Gluten-Free Products Market Analysis By Product (Bakery, Dairy Alternatives, Desserts & Ice-Creams, Prepared Foods, Pasta & Rice), By Distribution (Grocery Stores, Mass Merchandiser, Club Stores), And Segment Forecasts, 2018 - 2025

Industry Insights

The global gluten-free products market size was valued at USD 14.94 billion in 2016 and is expected to grow at a CAGR of 9.3% from 2017 to 2025. Increasing incidences of celiac diseases & heightened gluten-sensitivity in consumers has generated high demand for gluten-free foods & products in recent years.

The growing prevalence of lifestyle-related conditions such as diabetes & obesity has encouraged consumers to adopt healthier diets in an attempt to regulate their fitness. This has spurred the demand for natural foods and gluten-free products that minimize the risk of excess weight and promote higher energy levels in consumers.

U.S. gluten-free products market revenue by product, 2014 - 2025 (USD Million)

A wide variety of new products have been introduced in the market in recent years, such as the introduction of a convenient, low-cost brownie mix by General Mills Inc., which has witnessed considerable success in the U.S. Rising incidences of celiac disease in the country have spurred sales of gluten-free products over the forecast period.

Supermarkets & hypermarkets such as Walmart, Target, and Publix have increased the storage capacities for such products in order to meet the burgeoning demand. These stores have undertaken initiatives to expand their portfolios, appoint dieticians, and organize food store tours to improve consumer knowledge regarding these products.

Product Insights

Bakery products emerged as the dominant segment, with over 20% of the volume share in 2015. Bread, cakes, and biscuits are some of the most highly consumed products across the globe; and improvements in taste, quality, and shelf-life stability in the gluten-free segment have contributed to higher market share of the segment in recent years.

Pasta and rice are anticipated to provide ample growth opportunities for innovators in the industry. The segment is anticipated to grow at a high CAGR of 10.4% from 2017 to 2025, with reputed brands such as Barilla America introducing gluten-free penne at lower unit prices, which are also known for their good taste & texture in comparison with conventional pasta products.

Desserts & ice-creams are anticipated to remain popular options among the youth. Increasing instances of gluten allergies in children have encouraged food providers to substitute conventional desserts with these low-cost alternatives that are free from allergens.

Shortening meal preparation times and growing consumer awareness regarding health & fitness have also encouraged the consumption of other processed and gluten-free commodities. The rise in demand for allergen-free meats, condiments, and even dairy & dairy alternatives is anticipated to remain a key driving factor for the industry.

Distribution Insights

Grocery stores accounted for the highest revenue share in 2015 growing at a CAGR of 9.5%. These outlets are mostly favored by consumers owing to their wide product displays, ease of accessibility, and targeted schemes tailored to specific requirements. The segment is anticipated to benefit from growing awareness among retailers, which has boosted innovation in marketing strategies and increased the share of previously untapped product segments.

Global gluten free products market, by distribution, 2016 (%)

Independent natural or health food stores accounted for 10.4% of the overall revenue share with high prospects for rapid growth over the projected period. These outlets generally provide food products to local consumers owing to their limited supply chains; however, they form an integral part of the communications mix by providing information to consumers regarding new products.

Other distribution outlets such as club & drug stores are also anticipated to remain an integral part of the industry. Small& niche marketers, such as these stores, are emerging into national forces with communication tools that are more powerful than word of mouth, owing to rapid digitalization & rapid delivery options.

Regional Insights

North America is anticipated to remain the dominant consumer with over 53% of the revenue share in 2016. The region is home to major food brands & companies that have extensive distribution networks and provide a wide array of commodities. Consumers in this market also have favorable perceptions regarding healthy gluten-free eatables, which is likely to boost industry growth.

Increasing consumer disposable incomes and the shift in trend towards processed foods in countries such as India, China, and New Zealand are driving rapid industry expansions in Asia Pacific. Major western food brands are attempting to capture these high-potential markets by adopting exhaustive marketing strategies, launching new products, and building regional production plants.

Central & South America, despite being a small market, is anticipated to grow rapidly over the forecast period. Brazil, Argentina, and other key countries in this region are witnessing a rise in celiac disease instances and subsequent demand for gluten-free products. In addition, consumers are becoming highly diet-conscious in an attempt to combat and control such incidences.

Competitive Insights

The major players include Boulder Brands, Hain Celestial Group, General Mills, Inc., Kellogg’s Company, The Kraft Heinz Company, Hero Group AG, Glutamel, Schar, Domino's Pizza Enterprises Ltd., and Big Oz Industries Ltd.

Key acquisitions in the retail grocery segment such as the recent acquisition of Boulder Brands, by Pinnacle Foods Inc., a major packaged foods & specialty brands company, are anticipated to drive market growth. These companies are capable of catering to the demand from a vast consumer pool worldwide, primarily owing to their extensive distribution networks and wide portfolios.

Report Scope

Segments covered in the report

This report forecasts revenue growth at global, regional & country levels and provides an analysis on the industry trends in each of the sub-segments from 2014 to 2025. For the purpose of this study, Grand View Research has segmented the gluten-free products market on the basis of product, distribution, and region:

• Product Outlook (Volume, Kilo Tons; Revenue, USD Million, 2014 - 2025)

  • Bakery products

  • Dairy/ dairy alternatives

  • Meats/ meats alternatives

  • Condiments, seasonings, spreads

  • Desserts & ice-creams

  • Prepared foods

  • Pasta and rice

  • Others

• Distribution Outlook (Volume, Kilo Tons; Revenue, USD Million, 2014 - 2025)

  • Grocery stores

  • Mass merchandiser

  • Independent natural or health food stores

  • Club stores

  • Drug stores

  • Others

• Regional Outlook (Volume, Kilo Tons; Revenue, USD Million, 2014 - 2025)

  • North America

    • U.S.

  • Europe

    • Italy

    • Germany

    • France

    • UK

  • Asia Pacific

    • Australia

    • China

    • India

    • New Zealand

  • Central & South America

    • Brazil

  • Middle East & Africa