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MarketTrend: Kosher- and Halal-Certified Foods in the U.S.
May 1, 2009
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., Packaged Facts
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:

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 Contents
Chapter 1: Executive Summary
The 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 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

4. 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

5. 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

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/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

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 K
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