Food Certification Market

Opportunities: Adoption of halal, organic, and ‘free-from’ food certifications

With the rise in awareness of food frauds, consumers prefer paying additional for certified organic food products. With the increase in consumer demand and the number of food frauds in organic food products, organic food certification is projected to offer key opportunities for manufacturers in the food certification market. A shift in consumer preference toward non-GMO, allergen-free, and dairy-free products is projected to drive the demand for ‘free-from’ certified food products, which further drives the growth of the market. The increase in disposable income in Muslim-based countries, such as the Middle East, is projected to drive the adoption of halal certifications. As consumer concerns regarding meat consumption are rising, the demand for halal-certified meat products is projected to increase. According to the World Halal Forum, the global halal market is presently worth 16% of the entire global food industry and accounts for 20% of global food products trade.

Organic Certification

According to the USDA, the US organic food industry was valued at USD 35 billion in 2014 and is projected to grow at a high rate till 2030. According to the USDA, a notable increase in certified organic operations was recorded in the US. The organic industry includes nearly 24,650 certified organic operations in the US and 37,032 operations around the world, as of 2017. A significant increase of 13% was recorded in certified organic farms and businesses in the US from 2015 to 2016. The increase in demand for organic products is projected to offer high-value opportunities for the growth of the food certification market. The US, Germany, France, China, Canada, Italy, and the UK are some of the largest markets for organic food.

Challenges: Instances of false labeling and certifications among companies

The increase in adulteration of food and food ingredients has led to a rise in the number of food fraud cases, false labeling, and certifications. Although most food fraud cases do not pose a public health risk, most food frauds involve the substitution of a high-value ingredient with a low-quality alternative. The concerns regarding frauds are increasing as certain incidents go undetected. According to the Grocery Manufacturers Association, the burden of frauds on the global food industry is between USD 10 billion to USD 15 billion and impacts nearly 10% of all commercially sold products. The FDA recognizes third-party audits and certifications to address food frauds. However, false labeling claims are still a major challenge for the food certification market.

With the increase in demand for commodities, false promises of certification have been a major concern. According to FoodNavigator Asia, many factories in Malaysia were found to be producing food products with fake halal logos. The standardization of logos of certified food products across all states would certainly help in overcoming the false certification cases. False organic and Protected Designation of Origin labels have continued to be a major problem for the European food industry, further challenging the growth of the food certification market.

Below are a few cases of false halal certifications:

• In 2011, a lawsuit in the US alleged that McDonald’s (US) is advertising and selling non-Halal chicken as Halal-certified products.
• In 2011, a case was exposed, according to which Super King Market in Anaheim (US) was allegedly selling misleading advertisements for generic and mixed meat as Halal-certified products.
• In 2012, the Islamic Food and Nutrition Council of America (IFANCA) found that a company name on the Halal certificate was changed for a client in China.
• In 2015, media reports in Malaysia claimed that halal certificates are available for sale in Malaysia at a price as low as USD 55–58.
• On December 15, 2014, Iowa-based food supplier Midamar Corp was charged with falsely selling $4.9 million worth of beef as halal, exporting non-halal products to countries like Malaysia, Kuwait, and the UAE, leading to fraud indictments against its directors.
• In 2016, the Halal Monitoring Committee of the UK claimed that a duplicate logo of their logo was used by a company in Romania for selling meat products in France.
• On November 18, 2023, the Uttar Pradesh, India, police filed an FIR against several companies for selling products with fake halal certifications, as the Yogi Adityanath government considers a potential ban on halal certification in the state.

More News on Halal Certifications:

• The April 24, 2023, legal action against USA Halal Foods for repeated food safety violations highlights the growing demand for certified halal products that comply with strict regulatory standards. As consumer interest in halal-certified meat and poultry continues to rise, particularly within diverse populations, the importance of transparency, proper labeling, and USDA inspections becomes paramount. This case emphasizes that halal certification alone is not sufficient; it must be backed by compliance with federal food safety laws to ensure both religious and safety standards are met, reinforcing consumer trust in the halal market.
• The October 9, 2023, bribery scandal in the US halal certification industry underscores significant challenges in the market, including monopolistic practices and rising certification costs. The exclusive control by IS EG Halal over certifications for meat exports to Egypt disrupted long-established certifiers, resulting in a sharp increase in certification fees. This has created financial strain for both exporters and consumers, highlighting vulnerabilities in the halal certification process and the need for greater transparency and competition. These factors could impact market growth, pricing structures, and consumer confidence in certified halal products