Kosher food is preferred mainly for its identity connect, but product quality and price are equally important factors influencing consumer purchase decisions
Belief is key, but not the only factor driving the growth of the Kosher food market. Quality and safety of Kosher certified food products are increasingly gaining prominence. Furthermore, a rising affluent Jewish population, health awareness and changing lifestyles are other factors impacting revenue growth of this market. According to a survey conducted recently, consumers give more importance to quality of service and are inclined to schedule a visit to a hotel or a restaurant to eat Kosher certified food either on special occasions or every once in a while, owing to the health attributes of Kosher certified food products.
Is the ability to sustain amidst scrutiny by community boards or groups a key success factor?
Consumers belonging to mixed economies prefer high-quality natural products. On the other hand, consumers in Jewish dominated economies are more likely to prefer products and brands that are pure, safe and manufactured according to Jewish laws. The ability of companies in Jewish dominated economies to sustain amidst scrutiny by community groups is expected to be much more as compared to mixed economies. This is mainly because local companies are perceived to have a better understanding of Jewish laws as compared to multinationals based in non-Jewish countries. Besides, consumers belonging to mixed economies are more likely to adopt environment-friendly products as compared to only Kosher certified products. Hence, big market players have no option but to venture into manufacturing eco-friendly Kosher products to cater to the needs of both Jewish dominated economies as well as mixed economies.
Pareve segment is anticipated to expand at a high CAGR over the forecast period
By raw material, the pareve segment is estimated to be valued at more than US$ 14 Bn by 2017 end and is slated to expand at a CAGR of 12.1% over the forecast period. The pareve segment is expected to be valued at more than US$ 35 Bn by 2025. This segment is expected to create an absolute $ opportunity of more than US$ 4,000 Mn between 2017 and 2025. In terms of market share, the pareve segment is estimated to account for more than 60% value share in the global Kosher food market by 2025 end, witnessing a massive increase of 230 basis points during the forecast period.
Increasing demand for Kosher food by lactose intolerant consumers expected to boost the growth of the pareve segment
The pareve segment is primarily driven by concentration of Jewish population in specific geographies of the world, and also by a few members of the Christian community. Kosher product demand is also reportedly increasing due to its preference by vegetarian consumers, health conscious consumers, people suffering from lactose intolerance and celiac disorders, as well as consumers who believe Kosher is a better option in terms of quality, fitness and gluten free prospects as compared to other available food products. Moreover, with Jewish groups scattered across the globe, the demand for Kosher food is also rapidly increasing and manufacturers are more focused on introducing new Kosher certified products. Additionally, to fulfil the increasing demand for Kosher food products, supermarkets and other food companies offer a variety of Kosher products. New Kosher food product lines include cereals, chocolate, bread, juices and pasta – all certified as Kosher.
Lactose intolerance affects the American population to a great extent, especially the African American or Asian American population. In addition, there are a large number of people who experience a life-threatening reaction to the most miniscule consumption of milk based ingredients, and suffer from allergies related to the consumption of dairy products. Kosher food law necessitates absolute isolation of milk and meat. Lactose intolerant consumers and people who are allergic to dairy products go in for the Kosher certified symbol from trustworthy Kosher certified agencies because these firms ensure that according to Jewish laws their products will not come into any contact with dairy or meat ingredients. An increasing rate of lactose intolerance among consumers is boosting the demand for Kosher food and specifically driving revenue growth of the pareve segment.
Categorized into three types - meat, dairy and pareve - Kosher food denotes food that is permissible to eat under Jewish law. Factors such as retail sales of Kosher food, per capita expenditure by the Jewish population on Kosher food and the total potential consumer base for Kosher food have been analyzed while studying the extent of Kosher food penetration across the globe. Ranking has been done on a scale of 1-10 to arrive at the indicative penetration of Kosher food in the various regions covered in this report. Various factors such as food market growth, Jewish population statistics, the disposable income of different countries, food consumption rate across different countries, the percentage of young Jewish population and an analysis of Jewish dominated countries in comparison to non-Jewish economies have been considered while deriving the size of the global Kosher food market. Non-dairy and no meat products and ingredients, which are also referred to as pareve are reported to be higher in demand due to preference from consumers with gluten and lactose allergies. Furthermore, the segment is also the leading contributor to the overall Kosher food market. Interesting findings like these are the highlight of a new publication by Persistence Market Research on the global Kosher food market titled “Kosher Food Market: Global Industry Analysis (2012 - 2016) and Forecast (2017 - 2025)”.
Targeted product positioning and catering to a non-conventional customer base is likely to be the differentiating strategy for Kosher food companies
Effective product positioning and targeted promotions are the only differentiating strategies Kosher food companies can adopt in the market, which is characterized by a shrinking customer base. Companies need to categorically introduce different products as well as adopt a strong strategy to cater to religiously driven and health conscious consumers. Companies in the Kosher food business are gradually moving away from a pure-play religious connect of the product with the target consumer base and are positioning Kosher food products as health foods. Companies are also marketing their products with Kosher certification in geographies with a low Jewish population, as the demand for health foods is continuously rising in such regions.
The key feature of this report is Persistence Market Research’s analysis and recommendations on the global Kosher food market. The report takes an overview of the global Kosher food market and underlines the factors influencing the growth of the global Kosher food market. The analysts have also provided key strategic recommendations for both existing and new players in the market to emerge sustainably profitable. Decline or increase in prices over the forecast period is based on historic market trends and is kept linear across countries. The overall market scenario and key driving factors are assumed to develop the market forecast. The report covers the competitive landscape that provides a dashboard view of companies that manufacture and provide services in the global Kosher food market. The report also consists of company profiles of some of the key players along with a strategic overview of their business strategies such as mergers and acquisitions and expansion plans across various regions.
By Raw Material
The analysts in Persistence Market Research have performed systematic and exhaustive secondary research to acquire the required data points to arrive at the overall market numbers. The dedicated team of analysts have listed market players across the value chain and developed research questionnaires for each node in the value chain to extract the required market information through extensive primary interviews. The data thus gathered is validated using the triangulation method, wherein secondary and primary research data along with Persistence Market Research analysis contribute to the final data stream. For a better understanding of the report, the data is represented using charts, infographics, and presentation of key findings by region to provide actionable insights for critical decision making.