Kosher salt is witnessing an impressive increase in demand from customers across the globe. The Kosher Salt Market growth is majorly attributed to continuously increasing jewish population in many countries worldwide. The figure given below shows the trend:
Global Core Jewish Population, 2014 to 2017
Source: Berman Jewish Databank, A Project of the Jewish Federation of North America
Clearly, global jewish population is witnessing a continuous expansion, and strict adherence of Jews to Kosher laws is driving the demand for kosher food among them. For a food item to be labelled as kosher, it must comply with stringent guidelines stated by Jewish laws associated with their dietary patterns. The scope of these Jewish laws extends far beyond from outlining which food items are allowed or forbidden, to outlining practices associated with production, processing and preparation of foods. One of these laws states that meat, which is to be consumed as part of Kosher meal, should be clear of any traces of blood. Since coarse texture and larger grain size of Kosher salt befits the purpose of pulling out all traces of blood from meat without adding too much saltiness to it, its demand is increasing at an impressive rate across Jewish households. Availability of this salt across a good number of stores worldwide is increasing its adoption among people with various religious beliefs, thus boosting the market growth in this segment.
The market growth is also being driven by a large number of food and beverage manufacturers who seek to tap the immense growth potential this business holds. Changing lifestyle of people in many parts of the globe changing with them the taste preferences of people. Since the global food and beverage industry is very competitive on account of presence of a very large number players, inability to change or adapt to the evolving tastes and choices of people can wipe a player out of the market. This is pushing many food and beverage manufacturers to make huge investments into research and development and in effective marketing of new products in order to push their adoption deeper into their target customer base. For instance, according to a data from FoodDrinkEurope, a confederation in the EU which includes national federations, associations and companies associated with food and beverage industry, around 60 out of leading 2500 companies (based on R&D private investments) are from food and beverage industry. In the year 2017-18, total spending into research and development by these companies stood at around €8 billion a major chunk of which was held by the European Union, the United States and Japan. Interestingly, most of these investments were aimed at aligning well with ethics and improving customers’ health. The figure given below shows the breakdown of EU’s F&B research and development investments by key focal points:
Key Drivers of Innovation in Food & Beverage Manufacturing, Europe, %, 2017 and 2018
Source: Food Drink Europe
Similar trend can be seen in other regions like North America, Asia Pacific and the Middle East among others. Increasing efforts by F&B manufacturers to cater to a wider customer base with diverse taste and religious beliefs is increasing the adoption of kosher salt among them for use in various products, thus boosting the market growth.
Geographically, North America Dominates the Global Kosher Salt Market
In 2019, North America held around 38% share in the global Kosher salt market followed by Europe and Asia Pacific which held around 25% and 20% market share respectively. Based on Knowledge Sourcing Intelligence estimates, North America is expected to dominate this market throughout the projected period 2020-2025. In this region, U.S. accounted for around 89.92% market share in 2019 and this share is expected to jump to 91.37% by 2025. This dominance is partially attributed to increase demand for kosher-labelled products in the country. Currently, there are more than 12 million kosher consumers present in the U.S. Moreover, more than 40 per cent of packaged food and beverage items sold in the country are kosher, with labels bearing the logo of a trusted kosher-certifying agency such as Star-K and Orthodox Union. Many supermarkets are also routinely stocking large kosher sections. Since only 2 per cent of the American population is Jewish, this high demand for kosher foods signifies that the market growth is being driven primarity due to increasing inclination of people towards cleaner and healthier options. Rising concerns among people in this country regarding the consumption of high amount of sodium is shaping the market growth. The U.S. Food and Drug Administration (FDA) recommends that Americans should consume no more than 2,300 mg of sodium each day as they currently consume 3,400 mg of sodium per day on an average. Excess intake of sodium is associated with the increased risk of high blood pressure which is a leading cause of heart disease and stroke. According to the American Diabetes Association, people are recommended to limit their sodium to 1,000 mg daily in order to reduce blood pressure. This trend is fueling the drift of people towards kosher salt, thus propelling the market growth.
Asia Pacific is one of the fastest growing markets for kosher salt throughout the globe. The market growth in this region is also attributed mainly to rising concerns among people regarding levels of sodium intake in the form of salt. China, for instance, which accounts for a significant market share, has been witnessing very high levels of sodium intake by people. According to a recent research study conducted by the Queen Mary University of London, the salt intake in China has been among the highest in the world over past four decades. This is mainly because Chinese adults consume around 10 grams of salt per day. This is much higher than the WHO recommendation. Since these levels are alarming, many Chinese are moving towards kosher salt. To seize this growth opportunity, many players are entering this market, thus fueling the market growth. Middle East and Africa Kosher salt market is expected to show the highest growth rate among all regional markets. High jewish population in this region is one of the major factors responsible for this growth.