Japanese food makers expanding into halal market
Certification
key to tapping growing populations in the Middle East
Japanese sweets
maker Kabaya is scheduled to start shipping its Sakusaku Panda chocolate snack
to Dubai by the end of 2017.
TOKYO -- With
Japan's domestic market shrinking, local food makers are increasingly keen on
finding overseas outlets for their products. Particularly promising is the
Middle Eastern market, where there is growing demand for halal foods.
Sweets maker
Kabaya Foods recently obtained halal certification from a body in the United
Arab Emirates for a production line at its factory in Ibaraki Prefecture, just
northeast of Tokyo. The company aims to start selling its panda-shaped
chocolate snack produced at the factory in Dubai and other parts in the region
as early as this year.
Previously,
Kabaya used a pork-derived ingredient for the adhesive on its packaging, which
therefore does not satisfy halal criteria set in accordance with Islamic
dietary laws. Seeking to make the production line halal-compliant, Kabaya
changed the substance to an alternative that meets the requirement.
The snack, named
Sakusaku Panda, has been sold in Hong Kong and U.S. The maker now hopes to
build a solid base in the Middle East quicker than its domestic rivals.
Coffee drink
maker UCC Ueshima Coffee has also become halal-certified for its three domestic
production sites, including a factory in Shizuoka Prefecture, not far from the
famous Mount Fuji. The company has already begun exporting its instant coffee
and canned coffee drinks to Dubai. Chairman Tatsushi Ueshima said UCC is also
considering expanding to other parts of the region, such as Saudi Arabia.
Meanwhile,
Kokubo Ice, a manufacturer of crushed ice cubes, has already entered the Middle
East market. The company began shipping products for iced coffee to Dubai in
2015. Kokubo Ice mainly sells to Japanese convenience stores in the region, but
plans to expand sales to local retailers.
Ezaki Glico, a
major Japanese sweets maker, is also considering exporting its products to the
Middle East.
Thanks mainly to
the region's expanding population, the food market in the Middle East has been
ballooning. According to the Japan External Trade Organization, the Muslim food
and beverage market is expected to grow to $2.53 trillion worldwide in 2019.
That is roughly double the size of 2013.
In February, a halal
certification body backed by the UAE government was launched in Tokyo. This
gives Japanese businesses the chance to quickly obtain certification and start
selling more products in Muslim-dominant regions.
(Nikkei)
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