IFANCA 2012 White Paper: The Halal Industry Drives U.S. Economic and Export Development

Introduction

Halal food constitutes the fastest-growing consumer market in the United States. In 2011, Halal consumers spent as much as $15 billion on food and related services. This significant growth is also reflected in the change in the number of Halal meat specialty stores-from only 10 stores in 1970 to more than 2,300 stores in 2012 (according to Zabihah.com and its white-page statistics). In addition, there are now more than 6,900 restaurants serving Halal consumers. Our survey results show that the Halal market provides jobs for tens of thousands of Americans.

Halal food service

The growth of the Halal food-service industry can be traced to many factors, which are in turn interrelated. Restaurants offering Halal catering have undoubtedly seen the business opportunity in the growing demand from an expanding Halal consumer base. The different taste needs of Halal consumers have also promoted the development of new Halal dishes beyond the traditional Halal menu. Today, at American subway stations, one can find American, Italian, and Mexican halal dishes everywhere, in addition to Middle Eastern, South African, and Turkish dishes. And the equal enthusiasm with which consumers at large accept dishes of different flavors has in turn promoted the development of the Halal market. As the number of Halal consumers on U.S. university campuses increases, many consumers have begun to proactively ask about Halal-related services, and the food services of some universities have made corresponding changes accordingly. The University of Chicago, Ohio State University, Bradley University, and the University at Buffalo have begun offering halal catering.

Halal, a developing industry

The U.S. export industry has also made a significant contribution to the development of the U.S. Halal industry. Today, more than 90% of U.S. dry dairy ingredient makers produce Halal products for export.

U.S. beef exports to the Middle East alone earned a 36% profit, with a market value of $355 million in 2011. In February 2012, the latest data compiled in this article showed that the quantity of beef exported to this region grew by 13%, and the value grew by 19% to $533 million. The position of the Middle East market will become increasingly important, because 80% to 90% of the food in this region depends on imports.

According to the National Chicken Council, the capacity of the United States' 65 Halal chicken plants is equivalent to that of more than 300 other plants. Converting this into jobs, the Halal roast chicken field alone can directly provide about 63,000 jobs and indirectly affect 42,000 jobs. Similarly, there are about hundreds of thousands of jobs related to the U.S. cattle, sheep, and goat industries.

Fresh meat is still in short supply in the Middle East and other Muslim-majority countries such as Malaysia and Indonesia. Importers believe that the U.S. market has reliable suppliers that can provide them with genuine Halal food and raw materials, so they have expanded their import volume. Compared with emerging competitors, the United States has higher standards in food safety and hygiene. Domestic and foreign Halal consumers are gradually providing employment opportunities for tens of millions of Americans in the beef, poultry, lamb, dairy, nutritional product, and dietary supplement industries.

Demographic data: a young, high-quality group with reliable purchasing power

The Halal food market, maintaining an annual growth rate of 10% to 15%, will have a market value of more than $20 billion by 2015. The main reasons are the continuously growing Muslim population and the increasing number of people of other faiths who choose Halal meat. According to a recent Pew report, the Muslim population of the United States will grow from 2.6 million in 2010 to 6.2 million in 2030. IFANCA estimates that the United States currently has 8 million Muslims, which will double by 2030. The growth of the non-Muslim Halal consumer population is attributed to people's pursuit of safe, hygienic, and more humane food production methods, which Halal-certified products undoubtedly meet.