When it comes to the gluten-free sector of foods and beverages, the sales numbers are impressive. From 2011 through 2013, dollar sales of gluten-free foods and beverages in the United States jumped 44 percent, says “Gluten-Free Foods — US,” a September 2013 report from global market research firm Mintel. And they are expected to shoot up another 48 percent through 2016 to hit $15.6 billion.
And many people who maintain a gluten-free diet aren’t even sensitive to gluten. According to the report, nearly a quarter of consumers eat or live with someone who eats gluten-free versions of foods that typically contain gluten. But barely 1 percent of the population is affected by celiac disease.
Of the chunk of non-sensitive consumers who eat gluten-free foods, 65 percent say they believe doing so is healthier, despite the lack of confirming research, the Mintel report states. Meanwhile, 27 percent do so to lose weight; 7 percent do so to battle inflammation; and 4 percent do so to fight depression.
Trend or fad?
But outside of consumers with celiac disease, is the move toward gluten-free eating just a fad? Not really, says Jonathan Walters, director of sales and marketing for Nu-World Foods, Naperville, Ill.
“I think you could argue [that] it started out that way, but it’s gone from a fad to a trend,” he states. “And from a trend it’s grown into a movement.”
People feel better when they remove gluten from their diet, contends Jimmy DeSisto, CEO of Venice Bakery, an El Segundo, Calif.-based manufacturer of gluten- and GMO-free handcrafted pizza crusts, flatbreads, wraps and breadcrumbs for private labeling. He should know — he, too, has gone gluten-free.
“Eating completely gluten-free is difficult — after all, I’m Italian,” he explains. “But I have so much more energy now.”
One reason the trend endures, Walters says, is that consumers have no reason to not maintain a gluten-free lifestyle.
“The gluten-free category is driven by consumers looking for something that they think is better for them,” he explains. “[It] was not meant to be a diet trend, but I don’t think that makes it any less valid. It’s a value proposition where there’s all upside. If it makes people feel better, that’s valuable to them.”
Opportunity for private label
And as consumers continue to pay more attention to the nutritional value of what they eat and drink, the most successful grocery retailers will be “heavily and progressively involved in providing private label versions of ‘free-from’ foods,” says “Trends in U.S. Allergen-Free and Gluten-Free Foods Market,” a report from the Packaged Facts division of Rockville, Md.-based MarketResearch.com.
But what categories are worth entering with gluten-free options? Retailers might want to consider bread, cookies, snacks, pasta and cereal as areas of opportunity, as they are the most commonly con¬sumed gluten-free products, the Mintel report states.
And although beverages usually do not contain gluten, the segment is one of the largest in terms of overall gluten-free sales, the Mintel report adds. Beverages marketed as being gluten-free include almond milk and other nut-based beverages, hard cider, juice and juice drinks, coffee, tea and carbonated soft drinks.
But when it comes to product development, taste, texture, appearance and shelf life can all be challenges in creating high-quality gluten-free products. A protein found in wheat, barley and rye, gluten acts as a binding agent, preventing baked goods from crumbling.
Thankfully, specialty flours, starches, gums and other ingredients allow food manufacturers to develop gluten-free products that are nearly indistinguishable from their gluten-containing counterparts, says Patrick O’Brien, bakery marketing manager with Westchester, Ill.-based Ingredion Inc., a global ingredient solutions provider for the food, beverage, brewing and pharmaceutical industries.
O’Brien adds that gluten-free products should reflect mainstream traditions and current trends. Retailers should offer store brand products boasting quality, nutrition, variety, and an attractive appearance.
And quality needs to be improved constantly to keep meeting consumers’ tastes, states Margherita Domenichini, associate marketing manager with Farmo SpA, a Rome-headquartered manufacturer of gluten-free pasta, cookies, cakes, breadsticks, crackers and various mixes. Consumers are becoming more demanding regarding the taste, authenticity and health benefits of their food.
“They want to eat healthy and light,” she says. “Expand their range. Details such as shape, flavors, sizes and anything giving depth and personality to the gluten-free line is highly recommended. Moreover, giving gluten-free products further added value with claims such as ‘organic,’ ‘dairy-free’ or ‘egg-free’ would definitely be the best solution to meet all customers’ needs.”
And as the gluten-free trend continues to grow, consumers will call for more nutritious offerings rich in protein, fiber, whole grains and vegetable fortification, says Evan Hyman, Ingredion’s private label marketing manager. Consumers want products that not only taste great, but also help them manage energy levels, bone health, weight and digestive health.
Get the message out
Turning to packaging, simple, friendly declarations on labels are effective sales tools, Hyman notes.
Walters agrees.
“You don’t necessarily want to busy up the packaging all the time,” he points out. “Subtlety goes a long way in trying to get people to try things.”
A nice shot of the product inside or a transparent window also works wonders, Domenichini says.
“Consistency and personalization must be on top of every packaging layout,” she explains.
And point to the product’s added value, Domenichini advises.
“Emphasize the absence of allergens or … the nutritional value,” she says.
As for merchandising, gluten-free items — which are specialty products — often are relegated to their own section of the store. Although this is a good strategy, retailers also need to integrate these products into the mainstream section of the center store, Walters advises. Otherwise, shoppers might not try them.
Elliot Dutra, president of new business development for Raymond Hadley Corp., a Spencer, N.Y.-based custom blending and private label packaging company, agrees.
“Multiple placement at the beginning works nicely, especially when the line launches,” he says. “Conventional aisle, gluten-free section and end caps are often the launch strategy.”
Shippers are particularly useful in broadening the reach of these products across the store and getting shoppers to try them, says Irwin Katz, president of inBRANDS Foods Inc., Thornhill, Ontario, Canada.
According to Walters, getting shoppers to try a new product and find it amazing is “better marketing than any company or consultant or retail package could ever do.”
And speaking of getting shoppers to try a product, retailers should set up in-store demos to get their gluten-free products into consumers’ mouths, Hyman states.
“Getting consumers to taste the quality of the products is a great way to market newer offerings,” he explains.
Retailers could even invite local celiac groups to meet at their stores to sample the latest gluten-free offerings under their own brands, Dutra adds.