Gluten-Free Market Continues Major Growth

by NFN Editor

Three million Americans are affected by celiac disease, a condition which is managed by following a strict gluten-free diet. A growing number of other consumers are also discovering that following a gluten-free diet can be beneficial for various health concerns, including attention-deficit syndrome (ADD) and irritable bowel syndrome. Avoiding products that contain gluten, which is found in wheat, rye and barley, can be a significant challenge, but retailers and food manufacturers can help consumers with clear labeling and marketing.

There is good reason to provide this guidance for consumers: the bottom line. According to recent data, the market for gluten-free products is growing substantially. In the 52 weeks ended February 23, 2008, 726 new UPC-coded packages bearing gluten-free claims were launched, compared with the 442 brought to market in the comparable 2005 period, according to Nielsen LabelTrends data for U.S. food, drug and mass merchandiser stores (excluding Wal-Mart). The total number of active UPCs has swelled to 3,209 in 2008 from only 1,709 in 2005, just three years ago.

Dollar sales in the latest 52 weeks passed the $1.3 billion mark, representing a 20.6% annual advance. With just a small handful of exceptions, practically every segment showed double-digit dollar-sales gains in each of the past four years. That consistency signals a positive outlook for these products even during an economic downturn.

Packaged milks and modifiers are the largest gluten-free segment at $308.5 million, up 7.7% in the most recent 52 weeks, and more than 50% above the $198.8 million posted four years earlier.

Vitamins are the second-largest gluten-free segment at $232.2 million, up 9.0% this past year, showing the highest annual gain of any category. Not only is this growth significant for this year, it represents growth of 20% above the $193.7 million recorded three years ago.

Dry prepared foods mixes are the third-largest gluten-free segment at $230.1 million, up 9.8%. This far exceeds the $161.5 million reached in 2004.

Dairy puddings and desserts came in fourth at $110.9 million. The previous four years showed double-digit growth in this category, but it still shows continued growth of 8.6%.

Packaged meat is up from only $430,731 in the 2004 period to $73.7 million in the latest 52 weeks.

Rounding out the Top 10 gluten-free categories are soup, $39.7 million; frozen prepared foods, $37.9 million; snacks, $34.1 million; ready-serve prepared foods, $30.9 million; and yogurt, $24.2 million.

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