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Free-from Foods - UK - November 2014

Published By :

Mintel

Published Date : Nov 2014

Category :

Bakery Products

No. of Pages : 74 Pages

The continued perception by a proportion of the population that free-from foods are less healthy than regular products leaves scope for operators to better communicate the benefits of free-from foods to consumers.
Table of Content

Introduction

Definition
Excluded
Abbreviations

Executive Summary

The market
Free-from market set for further strong growth
Figure 1: Value sales and forecast of the UK free-from* market, 2009-19
Market factors
Four in 10 people report avoidance of foods/ingredients in the household
The growing proportion of 25-34s in the UK bodes well for the market
Changes in labelling legislation are already evident
Increased availability of free-from products is helping the category to move into the mainstream
Figure 2: Share of gluten-free and low/no/reduced lactose products of all new food and drink products, UK and US, 2012-14
Companies, brands and innovation
Figure 3: Leading brands’ value shares in the UK free-from market, 2014 (est)
The UK still lags the US in terms of free-from new product development
Figure 4: Gluten-free launches as share of total food and drink launches, US, UK and global, 2012-14
Gluten-free products are more likely to feature other health claims
Figure 5: Share of selected health claims of all new food and drink launches, UK, 2012-14*
The consumer
Four in ten people in the UK report avoidance of foods/ingredients in their household
Figure 6: Avoidance of lactose/dairy and wheat/gluten, June 2014
Only 9% choose where to do their grocery shopping based on the free-from range
Figure 7: Users’ attitudes towards free-from foods, June 2014
Just 36% would only exclude foods/nutrients if advised by a health professional
Figure 8: Non-users’ attitudes towards free-from foods and diets, June 2014
Negative perceptions around the healthiness of free-from foods persist
Figure 9: General attitudes towards free-from foods, June 2014
What we think

Issues and Insights

Better communication is needed to change the negative perception of free-from’s nutrition credentials
The facts
The implications
Flavour can be a selling point rather than a hindrance for younger consumers
The facts
The implications
The online channel offers a platform for growth
The facts
The implications

Trend Application

Prove it
Many Mes
East Meets West

Market Drivers

Key points
Avoidance of foods/ingredients is part of wider wariness of what people eat
Figure 10: Types of food avoided, June 2014
Growth in the proportion of 25-34s in the UK bodes well for the market
Figure 11: Changes in the UK population’s age structure, 2009-14 and 2014-19
Changes in allergen labelling to be enforced from December 2014
Increased availability of free-from products is helping the category to move into the mainstream
Figure 12: Share of gluten-free and low/no/reduced lactose products of all new food and drink products, UK and US, 2012-14

Strengths and Weaknesses

Strengths
Weaknesses

Who’s Innovating?

Key points
The UK still lags the US in terms of free-from new product development
Figure 13: Gluten-free launches as share of total food and drink launches, US, UK and global, 2012-14
Figure 14: Low/no/reduced lactose products’ share of total food and drink launches, US, global and UK, 2012-14
The innovation landscape is highly fragmented
Figure 15: New launches with low/no/reduced lactose and gluten-free claims, share of 10 most active companies, 2012-14*
Gluten-free products are more likely to feature other health claims
Figure 16: Share of selected health claims of all new food and drink launches, UK, 2012-14*
Ancient grains offer a route to improve fibre/wholegrain position
Indulgence should not be ignored
Snacking and on-the-go stand out as underdeveloped areas in the UK
Figure 17: Share of gluten-free products in all new cereal-based products, US and UK, 2012-14

Market Size and Forecast

Key points
Free-from market forecast to reach £551 million by 2019
Figure 18: Value sales and forecast of the UK free-from* market, 2009-19
Outlook
Figure 19: Value sales and forecast of the UK free-from* market, 2009-19
Gluten and dairy-free continue to record strong value growth
Figure 20: Estimated UK retail sales of free-from foods, by type, by value, 2012-14
Methodology

Market Share

Key points
Alpro retains a 25% value share of the market
Dairy alternatives segment attracts investment from smaller brands
Lactofree retains monopoly in lactose-free dairy
Gluten-free brands continue to post strong growth
Genius continues to thrive
Newburn Bakehouse leaps ahead
Growing segment attracts new entrants
All of the leading multiple grocers now offer own-brand free-from ranges
Figure 21: Leading brands’ value shares in the UK free-from market, 2014 (est)
Figure 22: Leading brands’ sales and shares in the UK free-from market, by value, 2012/13-2013/14

Companies and Products

Alpro
Product range
Product innovation and recent activity
Lactofree
Product range
Product innovation and recent activity
Genius Foods
Product range
Recent activity
Warburtons
Product range
Product innovation
Promotion
Dr Schär/Dietary Specials
Product range
Product innovation and recent activity

The Consumer – Avoidance of Foods/Ingredients

Key points
Four in 10 people report avoidance of foods/ingredients in the household
Figure 23: Types of food avoided, June 2014
Awareness plays a key role in the market
The challenge remains to appeal to ‘lifestyle’ users
Overall avoidance is similar across ages, but the reasons differ
30% of people have bought or eaten free-from products
Figure 24: Types of free-from foods bought and eaten, June 2014
Many people are following restrictive diets, without buying substitutes
Londoners and ABs are among key buyers of free-from products

The Consumer – Attitudes Towards Free-from Foods

Key points
Free-from users want more everyday essentials
Figure 25: Users’ attitudes towards free-from foods, June 2014
One in six free-from users shop at specialist stores
Snacking and indulgence are key areas for NPD

The Consumer – Attitudes of Non-users Towards Free-from Foods and Intolerances

Key points
Just 36% would only cut out foods if advised by a health professional
Figure 26: Non-users’ attitudes towards free-from foods and diets, June 2014
Internet can play a role as an information source
Word of mouth resonates
Concerns over nutritional content need to be addressed by brands
Ingredients should be marketed on taste as much as nutrition

The Consumer – General Attitudes Towards Free-from Foods

Key points
Opinion on nutritional benefits of free-from food is polarised
Figure 27: General attitudes towards free-from foods, June 2014
Smaller, targeted campaigns have a role to play
Free-from foods are widely seen as more expensive than standard
Many users favour scratch cooking

Appendix – Market Size

Figure 28: Best and worst case forecasts for the free-from market, by value, 2014-19

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