May 7, 2007

US seen to grow halal market; seize more markets in Muslim nations

The halal market in the US is expected to grow as more food processors are raring to meet the increasing demand, according to a May 2007 study on marketing to Muslim-Americans conducted by consulting firm JWT Intelligence.

According to the study, forty-four percent of Muslims agreed with the statement that "most products and brands do not understand my needs," compared to a mere 15 percent of non-Muslims. This finding indicates that food market as many in search of halal products travel out of their way to retailers who stock them.

Marian Salzman, executive vice president and chief marketing officer, JWT Worldwide said the global halal food market is already US$580 billion yearly and still growing.

Salzman added going global should also mean catering to Muslim population as "there are significant opportunities for major marketers to build relationships with them, especially in the areas of prepared, convenience and pre-packaged halal meals."

JWT has recommended the following aspects for producers who want to tap the growing halal market:

• The "low hanging fruit" for marketers are those Muslims who are currently using kosher as a "surrogate," given the limited access to halal foods versus the broader distribution of kosher. Supplying existing demand can materially change the fortunes of the halal business.
   
• The prospect of halal foods crossing over into the mainstream (in the same way that kosher has done) can be propelled by concentrating on their perceived benefits, including quality, cleanliness and health, among other factors. Those benefits nicely match some mainstream trends in food. Not only can US companies fulfill this untapped niche market among Muslim-Americans, they will be better positioned to serve significant Muslim populations in other parts of the world.

Ann Mack, director of trendspotting, JWT Worldwide said tapping Muslim-Americans are a niche market to be approached with classic market disciplines and new marketing tools. She said as Muslims in the US don't want to be singled out by their religion by corporate America, they also do want to be acknowledged by marketers as they are more sensitive than most non-Muslims to branded communication that acknowledges them.