Gluten Free Foods Beverages Market Analysis

Gluten-Free Foods & Beverages (Global, 2024)

Introduction

Glutan-free foods have become a significant sub-market of the food industry, as the awareness of gluten-related disorders and the increasing number of consumers who are choosing gluten-free diets for health and well-being reasons has grown. The market covers a wide range of products, including snacks, baked goods, beverages and meal replacements, which are suitable for both people with coeliac disease and those who want to avoid gluten as a matter of choice. As the demands of consumers change, manufacturers are able to produce gluten-free foods that not only meet dietary requirements but also deliver on taste and quality, thereby increasing their appeal. Further facilitating access to gluten-free products, the rise of e-commerce and the development of specialist health-food stores has increased the availability of these foods. As a result, the gluten-free market is becoming more diversified, with an increasing focus on organic, non-GMO and clean-label products, which reflects the broader trend towards healthier diets. The gluten-free food market is growing rapidly and as it evolves, it is important for all stakeholders to be aware of its dynamics.

PESTLE Analysis

Political

The gluten-free food and drink market in 2024 will be influenced by various government policies aimed at promoting health and well-being. The United States Food and Drug Administration has set a limit of 20 ppm for gluten-free products. The regulation concerns the three million Americans who have been diagnosed with celiac disease. The European Union has introduced similar regulations. With one in every hundred Europeans suffering from gluten intolerance, demand for gluten-free products is growing.

Economic

The economic situation of the gluten-free food and drink market in 2024 is characterized by the spending habits of consumers. In the United States, households are expected to spend on gluten-free products an average of about 300 dollars per year, which reflects a growing willingness to spend on health-related food products. Moreover, the gluten-free market has increased employment by more than 50,000 jobs in the food industry, indicating a strong labor market in this niche.

Social

In 2024, the trend in society was towards an increased awareness of the importance of dietary restrictions and health consciousness among consumers. In fact, one study showed that 30 per cent of consumers were actively seeking gluten-free foods, driven by their concern for health and their desire for a healthier lifestyle. Also, the emergence of new social media influencers advocating gluten-free diets had resulted in a 25 per cent increase in the number of discussions on the subject on social media, which had further increased market interest and consumers’ engagement.

Technological

In 2024, the market for gluten-free food and beverages will be largely driven by technological advances. Food processing technology has developed gluten-free alternatives that closely mimic the taste and texture of their gluten-containing counterparts. For example, the use of enzymatic technology has resulted in gluten-free breads that are 40 per cent more satisfying to consumers. And e-commerce platforms have seen a 50 per cent increase in the number of gluten-free products available to consumers.

Legal

In 2024, the gluten-free market is influenced by legal factors, such as the introduction of labeling laws requiring more transparency in the origin of the ingredients. In the United States, the Food and Drug Administration requires that all gluten-free products be labeled and 95% of manufacturers comply. The European Food Safety Authority (EFSA) has also issued a guideline that gluten-free claims must be backed by scientific evidence, thus protecting consumers from misleading information.

Environmental

In 2024, the market for gluten-free foods and beverages will be increasingly influenced by considerations of the environment. By then, sixty per cent of manufacturers of gluten-free products will have opted for sustainable sourcing and organic and non-GMO ingredients. In addition, the carbon footprint of gluten-free products will be a matter of public concern. Various studies have shown that the cultivation of gluten-free cereals has a lower carbon footprint than that of conventional wheat. And consumers are increasingly demanding sustainable products.

Porter's Five Forces

Threat of New Entrants

The gluten-free food and drink market is booming, and this is attracting new players. However, the presence of well-established brands with strong customer loyalty and a wide distribution network makes entry difficult for newcomers. Also, the need for specialised knowledge of gluten-free product formulation and compliance with health regulations can be a deterrent to potential competitors.

Bargaining Power of Suppliers

The supply of gluten-free ingredients is relatively diverse, with many suppliers of key ingredients such as gluten-free grains and alternative flours. This diversity weakens the suppliers’ negotiating power, since manufacturers can switch suppliers in order to obtain better prices and terms. However, suppliers of specialised ingredients may have some negotiating power.

Bargaining Power of Buyers

The gluten-free market is characterized by increasingly knowledgeable and price-sensitive consumers, resulting in a high degree of market power. Various brands are available to the consumer, and the customer is therefore easily able to change to a better brand if the quality or price is better. Moreover, the pressure from the retailers to keep the price of the manufacturer's products as low as possible and to provide good promotions further increases the buyer's power.

Threat of Substitutes

The gluten-free products meet a specific dietary need. But there are numerous substitutes available, including gluten-containing products and other dietary alternatives. The threat of substitutes is being countered by the increasing awareness and the demand for gluten-free products. But the availability of alternatives remains a challenge for the market players.

Competitive Rivalry

The gluten-free foods and beverages market is characterized by intense competition between established brands and new entrants. Competition is intense, with companies launching new products and extending their product lines in order to gain market share, which in turn has led to aggressive marketing strategies and price competition. Competition is high and this can affect the market’s dynamics and profits.

SWOT Analysis

Strengths

• Increasing consumer awareness of gluten-related disorders and health benefits of gluten-free diets.
• Diverse product offerings catering to various dietary preferences and lifestyles.
• Strong brand loyalty among gluten-free consumers leading to repeat purchases.

Weaknesses

• Higher production costs leading to premium pricing compared to conventional products.
• Limited availability of gluten-free options in certain regions, affecting market penetration.
• Potential for cross-contamination in manufacturing processes, raising safety concerns.

Opportunities

• Growing trend of health-conscious consumers seeking gluten-free options beyond those with celiac disease.
• Expansion into emerging markets with rising disposable incomes and changing dietary habits.
• Innovation in product development, including gluten-free snacks and beverages, to attract a broader audience.

Threats

• Intense competition from both gluten-free and traditional food brands entering the market.
• Economic downturns affecting consumer spending on premium-priced gluten-free products.
• Misinformation about gluten-free diets leading to skepticism among potential consumers.

Summary

In 2024 the gluten-free food and beverage market is characterized by a high demand from consumers due to increased health consciousness and brand loyalty, despite the challenges of high cost and limited availability. Opportunities for growth include the development of new products and expansion into new markets, while the threat of competition and economic factors may affect the market. To take advantage of the growing trend towards gluten-free diets, companies need to focus on innovation and consumer education.