the canadian halal market · 2017-05-11 · hma most trusted certifier. ... instructed employees to...

Nourish Food Marketing • Toronto • Montreal • Guelph • web: nourish.marketing • [email protected]

The Canadian Halal Market:Insights and Opportunities

Salima JivrajJo-Ann McArthur


Agenda

● What is halal

● Muslims in Canada and Toronto

● Insights

● Promoting in Canada

● Halal Products Beyond Meat

● Key Opportunities in Canada

● International Export Opportunities

● Certification: Process and Cost

Agenda

● Halal is an Arabic term meaning permissible or lawful

● Opposite of Halal is Haram, which means prohibited or unlawful

● Halal is a way of life for Muslims, covers many sectors including finance, beauty, fashion, travel and food

● Health is a key characteristic

● Mainstream halo effect

Nourish Food Marketing

Meaning of halal

What is not halal?

● pork and all by-products

● animals that are not slaughtered according to halal requirements

● animals that have been killed prior to slaughter

● animals slaughtered in the name of anyone other than God

● carnivorous animals or birds of prey

● blood and by-products

● alcohol and intoxicants, and

● otherwise halal foods that have been contaminated by any haram products


Agenda

● What is halal


● Insights






Agenda

History of Muslims in Canada

● First recorded Muslims in Canada arrived in 1854 from Scotland - converts to Islam

● First mosque in Canada 1938. At the time, there were only about 700 Muslims in Canada

● 1950s Baby Boom and Canadian open-door immigration policy starting in the 1960s led to increase in population: 100,000 mid-1980s, 500,000+ 2000, 1.1 million+ today.

Statistics

● Canada’s halal food sector $1 billion+

● Underserviced population, expected to nearly triple in next 20 years, growing 13% annually

● Spent an estimated $2.6 billion on food and beverage

● 47% call Toronto home, 61% live in Ontario

● Toronto has highest concentration of Muslims in North America

Retail Environment

1. Traditional ethnic grocer (South Asian or Middle Eastern): focuses on a specific ethnicity, very focused offering

Retail Environment


2. Multiethnic retailer: larger, focus on fresh, caters to neighbourhood

Retail Environment


2. Pan Asian retailer: Multiethnic, larger, focus on fresh, caters to neighbourhood

3. National grocery retailer: larger one stop shop, smaller halal offering, less trust


Agenda

● What is halal


● Insights






Agenda

A vibrant and diverse community

● Over 500 halal restaurants around the GTA

● Represented by dozens of ethnicities, mainly South Asian, Arab, Persian, African - but also Chinese, Malaysian, Canadian, European, etc.

● Well educated and affluent

● Hosts some of North America’s largest events: Reviving the Islamic Spirit Conference, MuslimFest and Halal Food Festival

Generation M

● New era of Millennial Muslims and Generation Z are creating a new type of consumer, coined Generation M by Ogilvy Noor Vice President, Shelina Janmohammed

● Larger spending power

● Focus on inclusiveness

● Believe being faithful and living a modern life go hand in hand

Sysomos

Room for improvement● Only 30% of Canadian Halal grocery shoppers

feel that major food companies are doing a good job meeting their needs for Halal products.

Nourish Halal Food Marketing Study 2015

Sysomos

More room for improvement● Only 33% of Canadian Halal grocery shoppers

feel that major grocery food chains are doing a good job meeting their needs for Halal products.


What attributes would you like to see more of in halal food offerings today?

● 36% Organic

● 35% Better Price

● 32% Availability

● 29% Healthy

● 27% Improved quality


Sysomos

Consider larger format products

● Larger households

● 4.4 v. 2.5 people per household


SysomosPackaging does not need to look “Islamic”

to be considered authentic

● Should look authentic and trustworthy though. HMA most trusted certifier.

● Will allow product to appeal to larger secondary target that eats halal because they perceive it as “better for you”


SysomosCertification matters

● Consumers are weary of certification bodies due to various opinions on halal as well as several cases of fraud.

● Monitoring and/or frequent audits by certification bodies help alleviate fears and gain trust of Muslim consumers living in Muslim minority countries



Agenda

● What is halal


● Insights






Agenda

Sysomos

Community

● Advertising to the Muslim community allows for broader, cost-effective targeting across ethnic and language-based groups.

● Over half of Muslims live in Ontario, allowing for geo-targeting.

● Have to be aware of ethnic differences. For example, only 34% of Arabs make use flyers, compared with 53% of Canadians and only 17% of Arabs use coupons, compared with 33% of Canadians. (Source: Nielsen)

Becoming a trusted part of the community

● Role of Community Outreach

○ Word of Mouth

○ Community presence

○ Event participation

Community Pillars


Agenda

● What is halal


● Insights






Agenda

Opportunity #1 HORECA/Food Service

● Muslim community, especially in the Greater Toronto Area, one of the most vibrant in North America with strong Muslim identity and well-developed cultural, entertainment, restaurant scene.

● Hospitality, schools, airlines, prisons, etc

● Canadian/US travel destinations

Opportunity #2Halal by Default

● $200 billion in Kosher certified food products sold in North America annually (out of a total food products market of $500 billion) yet <2% of population is Jewish

● Currently purchasing vegetarian and kosher, would they opt for a halal version if available?

Opportunity #3Generation M

● Retail gaps, with consumers wanting more from chains and manufacturers

● Younger demographic of Canadian Muslims (29 v. 37) leaves plenty of room for more diverse product offerings

● Lifestyle driven products (GNC)

● Meal services, convenience products


Agenda

● What is halal


● Insights






Agenda

SysomosAn Extraordinary Trajectory

● 2010 1.6 billion Muslims worldwide

● Forecast to grow by 73% in next four decades – more than double general rate of growth.

● 2050 2.8 billion Muslims forecasted making up more than 25% of world’s population

*The State of the Global Islamic Economy Report 2015/16 estimates global Muslim spending on food and beverages (F&B) to be $1,128 billion in 2014. The total global F&B spending during the same period

is estimated to be $6,755 billion in 2014, making the Muslim food market 16.7% of global expenditure.

Opportunity #1Free From, hormone-free

● Increased demand for hormone free meat. Regulators differ on whether hormone treated meat is halal.

Free-From, organic

● Premium organic product lines

● Growing globally, driven by Millennial Muslims

Opportunity #2Branding

● Stronger brands needed

● Room for improvement in product quality, marketing messaging, packaging and overall communication.

Leveraging Canada as a brand

● Canadian brand holds serious weight with countries around the world for protein


Agenda

● What is halal


● Insights






Agenda

Why Certify?

● Necessary for the average Muslim consumer to trust the manufacturer

● Required as of April 2016 in Canada● Research indicates that the Halal Conscious

consumer in Canada spends more time reading and researching ingredients on package labels than mainstream consumers - make their life easier while closing a sale

● Necessary for export and varies country to country

Halal Fraud - Midamar Corp (US)

● Convicted of conspiracy to make false statements, selling misbranded meat, committing mail and wire fraud; seven counts of making or causing false statements on export applications; and seven counts of wire fraud.

● Instructed employees to re-box, re-label and ship beef to Malaysia.

Steps to Certification

1. Company sends application

2. Certification team audits facility

3. Ingredients team collect product specification sheets from applicant and investigates

4. If there are discrepancies found, certifiers will provide recommendations

5. Company makes changes

6. Agree to terms of service

7. Company receives approval and certification

Costs

● Varies significantly case-to-case

● Basic non-protein manufacturer that does not have any cross contamination issues can be anywhere from $1,000-$4,000 CDN annually

● Facilities that produce meat items (halal, non-halal) and abattoirs it can cost up to 100,000+ annually depending on the needs of the customer and the complexity of production.

Why Nourish?

Our Dedication to Halal

● Access to Canada’s largest database of Muslims

● Managing Director is Founder of North America’s largest halal food show and Owner/Editor of Halal Foodie

● Understanding of various cultural nuances within this ethnically diverse group

● Access to exclusive rates within Canada’s most trusted and respected halal lifestyle media channels

● Network of industry contacts for in depth understanding of Canadian and International markets

Sysomos

Canada’s only full service farm to fork marketing agency

● Offices in Toronto, Guelph, Montreal. Satellite offices in Western and Eastern Canada

● Everything we do starts with research

● We own our own test kitchen for recipe development, product testing, etc.

● In-house photography and videography departments

● Packaging design that sells

● Food-specific social and content marketing

Sysomos

2017 Halal Shopper Study

● Opportunity to subscribe to research study amongst an estimated 1,000 Halal principal grocery shoppers in Canada

● Deadline for participation is June 30th

● To subscribe or for more info, please contact:

Salima [email protected] 647 300 5679Or Jo-Ann [email protected] 416 949 3817


Thank you

Sign-up for our newsletter to stay on top of food trends:

[email protected]@nourish.marketing

the canadian halal market · 2017-05-11 · hma most trusted certifier. ... instructed employees to...

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