The presence of halal and kosher foods continues to grow within Europe.
Demand for specialty foods such as halal and kosher is currently increasing across developed regions such as Western Europe, thereby opening up opportunities for those within the food industry. Although this is partly being driven by changing demographics (specifically the increasing number of Muslim consumers in countries such as the UK and France), people are also showing greater interest in these types of foods for reasons such as health and food safety.
The consumer angle
One of the major drivers behind consumption of these specialized foods is demographic trends. In the UK, data from the 2011 Census indicates that Muslims accounted for 4.8% of the population of England and Wales, equivalent to approximately 2.7 million people. The same source appears to suggest that this percentage figure is set to increase in the future, since Muslims are particularly well-represented within the younger age groups – for example, just over 9% of under-5s in England and Wales during 2011 classed themselves as Muslim.
Outside the UK, there are currently thought to be up to 6 million Muslims in Germany, of which Turkish people account for a share of up to 70%. This reflects the large-scale immigration from Turkey to Germany which began in the 1960s, mainly in response to labor shortages. One result of this trend is the existence of a large number of Turkish food shops – at present, Germany is home to almost 4,000 Turkish supermarkets. Elsewhere in Western Europe, France also has a sizeable Muslim population. Current estimates suggest that Muslims account for up to 7.5% of the French population, equivalent to 4.7 million people. This percentage is forecast to increase to more than 10% by the year 2030.
The presence of Jewish people in Europe is more limited compared with their Muslim counterparts, since two countries (namely the US and Israel) account for over 80% of the global Jewish population. In most of the Western European countries, Jewish people account for less than 1% of overall numbers. The EU is home to approximately 1.5 million Jews (using a measure which includes both people who identify themselves as Jewish, plus those born Jewish but which have since adopted an alternative religion). Numbers are highest in three European countries, namely France, the UK and Germany.
The UK is thought to have the world’s fifth largest Jewish community, numbering somewhere between 250,000 and 300,000 people. By region, up to two-thirds of the UK’s Jews are concentrated in London and south-east counties such as Essex. Historical data indicates that the UK’s Jewish population has been in long-term decline since the early 1990s, although this has been partly off-set by rising births amongst Ultra-Orthodox Jews. The UK’s Jewish community has a fairly mature age profile, with a higher median age than the country’s average, whilst almost a quarter (24%) of Jews are aged 65 and over.
The issue of eating halal foods in particular has sparked strong levels of debate in some European countries, with the UK one example. Some of the consumer studies carried out appear to suggest that levels of concern remain fairly low – for example, research from Canadean published in the summer of 2014 found that over half (52%) of respondents were not overly concerned about eating halal meat. However, the same study indicated that up to one-third of UK adults would avoid eating halal meat if possible, amidst concerns over how humane halal slaughter methods are.
These concerns appear to be increasing demand for better labeling for halal meat products, which reflects the growing trend towards traceability and better provenance. Separate research suggests that over three-quarters (76%) of UK consumers feel that halal meat should be clearly labeled as such, while 19% would like to know whether or not animals have been stunned prior to slaughter. However, better labeling would not necessarily improve demand for halal meat – just 17% of the UK’s meat-eaters would be prepared to pay extra for meat which carried halal certification.
Purchasing of kosher foods remains fairly low across Western Europe, especially compared with the US. It is estimated that up to a fifth (20%) of US consumers regularly buy kosher foods, although only 15% of these do so because of dietary restrictions. Over 60% of US consumers who buy kosher foods do so for their perceived higher quality levels – this figure drops to 51% for health reasons and 33% for food safety reasons.
Market size & trends
Although estimates vary according to source, the global market for halal foods is thought to be worth in the region of USD1,100bn, or 16.6% of the world food market. Europe accounts for up to 10% of this figure, with consumption heavily skewed towards the Muslim population in countries such as France, Germany and the UK. Data from the Dubai Chamber of Commerce suggests that the global halal foods market could reach USD1,600bn by 2018, having grown by almost 7% per annum from current levels.
The total French market for halal foods is estimated to be worth around EUR5.5bn per year. Consumption of halal foods in France is heavily skewed towards the younger age groups, with those aged between 18 and 50 accounting for over 70% of the market. The majority of these come from North African countries such as Tunisia and Algeria. Halal foods are sold through a wide range of French retail channels, with hypermarkets, large supermarkets and discount retail chains accounting for the majority.
Consumer data suggests that meat-based products account for the bulk of this figure – for example, 99% of French consumers who buy halal foods purchase halal meat, a figure which drops to 70% for charcuterie-style products. This compares with 22% for halal ready meals, 12% for halal confectionery and 3% for halal baby foods.
One of the market’s more dynamic sectors is halal charcuterie, sales of which through large retail channels rose by 12% in 2013 to EUR88m. Since 2010, the market has expanded by more than 31%. Chilled products appear to be slightly more popular than frozen varieties, since the frozen halal meat market was worth EUR35m during this time. The charcuterie market is dominated by poultry ham, which accounted for 39% of sales within the last year. This figure compares with 23% for cooked sausages and 17% for specialities such as sliced meats.
Sales of halal foods are also thought to be considerable in the UK. Latest estimates from the World Halal Forum suggest that annual UK sales are now worth between GBP2.5bn and GBP3bn, with the number of people who eat halal meat now thought to amount to 6 million.
Halal meat is now featuring to a greater degree within the UK foodservice industry, since it is used by major chains such as KFC, Pizza Express and Nando’s. The German market for halal foods, meanwhile, is worth an estimated EUR5bn per annum at present. It is estimated that this market has significant scope for future growth, since the purchasing power of the country’s Turkish population alone is worth an estimated EUR18bn. In contrast, the market for kosher foods is much smaller and poorly-documented across much of Western Europe. This is in spite of the fact that increasing quantities of food are now being labeled and/or marketed as suitable for those following kosher guidelines. In the UK, for example, sales of kosher bread increased by more than 57% within the last year, although the sector still accounts for just 0.2% of the total bread market.
Major suppliers
A number of specialist producers compete within the European market for halal foods. One such example is Isla Delice of France, which accounts for 36% of the French market for halal charcuterie products, and also ranks as a leading supplier of frozen halal meat. One of its major rivals is Fleury Michon, which accounts for 18% of the halal charcuterie market and specialises in the production of delicatessen-style meat products.
In the UK, Ummah Foods supplies a wide range of halal products, which are mainly targeted at the country’s Muslim consumers. The company specializes in chocolate and confectionery, having re-launched its entire range at the end of 2013. This move included the introduction of two new chocolate bar varieties, namely Chocolate & Nut and Chocolate & Raisin. Meanwhile, Fairtrade specialist Divine extended its portfolio with two new halal-certified products in February 2014, which were described as its first in this area.
As has been stated, many producers now appear to be incorporating halal and kosher-friendly as a label for their products, alongside other benefits such as healthy, organic and additive-free. With consumer concerns over traceability and food safety on the rise, it appears likely that more food manufacturers may adopt this position in the future.