Halal meat snacks the next high growth opportunity for food brands

With substantial unmet demand among Muslim consumers for halal meat snacks, and with the emergence of halal brands such as Halal Jerky and Sharifa Halal, should your company consider launching a dedicated halal meat snack product range?

HIGH GROWTH GLOBAL INDUSTRY

The global savory snacks industry has been estimated by P&S Market Research at $111 billion in 2014 and is expected to grow at a rate of 7 percent annual growth to reach $167 billion in 2020, implying a $118 billion market in 2015. Growth is driven primarily by rising per capita incomes in emerging countries, and an increased preference for snacking between meals.

The largest geographical market for savory snacks is the U.S., accounting for around 25 percent of the global industry in 2015, the equivalent of $30 billion, assuming growth is in line with the world market.

BIGGEST GLOBAL PLAYERS

The largest savory snack companies are Mondelez International, with revenues of $30 billion in 2015, followed by Frito-Lay, the snacks division of PepsiCo, with revenues of $13.8 billion in 2015.

Meat snacks is a rapidly growing  sub-sector. It is estimated to grow at 10 percent CAGR between 2014 and 2020, according to market researcher Technavio, and can be estimated at $6 billion in 2015, based on U.S. market estimates of $1.5 billion in 2014 by IRI research, and assuming that the U.S. has a similar share to the overall savory snacks market. 

ConAgra Foods and Jack Link’s Beef, both U.S.-based companies, are the leading meat jerky manufacturers.  ConAgra Foods, a diversified food products manufacturer, generated total revenues of $15 billion in 2015. It owns the popular meat sticks and jerky brand Slim Jim. Jack Link’s Beef’s revenues exceeded $1.5 billion in 2015.

Photo: WINNECONNE, USA - 25 August, 2015: Assortment of Jack Link's beef products / Keith Homan / Shutterstock.com

SIGNIFICANT AND LARGELY UNTAPPED HALAL MARKET OPPORTUNITY

Despite Muslims accounting for 17 percent, or $1.1 trillion, of global spend on food and beverage spend in 2014, according to the State of the Global Islamic Economy 2015/16 report, there remains notable gaps in halal food product offering.

The next stage in the evolution of the halal food industry is catering to the millennial Muslims, who have had greater exposure to mainstream food brands, and are increasingly demanding more convenient food products to cater to their busy lifestyles. Halal meat snacks is one particular area of opportunity.  

Few players are currently addressing this opportunity, but several have emerged, notably in the U.S. and Malaysia. British halal food company Haloodies confirmed with Salaam Gateway that it is considering launching a halal meat snacks line “very soon.”

“Muslim consumers are looking for products that meet their busy lifestyles and are not like the first generation of Muslims [in the United Kingdom]. This consumer base is interested in food to go ... Halal meat snacks would be an attractive category because it is certainly much healthier than sugar-based snacks,” Noman Khawaja, co – founder and sales director of Haloodies, told Salaam Gateway.

Zohra Khaku, founder of UK curated halal dining site Halal Gems also sees opportunities in the sub-sector, “I think halal meat snacks is a key growth area and as a product, would be interesting to consume. Growing up in the UK, you have the brand Peperami (a pork sausage snack). You always want to try it.”

KEY PLAYERS IN HALAL SECTOR

Midamar Halal, based in the U.S. and founded in 1974, is a global supply chain management company offering halal food-branded products. The company provides export services globally and is available online and in over 1,800 retail outlets in the U.S. The company offers a halal beef jerky snack product made with halal beef and flavored with pure smoke hickory.

Halal Jerky, based in the U.S. and launched in 2010, is a brand of halal beef jerky. Halal Jerky has a line of 12 products, which include original, BBQ, honey teriyaki, hot hickory, and sweet and spicy flavors. The brand is available in retail outlets across the U.S. and online.  

Sharifa Halal, based in the U.S. and founded in 1976, is a subsidiary of Saad Meats, which is a wholesaler and distributor of halal meat products. The brand offers turkey and beef snack sticks through a number of retail outlets and third party e-commerce sites including Hashems and 6labusa.

Fajaru Marketing, based in Malaysia and founded in 2004, is a meat manufacturing company halal-certified by national certifier JAKIM. The company’s local trademark, Mat Dendeng, has introduced the ‘Daging Salai BBQ’, which is a sweet and savory meat snack available in chicken and beef. Mat Dendeng products are available at select retail outlets in Malaysia including TESCO, Jaya Grocer, Presto at Citta Mall in Malaysia and on global e-commerce sites including DagangHalal. 

CHALLENGES AND CONSIDERATIONS

While halal meat snacks are an attractive and largely unaddressed segment, there are three key considerations in launching a new brand or product line.

Undertake careful market research to develop the right product

When launching a new halal brand, identify the target demographic, both by age and gender, and seek to address their dietary and lifestyle needs, in order to develop the right product for them.

It’s important to go beyond becoming a replica of popular non-halal products to address product feature such as meat type and flavor, as well as packaging.

“We’ve looked extensively at Kantar market research data to see where the gaps in the market are … We know that diabetes is a particular concern among key segments of the Muslim community and there is a general push towards healthy eating ... So a chicken range could be quite popular for snacking,” said Haloodies’ Khawaja.

Distribution is key, especially for brands with single products

Many of the existing halal meat snack players profiled in this article provide both online and offline marketing. Multiple channels are critical to reaching scale.

With perishable food products, offering international online distribution can be a particular challenge and requires careful planning.

Use the right advertising channels

To reach the core market, it’s important to leverage focussed online advertising platforms, such as Halal Ad and Muslim Ad Network. However, there are also new emerging channels to reach Muslim consumers – such as through food bloggers.

© SalaamGateway.com 2016