Can You Afford to Ignore It? The Untapped Power of the Halal Market

Exploring the Expanding Halal Food Market: From Fresh Meats to Fast Food Treats.

The Halal food market in the United States represents a significant yet underutilized opportunity for food producers, supermarkets, fast-food chains, and distributors. Despite its rapid growth and substantial consumer base, many in the food industry have yet to fully engage with this market, potentially missing out on considerable revenue and community goodwill.​

A Growing and Diverse Consumer Base

The U.S. Halal food market is experiencing robust growth. In 2016, sales of Halal food in grocery and convenience stores reached $1.9 billion, marking a 15% increase since 2012.  This upward trend is expected to continue, with projections estimating the market will grow by $21.63 billion between 2024 and 2029, at a compound annual growth rate (CAGR) of 9%. ​Hometechnavio.com

This growth is driven by the increasing Muslim population in the U.S., which is projected to double by 2050.  Notably, this demographic is predominantly young, with 60% under the age of 30, and includes a significant number of second and third-generation individuals who are well-educated and integrated into broader society.  These consumers seek Halal-certified products in mainstream markets, reflecting their desire to maintain religious dietary practices while participating fully in American life.​Halal Food Council USAKerry Group

Missed Opportunities in Fast Food and Supermarkets - Halal

Despite the apparent demand, major fast-food chains and supermarkets have been slow to incorporate Halal options. Research indicates that most major meat and poultry suppliers for American fast-food chains are not Halal-certified, meaning the animals are not handled, slaughtered, or processed following Halal laws.  This oversight not only alienates a growing customer segment but also results in significant missed revenue opportunities.​Halal Food Council USA

Supermarkets, too, often relegate Halal products to limited "ethnic" sections, failing to integrate them into the broader product offerings. This approach does not align with the preferences of modern Muslim consumers, who seek diverse, high-quality Halal options throughout the store.​

The Role of Distributors and the Importance of Comprehensive Engagement

Distributors play a crucial role in the Halal supply chain. However, when supermarkets or restaurants request Halal products, distributors often lack the knowledge or resources to source and handle them appropriately. This gap in the supply chain can lead to unfulfilled requests and lost business opportunities.​

It's important to recognize that obtaining Halal certification is merely the first step. A comprehensive approach involves understanding cultural nuances, implementing proper handling and storage procedures, and effectively marketing Halal products to the target audience.​

How Specialty Food Connections Can Assist

At Specialty Food Connections, we specialize in guiding businesses through the complexities of entering and thriving in the Halal market. Our services include:

• Strategic Planning for Food Manufacturers: Identifying suitable products for Halal certification and developing market entry strategies.​

• Marketing and Merchandising Support for Retailers: Understanding Muslim consumer behavior, implementing effective merchandising plans, and increasing foot traffic.​

• Halal Product Sourcing and Education for Distributors: Learning how to confidently source, handle, and present Halal options to business partners.​

• Customer Acquisition Strategies for Fast Food Businesses: Developing menu strategies that attract and retain loyal Halal customers.​

• 
  

Conclusion

The Halal food market in the U.S. presents a substantial opportunity for growth and community engagement. By overlooking this market, food producers, supermarkets, fast-food chains, and distributors risk missing out on a rapidly expanding and loyal customer base. Engaging with the Halal market requires more than just certification; it demands a comprehensive understanding and strategic approach. Specialty Food Connections is here to guide your business through every step of this journey.