What you need to know
In 2015 the free-from market continued its remarkable growth, to reach an estimated £470 million. The number of people buying gluten-free foods rose against 2014, suggesting new users are in part fuelling the growth. However, existing users are also spending more, facilitated by the growing availability of products at mainstream supermarkets.
Operators’ ongoing investment in the market, the predicted rise in disposable incomes and growth of the child population should support growth going forward. However, the market remains reliant on a ‘health halo’, leaving it vulnerable to changes in public opinion, and needing to improve the nutritional profiles of products.
Longer term, the scope for volume growth among existing users will be limited. The interest in premium free-from products, however, suggests potential to maintain value growth.
Products covered in this report
Free-from foods are defined as foods that are manufactured and targeted specifically at consumers who suffer from food intolerances and/or food allergies or who are following avoidance diets. Foods that have been specially manufactured (eg pasta, bread) to cater for a gluten-free diet, for instance, are included within this definition.
Foods targeted at intolerance and allergy sufferers include:
Gluten-free: Gluten is found in a range of cereals, including wheat, barley, rye and spelt. Gluten-free products can contain other allergenic proteins from wheat.
Wheat-free: Wheat-free products can contain gluten from other cereals such as barley or rye.
Despite these exceptions, the majority of wheat-/gluten-free products are marketed as being both wheat- and gluten-free, as gluten is present in wheat.
Dairy-free/lactose-free: This category includes all cow’s milk alternative products, including mammalian milk alternatives (eg goat’s milk) and non-mammalian milk alternatives (eg soya-based, rice-based and others), as well as lactose-free dairy products.
Most people who are allergic to cow’s milk are also allergic to milk from sheep, goats etc and so products sold as milk-free should not contain any animal milk. However, the proteins in goat’s milk, for example, are different and the fat particles are smaller. This means some people can tolerate goat’s milk better than cow’s milk.
Excluded
As the market for free-from foods develops, there is a growing trend to flag mainstream products as free from wheat/gluten even when the product would not normally be expected to contain either wheat or gluten, such as yogurt, ham or sugar confectionery. Unless otherwise stated, the report therefore excludes mainstream foods that are labelled ‘gluten-free’ but which do not contain gluten in the first instance and which have therefore not been modified.
Given the different dietary needs of babies and toddler baby foods, formulae and baby drinks are excluded from this report. Diabetic foods are also excluded.
Free-from foods that are sold on prescription have been excluded from market size estimates.
Sales of free-from foods through the foodservice channel are excluded.
