Gluten-free Products Market

[323 Pages Report] The global gluten-free products market is expanding significantly. It is estimated to be valued at USD 7.70 billion in 2024 and is expected to reach USD 11.48 billion by 2029 at a CAGR of 8.3%. This upward trend is driven by the increasing rates of celiac disease and gluten sensitivities, which have expanded the market client base. The National Library of Medicine reported in 2023 that celiac disease had a prevalence of about 0.5–1% in the general population. However, the incidence has risen over the past 10–20 years with improved detection and diagnosis. The incidence is strikingly higher in people with other autoimmune diseases, including type I diabetes, and first-degree relatives of affected people have a risk of 1 in 10. The worldwide demand for gluten-free foods is rising as more consumers seek dietary solutions to manage celiac disease and gluten sensitivities.

Gluten intolerance, or sensitivity to gluten proteins in wheat, barley, and rye, differs by percent across countries. According to World Population Review 2024 data, Finland leads at 1.67%, the UK and Australia at 1.00%, and the US and Canada at 0.75%. Argentina and Italy have middle rates; the Netherlands has 0.50%; and Brazil has 0.37%, signifying countries with the lowest rates. The only reason that affects global demand for gluten-free products is the relative change in these prevalence rates.

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Manufacturing and production of gluten-free products require hygienic special facilities with separate equipment to prevent the gluten-free product line from getting contaminated with gluten-containing dust. It also requires advanced extrusion technology and enzyme technology for superior quality. For example, adding enzymes such as BakeZyme by dsm-firmenich (Switzerland) imparts dough consistency and stability during baking, prolongs the shelf life of gluten-free baked goods with a good crumb structure, and maintains a consistent appearance. Key players, such as The Kraft Heinz Company (US), The Hain Celestial Group (US), General Mills Inc. (US), Conagra Brands, Inc. (US), Kellanova (US), and Barilla G. e R. F.lli S.p.A. (Italy), apply these innovations in the manufacturing of gluten-free bakery items, cereals, snacks, and pizzas to meet consumer expectations by offering taste, texture, and safety while complying with gluten-free certifications such as BRC and Kosher.

Transportation & logistics is the next stage of the value chain. Gluten-free products are transported in controlled conditions to maintain integrity without contamination. Special handling at shipment requires maintaining gluten-free certification. Companies like Genius Foods, from the UK, distribute its gluten-free baked goods through major UK supermarkets like ASDA, Tesco, and Sainsbury. North American manufacturers, including The Kraft Heinz Company and Barilla G. e R. F.lli S.p.A., sell their gluten-free products through major retailers in the US, such as Walmart, Whole Foods, and Kroger. Thus, gluten-free products are mainly distributed globally.

Consumer interaction and feedback drive innovation and sustainability in the value chain of gluten-free products. For instance, Dr. Schär AG / SPA (Italy) incorporates customer insights to enhance its products' quality and sustainability. It is committed to completely switching to recyclable and compostable packaging by 2024. The brand has already reduced plastic use by 15%, introducing the world's first gluten-free bread packaging made of 46% recycled plastic into the market. These illustrate the role of consumer feedback in shaping product and sustainability strategies.

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Market Dynamics

Drivers: Rising diagnosis of celiac disease and other food allergies

Nature Reviews Gastroenterology & Hepatology reported in January 2022 that the prevalence of celiac disease is approximately 1% globally. Treating celiac disease requires a strict gluten-free diet, which drives the market.

In 2020, The American College of Gastroenterology reported that the increasing incidence of celiac disease over the years, with a sharp increase in females and children globally, has further contributed to the market’s growth. The rise in self-diagnosed gluten-sensitive consumers and health-conscious individuals contributes to the market growth. First-degree relatives of celiac disease patients are also maintained on gluten-free diets without testing, thus boosting the market.

Overall, the rise in sales of gluten-free products is attributed to higher consumer awareness of celiac disease, an overall increase in the incidence of gluten-related disorders, and rising health consciousness. This leads to increased availability of gluten-free products, contributing to market growth.

Restraints: High cost of gluten-free products than conventional gluten-containing products

Gluten-free products are expensive compared to gluten-based products. The University of Massachusetts Amherst reported in March 2024 that foods under the gluten-free category can be 87% costlier than the others, especially bread. Similarly, Dalhousie University research estimated that the average price of gluten-free goods exceeded that of their regularly sold counterparts by 242%: USD 1.71 for 100g of gluten-free food to USD 0.61 for their gluten-containing alternatives. The high prices of gluten-free food products restrict consumers from maintaining a strict gluten-free diet.

Opportunities: Adoption of microencapsulation technology to improve shelf life of gluten-free products

The adoption of microencapsulation technology to improve the shelf life of gluten-free products presents a great opportunity for the gluten-free products market. Microencapsulation technology refers to the process of protecting sensitive ingredients, such as gluten-free flours and additions, by placing them in a coating that protects them from oxidation, moisture absorption, or flavor degradation. This helps not only in the enhancement of stability and freshness in gluten-free products but also in the reduction of the usage of artificial preservatives, meeting the demand from consumers for clean-label products. The extended shelf life from microencapsulation can reduce waste, enhance distribution efficiency, and extend the market reach to make gluten-free products more acceptable and desirable to the mass market. This development gives the manufacturers a competitive edge in the rapidly growing gluten-free products market.

Challenges: Formulation challenges faced by manufacturers

Gluten provides texture, elasticity, and structure in traditional baked goods, but it presents formulation challenges to the manufacturers of gluten-free products. Replacing gluten is a balancing act that involves other expensive ingredients such as xanthan gum, guar gum, or psyllium husk. Achieving an appealing taste, mouthfeel, and appearance without using gluten is a complex process; many gluten-free products are dense, crumbly, and lack flavor. Moreover, maintaining quality across batches is difficult since gluten-free flours absorb and function differently. The risk of cross-contamination also means controls in manufacturing facilities have to be incredibly stringent, adding further complexity to the production process. The formulation difficulties associated with gluten-free products raise their production cost and limit the variety and desirability of gluten-free products available in the market.

Market Ecosystem

Based on type, bakery products accounted for the largest market share in 2023

Based on type, bakery products dominate the gluten-free market because of their broad consumption and vital intake in daily diets, including bread, cakes, cookies, etc. The surging demand for gluten-free alternatives has influenced innovation in the segment; hence, high-quality, better-for-you products with improved taste, texture, and nutritional benefits are now available with more variety. These products are mainly prepared using whole grains, seeds, and alternative flours. Hence, they appeal to health-oriented customers who seek nutritious and gluten-free foods. The convenience and versatility of gluten-free bakery products in fresh, frozen, and packaged goods formats also drive the demand, thus contributing to the market growth. Their wide acceptance and accessibility also fuel the market growth.

Conventional stores in the distribution channel segment is projected to dominate the market during the forecast period

Conventional stores, which comprise supermarkets, hypermarkets, and internet retailers, are expected to dominate the gluten-free products market during the forecast period. Their comprehensive accessibility, convenience, and extensive range of products make them the primary choice among consumers seeking gluten-free food. In-person shopping is convenient and offered through supermarkets and hypermarkets. However, online shopping offers benefits such as doorstep delivery and a wide range of products. The rising number of gluten-sensitive consumers compels traditional stores to expand their inventory of gluten-free items.

Europe is expected to be the fastest-growing region during the forecast period

Europe's gluten-free products market is expected to grow significantly due to the rising health consciousness and increasing dietary preferences. The surging demand for gluten-free items from health-conscious individuals and those with gluten intolerance drives the market. The presence of key players, such as Barilla G. e R. F.lli S.p.A. (Italy), Raisio Oyj (Finland), Dr. Schär AG / SPA (Italy), Ecotone (France), and Alara Wholefoods (UK), further boosts the market growth through active investment in product innovation and the expansion of production capacity to meet market demand.

For example, Raisio Oyj (Finland) invested in a new heating plant in June 2020 at its Nokia oat mill, which can be utilized for production by-products as fuel to pursue carbon neutrality. The USD 9.46 million investment fits Raisio's responsibility program and decreases energy costs, creating a successful company for the growing gluten-free products market. The largest oat mill in Finland, Nokia produces Elovena, Nalle, and Nordic-branded oat flakes in pursuit of the growing demand for gluten-free products on the global market. Such expansions and strategic moves accelerate the rapid market growth. This also indicates the element of increased dominance and consumer preference in the global industry.

Key Market Players

The key players in this market include The Kraft Heinz Company (US), The Hain Celestial Group (US), General Mills Inc. (US), Conagra Brands, Inc. (US), Kellanova (US), Barilla G. e R. F.lli S.p.A. (Italy), Raisio Oyj (Finland), Dr. Schär AG / SPA (Italy), Ecotone (France), and Enjoy Life (US).

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Scope of the Report

:

This research report categorizes the Gluten-free products market based on type, form, distribution channel, source, and region.

Target Audience

• Gluten-free products Manufacturers
• Food & Beverage Producers
• Food Processing Manufacturers
• Government Agencies (related to food safety and regulations such as FDA, EFSA, and FSSAI)

Gluten-free Products Market:

By Type

• Bakery Products
• Snacks & RTE Products
• Pizzas & Pastas
• Condiments & Dressings
• Other Types

By Distribution Channel

• Conventional Stores
• Specialty Stores
• Drugstores & Pharmacies

By Form

• Solid
• Liquid

By Source (Qualitative)

• Animal Source
• Plant Source

By Region

• North America
• Europe
• Asia Pacific
• South America
• Rest of the World (RoW)

Recent Developments

• In July 2024, the flavors of Ore-Ida and GoodPop, brands of The Kraft Heinz Company, joined forces with frozen novelties in the creation of Fudge n' Vanilla French Fry Pops, which is manufactured using vanilla oat milk, a chocolate fudge shell, crispy potato bits. With strategic placement into the gluten-free category, these two innovative, first-of-their-kind products were expected to place the companies in an excellent position to meet the increasing consumer demand for unique and allergen-friendly snacks.
• In March 2024, Garden Veggie, The Hain Celestial Group’s brand, introduced Flavor Burst Tortilla Chips. These gluten-free tortilla chips were expected to be available in vegetable-infused flavors like Nacho Cheese and Zesty Ranch. This innovation is expected to help the company grow by providing consumers with healthy and nutritious gluten-free snacking options.
• In February 2024, General Mills Inc.'s yogurt brand, Yoplait, also launched Yoplait Original with Chocolate Shavings in Cherry, Raspberry, and Strawberry flavors to add creaminess to this guilt-free treat of real chocolate. These gluten-free product offerings are expected to give the company a competitive edge in the market.

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