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

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
  • Nestle 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