Industry Overview · While the Kosher food market is a successful and rapidly growing market, it...

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Transcript of Industry Overview · While the Kosher food market is a successful and rapidly growing market, it...

The Kosher industry and certification initiated in the US back

in 1898 when the Union of Orthodox Jewish Congregations

was established. In 1918 The New York State Legislature

enacted the nation’s first Kosher Food Law. Nearly a decade

after that, in 1924, the Union of Orthodox Congregations

introduced an official kashrut supervision and certification

program.

Today, the US has more than 12 million kosher consumers,

including many non-Jewish consumers. For the non-Jewish

population, there are several motives other than religious

concerns to buy kosher products – these include Islam,

veganism, eating healthier and safer, as well as overall animal

welfare. In total, the OU Kosher – the largest kosher certifying

agency- has almost 1,500 kashrut supervisors worldwide,

1,000 in the US and another 500 working abroad. The US is

also home to nearly 40% of the global Jewish population - 30%

of which are kosher consumers.

Industry Overview

2018 Kosher

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Jewish Population Growth

Although, the global Jewish population is

relatively small (only 14.5 million in 2017) and

has been growing at a very moderate pace since

1950, the Kosher Market has proved to be very

successful and has achieved wide-spread growth

both in the US and globally.

Today, the global kosher food market size is estimated at $24

billion. It is rapidly growing at a CAGR of 11.6% and is

expected to reach $60 billion by 2025. Koshers successful

model serves as a great benchmark for the food certification

market globally.

24,148 26,949

30,075

33,564

37,457

41,802

46,652

52,063

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Kosher Food Market Size 2017 - 2025

While the Kosher food market is a successful and rapidly

growing market, it remains small and incomparable to the

Halal Food market – a market estimated at $1.3 trillion in

2017. The Halal Food Market is, in fact, 50 times as big as the

Kosher Food Market and is also continuing to grow at CAGR of

7.6%.

Industry Overview

2018 Halal

24 27 30 34 37 42 47 52 60

1,339 1,441

1,550 1,668

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1,930

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Kosher Food Market Size Vs. Halal Food Market Size

Kosher Food Market Halal Food Market

In addition to this, unlike Kosher, the Halal Market is not restricted to

food. It widely involves seven other sectors, including Finance,

Fashion, Tourism, Media, Pharmaceuticals, Cosmetics, and

Healthcare, which bring up its combined market size to $6.3 trillion in

2017 and average CAGR across sectors of 7.9%. The eight sectors will

combine to reach a market of almost $10 Trillion by 2022.

1,339 1,441 1,550 1,668 1,794 1,930 2,076 2,234 2,403

4,126 4,479

4,863 5,279

5,731 6,221

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Halal Market Size By Sector

Halal Food Market Islamic Fianance Halal Tourism Halal Fashion

Halal Entertainment Halal Pharma Halal Cosmetics Halal Healthcare

Moreover, the global Muslim population today stands at 1.8 billion, more

than 120 times larger than the current global Jewish population of 14.5 million. These indicators collectively show a growing potential demand for Halal certified products and services, increasing the probability of success for Halal certification opportunity, given the success of Kosher certification market.

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Jews Population Vs. Muslim Population

Global Jews Population Global Muslim Population

Initial Inspection Assessing the current status of a product and preparing the right certification package

Kosher Advisory/Consultation Assisting and supporting the production site to reach adherence to kashrut

Certification General Kosher Certificate Special Kosher Certificate (Kosher for Passover, Kosher-Dairy, Kosher-Meat)

Kosher Periodic Supervision: Maintaining Kosher Certification requires regular periodic kosher supervisory visits

Kosher Certification Market In 2017, the Kosher Certification Market revenues was estimated to be $286 million and is expected to grow to $687 million by 2025. OU Kosher is the market leader with a market share of 70%.

Kosher Business Model

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Kosher Certification Market

OU Certification Revenue Total Kosher Certification Revenue

About the Organization

The Union of Orthodox Jewish Congregations of America was founded in 1898

Based in New York, the OU Kosher is an arm of the larger OU organization that was

founded in 1924. It is the world’s largest and most widely recognized kosher certification

agency – it is the market leader with 70% market share

Kosher OU offers the service of granting kosher certificate to products after the inspection of

ingredients and process by their rabbinic representatives. They offer different services

through their website and mobile application to allow the consumer to verify if a product or

restaurant is kosher certified

Quick Facts:

OU Certified over 1 million products and ingredients on nearly 9,000 plants in 104 countries

OU has nearly 1,500 rabbinic field representatives located across North America and

throughout the world

The Orthodox Union database contains information on more than 256,402 food ingredients

A Brief Overview of OU Kosher

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