Market Trends of North America Halal Food and Beverage Industry
Halal Certification Attracting a New Consumer Base
- Consumers are increasingly placing a premium on products with a halal seal of approval, and businesses are benefiting from this influx of new customers. Products certified as Halal have been proven to be of the highest quality and have been produced per Islamic dietary and legal standards. Businesses and food processors are responsible for convincing consumers that halal food and beverages are ethically sound and safe to eat.
- Due to the spiritual importance it holds, consumers are becoming increasingly concerned about the food they buy. The increasing Muslim population in the North American region and consumers' growing interest in where their food comes from and what goes into it have increased the value of halal certification. Furthermore, the companies looking to enhance their competitiveness, getting halal certification is becoming crucial to stay up with the market trends. It is proving a fantastic marketing tool for companies and meat processors. Therefore, many businesses are looking for halal certifications in different countries.
- For instance, in March 2023, Farmer Focus, the 100% United States Department of Agriculture (USDA) organic and humane-certified chicken company based in the United States, offered halal-certified organic chicken for Ramadan celebrations. Halal-certified products are available at selected retailers and online partners like Crowd Crow to help consumers deliver products to their doorstep.
- Thus, consumers greatly prefer halal-certified products, and companies and food processors are receiving such certifications to receive additional consumers. These consumers are being driven by acceptable products, with certification raising consumer confidence, thereby supporting market demand for North American halal food and beverage market.
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United States Dominates the Market
- Halal food and beverage items have grown in popularity among a vast range of consumers as they have evolved from a religious identification mark to an assurance of food safety, hygiene, and dependability. Also, the expanding e-commerce sector has made it simpler for consumers to access halal meat across the region. Another key element promoting market expansion is the presence of multinational producers and exporters of halal across the North American region.
- For instance, according to American Halal Foundation, the halal industry continues to expand in the United States with a 3.45 million Muslim population and many other adherents to the halal lifestyle. It is projected to grow by USD 8.17 billion by 2024. Additionally, according to the Islamic Food and Nutrition Council of America (IFANCA), halal consumers in the United States market spent approximately USD 20 billion on food in 2020. However, only a few manufacturers are tapping this affluent market sector which can offer significant growth potential for the product in the country.
- Also, halal food and beverage companies are adopting partnership strategies to improve efficiency and reduce costs. By partnering with other companies, they can share resources and expertise, leading to cost savings and operational efficiencies. Moreover, partnerships can help halal meat companies improve their product quality and innovation.
- By collaborating with other companies or organizations, they can leverage new technologies, processes, or ideas to enhance their product offerings and stay competitive. For instance, in May 2022, Crescent Foods partnered with Meijer Stores operating in the United States to retail the company products. Some products offered are boneless skinless chicken breast, thin-slice chicken breast, drumsticks, and others.
- Thus, consumers in the country greatly prefer products that are halal certified as consumers are driven by the products being acceptable, with certification raising consumer confidence, thereby supporting market demand for the halal food and beverage market.
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