“Before you look for a niche in the market, make sure there is a market in the niche. To be useful, a market segment must be: measurable, substantial (profitable), accessible, differentiable and actionable.”
Professor of International Marketing
Kellogg School of Management
Research over the past few decades has measured and tracked the size and growth of the Global Kosher Market. The table and charts below summarise the information available and highlight the size and growth of this expanding market.
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Kosher Market Growth
|192% Growth in products certified kosher in the US since 2000
|174% Growth in Numbe rof US Companies with Kosher Certified Products
The profitability of the kosher market is clear from the figures above. Its sustained growth rate of 15% annually makes it the fastest growing ethnic cuisine over the past decade. Research has shown that placed side by side on the shelf, kosher products sell 20% better than non–kosher brands.
Today, kosher foods are more attractive to the non–Jewish population than ever before. Kosher food has always occupied an important marketing sector beyond the ethnic or Jewish market. In fact, consumers who are not of Jewish descent have been fuelling this explosive growth in kosher foods. The Kashrut Authority is here to help you better understand your kosher–buying customers, who are often not Jewish, so that you may provide products to meet their needs.
To access the Kosher consumer, it is first imperative to understand that there are four segments that apply to ‘Kosher’ being a key purchase driver:
• Jewish consumers—those who observe Kosher dietary laws.
• Non-Jewish religiously observant consumers such as Muslims, Hindus, Buddhists and 7th Day Adventists.
• Consumers with specific dietary restrictions & preferences (e.g. vegetarian, vegan, lactose intolerance).
• Health and safety–conscious consumers.
Each of these groups represents an opportunity both overseas and in Australia. Within the Australian domestic market, examples of kosher consumers are:
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Accessing these consumers is easily achieved as all have specific channels (both traditional and new media) within their communities (e.g. The Kashrut Authority’s direct e–channels, Australian Jewish News, Vegetarian Society online presence, Coeliac Australia etc.).
In regards to food allergy concerns, many perceive Kosher Certified products to provide an additional level of quality assurance and this, in turn, simply alleviates confusion.
Further to understanding the recognised different segments within the kosher market, consumers who purchase kosher products are marked by two key characteristics:
• Higher than average spending power–on average, they spend 47% more per year on food than non–kosher consumers.
• A willingness to spend more for products that they deem superior in quality and intrinsic value.
Interestingly, today, young affluent consumers are spending more on kosher specialty foods, guaranteeing themselves quality products and healthy eating.
The KA has substantial experience in helping customers certify their products as kosher as well as connect with key kosher markets around the globe. The kosher food market is significant (for example, Mintel’s 2011 data showed that ‘kosher’ appeared on 27% of new products in the United States). Interestingly, nearly half of all products (many of which are currently uncertified), already meet kosher requirements and therefore often require minimal effort on the part of the manufacturer.
The worldwide kosher market is currently in a classic market growth phase. As a result, there are continuous additions of new products and new companies aiming to access these valuable consumers. The Kashrut Authority’s simplistic yet thorough approach ensures that Kosher Certification is a straightforward process, adding value to each product that is KA Certified.
The expansion of the market well beyond Jewish populations will result in even greater growth both in Australia and internationally over the next decade and beyond.