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MarketTrend: Kosher- and Halal-Certified Foods in the U.S.

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  • 1.    Get more info on this report!MarketTrend: Kosher- and Halal-Certified Foods in the U.S.May 1, 2009MarketTrend: Kosher- and Halal-Certified Foods in the U.S. delivers an in-depthanalysis of the market for kosher and halal foods in the United States, with an emphasison 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., Packaged Factsmaintains that the number of mainstream products that have obtained koshercertification has reached critical mass, and so has the share of consumers whodeliberately seek out kosher foods. As for halal, few Americans have even heard of it. Inorder to grow these markets, companies must educate consumers about the benefitsthat define these foods and third-party certification thereof. Among the most promisingprospects:
  • 2. • 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. Packaged Facts 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, Packaged Facts is able to provide sales data for the diverse segments of the market for certified kosher foods. • Specifically, 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 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). • 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., 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."Table of ContentsChapter 1: Executive SummaryThe Basics Scope of This Report Methodology
  • 3. 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 opportunitiesMarket 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 dont 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, its 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 quantifyThe 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 FoodsOpportunities 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
  • 4. Table 1-4: Selected Psychographics: Kosher Consumers vs. Foodies, 2008 (index for U.S. adults who buy Hebrew National/Bests 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/Bests Kosher franks and agree with selected psychographic statements Packaged Facts associates with foodies) Asian Americans Ethical ConsumerismChapter 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, reputationChapter 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
  • 5. Table 3-1: Total Food vs. Kosher Food Sales in U.S. Grocery Stores, 2003 and 2008 (in millions of dollars) "Ethnic" brands dont 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, its 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 watchdogsProduct 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 makeoverChapter 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
  • 6. 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/Bests Kosher Hot Dogs, by Household Income, 2008 (index of U.S. adults) Table 4-2: Purchase of Hebrew National/Bests 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/Bests 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/Bests Kosher franks and agree with selected psychographic statements Packaged Facts associates with foodies) Asian Americans Ethical Consumerism Ethical EatingChapter 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
  • 7. 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 KAvailable immediately for Online Download athttp://www.marketresearch.com/product/display.asp?productid=1282406  US: 800.298.5699UK +44.207.256.3920Intl: +1.240.747.3093Fax: 240.747.3004 

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