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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