Food Allergy Market

Market Overview

The global food allergy market size was valued at USD 36.20 Billion in 2023. It is estimated to reach USD 60.68 Billion by 2032, growing at a CAGR of 5.3% during the forecast period (2024–2032).

The market for food allergy is growing strongly and represents a major area of growth. It offers a full range of allergy management and treatment options. Advanced testing methods such as skin pricks and blood tests are used for the identification of food triggers in the diagnostics segment. Lifesaving epinephrine autoinjectors for severe reactions are provided in the emergency response section. The preventive segment is most promising, offering a growing choice of allergen free food products and contributing to inclusiveness and improving the quality of life for those suffering from allergy.  This market is set to grow further as individuals are empowered to control their allergies and make a success of them.

The market for food allergy is expected to grow strongly, driven by a significant increase in the number of diagnosed cases among children.  The demand for improved diagnostic tools, effective treatments such as erythropoietic autoinjectors and development of allergen free food products is a result of this growth in allergy cases that creates an extensive market for companies to meet these needs.

Market Dynamics

Global Food Allergy Market Drivers

Increasing Physician-Dispensed Cosmeceutical’s advantages booming the demand 

A particularly concerning trend is driving the food allergy market: the rising prevalence of food allergies, especially among children. This increase in the number of cases is translating into increased demand for different solutions at all levels of the market. For instance, according to Asthma and Allergy Foundation of America, more than 100 million people in the U.S. experience various types of allergies each year. Common examples include seasonal allergies, eczema, and food allergies. Moreover, nearly 1 in 3 U.S. adults and more than 1 in 4 U.S. children have a seasonal allergy, eczema, or food allergy. The increasing number of allergy patients contributes to the expansion of the market, in view of the need for precise diagnostic tools and early identification of allergens while also requiring effective emergency treatment and preventive measures such as allergen free food options.

Increased demand for Improved Diagnostics

A key driver of the food allergy market is demand for better diagnostic tests. Traditional methods, such as skin prick tests, which are effective, can be time consuming and uncomfortable. The result is that innovative and effective test methods are missing.  Advances such as blood tests, which offer a more convenient and potentially more accurate way of identifying food allergy, are responding to the market. In addition, there is increasing interest in the development of home testing kits that could make it easier for people to manage their allergies proactively and enable them to take more active roles.

Global Food Allergy Market Restraint

High Cost of Treatments

High costs associated with different treatments are an important obstacle to the management of food allergies. The cost of allergy testing, whether by pricking the skin or blood tests, can be high and could delay diagnosis and appropriate treatment.  Even after diagnosis, medications like epinephrine auto-injectors, crucial for emergency situations, can be a significant financial burden for some families. The field of allergen free food products may be the most important cost factor.  In contrast to common foodstuffs, these specialised products are sometimes offered at a premium compared with other foods and can lead to restrictions on access for those who need them or create additional barriers in the maintenance of good nutrition.

Global Food Allergy Market Opportunities

Development of Novel Diagnostics

The market for food allergy has enormous potential due to new diagnostic developments. The accessibility and empowerment of patients to take charge of their health could be significantly improved through home-based testing kits.  Moreover, noninvasive blood tests are a potentially more convenient and precise alternative to conventional methods of diagnosis, facilitating the choice of medicines and speeding up decision making. The landscape of food allergy management is expected to change with these innovations.

Advancements in Oral Immunotherapy (OIT)

Oral Immunotherapy OIT is a game changer in the market for food allergy. OIT has the potential to cure and desensitize the immune system to allergens, unlike traditional medicines that treat symptoms.  This implies that allergy patients are less dependent on the use of medicines, reducing healthcare costs and significantly improving their quality of life.  The market has tremendous potential for further investment in OIT research and development, which could lead to a revolution in food allergy treatment.

Regional Analysis

Based on region, the global market is bifurcated into North America, Europe, Asia-Pacific, Latin America, and the Middle East and Africa.

North America Dominates the Global Market

North America is the most significant global market shareholder and is expected to expand substantially during the forecast period. The scene of food allergy in North America is growing exponentially. The market is driven by an alarming rise in allergies, especially for children. As a result, there is a demand for better diagnostics, lifesaving epinephrine for emergencies, and a wider variety of allergen free foods. From diagnosis to delicious, safe meals, the market caters to managing food allergies across the board.  

The United States food allergy market. The United States is likely the dominant player within North America's food allergy market due to its large population, high prevalence of allergies, and advanced medical facilities.

The Canadian food allergy market. Canada's market is growing due to, growing awareness of food allergies, coupled with an increase in diagnoses, fuels demand for solutions.

These factors are estimated to drive the North American food allergy market growth.

Asia-Pacific region is a pivotal market for the food allergy industry. The market in Asia Pacific will also be stimulated by the increasing focus of key players on expanding into new Asian markets, a large customer base and rising awareness about food allergies.

China food allergy market. China is a major player due to its large population and rising disposable income, leading to increased healthcare spending and demand for allergy solutions.

Japan food allergy market. Japan already has a high level of awareness of food allergy and a developed healthcare infrastructure, which is expected to contribute to the growth of the market.

Thus, the factors above are estimated to boost the Asia-Pacific food allergy market growth.

Segmental Analysis

The global market is bifurcated into treatment and distribution channel.

Based on treatment, the market is segmented into antihistamines, adrenaline, oral immunotherapy, and others.

Oral Immunotherapy dominates the treatment segment. The future of food allergy treatment will be dominated by oral immunotherapy (OIT). Unlike medication, it desensitizes the immune system to offer a potential cure rather than relief of symptoms. The growth of the OIT market is driven by this shift from management to treatment.

Based on distribution channel, the market is segmented into hospital pharmacy, retail pharmacy, and online pharmacy.

Hospital pharmacy dominates the distribution channel segment. Due to two key factors, hospital pharmacies currently dominate the market for food allergy, contrary to the general distribution of medicines. First, anaphylaxis patients may need immediate access to epinephrine autoinjectors which can be provided by hospitals in severe cases. Second, specialists in hospital settings often administer and monitor OIT, a promising treatment, which requires on site access to medicinal products.

Recent Developments

• On June 2024, The Food Allergy Science Initiative, Inc. (FASI) announced a prestigious Program Project Grant (P01) from the National Institutes of Health’s, National Institute of Allergy and Infectious Diseases (NIAID) to support a multidisciplinary research program focused on the neuroimmunology of food allergies. FASI will receive $2,339,268 in first-year funding and expects to receive this amount from NIAID annually for five years (a potential maximum of $11.6M), contingent on the availability of funds.
• In February 2024, Novartis AG announced that the US Food and Drug Administration (FDA) has approved Xolair (omalizumab) for the reduction of allergic reactions, including anaphylaxis, that may occur with accidental exposure to one or more foods in adult and pediatric patients aged 1 year and older with IgE-mediated food allergy.

Analyst’s Perspective:

A multipronged approach to the food allergy market is recommended by analysts. First, focus on the use of novel testing methods with a view to an earlier and more precise diagnosis. Secondly, in order to strengthen its position as a potentially curative solution, invest in research and development of the OIT.  Finally, to ensure accessibility for all, tackle the affordability gap in diagnostics, medicines and food options which do not contain allergens. The market for food allergy products can not only thrive, but also improve the lives of millions who suffer from allergic reactions by addressing these areas.