Gluten-free market srt to boom, says a report

[Guest guest]

Gluten-free market set to boom, says report

By Lorraine Heller

7/7/2006

[previously posted to SoFlaVeg]

 

http://www.foodnavigator-usa.com/news/ng.asp?n=68991 & m=1fnu707 & c=qdrhrvoeraoqydo

 

The US gluten-free market has soared in recent years,

according to a new report, and is likely to receive

another significant boost as the nationâ?Ts mega food

firms jump on the bandwagon after the FDA definition

of â?~gluten-freeâ?T is established in 2008.

 

Published by Packaged Facts, the new report reveals

that the market for gluten-free foods and beverages in

the US currently stands at almost $700m, and is due to

reach around $1.7bn by 2010.

 

Demand for gluten-free products has surged in recent

years on the back of an increased diagnosis of celiac

disease. This is characterized by an intolerance to

gluten, a protein found in wheat, rye and barley that

contributes to the viscosity of baked products.

 

According to the latest figures, around three million

Americans, a little less than 1 percent of the

population, currently suffer from gluten intolerance,

although estimates suggest that 97 percent of celiac

sufferers remain undiagnosed and go untreated.

 

Indeed, it is estimated that the number of known

sufferers of celiac disease will increase worldwide by

a factor of 10 during the next few years, findings

that present an opportunity for the development and

marketing of gluten-free foods, said Packaged Facts.

 

Most gluten-free products are alternatives to

traditional grain-based goods, including bakery

products, pasta and cereals. These are made with

alternative grains and flours, such as rice, corn,

amaranth and quinoa.

 

In 2001, the market for gluten-free products was

valued at $210m, and has grown at a compound annual

growth rate of 27 percent since then, to reach $696.4m

in 2006. The market is estimated to continue to grow

at 25 percent per year until 2010.

 

But despite the strong performance of this sector, and

the opportunities it entails, major food marketers

have largely not entered the market as yet. According

to Packaged Facts, this is because they are reluctant

to invest in research and product development until

fixed regulations for gluten-free are in place.

 

â?oIt is these mega-marketers that have in recent

years become the target of consumer activist groups

and FDA policy informers, and, for the most part,

these companies have learned to proceed more

cautiously in such areas,â? said the market

researcher.

 

â?oOnce FDA establishes regulations for use of the

term gluten free, it is very likely that the mega food

marketers of the world will jump on the gluten-free

bandwagon,â? it added.

 

The FDA is required to propose a regulation by August

2006, and to issue a final regulation by August 2008,

to define the term â?~gluten-free' for voluntary use

in food labeling.

 

For the time being, the majority of gluten-free

products- around 40 percent- are sold in health and

natural food stores, such as GNC, Whole Foods and Wild

Oats. Some 20 percent of sales in 2006 occurred

through specialty food website or catalog purchases,

with mainstream supermarkets coming in third with a 14

percent share of sales.

 

And although these products are largely bought by

celiac sufferers, very often the entire family of a

celiac will switch to gluten-free products primarily

to avoid buying different versions of the same goods,

but also as a preventative step- as celiac disease is

known to be hereditary.

 

There are also some consumers who avoid gluten because

of a perceived belief of intolerance, and others who

are migrating to the market from organic and natural

foods and other segments. This shift- consisting

mostly of white, middle-to upper-class consumers- is

being driven by the belief that certain major

allergens and food components also play a role in

exacerbating a wide range of other health conditions,

from migraine to menstruation.

 

Some consumers also opt for gluten-free in the hope of

preventing their young or unborn children from

developing food allergies. But this remains a luxury

of choice available only to those able to afford it,

said Packaged Facts.

 

Indeed, the high cost of foods free from gluten

prevents many celiac sufferers from adhering precisely

to their restricted diet, while most diagnosed celiacs

are largely white, educated and at lest middle-class-

the group of citizens most likely to have access to

decent healthcare and to be able to afford the higher

cost of the products that comprise this market.

 

Celiac disease is also primarily restricted to North

American and European populations, where wheat is a

staple food, but is infrequent among native

descendants of China and Japan and those with an

African-Caribbean background where wheat is not as

widely consumed.