The global halal market is a $580 billion industry and American manufacturers, importers, restaurant operators, caterers and retailers are beginning to pay attention: the U.S. halal market grew more than 20 percent last year.
There are eight million Muslims living in the U.S.A. today, and they have created the largest demand for halal food in Western society outside of France. Islamic Services of America estimates that halal foods will continue to grow at a rate of 25 to 30 percent per year for the next five to seven years.
In the U.S., halal has gone into mainstream retail outlets. Certain McDonalds—including two in Michigan—sell halal burgers and chicken nuggets; Subway provides halal products in 62 restaurants worldwide including two in New Jersey. The Islamic Food and Nutrition Council of America (IFANCA) in Illinois certified 1,000 companies last year, up from 330 companies in 2002.
One of the interesting statistics about kosher food sales is that, (according to Mintel, - a market research company), about 16 percent of kosher sales are made to Muslims due to the lack of availability of halal-certified foods. (Many of the laws governing halal food production—particularly meat—are strikingly similar to kosher food.)
However, it’s not just halal-observant Muslims who are driving this market. Many consumers concerned about food safety are turning to halal-certified foods because of the perception that they are “cleaner” and more closely supervised during the manufacturing process. There have been many food safety issues highlighted recently in the US and these have made consumers more careful of their choices. Vegetarians and consumers with food intolerances are drawn to the products as well because the certification labeling means that they can quickly see if a food contains impermissible ingredients. Manufacturers are also pursuing certification because it can help open up new regional markets in cities where buyers are more likely to be accepting certified products.
Halal is carrying a reputation for cleanliness and quality in the manufacturing process among some consumers. According to Jalel Aossey, director of Midamar Corporation, a leading U.S. halal manufacturer and retailer, people are more concerned with what is in the food they eat, and things like Mad Cow outbreaks have driven non-Muslims to purchase halal meats.
The halal market is quite diversified to meet the demands of younger Muslims. The younger generation wants variety in their food, presenting an opportunity for manufacturers of more non-traditional halal foods. While they may have a Halal burger today, traditional Middle Eastern food the next, they are willing to try Thai / Vietnamese food - so why not Malaysian if it is more available, just like any other Americans who wants variety.
There is also an increase in the number of Muslims in the U.S. who wish to keep a halal home and halal lifestyle, as many Muslims are returning to a more religious way of life. There has been a resurgence of Muslims wanting to keep a halal home, creating a greater demand for halal stores and halal products.
The categories that are fueling the growth for halal have come not from traditional foods, but from mainstream food segments—cookies, chocolate confectionery, snacks, sugar confectionery and crackers—and tend to fall in the premium sector.
The move towards healthier offerings is a big growth driver as well, and sugar-free, gluten-free, low-fat and all-natural could be the next drivers of the halal market, yet can easily be aimed at the general market, particularly those who have food sensitivities or allergies. There appears to be few options so far for healthier halal snacks, i.e. low-fat or high protein items or all natural. Marketing halal to the health conscious is timely. Along with certifications such as ‘organic,’ and ‘all-natural,’ halal has the potential to project a ‘better-for-you’ image in the consumer’s eye. The trend towards organic and natural with halal seems to be a natural progression.
As Malaysia is seeking to better its reputation as the “Halal Hub”, opportunities in the U.S.A. for Malaysian exporters of halal-certified foods are tremendous. Muslim Americans look up to Malaysia as a progressive and dynamic Muslim country and is well respected for early initiatives in promoting Halal foods. Malaysian halal certification gives confidence to these consumers. MIHAS is an excellent platform for buyers and exporters to explore this potential.
MATRADE LOS ANGELES8 April 2009
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