The global food industry is a highly dynamic one in which patterns of consumption are constantly evolving on account of new products having various unique perceived benefits being unveiled every now and then. This has spawned a market for gluten free food that has grown at a healthy clip. Prominent players in the market, namely Genius Foods Ltd, Boulder Brands Inc., Mrs Crimble's, and DrSchär AG/SpA, are constantly focused on innovating better products to beat competition and to bolster their positions. Carefully-considered mergers and acquisitions is another key strategy leveraged by them to enhance their positions.
As per a report by Transparency Market Research, the global market for gluten free products is slated to expand at a healthy 7.7% CAGR from 2015 to 2021 to attain a value of US$4.8 bn by the end of 2021 from US$2.84 bn in 2014.
Why are health conscious consumers at the forefront of driving demand for gluten free products?
A number of factors are stoking the market for gluten free products globally. The rising ranks of discerning consumers, primarily comprised of millennials, increasingly shunning anything they perceive as unhealthy is one such prominent factor, or rather growth driver in the market. Gluten is said to add weight that in turn can result in a number of health conditions. Hence, more and more consumers are preferring gluten free food items that regularize cholesterol levels, push up energy levels, and better digestive health.
To tap into the newfound concern among buyers, manufacturers are increasingly coming up with gluten-free food products. Most food products these days, ranging from pasta, bakery products, and ready meals to baby foods carry the phrase “gluten-free” on their packaging. Those who prefer organic and natural food are increasingly buying such products. Emergence of bakery products free of glutens and formulated with effective substitutes is already boosting demand in the market. Increasing number of diabetics worldwide is another prominent growth driver.
What is one restraint that the market needs to overcome?
A major restraint in the global market for gluten free food is the dearth of awareness about celiac disease, which is an autoimmune condition in which the human body reacts to gluten by mistake. Gluten free food can help deter this condition but most people are unaware of it. Celiac disease mostly goes undiagnosed or is mistakenly thought to be an allergy to food having gluten content. Educating people through product advertisements through various mediums can help overcome the challenge.
Why are bakery products leading the market?
Among all the gluten free food products in the market, the bakery products are seeing maximum uptake and going forward too will continue accounting for most of the demand. Wide popularity of bakery products worldwide and a massive, well-connected network of retailers will likely underpin the momentum in the segment. The report by TMR predicts the gluten free bakery segment to rise at an impressive 8.5% CAGR from 2015 to 2021.
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