Gluten-Free Market Explosion - Will the Boom Continue Indefinitely?

GLUTEN-FREE MARKET EXPLOSION – WILL THE
BOOM CONTINUE INDEFINITELY?
CARL-FILIP CLAUSSON
RESEARCH ANALYST
FREE FROM FOOD EXPO, JUNE 2015, BARCELONA

EUROMONITOR INTERNATIONAL
GLOBAL INSIGHT
BAKERY
PASTA
BABY FOOD
READY MEALS
OUTLOOK
QUESTIONS

© Euromonitor International
3COMPANY INTRODUCTION

5
INCLUDED EXCLUDED
Euromonitor International Gluten-Free Definitions
GLOBAL INSIGHT
Specially manufactured foods which are
labelled as gluten-free, usually available to
replace flour, bread, biscuits and pasta
Products which are naturally free
from gluten are excluded
Source: Catelli Foods Corp Source: HiPP UK Ltd

6
Global Market Size of Gluten-free Food
GLOBAL INSIGHT
Food intolerance
2014 % of global sales
Lactose-free 66%
Gluten-free 26%
Diabetic food 8%
Packaged food
Food intolerance 0.5%
Gluten-free 0.1%

7
Gluten-free Market Size for Europe
GLOBAL INSIGHT
1,113.1
Europe Figure
2014, EUR million
Main markets
US 24%
Italy 13%
UK 9%
Australia 9%
Germany 8%
Russia 7%
France 3%
Sweden 3%
Spain 2%
Brazil 2%

8
Global Gluten-free Per Capita Sales
GLOBAL INSIGHT
Other categories
2014 per capita EUR
Packaged food 238
Food intolerance 1.2
Lactose-free 0.7
Gluten-free 0.3
Diabetic food 0.1

9
Gluten-free Per Capita Sales for Europe
GLOBAL INSIGHT
1.9
Europe Figure
2014, EUR million
Global ranking
2014 per capita EUR
Norway 8.8
Iceland 8.2
Australia 6.9
Finland 6.8
New Zealand 5.1
Sweden 5.0
Italy 3.9
Austria 3.9
Switzerland 2.7
UK 2.7
..... .....
US 1.4
Russia 0.9

10
Performance of the Top Gluten-free Brands Globally
GLOBAL INSIGHT
Dr Schär (Dr Schär AG)
Udi's (Smart Balance Inc)
Private Label
Semper (Hero AG)
Nestlé Baby (Nestlé SA)
Glutino (Smart Balance Inc)
Mrs Crimble's (Mrs Crimble's)
Glutano (Dr Schär AG)
Glutafin (Dr Schär AG)
Helga's (Goodman Fielder Ltd)
0
50
100
150
200
2010 2011 2012 2013 2014
EURmn(currentfixedexchangerates)

11
Company Market Shares in Major Gluten-free Markets
GLOBAL INSIGHT
Italy Germany
RussiaUnited States
Top-3 Companies
2014 Retail Value RSP, % breakdown
Smart Balance Inc 42
Enjoy Life Foods LLC 3
Food Directions Inc 3
Top-3 Companies
Hero Group GmbH 50
Danone Groupe 11
Sady Pridonya OAO NPG 7
Top-3 Companies
Dr Schär AG/SpA 54
Malgara Chiari & Forti SpA 9
Danone Groupe 8
Top-3 Companies
Dr Schär AG 46
Haus Rabenhorst GmbH 13
Laurens Spethmann AG 9

12
Sensitive
to gluten
Gluten-free
diet
considered
as healthier
Feeling
more
energetic
Weight
management
Target Audience Stretches Beyond Coeliac Sufferers
GLOBAL INSIGHT
Coeliac
disease

13
Nutritional content
higher in fat
Nutritional content
higher in sugar
Unintended
consequences such as
potential
compensation with a
high GI food diet
But Nutritional Content Is Under Scrutiny
GLOBAL INSIGHT

14
Global Retail Sales of Gluten-free by Product, 2009-2019
GLOBAL INSIGHT
EURmn(constantfixedexchangerates)
64%
14%
0
500
1000
1500
2000
2500
3000
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Bakery Products Pasta Baby Food Ready Meals
14%
8%
2014
share

16
Global Gluten-free Bakery Forecast Growth
BAKERY
Main markets
US 15%
UK 7%
Australia 7%
Italy 7%
Germany 5%
France 3%
Sweden 2%
Finland 2%
Norway 2%
Austria 1%

17
Global Bread Forecast Growth
BAKERY
Main markets
US 16%
Brazil 7%
China 6%
Mexico 6%
Japan 5%
France 5%
Italy 5%
Germany 5%
UK 4%
Turkey 3%

18
New Product Development in Gluten-free Bakery
BAKERY
Origin:
USP:
Success:
Source:
Australia
Cross-intolerance (gluten free, wheat free and dairy free)
Very successful (boosted with bakery shelf space and
similarity in texture to regular bread)
Genius Foods Ltd
Origin:
USP:
Success:
Source:
Canada
Improved taste, wide variety, leading bakery producer
Great success (placed in bakery section, similar in taste in
texture to regular bread, matches well with demand)
George Weston Ltd
Origin:
USP:
Success:
Source:
Argentina
Low calories, healthy image
Good success (mainly due to the healthy image and big
marketing campaign and not because of gluten
awareness)
Molinos Río de la Plata SA

19
New Product Development in Gluten-free Bakery
BAKERY
Origin:
USP:
Success:
Source:
United Kingdom
Well-known brand, low unit price, fortified
Good success (good taste and texture, launched on a
large and mature market, good social media exposure)
Nestlé UK Ltd
Origin:
USP:
Success:
Source:
United States
Convenient, low unit price
Good success (launched on a big and growing market,
one of the biggest producers, good taste and texture)
General Mills Inc

21
Global Gluten-free Pasta Forecast Growth
PASTA
Main markets
Italy 29%
Germany 14%
US 12%
Venezuela 12%
Australia 8%
UK 4%
Turkey 4%
Canada 3%
Spain 2%
France 1%

22
New Product Development in Gluten-free Pasta
PASTA
Origin:
USP:
Success:
Source:
United States
Well-known brand, low unit price
Very successful (good taste and texture and a low unit
price on a big market where mainly niche players have
reigned before, better shelf exposure)
Barilla America Inc
Origin:
USP:
Success:
Source:
South Korea
Convenient, promoted with digestive health
Limited success (low awareness of gluten-free products,
but the use of rice was appealing)
Ourhome Inc
Origin:
USP:
Success:
Source:
Columbia
Well-known brand, made with corn
No success (very low awareness of gluten-free products,
premium unit price)
Harinera Del Valle SA

24
Global Gluten-free Baby Food Forecast Growth
BABY FOOD
Main markets
Russia 41%
Brazil 18%
Spain 10%
Italy 9%
Hungary 5%
Portugal 4%
Ukraine 4%
Germany 3%
Israel 2%
Belarus 1%

25
New Product Development in Gluten-free Baby Food
BABY FOOD
Origin:
USP:
Success:
Source:
Russia
Known brand, natural ingredients
Limited success (high unit price, limited marketing, fairly
small brand)
HiPP Russ OOO

27
Global Gluten-free Ready Meals Forecast Growth
READY MEALS
Main markets
US 77%
UK 10%
Norway 9%
Italy 2%

28
New Product Development in Gluten-free Ready Meals
READY MEALS
Origin:
USP:
Success:
Source:
Norway
Well-known brand, low unit price
Good success (leading pizza manufacturer, launched by
consumer request, good taste and texture, low unit price,
wide distribution)
Orkla Foods Norge AS

30
Amaranth
Quinoa
Kamut
Barley
Oats*Polenta
(cornmeal)
Buckwheat*
Millet
Teff
Supergrains Drive Gluten-free Innovation
OUTLOOK
High protein
and gluten-
free
Wheat free
but contain
gluten
Gluten and
wheat free
High fibre
and
gluten-free
* Contamination risk

31
 Standards reinforce consumer trust
 Largest players get involved
 Unit prices will decline
 Untapped dietary consumer base
 Many countries still lack these products
 Expected increase in the forecast
 Number of coeliac diagnoses will
increase
 Diagnosis will be cheaper and faster
 A large portion of the global population
run the risk of becoming intolerant to
gluten (50% in Australia, 30% in the US)
 Medical advancements
 Vaccination (e.g. Nexvax2)
 High levels of sugar and fat
 Taste and texture
 New diets
Will the Gluten-free Boom Continue Indefinitely?
OUTLOOK
Opportunities Threats

32
Global Gluten-free Forecast Growth
OUTLOOK
Food Intolerance The Second Fastest Growing Food Category Globally
Main markets
% of global forecasted
sales actuals
US 36%
Australia 19%
France 9%
Italy 6%
Norway 5%
Russia 3%
Germany 3%
Netherlands 2%
UK 2%
Finland 2%

THANK YOU FOR LISTENING
Carl-Filip Clausson
carl-filip.clausson@euromonitor.lt
CONNECT WITH US!CONNECT WITH US!
blog.euromonitor.com
@Euromonitor
www.facebook.com/euromonitorinternational
www.linkedin.com/groups?about=&gid=744327

Gluten-Free Market Explosion - Will the Boom Continue Indefinitely?

Recommended

Recommended

More Related Content

More from Euromonitor International

More from Euromonitor International (20)

Recently uploaded

Recently uploaded (20)

Gluten-Free Market Explosion - Will the Boom Continue Indefinitely?