Introduction
Throughout the course of the next few years, the market for non-allergenic foodstuffs is going to undergo a major transformation. This transformation is being driven by a number of macroeconomic factors. Technological developments in food-processing and ingredient sourcing are enabling manufacturers to develop a whole new range of non-allergenic foodstuffs to meet a wide variety of dietary needs. In addition, increasing regulatory scrutiny of food safety and labelling is forcing companies to adopt stricter compliance procedures, which in turn is enhancing consumer confidence. Moreover, changing dietary habits, in particular a greater awareness of food allergies and intolerances, are driving demand for safer, healthier foodstuffs. These macroeconomic trends are strategically important for companies operating in a highly competitive environment, enabling them to meet consumers’ changing expectations while complying with regulatory standards.
Top Trends
- Increased Demand for Transparency
As far as the labeling of food is concerned, there is a growing demand for transparency. Seventy-three per cent of consumers prefer to buy brands that disclose the source of their ingredients. This trend is causing companies to adopt more precise labeling practices. Enjoy Life Foods is a good example. Its products are clearly labelled, which is a way of enhancing trust in the brand and loyalty from consumers. Regulatory bodies are also pushing for stricter labeling laws, which will help to build trust in the brand and improve brand loyalty. As this trend grows, companies will have to make greater efforts to manage their supply chains in order to meet the consumers’ expectations.
- Rise of Plant-Based Alternatives
The trend towards plant-based diets is driving innovation in food-free-from-allergens, and a projected increase of 30 percent in the number of plant-based products launched in 2023. A good example of this is Free2b Foods, which is capitalizing on this trend by launching free-from-allergen snacks based on pulses and grains. This shift not only caters to the health-conscious consumer but also aligns with sustainability goals. Brands may start to experiment with new plant-based ingredients to diversify their offerings.
- Focus on Clean Label Products
Clean label products, with few and recognizable ingredients, are becoming more popular. Indeed, 6 out of 10 consumers are willing to pay more for these products. This is why some companies like Taza Chocolate are reworking their formulas and emphasizing the naturalness of their products. This trend is reshaping the strategies of the companies, who must now combine taste, health and simplicity. This innovation in the clean label will probably lead to a greater focus on products without allergens.
- Expansion of Allergen-Free Certifications
The number of certifications for products free of all allergens is increasing, with a 40% increase in certified products in the last year. Supporting this trend is the Allergy and Anaphylaxis Team, which promotes the development of awareness and certification standards. Boulder Brands has earned these certifications, which improves its marketing and consumers’ trust in the brand. More companies may seek certification, which could lead to the standardization of claims.
- Innovative Packaging Solutions
In the food industry, especially in the field of dietary products, sustainable and innovative packaging solutions are becoming a necessity. As many as 50% of consumers take the environment into consideration when making their purchase decision. Companies are increasingly turning to biodegradable and recyclable materials, as Pinnacle Foods has recently shown. Not only does this trend respond to growing concerns about the environment, it also enhances brand image. In the future, smart packaging solutions that communicate the presence of certain ingredients to the consumer are also likely to be developed.
- Growth of Online Retail Channels
Sales of products without any kind of food additives grew rapidly. In 2023, the e-commerce sector increased by 45 per cent. The increasing trend towards buying niche products and the convenience of shopping for them has led to a number of companies increasing their online presence. In order to catch this growing niche, they are investing in digital marketing. In the future, a more individualized and more individualized e-shopping experience may be developed for consumers with additive and additive-free diets, with the help of personal recommendations.
- Increased Focus on Health and Wellness
Health and well-being trends are influencing the way people eat, with 80% of consumers seeking foods that support their health goals. Brands are responding with products that are free from common food allergens, and which also offer additional health benefits such as added vitamins or probiotics. This is evident in the product ranges of companies such as Enjoy Life Foods, which focus on their health benefits. But the market may evolve even further, with the emergence of more and more food products that are free from common food allergens, and which also offer a range of additional health benefits.
- Emergence of Allergen-Free Meal Kits
Those with food intolerances are gaining in popularity. By 2023 the supply of such meal-kits is to increase by 25 per cent. The consumers who are looking for convenient and safe food are mainly the busy ones, and they are attracted to the new offerings of food producers. This trend is to be exploited by the companies to their advantage. The market for meal-kits is expected to grow. The meal-kits will be adapted to individual needs.
- Collaboration with Health Professionals
Brands and health professionals are increasingly collaborating. Sixty percent of consumers trust products endorsed by dietitians. This is why companies are working with nutritionists to develop products that meet dietary needs and avoid certain ingredients. Product credibility and consumers’ trust are thus enhanced. In a crowded marketplace, this could be a way of differentiating one’s products.
- Adoption of Technology in Product Development
The product development in the free-from market is being transformed by technological innovations, and 35% of companies are investing in research and development of new formulations. Brands are able to use technology to create free-from alternatives that mimic traditional flavours and textures, such as Taza chocolate. This trend is likely to result in more sophisticated products that appeal to a wider audience. Future developments may include the use of artificial intelligence (AI) in recipe development and consumer preference analysis.
Conclusion: Navigating the Allergen-Free Market Landscape
The Allergen-Free Food Products Market is highly fragmented and highly competitive, with both the old and the new players competing for a share of the market. The geographical trends show that the preference for allergen-free products is increasing, especially in North America and Europe, which has forced the market players to change their strategies accordingly. Old players, while investing in innovation, are relying on their reputation, while new players are concentrating on the niche market and the uniqueness of their products. The companies that wish to be successful in this market must develop their ability to personalize their marketing, automate their production, source their raw materials and packaging in a sustainable manner, and be flexible enough to respond to changing consumer demands. These are the key strategic requirements for the companies that wish to lead in this rapidly evolving market.