The Total Addressable Market (TAM) for Food Intolerance Products was valued at USD 15.47 billion in 2022. It is estimated to reach an expected value of USD 25.05 billion in 2031, witnessing a CAGR of 5.5% during the forecast period (2023-2031).
The market for products for people with food intolerance has been continuously driven by the rising popularity of the vegan diet, rising cases of lactose intolerance, and celiac disease. The market for products for people with food intolerance is booming due to medical advancements that have analyzed and provided a solid understanding of the various immune system responses, allowing consumers to make informed decisions when buying their food products. The market for these food products is also driven by consumers' increasing preference for labeling and ingredient claims like "lactose-free" and "gluten-free."Food intolerance products have witnessed robust growth over the past few years, with the rising demand from not just consumers, who are intolerant to certain food items, but from a wider base of consumers, owing to the increasing inclination toward the clean-label category of food products.
|Market Size||25.05 billion|
|Fastest Growing Market||Europe|
|Largest Market||North America|
|Report Coverage||Revenue Forecast, Competitive Landscape, Growth Factors, Environment & Regulatory Landscape and Trends|
High Prevalence of Lactose Intolerance
Food intolerance products are in high demand globally due to the rising instances of gluten allergies, indigestion, lactose intolerance, celiac disease, a disorder that causes inflammation in small intestines, and high gluten intolerance. According to the Ministry of Health (Ministero della salute), there were 15,569 and 8,134 new cases of a celiac disease diagnosed in Italy in 2016 and 2017, respectively, driving more consumers toward gluten-free products. In fact, as per the Ministry’s report, the per capita public expenditure on gluten-free products in Italy’s Autonomous Province of Bolzano stood as high as EUR 1,630.15 in 2017.
According to the American Gastroenterological Association's clinical practice journal, 1.4% of people worldwide have celiac disease, with prevalence rates of 0.4% in South America, 0.5% in Africa and North America, 0.6% in Asia, and 0.8% in Europe and Oceania. Furthermore, North America and Australia, where many Europeans immigrated, and Ireland and Finland, have the highest rates of celiac disease, making these regions some of the biggest markets for food intolerance products.
There has been a significant increase in the demand for natural/organic/good-for-health food products among consumers in recent years as they are becoming more aware of the adverse health effects associated with the consumption of various food ingredients and gluten-containing grains, such as wheat and barley, which are used in non-complying quantities in food products.
The free-from, natural, and organic claim products have started to witness soaring demands in countries like the United States, Germany, the United Kingdom, and others, and the concept that has been invading other countries. The increased consumer demand for free-from-food products and the rising clean-label claims on products accelerated the global market growth. Product launches with various label claims, such as “gluten-free,” “dairy-free,” “non-GMO,” and “reduced sugar,” have been silently benefitting customers over the past few years.
Moreover, consumers constantly check food labels these days before purchasing any food product. Several organizational surveys on consumer buying behavior reveal the rising consumer interest in probing for superior ingredients on the food label. According to a study published by the International Food Information Council Foundation, in 2019, about 59% of Americans claimed to always read labels on packaged food before buying it for the first time, with about 24% of them specifically looking for specific claims. Thus, owing to the increasing consumer awareness, the demand for food intolerance products is rising around the globe.
The Increasing Risk of Labeling, Transparency, and Contamination
One of the significant concerns, which is restricting the growth of the food intolerance products market around the globe, is transparency in terms of labeling. Also, there has been a gross regional disparity in the residual gluten levels in gluten-free (GF) foods. There are no mandated manufacturing procedures for manufacturers making such gluten-free food claims. The labeling loopholes in statements, such as “may contain traces” for different allergens, including gluten, are vague and inadequate for upholding food safety and quality.
Also, the supply chain of gluten-free products is not strictly monitored in underdeveloped regions like Asia-Pacific. As a result, there is a greater risk of cross-contamination, rendering the GF claims redundant. Food contamination with gluten can occur at many critical points, such as milling centers, grocery stores, processing, production facilities, and even at home. All such factors hinder the market growth.
Strategic Business Initiatives Taken by the Manufacturers
The market studied witnessed a significant increase in consumers opting for healthy lifestyles and food products free from food claims without compromising taste. This has provided an opportunity for manufacturers around the globe to develop products that support the food manufacturers to cater to consumer needs and achieve a competitive edge over other companies.
The market has witnessed significant demand for organic baby food, including lactose-free infant formula, gaining popularity among parents due to growing concern over children's health. As a result, players invest in developing innovative products with organic claims to capture the growing demand and achieve significant market shares. For instance, Geber offers Gerber® Good Start® Soy Powder Infant Formula for babies with milk or lactose intolerance for up to 1 year. The formula offers complete nutrition while preventing fussiness and gas brought on by milk or lactose intolerance for gastrointestinal comfort. Moreover, the products are Expert-recommended DHA to help support brain and eye development. The significant investments by key players to develop innovative products to cater to the market's various needs are anticipated to drive the market demand during the study period.
By region, the global food intolerance products market is segmented into North America, Europe, Asia Pacific, South America, and MEA.
North America accounted for the largest market share and is estimated to grow at a CAGR of 7.2% during the forecast period. More than 170 foods have been reported to cause allergic reactions among Americans. Milk, egg, peanut, wheat, soy, tree nuts, fish, and crustacean shellfish, among others, are responsible for most of the severe food allergy reactions in the United States, as per the reports of the Food and Drug Administration (FDA). Furthermore, color additives made from cochineal extract and carmine, derived from insects, have also been identified as allergenic substances causing food intolerance among Americans, requiring a declaration on the label of all food products containing such ingredients. Owing to the rising food allergies in the United States and the consumers’ inclination toward brands that offer allergen-free food products, the food product manufacturers in the country have been compelled to invest heavily in research and development and introduce new and improvised products with free-from-ingredient recipes that could cater to the varied requirements of the customers such as gluten-free, lactose-free, nut-free, and sugar-free, among others. Furthermore, the broader availability of food intolerance products across the country-wide mass merchandisers, supermarket chains, convenience stores, and most natural product retailers has, in turn, accelerated the demand for such products in the market.
Europe is the second largest region, projected to reach USD 12500 million in 2031, witnessing a CAGR of 8.5%. Rising health concerns among the population have increased the demand for specialty ingredients in their food and beverages. According to a survey by IFAK, lactose-free product daily consumption frequency from 2018 to 2021 increased by 108.11% in Germany. Adding on, there are around 3.5 million consumers who buy lactose-free dairy products regularly, as per Garman Trade & Invest. Thus, in 2017, Lactalis agreed to acquire German dairy producer Omira. It produces UHT milk, dairy-based desserts, and lactose-free products under the Minus L brand in its two facilities in Neuberg and Ravensburg. According to the Federal Ministry of Food and Agriculture, about 73% of consumers said they lactose-free trend would remain for the long term, while 81% said the gluten-free trend would remain for the long term in 2017. It has been noted that around 3,238 launches of gluten-free health-related products happened over a decade in 2018 in Germany. For instance, in 2016, German manufacturer CFP Brands launched a new line of rice crackers under the Nature Addicts brand. It is made from 95% jasmine rice and is described as gluten-free and baked rather than fried and available in Sea Salt, Black Pepper, and Red Pepper and sold in 70g bags. A further study by the Environmental Medicine Commission of the Robert Koch Institute states that the prevalence of food allergies in adults was 4.7% in 2016. All the above-stated factors are propelling the market.
Asia Pacific is the third largest region. The increasing consumer preference for healthy and high-quality food products is expected to drive the free-from-product market. In addition, a study published in The Journal of Allergy and Clinical Immunology, 2019, stated that prevalence rates of food-specific IgE sensitization (≥0.7 kU/L) to at least one food were 7.0% in Guangzhou and 16.8% in rural Shaoguanamong the children. According to the Institute for Nutrition and Health and the Chinese Center for Disease Control and Prevention, lactose intolerance in Chinese adults is as high as 95-100%, suggesting great demand for free lactose packaged food. On the other hand, the massive media exposure and government education on lactose intolerance and infant allergies helped boost purchases of free from lactose-free baby milk formula and dairy products among consumers with related health issues. Thus in 2021, KeNiuLe Dairy Co. Ltd, a joint venture between the Coca-Cola Company and China Mengniu Dairy Company Limited, launched its first brand in the chilled milk market to tap the fast-growing sector of health-conscious Chinese consumers have increased demands for nutritious products. These milk products use ultrafiltration to retain more nutrients and remove some ingredients, such as lactose. Furthermore, wheat forms a considerable part of the local diet in China, with it being present in noodles and most Chinese condiments, including soy, oyster, bean, and hoisin sauces. As such, not many consumers follow a gluten-free diet, with a lack of awareness of the possible side effects of gluten intolerance. Moreover, rising awareness of calorie intake boosts sugar-free/low-calorie portfolios in the market, and global brands are innovating their SKUs into this category. For instance, in 2021, Mondelez International, Inc. partnered with MissFresh to launch Oreo Zero sugar-free cookies on the MissFresh on-demand retail platform. The new sugar-free Oreo Zero cookies are available in two varieties: Oreo Zero Cookies, which has the classic Oreo chocolate sandwich cookie taste, and rose-flavored Oreo Zero Thin Cookies, which are 40% thinner and crunchier than regular Oreo cookies.
The global food intolerance products market is segmented by product type, labeling type and region.
By product type, the global food intolerance products market is segmented into bakery products, dairy and dairy alternatives, confectionery products, meat and seafood, sauces, condiments, dressings, and other product types. The bakery products segment accounted for the largest market share and is estimated to grow at a CAGR of 7.6% during the forecast period. Gluten-free bakery products are one of the fastest-growing categories in the food industry. These products appeal to those with medical needs, such as celiac disease or gluten intolerance, and to the millions of others who choose to eat a gluten-free diet. There have been robust demands for bakery products with improved nutrient profiles, especially in terms of fat composition, owing to their nutritional and functional health benefits while incorporating natural preservatives, colors, and flavors, such as cumin, cardamom, nut, and chocolate, boosting the market.
By labeling type, the global food intolerance products market is segmented into gluten-free food, lactose-free food, and other labeling types. The gluten-free food segment accounted for the largest market share and is estimated to grow at a CAGR of 7.8% during the forecast period. A meta-analysis released in 2020 found that over the past few decades, the incidence of celiac disease has grown, on average, by 7.5% annually. Serologic tests show that 1.4% of people worldwide have celiac disease. A strict, lifelong adherence to a gluten-free diet is the primary treatment driving up demand for gluten-free goods. Besides the rise in celiac disease diagnoses, gluten-free goods are also becoming more popular among those suffering from non-celiac gluten sensitivity, inflammatory diseases, and autoimmune disorders. Furthermore, the necessity for gluten-free foods has been promoted among the public in practically all regions, including developing countries, through government awareness campaigns and initiatives concerning celiac disease, as well as the introduction of labels for gluten-free products. Consumer demand for celiac disease diagnosis has increased due to these ads, as has the demand for gluten-free products.
Major players in the global food intolerance products market are