Kosher Food Market – Competitive Landscape and Regional Analysis by 2017-2025

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.

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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.

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