Gluten-free Products Market is Expected to Reach $7.5Billion by 2027—Allied Market Research

According to a new report published by Allied Market Research, titled, “Gluten-free Products Market by Type and Distribution Channel: Opportunity Analysis and Industry Forecast, 2020–2027,” The global gluten-free products market is expected to reach $7.5 billion by 2027 at a CAGR of 7.2% from 2020 to 2027. Increase in number of celiac disease and gluten intolerance patients is expected to fuel the gluten-free products market growth in the coming years. Moreover, surge in demand from millennial, improvement in marketing activities, and enhancement of distribution channels also support the growth of the gluten-free food market. The impact of these drivers is expected to increase significantly due to increase in investments by small and medium sized food manufacturing companies. Europe held the leading position in the global market in 2019 and is expected to maintain its dominance in the future.

The global gluten-free products consumption has been on the rise marking a positive trend on bakery and ready meals global trend, which is attributable to the rise in awareness about various health benefits associated with the consumption of gluten-free products. North America and Europe has witnessed higher concentration of gluten-free food products consumption. 

Gluten-free products are generally more expensive than the regular food products containing wheat ingredients. This is attributable to the additional costs incurred on developing gluten-free food products. According to the Gluten-Intolerance Group of North America, celiac shoppers estimated that up to 30% of their entire monthly grocery bill was spent on gluten-free products. Consumers with gluten intolerance are expected to have less preference over gluten-free food products due to high pricing of these products.

High price range of the products available in the market is one of the key challenges incurred by the players of the gluten-free products market. However, this can be alleviated by providing its target customers with private labeled products at lower price range. Many retailers in the U.S. have taken advantage of the gluten-free market by providing gluten-free private label products as well as special in-store signage and locations for gluten-free packaged foods. 

According to Gluten-free Products Market Analysis, the market is segmented on the basis of type, distribution channel, and region. By type, it is categorized into gluten-free baby food, gluten-free pasta, gluten-free bakery products, and gluten-free ready meals. By distribution channel, it is divided into convenience stores, specialty stores, drugstores & pharmacies, and others. Region wise, it is analyzed across North America (U.S., Canada, and Mexico), Europe (Germany, France, UK, Italy, Spain, and Rest of Europe), Asia-Pacific (China, Japan, Australia, India, and Rest of Asia-Pacific), and LAMEA (the Middle East, Latin America, and Africa). 

On the basis of type, the gluten-free bakery products has been the most preferred gluten-free products among consumers, due to increase in demand from celiac patients as people with celiac disease also want to enjoy bakery products such as cakes, rolls buns, and pizzas. Thus, the gluten-free bakery products segment was valued at $2.5 billion, and is expected to grow with a CAGR of 6.7% from 2020 to 2027, to reach $4.2 billion by 2027. However, the gluten-free baby food segment is expected to grow at the highest rate during the forecast period. This is attributed to surge in demand for gluten-free baby food products for those babies who are suffering from celiac diseases and gluten intolerance.

On the basis of distribution channel, the convenience stores segment is dominating the market, which accounts for 42% of the share in global gluten-free products market in 2019 and is expected to retain its dominance throughout the forecast period. Convenience stores are most preferred for purchasing the gluten-free products in bulk volumes. Hence, significant presence of chained and independent convenience stores in the developed countries and rise in penetration of specialty stores in developing countries lead to higher share in the market. Due to the hectic schedule and surge in inclination of the consumer toward convenient lifestyle, they prefer purchasing the gluten-free products through drugstores & pharmacies channels, which also provides online delivery. This is anticipated to boost the growth of the drugstores & pharmacies segment in the global gluten-free products market for the period under consideration. 

On the basis of region, Europe was the prominent market in 2019 and accounted for the maximum share in the global gluten-free products market. This is attributed to high consumption of gluten-free products in majority of the European countries including Germany, France, Italy, and the UK. Consumers in the region are attracted by the gluten-free products with new flavors, textures, and higher nutrition. Furthermore, North America is expected to witness a highest CAGR of 9.5%, owing to rise in disposable income and busy working schedule of the consumers in the region.  

The players in the gluten-free products industry have adopted product launch and business expansion as their key developmental strategies to expand their market share, increase profitability, and remain competitive in the market. The key players profiled in this report include ConAgra food Inc., Hain Celestial Group, Inc., General Mills, Inc., Kellogg Company, The Kraft Heinz Company, Freedom Foods Group Limited, Mondelez International Inc., Koninklijke Wessanen N.V, Quinoa Corporation, and Valeo Foods Group Limited.

Key findings of the study

• The gluten-free products market size was valued at $4.3 billion in 2019 and is estimated to reach $7.5 billion by 2027, growing at a CAGR of 7.2% during the forecast period. 

• By type, the gluten-free baby food segment is estimated to witness the fastest growth, registering a CAGR of 10.5% during the forecast period. 

• In 2019, by distribution channel, the convenience stores segment held the highest share, accounts for 42% of the global gluten-free products market share.

• In 2019, Germany was the most prominent market in Europe and is expected to grow at a significant CAGR throughout the gluten-free products market forecast period.