Understanding the forces driving its growth is essential to decide if Free From is a fleeting trend or a permanent change in consumer behaviour, as the numbers alone don’t tell the whole story.
In the US, the gluten-free market alone was valued at $6.74bn in 2023 and is expected to double by 2032, growing at an impressive CAGR of 8.33%. Across the Atlantic, the UK’s Free From market is worth £3.9bn annually, with dairy-free, gluten-free and nut-free products leading the charge. On both side of the globe, though, major brands and retailers are heavily investing in the sector, expanding their product lines to meet increasing demand.
Yet, despite these gains, the sector remains a sliver of the food industry as a whole, which is valued globally at over $8 trillion. While Free From growth rates outpace many traditional food categories, its overall contribution to the industry is still modest.
So, what’s keeping it from becoming the food industry’s next big thing?
One of the biggest issues? Cost. Creating allergen-free foods isn’t cheap – sourcing specialty ingredients, ensuring safety and running allergen-free production lines all come at a premium. This price bump locks out many budget-conscious consumers, leaving Free From products as a luxury for the few, not a staple for the masses.
And then there’s taste – strip out the gluten or the dairy and too often, you strip out the pleasure. While brands are racing to fix this with cutting-edge R&D, some products still leave consumers feeling underwhelmed.
Add to that a messy regulatory landscape and shaky supply chains, and the picture gets even more complicated. In the US, for example, inconsistent labelling rules for claims like ‘nut-free’ can lead to mistrust, while in the EU, strict allergen laws boost confidence but at a steep cost for producers.
And let’s not forget sourcing – many key ingredients come from regions prone to climate shocks and geopolitical turmoil. Meanwhile, Free From’s focus on niche markets like gluten-free or dairy-free fragments its audience, making it harder to scale. Until the sector cracks these issues – cost, quality and mass-market appeal – it will remain a boutique player in the $8 trillion global food industry, rather than the disruptive force it promises to be.
From niche to noticeable
What’s fuelling the rise in Free From?
In the US, gluten- and dairy-free products are leading the way, with plant-based alternatives like oat milk and almond yoghurt appealing to both allergen-conscious consumers and those adopting vegan or flexitarian diets.
In the UK and Europe, sustainability is playing an even bigger role. Consumers are demanding allergen-free products that align with environmental values, leading to the development of innovative ingredients like chickpea flour, pea protein and cassava-based alternatives. These resonate not just with those who medically need Free From products, but also with those making ethical food choices.
Despite its promise, though, as mentioned, the sector faces significant challenges.
For one, taste and texture remain critical hurdles. Removing allergens like gluten or dairy often impacts the sensory experience of products, leaving consumers unimpressed unless brands invest heavily in R&D.
There’s also the issue of cost. Free From products often come at a premium, due to the complexity of sourcing allergen-free ingredients and ensuring compliance with safety standards. This limits accessibility, especially in regions where price sensitivity is high.
Additionally, regulatory inconsistencies create barriers. While the EU enforces strict allergen labelling rules that instil consumer confidence, the US lacks uniform standards for claims like ‘dairy-free’ or ‘nut-free’. This can lead to mistrust and confusion in the market.
Opportunity or overreach?
For all its challenges, the Free From sector is rich with opportunities. The rise of functional products that offer health benefits beyond basic nutrition is creating new avenues within the category. Think gluten-free snacks fortified with probiotics or nut-free bars with added omega-3s.
Ecommerce is another gamechanger. Online platforms make it easier for niche brands to reach targeted audiences, bypassing traditional retail hurdles. This has enabled smaller players to flourish alongside major brands, increasing innovation and competition.
In the UK and Europe, sustainability trends continue to drive innovation. Brands are reducing reliance on artificial additives and preservatives, turning to natural fermentation techniques and eco-friendly sourcing practices. Meanwhile, in the US, plant-based and allergen-free snacks are catering to multiple dietary trends simultaneously, broadening their appeal.
So, while Free From remain a relatively small part of the food industry, the category’s grip on innovation is undeniable. The sector’s ability to adapt – embracing sustainability, improving taste and meeting diverse dietary needs – positions it as more than just a fleeting trend, steadily carving out its place in the future of food.
For producers ready to navigate the complexities and seize the opportunities, the rewards are immense. The question is: Who’s hungry enough to lead?
