Gluten-Free Products Market Size, Share & Trends Analysis Report By Product (Bakery Products, Dairy/Dairy Alternatives), By Distribution Channel (Supermarkets & Hypermarkets, Convenience Stores), By Region, And Segment Forecasts, 2022 - 2030

Report Overview

The global gluten-free products market size was valued at USD 5.9 billion in 2021 and is expected to expand at a compound annual growth rate (CAGR) of 9.8% from 2022 to 2030. The rising prevalence of celiac disease and other diseases owing to unhealthy lifestyles is expected to drive the demand for gluten-free products. Consumption of healthy food products in order to prevent health disorders, such as heart diseases, diabetes, obesity, chronic pulmonary disease, and metabolic syndrome is expected to drive the growth of this market. The outbreak of the COVID-19 pandemic has exponentially impacted the usage of gluten-free products due to rising health, and wellness-related concerns among the consumers.

Increasing incidence of Irritable Bowel Syndrome (IBS) and celiac diseases is expected to drive the demand for gluten-free products across developed as well as developing countries. A person suffering from the syndrome is sensitive to gluten and consumption of gluten aggravates the problems. The rising prevalence of these diseases in developed countries from North America and Europe including the U.S., Canada, Germany, and France is expected to drive the market demand. Inspired by those encouraging gluten-free diets for better health, many consumers have embraced the diet of individuals for whom eating gluten-free is a mandatory medical necessity.

As more people try new diets like the paleo or keto diets, individuals needing a gluten-free diet due to their existing medical conditions, as well as those who wish to live a gluten-free lifestyle simply because it makes them feel better, are becoming the key drivers of market demand. As the world is witnessing a shift in consumer adoption of healthier food, consumers can now personalize their shopping experience to fit their unique nutritional demands aided by technological advancements. In-store nutritionists and color-coded shelf tags indicating nutritional properties of certain products, such as heart-healthy and gluten-free, have long been made available to customers by the retailers.

However, these efforts are relying heavily on more sophisticated technology that allows for greater personalization and customization of the consumer experience to fulfill individual nutritional demands. This has played a significant role in promoting the use of gluten-free products in customers’ diets. Technology trends including product innovations make gluten-free products more palatable. In addition, the manufacturing processes are undergoing technological advancements with the aim to reduce product prices. The new manufacturing processes include extrusion cooking and annealing which help in increasing the firmness of the product and decreasing the cooking loss. An increase in the demand for gluten-free products is also driven by the increasing obese population. Hence, pulses have become a major ingredient replacing wheat in gluten-free products. Some of the brands offering pulses in gluten-free foods are Manna, Tilda, Swasth, Dr. Gluten, and others.

Product Insights

The bakery products segment accounted for the largest revenue share of nearly 29.0% in 2021 and is expected to maintain its dominance over the forecast period. Rising awareness regarding a healthy diet including natural, organic, and gluten-free foods is expected to drive the segment growth. In addition, factors such as the presence of a diverse product portfolio with continuous innovations are anticipated to have a positive impact on the growth in the forthcoming years. The increasing demand for gluten-free bread is the primary driver leading the bakery product segment. To meet this increased demand, packaged bread producers, notably the U.K.'s main player Warburtons, are developing free-from sub-brands of their flagship brands, which are becoming popular with consumers of all economic strata.

There are now a bunch of new bakery start-ups introducing gluten-free bread, such as Coconut Wraps by NUCO in the U.S., which is not only gluten-free but also checks all the other health terms like organic, raw, vegan, and paleo. The bakery segment is also projected to register the fastest CAGR of 10.9% from 2022 to 2030. The availability of a wide range of products at affordable prices coupled with the convenience of ready-to-eat foods is expected to have a positive impact on the growth of the bakery segment. In addition, rising awareness regarding the health benefits of baked goods together with rapid urbanization are likely to drive growth.

The growth in consumer awareness regarding health and natural healthy products contributes to the development of new products in the segment. Moreover, growth in demand from millennials, improvement in marketing activities, and improved distribution channels drive the market growth. Bakery aisles are witnessing this trend going beyond bread to products such as cakes, biscuits, pastries, pasta, and breakfast cereals as well. Gluten-free breakfast cereals are gaining immense popularity, and General Mills Inc., making nearly 90% of all its Cheerios breakfast cereals range gluten-free. Furthermore, the migrating trend of consuming gluten-free from the West to the East has also led to an exponential rise in demand for baked products in recent years.

Distribution Channel Insights

The supermarkets and hypermarkets segment dominated the market and accounted for approximately 28.0% in 2021. This is owing to the fact that it provides easy accessibility to a range of items under one roof. This makes consumers easy to choose products from a wide range of availability. The rising number of seasonally driven displays includes gluten-free products, resulting in the promotion of new products, thereby expanding the segment. Supermarkets make it easy to deal with a single large consumer base as compared to dealing with a lot of smaller independent customers. Since supermarkets and hypermarkets have access to a large consumer base, their sales volume is huge. Additionally, increased brand recognition of products with national distribution allows for higher sales volume.

Along with this, the supplier benefits from having a contract with big supermarkets, while they seek financial assistance for product development. Hence, manufacturers of these foods prefer selling through supermarkets and hypermarkets, thereby leading to higher penetration. The online segment is anticipated to witness the fastest CAGR of 11.5% from 2022 to 2030. Benefits offered by the online channel, including shopping from the comfort of one’s home, doorstep delivery, free shipping, and discounts, are mainly attracting millennials and the younger generation to opt for this channel. Further, during the outbreak of the COVID-19 pandemic, online channel become a critical avenue for retailers despite a drop in overall retail spending.

Additionally, newer delivery models are making strides in the retail industry. For instance, customers and retailers equally prefer click and collect (also known as BOPIS, or buying online and picking up in-store) and curbside pickup. Customers may find pickup more convenient than home delivery since it allows them to retrieve their items whenever they choose, rather than having to wait for a delivery to arrive at their home. All these innovations in services are expected to make the online purchase channel poised for incremental growth over the forecast period.

Regional Insights

North America dominated the market and accounted for the largest revenue share of 36.9% in 2021. Gluten-free foods are perceived to ease digestive ailments, lower cholesterol levels, and be less fattening. These factors are anticipated to boost demand over the forecast period. Furthermore, their easy availability at nearly every grocery store is projected to aid consumption, most notably in the U.S. The growth of the U.S. market is likely to be in line with the rising public awareness about celiac disease. People diagnosed with the disease are following a gluten-free diet to avoid symptoms. Moreover, a gluten-free diet is also being followed by those who are not diagnosed with the disease based on the perception that following such a diet can reduce cardiovascular risks.

In Asia Pacific, the market is expected to register the highest CAGR of 12.1% from 2022 to 2030. The regional market conditions are highly promising due to factors such as the increasing internet penetration, booming e-commerce market, and favorable demographics. Consumers in the country include not only individuals suffering from celiac disease or gluten intolerance/ sensitivity, but also those who are health-conscious and require these products for weight management. This region holds a potential growth opportunity owing to the increasing consumption of healthy diet foods and the unique marketing strategies adopted by key manufacturers to capture a substantial market share.

Another emerging trend in Asia Pacific is the rise of health and wellness tourism, which is directly promoting the adoption of healthier foods.  People are traveling in larger numbers to achieve greater well-being in their life. According to the Global Wellness Institute's recent research, Asia Pacific is the fastest-growing market for wellness visits, wellness tourism expenditure, and the biggest number of spas, with more on the way. For instance, Bali has become renowned for modern gluten-free dishes, whereas Vietnam is the most popular destination for these foods in Asia.  

Key Companies & Market Share Insights 

The market is highly competitive in nature with the presence of a number of multinational companies across major economies. The majority of the companies are vertically integrated for manufacturing gluten-free foods. This provides them with a much-improved product portfolio, with the launch of new products and brands. Some of the key initiatives taken by the companies are:

• For instance, in November 2021, Hy-Vee, Inc., a supermarket chain introduced Good Graces, a new private brand featuring a full range of gluten-free products. Good Graces currently includes 30 gluten-free products with an additional 60 items in development.

• In September 2021, Rudi’s launched 15 new products in its organic and gluten-free domain with a new fermentation process and new packaging that includes bread.

• In July 2021, Feel Good Foods, a gluten-free frozen snack and appetizers brand launched gluten-free square pan pizza. Available in Margherita, Truffle Mushroom, and Four Cheese, each includes a baking tray.

Some of the prominent players in the gluten-free products market include:

• Conagra Brands, Inc.

• The Hain Celestial Group Inc.

• General Mills Inc.

• Kellogg Co.

• The Kraft Heinz Company

• Hero AG

• Barilla G. e R. Fratelli S.p.A

• Seitz glutenfrei

• Freedom Foods Group Limited

• Ecotone

Gluten-Free Products Market Report Scope

Segments Covered in the Report

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2017 to 2030. For the purpose of this study, Grand View Research has segmented the global gluten-free products market report on the basis of product, distribution channel, and region:

• Product Outlook (Revenue, USD Million, 2017 - 2030)

  • Bakery Products

  • Dairy/ Dairy Alternatives

  • Meats/ Meats Alternatives

  • Condiments, Seasonings, Spreads

  • Desserts & Ice Creams

  • Prepared Foods

  • Pasta and Rice

  • Others

• Distribution Channel Outlook (Revenue, USD Million, 2017 - 2030)

  • Convenience Stores

  • Supermarkets & Hypermarkets

  • Specialty Stores

  • Online

  • Others

• Regional Outlook (Revenue, USD Million, 2017 - 2030)

  • North America

    • U.S.

    • Canada

    • Mexico

  • Europe

    • U.K.

    • Germany

    • France

    • Italy

  • Asia Pacific

    • India

    • China

    • Australia

    • New Zealand

  • Central & South America

    • Brazil

  • Middle East & Africa