services, and interviews with industry executives and consumers, the
report is able to provide sales data for the diverse segments of the
market for certified kosher foods.
Specifically, the report
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 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. The report does not see traditional or “”ethnic””
kosher foods contributing to market growth.
The report 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).
Because the concept of a market for certified halal foods is a
fairly new phenomenon, 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, hard data are
virtually nonexistent. In MarketTrend: Kosher- and Halal-Certified
Foods in the U.S., the report 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, the report 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.””
About the Author
As a research analyst and
business-to-business consultant since 1987, Lisa Schinhofen has written
several dozen syndicated studies as well as monthly newsletters on
several different topics, including credit cards, prepaid cards, and
alternative payments.
Table of Contents
Chapter 1: Executive Summary
The Basics
Scope
of This Report
Methodology
Kosher Basics
Halal Basics
In
both cases, ritual slaughter honors the animal
Certification
Figure
1-1: Sample Page of Application for Kosher Certification Vaad Hoeir of
St. Louis
Figure 1-2: Selected Symbols Representing Kosher
Certification, Halal Certification
Why certify?
A marketing
claim with teeth
Table 1-1: Importance of Kosher Certification
Symbol, by Type of Kosher Consumer (on a 1-10 scale), 2007
Certifiers
provide publicity for their clients
Certification enhances export
opportunities
Market Size and Growth
Kosher foods at
$211 billion in 2008
Table 1-2: Total Food vs. Kosher Food Sales in
U.S. Grocery Stores, 2003 and 2008 (in millions of dollars)
“Ethnic”
brands don’t seem to be driving growth
Sales of certified kosher
foods forecast to surpass $260 billion by 2013
As a market, halal is
in its infancy; growth is nurtured by nations with much to gain
Malaysian
Ministry puts U.S. market at almost $12 billion
Canadian government
urges businesses to enter halal food market
Market Factors and
Trends
Muslim population in the U.S. is tiny; globally, it’s huge
Table
1-3: Religious Affiliations, the United States and the World (percent)
Figure
1-3: Religious Affiliations, the United States and the World (percent)
“Kosher”
connotes superior quality to consumers
Kosher and halal foods are
more expensive
Product Trends
New kosher introductions jump by
half in four years
Figure 1-4: Number of U.S. Food & Beverage
Product Introductions: Kosher, 2004-2008
Halal is rarely used as a
descriptor; new products difficult to quantify
The Consumer
Jewish
consumers are educated and wealthy, but their numbers may be dwindling
Muslims
in the U.S. are younger, households are larger
Demographics,
Attitudes, and Preferences of U.S. Consumers of Selected Kosher Foods
Opportunities
in Kosher and Halal Foods
Concerns About Food Safety and Integrity
Clearly
labeled foods should appeal to gluten-free dieters
Meatless eating
easier with kosher labeling
Kosher Consumers as Foodies
Table 1-4:
Selected Psychographics: Kosher Consumers vs. Foodies, 2008 (index for
U.S. adults who buy Hebrew National/Best’s Kosher franks and index for
foodie adults)
Figure 1-5: Agreement With Foodie Psychographic
Statements, Kosher Consumers, 2008 (index for U.S. adults who buy Hebrew
National/Best’s Kosher franks and agree with selected psychographic
statements Packaged Facts associates with foodies)
Asian Americans
Ethical
Consumerism
Chapter 2: The Basics
Scope of This Report
Methodology
Kosher
Basics
Meat must come from ruminants with cloven hooves
Figure
2-1: Kosher and Non-Kosher Cuts of Beef
Chicken is kosher, swans are
not
Kosher fish have fins and scales
Ritual slaughter (shechita)
honors the animal
Dietary practices isolate food groups
Kosherizing
processed foods may be simple or arduous
Table 2-1: Selected
Terminology Describing Kosher Dietary Laws
Halal Basics
Ritual
slaughter (dhabihah) honors the animal
Table 2-2: Glossary of
Selected Halal Terms
Table 2-3: Similarities and Distinctions Between
Kosher and Halal
Certification
Kosher certification involves
significant interaction between applicant and certifier
Figure 2-2:
Sample Page of Application for Kosher Certification Vaad Hoeir of St.
Louis
Halal certification resembles kosher in procedure and rigor
Figure
2-3: Selected Symbols Representing Kosher Certification, Halal
Certification
Certification costs vary, but proponents say it pays
for itself in increased sales
Why certify? A marketing claim with
teeth
Table 2-4: Importance of Kosher Certification Symbol, by Type
of Kosher Consumer (on a 1-10 scale), 2007
Certifiers provide
publicity for their clients
Certification honors all consumers’
dietary needs
Certification enhances export opportunities
Choosing
a certifier is like choosing a lawyer: research, references, reputation
Chapter 3: Market Size and Growth
Kosher Foods
Sales
figures are difficult to pin down
Sales of certified kosher products
grow at twice the rate of the overall food industry
Table 3-1: Total
Food vs. Kosher Food Sales in U.S. Grocery Stores, 2003 and 2008 (in
millions of dollars)
“Ethnic” brands don’t seem to be driving growth
Figure
3-1: “Ethnic” Kosher Brands as a Share of Total Food Sales through Food
Stores, Selected Categories, 2007 (percent)
Sales of certified
kosher foods forecast to surpass $258 billion by 2013
Table 3-2:
Forecast: Total Food, Kosher Food, and “Ethnic” Kosher Food Sales in
U.S. Grocery Stores, 2009-2013 (in billions of dollars)
Halal Foods
As
a market, halal is in its infancy; growth is nurtured by nations with
much to gain
Malaysian Ministry puts U.S. market at $548 billion
Canadian
government urges businesses to enter halal food market
Sales of
certified halal foods forecast to grow 4-6% CAGR in U.S.
Market
Factors and Trends
Muslim population in the U.S. is tiny;
globally, it’s huge
Table 3-3: Religious Affiliations, the United
States and the World (percent)
Figure 3-2: Religious Affiliations,
the United States and the World (percent)
“Kosher” connotes superior
quality to consumers
Halal meat is considered fresher, better
Kosher
and halal foods are more expensive
Table 3-4: U.S. Retail Chicken
Prices, boneless and skinless breasts, 2008 (price per pound)
Table
3-5: U.S. Retail Chicken Prices, whole, 2008 (price per pound)
Table
3-6: Average Base Price per Volume for Selected Foods, 52 weeks ending
Oct. 5, 2008 (volume equivalency: pounds)
Industries are largely
self-regulated
Certifiers and consumers serve as watchdogs
Product
Trends
Scope and Methodology
Product Introductions
New
kosher introductions jump by half in four years
Figure 3-3: Number of
U.S. Food & Beverage Product Introductions: Kosher, 2004-2008
Figure
3-4: Share of U.S. Kosher Product Introductions: Total U.S. Food and
Global Kosher, 2004-2008 (percent)
Halal is rarely used as a
descriptor; new products difficult to quantify
Product Trends
Kosher
foods lighten up on the schmaltz
Gourmet, upscale increasingly
describe kosher foods
Product focus: kosher wine is subjected to a
total makeover
Chapter 4: The Consumer
Scope and
Methodology
Jewish consumers are educated and wealthy, but their
numbers may be dwindling
Muslims in the U.S. are younger, households
are larger
American Muslims are assimilated but devout
Demographics,
Attitudes, and Preferences of U.S. Consumers of Selected Kosher Foods
56%
of Jewish consumers buy kosher hot dogs, but just 5% of people who buy
kosher hot dogs are Jewish
Age, region, income, and education are
predictors of use
Table 4-1: Purchase of Hebrew National/Best’s
Kosher Hot Dogs, by Household Income, 2008 (index of U.S. adults)
Table
4-2: Purchase of Hebrew National/Best’s Kosher Hot Dogs, by Education,
2008 (index of U.S. adults)
Chapter 5: Opportunities in Kosher
and Halal Foods
Concerns About Food Safety and Integrity
U.S.
consumers have lost confidence in the food supply…
…and stop
buying products whose safety seems compromised
Consumers want more
info about their foods
Safety and Labeling Controversies
GMOs
could compromise integrity of kosher/halal foods
Is irradiation
safe, or a cop-out?
Beefed-up cows
“Natural” is meaningless
“Organic”
is less meaningful than you think
FDA okays meat and milk from
cloned animals – no labeling required
Strict kosher/halal standards
offer reassurance
Gluten-free
Meatless
Kosher Consumers as
Foodies
Table 5-1: Selected Psychographics: Kosher Consumers vs.
Foodies, 2008 (index for U.S. adults who buy Hebrew National/Best’s
Kosher franks and index for foodie adults)
Figure 5-1: Agreement
With Foodie Psychographic Statements, Kosher Consumers, 2008 (index for
U.S. adults who buy Hebrew National/Best’s Kosher franks and agree with
selected psychographic statements Packaged Facts associates with
foodies)
Asian Americans
Ethical Consumerism
Ethical Eating
Chapter
6: Snapshots of Selected Industry Participants
Food Companies
Cabot
Creamery Cooperative
Cargill Texturizing Solutions
Crescent
Premium Foods
G. Willi-Food International
Hebrew National
(ConAgra)
J&M Food Products Company
Kedem Food Products
International
King Kold
Manischewitz Company
Midamar
Corporation
Nestlé Quality Technical Coordination
Nutrilite
Osem
USA
Sabinsa Corporation
Retailers
H-E-B
Kosher Vending
Industries LLC
Pomegranate
ShopRite
Winn-Dixie
Certifying
Agencies
Halal Monitoring Authority
Islamic Food and Nutrition
Council of America
Islamic Society of North America
Kof-K
Muslim
Consumer Group
OK Kosher
Orthodox Union
Star-K Kosher
Triangle
K
