Halal boosts fresh meat performance

Opinion | 17 Aug 2015

Anastasia Alieva Demand for halal meat, an important feature

Head of Fresh Food of life across Muslim communities, is growing
rapidly. The Muslim share of global population
has been increasing steadily and is projected
to reach about 26% by 2030, therefore halal
meat products are expected to enjoy steady growth prospects.

Fresh meat volume growth high in Muslim countries

Euromonitor International's fresh food statistics show that total volume sales growth
of fresh meat in (predominantly) Muslim countries is often higher than regional and/or
global averages. Turkey, for instance, registered 11% growth over the 2000-2014
review period, while Western Europe showed a decline of nearly 1%.

In the Middle East and Africa region, fresh meat volume sales rose by 19% over the
same period, six percentage points above the global average of 13%. Strong growth
was recorded in many Muslim countries within the region, for example the United Arab
Emirates (33%) , Egypt (28%), and Morocco (19%). In these markets nearly all meat
is halal by default and only small quantities of clearly labelled non halal meat can be
seen in a few shops and hotel restaurants to cater to tourists and ex-pats from the
West.

In Asia-Pacific, Pakistan, Indonesia and Malaysia also performed well, registering a

fresh meat volume sales increase of 54%, 16% and 15% respectively between 2009
and 2014.

Rapidly growing foodservice channel propels halal meat

In other countries where Muslims make up an important minority, ie between 3-10% of

the population, like France, Germany and the UK, the rising demand for halal meat
manifests itself on several fronts, and particularly in the consumer foodservice
channel. For one, Middle Eastern full-service and fast food restaurants are usually very
popular in such countries, and even though their customer bases may be mostly non-
Muslim, the food they offer tends to be halal.

Euromonitor International's consumer foodservice data shows that Germany is by far

the largest market for Middle Eastern full-service restaurants, with value rsp sales of
EUR2.3 billion in 2014, accounting for 23% of the regional total.

Many fast-food and restaurant chains in the UK offer halal meat. For Middle Eastern
fast food, the UK leads the way ahead of other Western European countries, with
2014 value sales of 3 billion (EUR3.7 billion), equating to well over third the region's
sales.
The UK is also the largest market for chicken fast food, which is very popular among
Muslims. In 2014, value sales of chicken fast food amounted to 2.1 billion (EUR2.7

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billion) in the UK. About 100 KFC outlets and a fifth of Nando's restaurants around the
country, serve halal-approved chicken. They rank first and second, respectively in the
UK's chicken fast food sector. Chicken Cottage (ranked fourth), Dixy's Fried Chicken
(fifth) and Perfect Fried Chicken (seventh), all use halal chicken.
Subway, a second ranked player in bakery products fast food in the UK, with sales of
488 million (EUR605 million) in 2014, have been using halal meat in its sandwiched sold
in selected outlets since 2007. All chicken, served by the chain of leading pizza
restautants, Pizza Express, is halal.

Growth performances for the foodservice channel in many of the predominantly Muslim
countries are encouraging. For instance, in Indonesia and Malaysia, chicken fast food
value sales soared by 77% and 41%, respectively, over the 2009-2014 review period.
In the Middle East and Africa region, they rose by 56% overall. Burger fast food also
displayed impressive sales growth in Indonesia (105%), Malaysia (82%), Egypt (121%)
and UAE (108%) over 2009-2014.

Speciality butchers - a winning shopping destination for halal meat

Traditional independent retailers selling halal meat remain important shopping

destination not only in developing markets with low proliferation of modern retail
formats, such as supermarkets, convenience stores and discounters. In developed
countries of Western Europe with highly concentrated modern retail, Muslims still buy
halal meat mostly from independent halal butchers and other specialist retailers.
In Germany, an estimated 80% of nearly 5 million Muslims who follow strict Islamic diet,
head to Turkish or Arabic specialised retailers as halal certified meat and other food
products can hardly be found in supermarkets.

Although many supermarkets, such as Carrefour and Casino in France, Asda, Morrisons,
Sainsbury's and Tesco in the UK, offer fresh halal meat and meat products, consumers
continue to show high loyalty to local specialist butchers. Halal butchers have the
advantage of consumers' trust; customer service, in terms of preparing and cutting
meat to exact requirements; range of cuts and price, especially for bulk buyers.

Supermarkets lose on trust because in many instances they fail to clearly label halal
products as such and explain slaughter method. For instance, imported New Zealand
lamb from halal abbatoirs sold in UK supermarkets has not been labelled as halal.

Clear labelling is the way forward

Growing halal market offers increasing opportunities to meat and poultry farmers,
manufacturers, retailers, exporters and foodservice operators. Religious slaughter
practices are allowed in most countries, however there is an on-going debate on
acceptance of variation in slaughter procedures. Currently, halal labels do not explain
whether meat comes from pre-stun animals or non-stun slaughter.
In order to respond to the demands of Muslim consumers, a consensus on the halal
meat requirements must be reached. Furthermore, a universally accepted halal
standard label should be introduced to help inform Muslim shoppers that the food
offered to them is shari'ah compliant.

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 Euromonitor International 2017

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