Gluten-Free Products Market

Market Overview

Gluten, the principal storage protein of wheat grains, is present in grains such as barley, rye, wheat, and triticale. It has a complex protein structure and plays a crucial role in establishing the rheological properties of dough and baking quality. Several disorders, such as celiac disease, gluten ataxia, and non-celiac gluten sensitivity and allergies, have been linked to the consumption of gluten-rich products.

Numerous potential benefits are associated with switching to a gluten-free diet, prominent among them being an improvement in cholesterol levels, an increase in energy levels,  promotion of gut health, healthy weight loss, and a reduced risk of coronary heart disease, diabetes, and certain cancers.

Market Dynamics

Gluten-Free Products Market is Making its Way to the Growth Phase, With Changing Consumer Preferences in Light of Rising Awareness Regarding Gluten Allergies

Gluten-free food was not a fad for the longest time till the late 20th century. It was with the discovery of celiac disease that gluten-free products hit the market. Celiac disease is a chronic digestive disorder that results from a strong reaction to gliadin, is a gluten protein found in wheat, rye, barley, and oats. It causes inflammation and damages the inner lining of the small intestine. According to the Celiac Disease Foundation, in the year 2016, the predominance of celiac disease was 0.4% in South America, 0.6% in Asia, and 0.8% in Europe and Oceania. As there is no pharmaceutical treatment for celiac disease, the only cure available is a 100% gluten-free diet.

Gluten-free food started creating a buzz in the market in 2000. By 2013, the gluten-free food and beverage industry grew to a USD 10-billion market, and in the same year, the FDA published regulations for labeling gluten-free items.

Gluten-free food is somewhere between the initial and growing phase. Although there have been a number of new developments in the gluten-free products market, there is enormous scope for the product to grow manifold. The rising incidence of wheat allergies or celiac disease is the key factor contributing to the increasing consumption of gluten-free products.

Growing Incidence of Celiac Disease & Gluten Intolerance

The Celiac Disease Foundation estimates that the number of people suffering from celiac disease is doubling every 15 years. Furthermore, as per the U.S. National Library of Medicine, the incidence of celiac disease is around 0.71% of the population, i.e. around 1 in 141 people. The increasing incidence of celiac diseases, wheat allergies, and non-celiac gluten sensitivity is strengthening the demand for gluten-free foods globally.

Demand From the Millennial Population

Millennials are leading the wellness generation, and their affinity towards a healthy lifestyle will drive the gluten-free products market. Millennials significantly spend on healthy food alternatives and gym memberships and use digital devices to tracks their health parameters. In light of this trend, companies are introducing new gluten-free products to target the younger population and employing new marketing strategies to target them.

Millennials account for a significant share of the rising footfall in restaurants and fast-food chains and represent a sizable chunk of the demand for food products such as burgers, pizzas, and pasta. A shift towards healthy food choices has nudged companies to introduce gluten-free food choices. For instance, food giants such a Dominos and Pizza Hut have introduced gluten-free pizza bases, cheese, and toppings. Thus, demand from the millennial generation and their inclination toward healthier options are expected to bolster the growth of the gluten-free products market in the coming years.

Rising Awareness About the Possible Benefits of Going Gluten-Free to Drive the Gluten-Free Products Market

Gluten-free products are associated with a number of possible benefits such as improved cholesterol levels, promotion of digestive health, and a reduced risk of cardiovascular disease and diabetes. Rising awareness regarding these benefits is nudging people to shift to gluten-free daily products, such as cereal, oats, soups, and sauces.

There has been an increase in the consumption of meat, poultry, and ready-to-eat foods. As per the India Brand Equity Foundation, the food processing industry was valued at around USD 260 Billion in 2017. This highlights the growing demand for ready to eat products that are gluten-free for people suffering from celiac diseases, wheat allergies, and those looking to switch to healthier food alternatives.

Meat and Poultry Products, Being Naturally Gluten-Free, are Expected to Dominate the Gluten-Free Products Market

Meat and poultry are naturally gluten-free products, and their consumption is expected to rise during the assessment period. As per the Australian Department of Agriculture, global meat consumption increased by 58% over the past 20 years and reached 360 million tons by 2018. From 1998 to 2018, China’s meat consumption increased by 72%, which accounted for around 34% of global consumption growth. There has been an increase in the average annual meat consumption per person; the U.S. leads this growth momentum with 120 kg per person.

Hypermarkets to Dominate the Gluten-Free Products Market by Distribution Channel Due to the Increasing Number of Certifications Being Awarded to Food Products 

Hypermarkets and supermarkets aid several enterprises in reaching their customers and create a brand identity. These markets are generally located in big cities, where consumers can purchase fresh produce right from manufacturers or wholesalers. There has been an increase in the number of gluten-free products, which has increased the shelf space allocated to these products in supermarkets and hypermarkets.

Rising consumer awareness has seen consumers seeking certified products. In light of this, various organizations and agencies are certifying food products as gluten-free to provide consumers the necessary assurance. For instance, as per the Gluten-Free Certification Organization, around 123 food and drinks products from around 15 brans received gluten-free certification in November 2019.

Increasing Internet Penetration to Drive the Online Sale of Gluten-Free Products

Digitalization has encouraged several market players to explore various online platforms for the sale of their products. Several online platforms are offering instant, speedy delivery to better serve customers. For instance, in 2019, around USD 695,185 million was generated through online sales in Europe, which indicates that more people have started preferring online shopping. The sales figures will benefit many products, and gluten-free products are no exception here.

Regional Analysis

North America & Europe to Dominate the Gluten-Free Products Market Owing to Increasing Health Consciousness & Easy Availability

As per the National Pasta Association, an average American consumes around 20 pounds of pasta, and the U.S. consumes around 5.95 billion pounds of pasta every year. This highlights the growing potential of gluten-free food pasta products such as pasta and sauces.

The rising incidence of obesity, cardiovascular disease, diabetes, and other ailments in North America is spurring the shift to healthier food choices among the region’s populace. For instance, as per the Center for Disease Control and Prevention, the incidence of obesity in the U.S. was around 39%, and it impacted around 94 million people. The increasing awareness about the ill-effects of obesity and associated diseases are prompting people to shift toward healthy alternatives such as gluten-free food products that offer health benefits.

As per the Association of European Coeliac Societies, more than 7 million people are affected by celiac disease in Europe, and the regional market has more than 12,000 gluten-free products. Furthermore, as per the International Pasta Organization, Italy is the highest consumer of pasta globally and produces around 3,400,500 tonnes of pasta.  Rising awareness and the detection of celiac diseases and wheat allergies have accelerated the demand for gluten-free food products in the region.

Gluten-Free Products Market Segmentation

By Type

• Bakery & Confectionery Products
• Baby Food
• Meat & Poultry
• Ready-to-Eat Foods
• Cereals & Snacks
• Other Gluten-Free Products

By Distribution Channel

• Store-based Retail
• Convenience Store
• Hypermarkets & Supermarkets
• Specialty Stores
• Online Retail

By Region

North America

• The U.S.
• Canada
• Mexico

Europe

• Germany
• The U.K.
• Italy
• France
• The Rest of Europe

Asia-Pacific

• China
• South Korea
• Taiwan
• India
• Singapore
• Japan
• Malaysia
• Indonesia
• The Rest of Asia-Pacific

Latin America

• Brazil
• Argentina
• The Rest of Latin America

The Middle East & Africa (MEA)

• Saudi Arabia
• South Africa
• The Rest of MEA