Marketing Gluten-Free a 'Fad' May Prove Unprofitable for Manufacturers |
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Marketing Gluten-Free a 'Fad' May Prove Unprofitable for Manufacturers



New Datamonitor market research ranks US gluten-free market among the worlds best and also advises manufacturers against using the fad diet moniker when developing and marketing gluten-free products. 

According to 

"Germany continues to lead strong growth in the European market for gluten-free products, finds a new report by Datamonitor, although the analyst notes that manufacturers must approach the market with caution in order to ensure continued success. 

The Future of Gluten-Free: Consumer Insight and Product Opportunities estimates that the global gluten-free market will reach $4.3bn over the next five years, marking a $1.2bn growth.

However, despite the strong growth forecasts, Datamonitor says food manufacturers need to tread carefully to avoid the same fate as the low/no-carb market."

Industry analyst Mark Whalley says manufacturers to be cautious when launching products and advises against marketing gluten-free as a fad diet.

"'One hurdle brands face is making sure the taste of gluten-free products is appealing. Manufactures need to adopt a more holistic approach ensuring they communicate the wider benefits of gluten-free foods rather than relying on what is excluded from the products,' he says.

'Therefore brands should focus on appealing to a broader audience to strengthen the long term prospects of gluten-free food. However, they cannot lose sight of the fact that core consumers of the products will always be celiacs, so relying on consumers outside of this demographic in the long-term will prove to be a very risky strategy.'"

According to the report, US currently boasts the highest per capita spent on gluten-free products. The article also proclaims America’s gluten-free market as the most established worldwide exceeding over $1 billon annually. Analysts site size of the population and wider product penetration as key factors in the development of the US gluten-free food market, although other countries continue to make significant gains.

"Between 2004 and 2007, the compound annual growth rate (CAGR) of the gluten-free market was just over 11 per cent in Germany, followed closely behind by the UK at 10.4 percent. CAGR in Spain was 8.3 percent, followed by France, Sweden and Italy at 8, 6.8 and 5.9 per cent respectively. CAGR in the US market during the period was 5.6 per cent."

To read the entire article, Datamonitor advises caution in gluten-free growth, click here.