Europe Gluten Free Foods and Beverages Market Outlook to 2030

Europe Gluten Free Foods and Beverages Market Overview

• The Europe gluten-free foods and beverages market is valued at USD 3.1 billion, based on a five-year historical analysis. This growth is primarily driven by increasing consumer awareness of gluten-related health issues, such as celiac disease and gluten intolerance, leading to a higher demand for gluten-free alternatives. Additionally, a broader shift toward health and wellness, where individuals choose gluten-free diets as part of a healthier lifestyle, is further fueling the market.

• Germany, the United Kingdom, and Italy are the dominant countries in the European gluten-free market. Germany leads the market with a surge in product launches, followed by the United Kingdom and Italy. The market is characterized by a growing interest in alternative meat products and plant-based diets, as consumers become more health-conscious and seek to avoid gluten-related health issues.
• The EU's Food Information for Consumers Regulation (EU) No 1169/2011 mandates clear labeling of allergens, including gluten, on food products. This regulation ensures that consumers are well-informed about the presence of gluten, aiding those with celiac disease in making safe food choices.

Europe Gluten Free Foods and Beverages Market Segmentation

By Product Type: The market is segmented by product type into bakery products, meats/meat substitutes, dairy/dairy substitutes, sauces, dressings, and seasonings, frozen desserts, beverages, and other product types. Recently, bakery products have a dominant market share in Europe under the segmentation product type, due to the increasing demand for various gluten-free bakery products. The surge in demand for gluten-free bread, cakes, cookies, and pastries is driven by innovations that enhance taste and texture, positively influencing the market.

By Distribution Channel: The market is also segmented by distribution channel into online retail, specialty stores, supermarkets/hypermarkets, and other retailers. Supermarkets/hypermarkets hold a significant market share in Europe under this segmentation. This is attributed to the widespread availability and accessibility of gluten-free products in these retail outlets, catering to the growing consumer demand for gluten-free options. The expansion of distribution channels has made gluten-free foods more widely available, reaching a broader audience of consumers.

Europe Gluten Free Foods and Beverages Market Competitive Landscape

The European gluten-free foods and beverages market is highly competitive, with the presence of several global and local players due to the high demand for gluten-free foods among the local population. Key players include General Mills Inc., Conagra Brands Inc., Dr. Schr AG/SPA, Bobs Red Mill Natural Foods, and Amy's Kitchen Inc. These companies dominate due to their extensive distribution networks, strong brand presence, and diverse product portfolios.

Europe Gluten Free Foods and Beverages Market Analysis

Market Growth Drivers

• Rising Prevalence of Celiac Disease: Celiac disease, an autoimmune disorder triggered by gluten ingestion, affects 1% of the European population, equating to over 7 million individuals. In the United Kingdom alone, around 500,000 people are diagnosed with celiac disease. This significant prevalence has heightened demand for gluten-free foods and beverages, as those affected must adhere to strict gluten-free diets to manage their condition. The European Society for the Study of Coeliac Disease (ESsCD) reports that early diagnosis and dietary management are crucial for preventing complications associated with celiac disease.
• Increasing Health Consciousness: A growing emphasis on health and wellness among European consumers has led to a surge in demand for gluten-free products. A survey by the European Food Information Council (EUFIC) indicates that 70% of Europeans are actively seeking healthier food options, with 30% specifically reducing gluten intake for perceived health benefits. This trend is not limited to individuals with gluten-related disorders but extends to health-conscious consumers aiming to improve overall well-being.
• Expansion of Distribution Channels: The availability of gluten-free products has expanded significantly across Europe. Major supermarket chains, such as Tesco and Carrefour, have increased their gluten-free offerings, dedicating entire sections to these products. Additionally, the rise of online retail platforms has made gluten-free products more accessible, with e-commerce sales in the European food and beverage sector reaching 54 billion in 2023, according to Eurostat. This expansion has facilitated consumer access to a wider variety of gluten-free options.

Market Challenges

• Higher Production Costs: Producing gluten-free products often incurs higher costs due to the need for specialized ingredients and stringent manufacturing processes to prevent cross-contamination. The European Commission's report on food prices indicates that gluten-free products are, on average, 159% more expensive than their gluten-containing counterparts. This price disparity can deter price-sensitive consumers and limit market growth.
• Limited Consumer Awareness in Emerging Markets: While awareness of gluten-related disorders is high in Western Europe, it remains limited in emerging European markets. A study by the World Gastroenterology Organisation found that only 20% of individuals in Eastern Europe are aware of celiac disease and its dietary requirements. This lack of awareness hinders demand for gluten-free products in these regions.

Europe Gluten Free Foods and Beverages Market Future Outlook

Over the next five years, the European gluten-free foods and beverages market is expected to show growth driven by continuous product innovation, expansion of distribution channels, and increasing consumer demand for healthier dietary options. The market is projected to reach USD 5.92 billion, growing at a CAGR of 10.33% during the forecast period.

Market Opportunities

• Technological Advancements in Product Development: Advancements in food processing technologies, such as the use of alternative flours and enzymes, are enhancing the quality of gluten-free products. The European Food Research and Technology journal reports that incorporating sourdough fermentation in gluten-free bread production improves texture and shelf life, presenting opportunities for manufacturers to develop superior products.
• Growing Demand for Organic and Clean Label Products: European consumers are increasingly seeking organic and clean label gluten-free products. The Organic Trade Association notes that organic food sales in Europe reached 45 billion in 2023, with a significant portion attributed to gluten-free items. This trend offers manufacturers the chance to cater to health-conscious consumers by offering products free from artificial additives and pesticides.