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CM00234-027
1
Market Opportunities in Gluten-Free
An analysis of market estimates, consumer data, and
current industry innovation
Reference Code: CM00234-027
Publication Date: 19 November 2013
© Datamonitor
This report is a licensed product and is not to be reproduced without prior permission
Executive Summary
Up to 8% of children and 4% of adults are clinically diagnosed with a food allergy and around 20%
of the global population avoid eating specific foods due to a food intolerance relating to additives
or naturally occurring food chemicals. Tackling food intolerance has become a key area of interest
for food and drink manufacturers as they focus on addressing unmet needs. Yet gluten-free
products are consumed by a much greater population than those who are medically intolerant.
This report analyzes consumer survey data, market value estimates, and the product launch
landscape to show the demand, current innovation, and opportunities for gluten-free products.
Consumer demand
 The demand for gluten-free products has gone beyond the medical needs of celiac
disease (CD) and gluten-intolerant consumers, and there is now a large and growing
proportion of the population, termed 'gluten-avoiders', that have converted to gluten-free
diets for non-medical reasons such as weight management, digestive health, and
nutritional health.
 The gluten content of products is not a top priority for consumer purchases overall, but
nutritional information is. Manufacturers may want to leverage the perceived health
benefits of gluten-free products such as 'natural', organic, and non-GMO (i.e. no
genetically modified organisms) to appeal to a wider audience rather than relying on a
gluten-free label alone.
 Up to a fifth of consumers avoid drinking beer due to allergens or gluten, indicating that
there is a considerable need to develop innovative products that can fulfill consumer
demand for gluten-free alcoholic beverages.
 42% of consumers who say that they watch their weight also restrict their intake of gluten-
containing foods. 14% claim to avoid gluten all of the time. These data suggest that
consumers perceive gluten-free products to be healthier and useful in weight
management, despite the lack of scientific evidence.
 Across the 24 countries surveyed, consumers in Southeast Asia and South America are
most likely to avoid gluten in their diet this may provide manufacturers with new
opportunities to develop gluten-free solutions for emerging economies.
Market trends
 The gluten-free market is a multibillion dollar market driven by the US, which is the largest
and fastest-growing segment. According to SPINS data, the US is forecast to generate
sales of $10.5bn in 2013, up by 19.9% year on year. Yogurt and kefir products remain the
number-one gluten-free food category, although demand for more convenient, healthier
snacks has risen dramatically over the last two years.

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CM00234-027
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 US-savvy manufacturers have begun to include gluten-free labels on food and drink
products that are inherently gluten-free such as tea and fruit juices as well as functional
drinks for targeting health-conscious consumers.
 To date, gluten-free products have been relatively successful in Western European
markets such as Germany, Italy, and the UK but have yet to make a significant impact in
France and Spain. This is largely because patient advocacy groups have been extremely
vocal in these markets, encouraging governmental agencies, regulators, and the food
industry to reduce gluten and to improve product labels.
 Gluten-free certification is being widely used across the globe to differentiate products
and assure consumers regarding the safety and quality of products. Many of the CD
societies have established stringent levels of less than 20 parts per million (ppm) before
products can be certified gluten-free; for example, in Australia the level is 5ppm and in
Spain 10ppm. This has raised the bar for food and drinks manufacturers.
Product landscape
 During the period from 2008 to 2013, more than 9,500 gluten-free products were
launched across the globe. Europe accounted for around 45% of global gluten-free
product launches, but the US remains the leading market for new gluten-free products
accounting for nearly a third of global launches.
 New products launches encompass a broad range of produce as food and drinks
manufacturers respond to consumer demands for more sophisticated products, with
convenience foods and healthy savory snacks having been the main focus of the food
industry in recent years.
 Many manufacturers are increasing the globalization of their gluten-free brands as well as
expanding their presence in local markets. Certification has allowed companies to be
more proactive with their customers, helping to build trust and reassure them of the
quality and safety of their products.
 Companies have developed an array of alternative flours and bran ingredients that can
replicate the function of gluten and address consumers demand for nutritious, tasty
gluten-free options. Companies are looking to expand their market beyond the medical
need for gluten-free products to target health- and weight-conscious consumers help to
support healthier lifestyles.
Future opportunities
 There is still considerable room in the market for the development of innovative functional
drinks that can combine a variety of nutritious attributes – such as being gluten-free, low
fat, low sugar, low in calories, rich in fiber, or high in vitamins and minerals – with
functional ingredients to address the needs of the wider health-conscious community.
 Supplement manufacturers should look to address the specific dietary requirements of
gluten-free consumers in the development of gluten-free multivitamins. During the 2011 to
2013 period there has been strong growth in the sale of gluten-free vitamins and minerals
in the US, increasing from $2.5bn in 2011 to $3.1bn in 2013 at a growth rate of 7.9% year
on year, significantly faster than the rest of the supplements market.