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Last Updated: Jun 25th, 2007 - 17:07:26 |
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"Second and third generation Halal consumers want more choices, and we notice that they are more loyal to stores and Halal brands than the average non-Halal consumers. This may be due to religious affiliation of the products they purchase."
Jalel Aossey, Midamar Corporation, Iowa |
Halal and Kosher are two faith-based food markets that actually have much in common in terms of acceptable practices based on the tenets of each religion. Kosher however, has one distinct edge – it has managed to build a staggering number of Kosher certified products.
With a Jewish population of less than six million in the U.S., the local Kosher industry has developed well over 86,000 Kosher-certified products. Comparatively, at over eight million, the Muslim population in America is substantially greater in number to the Jews, but only 1,000 Halal-certified products are currently available in the market, many of which are not on the major supermarket shelves.
Interestingly however, most of the growth in Kosher has actually come in the basic mainstream foods segment, such as cookies, chocolate confectionery, snacks, sugar confectionary and crackers – items that are not part of the traditional ethnic Kosher food like gefilte fish, matzoh, schav and borscht. In fact, “ethnic Kosher foods are so low that it is extremely difficult to track them,” said a Mintel market research report on the development of Kosher in the U.S.
It added that “while the overall ”mainstream kosher” market, including fresh and processed foods accounts for more than USD100 billion in sales, these sales may not be indicative of the ‘market’ for kosher foods, since the majority of consumers buy these products not because they are Kosher, but for some other reason.”
The main reason it said, is the perception that Kosher labels convey a sense of quality and hygiene. Undeniably, much has been done by the industry to instil this awareness among American consumers, to the extent that even some Muslims are resorting to buying Kosher for the lack of quality Halal food available in the mainstream markets.
As it is, 16 per cent of the Kosher market in America is made up of Muslim consumers. But according to research done by Iowa-based Halal food supplier and distributor Midamar Corporation, 92 per cent of American Muslims admitted that they would purchase Halal products exclusively if more were made available.
Getting products Halal-certified is actually not a difficult process. By getting products reviewed by Halal industry experts, local and global manufacturers are getting the assurance that their ingredients, preparation, processing, hygiene and sanitation procedures meet not only the Halal standards, but also ensures that it is consistent with HAACP and other established quality assurance standards.
Most importantly, it gives them access to the vast Muslim market, both in United States and globally. The Islamic Food and Nutrition Council of North America (IFANCA) for instance, a leading Halal-food certification organization in America, has its Halal certificate recognised worldwide, including Europe and North and South America, Indonesia, Malaysia, Singapore, Saudi Arabia, the UAE and the rest of the Middle East.
As a Mintel spokesperson said, “More companies realise that when they refurbish a manufacturing plant or update a recipe, they might as well get Kosher certification because it is easier to do and it grows the market.” Similarly, Halal manufacturers, not just in the U.S. but all over the world, can learn from this development.
With Muslims making up approximately 25% of the world population, the global Halal marketplace is too lucrative a market for manufacturers to ignore. Within the United States alone, the increase of Muslim immigrants from Iraq, Somalia, Sudan, Bosnia and the Middle East are inadvertently pushing Halal into the mainstream.
“The eight million Muslims living in the United States today have created the single greatest demand for Halal food in a Western society outside of France. The double digit growth for Halal food in this country is a result of six major events over the past 15 years and this upward trend will continue to drive the demand for Halal in the years ahead,” said Jalel Aossey, director at Midamar Corporation of Iowa.
Islamic Services of America, another leading US Halal certification body recognised globally, including in Malaysia, estimates that the US market for Halal foods will continue to grow at a rate of 25 to 30 per cent over the next five to seven years. Midamar meanwhile, projected that approximately USD12 billion of food products are purchased by Halal consumers each year in the U.S alone. This huge demand is actually reshaping the buying trend of Halal consumers who wants more variety, convenience and of course, easy access to Halal products.
“Halal consumers prefer to purchase in more than the traditional ethnic store setting,” explains Jalel. “Second and third generation Halal consumers want more choices, and we notice that they are more loyal to stores and Halal brands than the average non Halal consumers. This may be due to religious affiliation of the products they purchase.”
He added that the average Halal consumer will also purchase additional groceries and supplies from stores carrying Halal products. “And Halal is not just exclusive to the Arab population, it is also purchased by non-Muslims, who come from many backgrounds and ethnicities, be it Jews, Asians and even natural and organic consumers. The bottom line is, Halal adds more dollars to the average grocery receipt,” he added.
Needless to say, the Halal market is well on its path in becoming the most important category in global food development. The United States’ widening trade deficit could readily be a key beneficiary if major American food manufacturers would start to consider certifying their products as Halal and start tapping the vast potentials of a global Halal marketplace.
“The retail food industry is already taking notice,” Jalel added. “Companies are establishing programs and test markets for introducing and implementing a Halal category at the store level. Companies looking to be an industry leader will have the vision to introduce Halal products for customer satisfaction and retention.
“The end result is earning your customer’s trust, ongoing loyalty and of course increased sales and profits.”
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