Continued Growth in Free-From Category

New reports from Mintel and Euromonitor highlight the continuing strong growth of the free-from category, which doubled in size between 2009 and 2014 to reach a current value of £365m in the UK and £34m in ROI. While growth is expected to slow in the coming years, the UK market is still forecast to increase by over 50% between 2014 and 2019. The projections for ROI are slightly lower at 38%.

Gluten free is one of the largest segments within the free-from category, and new figures from Kantar UK for the 52 w/e 1st February 2015 value this segment at £87m, a growth yoy of 19.6%. According to the British Baker, the double digit growth experienced to date can be attributed to a number of factors – more shelf space allocated by the retailers; more brands and choice available leading to increased shopper engagement; gluten-free products becoming more visible and mainstream (and being stocked in the main bakery aisle); high media and celebrity interest in food intolerances and free-from diets; and lastly, and perhaps most importantly, improved diagnosis of coeliac disease.

Continued growth will be driven by the increased availability of free-from products, enabling a wider audience reach and also by brands expanding into new product areas. The market continues to attract new entrants, which will also drive interest, although, competition has the potential to curb prices. Four in ten people in the UK now report that someone in their household is avoiding specific foods/ingredients. Despite strong NPD growth in free-from products, almost 30% of purchasers within the category say that they would like to see a wider range of everyday essentials.

While the retail market is relatively well-served with free-from options, the UK foodservice market represents a significant opportunity. According to Allegra's Eating Out Report published in 2013, there will be more than 337,000 additional outlets in existence by 2018. Groups of diners will often defer to the choice of any member with a food intolerance, emphasising the importance of providing free-from menu options.

Free-from is set for continued growth and the challenge will be to capitalise on the many opportunities presented.

Source: BordBia - Continued Growth in Free-From Category