Overview
of the Kosher Market – from ‘Paddock to Plate’
An
integrated marketing survey conducted in 2001 in the USA showed that
while the majority of Kosher consumers are Jewish (44%) the second largest
group of Kosher consumers (27%) are those concerned with what they eat
and believe that Kosher produce is better because of the independent
auditing that a Kosher certification signifies.

Other significant Kosher consumers are Moslems, Seventh Day Adventists
and those who require a specific diet such as the lactose intolerant,
vegetarian and vegan.
Kosher Consumer Numbers
The
number of Kosher consumers has risen from 6 million in 1988 to more
than 10.5 million in 2002. It is projected that by 2005 there will be
14 million Kosher food consumers worldwide.

A recent report released by the Department of Trade from the Philippines
(July 2003) estimates the value of the retail Kosher food market at
$US 150 billion with an average growth rate of 15% per annum. This growth
had been consistent since 1984.
A CBS Marketwatch report (2002) valued the entire Kosher food market
at more than $US 570 billion.
Other features include:
-
28% of all products sold in the US are kosher certified.
- 75%
of all ingredients manufactured are kosher certified.
- There
are currently more than 75,000 different Kosher consumer food products.
- US
supermarkets carry approximately 13,000 Kosher products lines on their
shelves.
- Supermarkets
report that generic kosher certified brands demonstrate 6% growth
as opposed to 2% in non kosher equivalents.
- Over
10,000 companies in U.S.A. currently produce products for the Kosher
market.
- Each
year 3,000 new products are introduced into the Kosher market in U.S.A.
The
Australian Market
As
a food exporter, Australia is the 11th largest in the world and growing.
Due to stringent quarantine laws, Australia has a well-deserved reputation
as a clean food producer. Kosher certification ensures better marketability
of products for export, and is almost mandatory for export to the US.
Locally,
while there are only 105,000 Jews (based on the 2001 census), the combined
Moslem, Hindu and Buddhist markets number over 700,000. An as yet untapped
market is the Greek Orthodox market that observes Sarandamero or Nestea
in Greek (fasting) for three periods each year totalling 105 days each
year. This broadly involves restrictions against meat, fish and their
derivatives. There are more than 400,000 adherents in Australia.
The total market for those who may select Kosher products due to dietary
requirements in Australia exceeds 1.1 million. A
1997 survey conducted by Agribusiness showed that if the premium cost
to consumers for organic products was less than 20%, 92% of people would
prefer organic food. This is an indicative trend in customer discernment.
Based on a survey conducted by the Zionist Federation of Australia,
48% of all Jews are either strictly kosher or will select kosher if
given the option. In addition, Kosher caterers prepare upwards of 300,000
meals annually.
“It
is perceived that the Kosher sector has good prospects in Australia
as the general population becomes more aware of the processes required
to certify food as Kosher and perceive them to be healthier and of
higher quality.”
-
US Dept of Agriculture, October 1999
What
is the Cost of Kosher?
“There
is usually no increase in the price of the product due to its kosher
certification, because the cost of certification is generally met
by increased sales. In over 45 years, fewer than 12 companies discontinued
their certification programs because sales did not increase. Thus,
kosher supervision benefits the manufacturer and the consumer, who
can be confident that foods may be consumed without violating the
kosher standards.”
-
Rabbi Menachem Genack, Rabbinic Administrator of the Kosher Certification
Division of the Orthodox Union.
A recent survey of Kosher Australia clients found that the ongoing cost
of certification on average represented less than one tenth of one percent
in the dollar cost of production.
Independence
A
Kosher Accreditation is an independent audit of production processes
and ingredients. A recent Choice Magazine article (“Labels Don’t
Always Help” 10/99) indicates that without an independent accreditation
such as Kosher certification, the consumer remains unaware of many additives
or processing aids in the manufacture of goods. And unlike most other
endorsements, a product is certified as being Kosher only if it meets
all ingredient and production criteria and has undergone a site audit.
"It's been our experience that people associate the word
kosher with quality and purity so it helps us sell our product even
to the non-kosher, non-Jewish community"
-
Bruce Mills, vice president of operations and marketing for My Grandma's
of New England, who notes that 95% of his customers are not Jewish.
A
Business Plan
Once your product is Kosher Certified, it is listed in the Australian
Kosher Food Bulletin (AKFB). The AKFB is published yearly with regular
updates and sent to thousands of homes, schools and community organisations
in Australia and Asia. It is also available in Palm format and may be
searched on this website.
If your product is available for the Food Service industry, you will
be listed in our Caterers’ Bulk and Wholesale Bulletin. Only products
listed in the Caterers’ Bulletin are permitted for use at Kosher
catered functions. The Kosher catered market in Australia numbers more
than 300,000 heads each year. Our caterers also prepare more than 30,000
airline meals per annum. We also work closely with Kosher food outlets
to ensure that your product is available locally and gains as wide a
distribution as possible.
In addition to the AKFB, we list your product with international Kosher
certifiers in the US, Europe, Africa and the Middle East.
Downloads
for manufacturers
1.
What
does Kosher Mean? An overview of requirements for Kosher
Certification.
2.
A Profile of the Kosher Food Market
3.
Kosher
Australia Information Sheet
4.
Certification Checklists
-
Company
Checklist
- Facility
Checklist