Joanna Cosgrove08.05.10
Imagine going to a birthday party and not being able to eat any cake, life without your favorite pizza, or a deli sandwich without your favorite bread. Worse yet, imagine enjoying your favorite breads and grains and a short time later suffering from gut-wrenching abdominal pain, nausea and a host of other side effects. That’s just a small glimpse into the life of those afflicted with celiac disease and other forms of gluten intolerance.
Fortunately, the tide is turning. Mainstream food manufacturers like Nestle, Hain Celestial Group and General Mills are actively courting the gluten-free consumer, increasing the transparency of food allergens in their formulas and, in some cases, reformulating some of their most popular products to be gluten-free.
Fortunately, the tide is turning. Mainstream food manufacturers like Nestle, Hain Celestial Group and General Mills are actively courting the gluten-free consumer, increasing the transparency of food allergens in their formulas and, in some cases, reformulating some of their most popular products to be gluten-free.
According to a recent report from Datamonitor, "The Future of Gluten-Free: Consumer Insight and Product Opportunities," many gluten-free markets have experienced double-digit growth in recent years due to an increasing number of celiacs requiring these foods and beverages. Another factor, it said, is also that some consumers without celiac disease have adopted free-from alternatives as a healthier dietary option, despite the fact that they can digest gluten-based groceries.
In addition, the report detailed the expansion of gluten-free products, with an increasing number of snacks and alcoholic beverages designed to appeal to consumers on a sensory level. “Innovative formulations are allowing manufacturers to make products using certain grains despite this process traditionally being thought of as unsuitable for this consumer group. Given that gluten refers to the entire protein component of wheat the skew towards bakery and cereals is not surprising,” it said.
The percentage of new food product introductions making a “gluten free” claim in the U.S. has continued to climb from 8% in 2008 and more than 10% in 2009, to 14% as of June 30, 2010. But, despite the growth trend, Datamonitor also warned that the gluten-free product phenomenon is heading toward an inevitable “flattening.”
“The percentage of new food products (excluding beverages) making a gluten-free claim has nearly doubled since 2008 and one suspects that launches are far in excess of the true number of consumers suffering from celiac disease,” commented Tom Vierhile, Datamonitor’s director of product launch analytics and co-author of the report. “This growth in claims almost assuredly has to slow down and at some point gluten-free will most likely find its footing more as a niche-type of claim—perhaps similar to products aimed at diabetics—instead of a mass-market phenomenon.”
Focus on Taste
With new gluten-free product growth at an all time high, the only aspect poised to limit the segment’s growth potential is taste. Gluten-free food doesn’t always taste the same as food that contains gluten and there’s often a noticeable texture difference as well. This area of taste and mouthfeel was highlighted by Datamonitor as a critical issue that could usher in a new phase for the category.
Mr. Vierhile’s colleague and co-author of the report, Mark Whalley, noted that the marketplace itself is healthy but entering somewhat of a transitional phase. “If products are to truly appeal to non-celiac consumers then they have to demonstrate a high level of quality now before consumers abandon them for good,” he said. “I would compare the problems facing manufacturers in the gluten-free industry as similar to those in the soy industry—many consumers have previously tried soy products in the past and not liked them, which has made them reluctant to try any subsequently, despite big advancements being made in sensory terms. If gluten-free industry players cannot overcome the perception from more casual consumers that the taste of such products is questionable then they will have difficulty in encouraging repeat consumption in the future.”
General Mills has increasingly affirmed its commitment to giving gluten-free consumers products that taste great. After purging the gluten from selected varieties of its Chex brand breakfast cereal, last year the company’s Betty Crocker division tested the waters with the launch of two gluten-free cake mixes, a brownie mix and a gluten-free chocolate chip cookie mix, which were sold alongside its standard cake, brownie and cookie mixes in many grocery store chains nationwide. Word about the products’ availability spread quickly on celiac and gluten-free websites and it wasn’t long before gluten intolerant consumers raved about the taste of the products, not to mention the purchasing convenience.
That experience led General Mills to expand its gluten-free product offerings and create a website to keep consumers up to date with new product launches and gluten-free recipes. The company is currently in the process of rolling out a gluten-free version of its popular Bisquick brand baking mix, three flavors of Hamburger Helper, and two varieties of gluten-free Natrure Valley Roasted Nut Crunch Bars.
Of course, General Mills is just one of many companies honing in on the gluten-free market. “A look on Datamonitor’s Product Launch Analytics database shows that Nestle has been the most active in terms of gluten-free product launches in the past three years, followed by the Hain Celestial Group,” commented Mr. Whalley. “However, there does not seem to have been the same kind of brand-focused approach as we’ve seen from the likes of Betty Crocker. I think companies are looking at more subtly introducing gluten-free varieties across many brands rather than concentrating on one in particular.”
He went on to spotlight Gluten Free Cafe All Natural Canned Soup from Hain Celestial Group as one of the most noteworthy new launches in the category. “The line is touted as ‘the only line of gluten-free foods fortified with vitamins and minerals to provide nutrients that may be missing from certain diets and a prebiotic to aid in digestion,’” he said. “They are ‘fortified with essential vitamins and minerals, including vitamins B1, B2, B3, folic acid, vitamin D, iron and calcium.’ The inclusion of vitamins, minerals and prebiotics appears to indicate that just being ‘gluten free’ isn't enough to stand out anymore.”
“It does look as if companies may have learned some lessons from the low-carbohydrate fad and have made ‘gluten free’ more of a supporting claim rather than the entire reason-for-being for new product launches,” added Mr. Vierhile. “This is probably a good thing because the end of the low-carbohydrate fad saw companies flooding food banks in some parts of the U.S. to get rid of surplus ‘low-carb’ or ‘no-carb’ products because the market for dedicated low-carbohydrate or no-carbohydrate products collapsed virtually overnight.
“It’s true that there are still dedicated gluten-free brands out there like Glutino and Glutenfreeda, but the majority of recent claims are coming from products where “gluten free” is not the entire marketing thrust," he continued. "This is sensible since if there is a backlash to gluten-free products at some point, it is less likely that these launches will be collateral damage.”
To stave off the backlash, Mr. Whalley suggested food and beverage product manufacturers who hope to have success in the gluten-free marketplace should focus on one important target: good taste. “The challenge, as alluded to before, is to convince consumers—both celiac and non-celiac—that gluten-free is a tasty, healthy option,” he said. “This means ensuring that existing products taste great (the current consensus about the taste of gluten-free bread, for example, is varied, at best), but also branching out into new categories. Gluten-free pizza is an interesting idea that has surfaced relatively recently.
“Manufacturers have somewhat of a captive audience in celiacs, but they will have to work hard to capitalize on the interest in relevant products coming from outside this demographic,” he continued. “How well they react to this challenge is likely to determine how the market grows in the next couple of years.”
