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SIAL Canada - Halal 101: An overview of the sector, certification, and marketing opportunities for Canadian processors
Haider Khattak and Ashraf Ahmad gave an informative presentation this afternoon which included various aspects of the Halal sector. They clearly illustrated what "halal" is, how to get products halal certified, and opportunities for Canadian companies in this rapidly growing sector.
The North American halal food market is growing at a rapid rate and, based on the numbers that NuWorld presented, it is estimated globally to be approximately $580 billion. Here in North America the halal food market is roughly $12 billion, and the Canadian market itself, is estimated at $1 billion. Global halal trade is approximately $80 billion or 5% of total trade of agri-food products, which proves the halal market is a multilingual, multi-ethnic and multicultural market both domestically and internationally. According to Agriculture Canada, "it is estimated that in the future, halal food may account for 20% of world trade in food products."
The consumer market for halal products is also expanding. Currently there are about 1 million Muslims in Canada, while the global population is reaching 1.6 billion. It is predicted that by 2030, Canadian Muslims will triple in number and make up 6.6% of Canada's population. It is also speculated that by 2030 there will be about 2.2 billion Muslims worldwide, or 35% of the world's population. The overseas market features a young, growing Muslim population, with strong economic growth and rising incomes fuelling demand in the Middle East. Currently the Middle East is home to 475 million Muslims and the region imports more than 80% of its food requirements, creating a strong demand for a wide range of halal products as well as "new" products that are halal certified.
The presenters stressed that to be successful in the halal food market, one must remember these important factors:
- Be aware of sensitivities involved in establishing credibility and in marketing halal products.
- Establish trust and share your commitment to diversity.
- Word of mouth is still a key component for advertising and sponsorship.
- Multilingual promotion is important.
- Halal certification from a credible organization is essential.
Certification was further explained by Haider Khattak, Director of the Islamic Food and Nutrition Council of America (IFANCA). Certifying products is important to consumers because it alleviates doubt and saves time when reading labels. Certifying halal products also leaves the consumer with peace of mind and satisfied that the halal product meets all requirements. Haider explained the halal food approval process with the chart below.
IFANCA is a not for profit Islamic organization dedicated to supervising production of halal foods and certifying production of halal food products. The mission of IFANCA is to promote the understanding of the institution of “Halal” in North America, extending the benefits of Islamic dietary concepts and practices to Muslims and non-Muslims.
NuWorld Dynamics Consulting is dedicated to providing companies with effective access to emerging markets and consumer groups in North America and around the world. They're core experience and expertise is with the rapidly growing South Asian community and the internationally sought after Halal market. NuWorld Dynamics specializes in bridging the fast growing multicultural market with the mainstream, by identifying new opportunities for business and in marketing diverse products and services to consumers.
For more information on the halal market and opportunities for Canadian exporters, please visit ATS' ethnic, gourmet, and specialty foods product information section.
If you have any further questions regarding the information shared during this presentation, please contact:
Ashraf Ahmad, President & CEO
NuWorld Dynamics Consulting
Haider Z. Khattak, Director
Tel: (905) 275-0477
Until next time,
Project Officer, ATS
tips // 16-August-2011
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