• Gluten-free bakery NPD activity in the UK reaches a high in 2014
• There is a lack of better-for-you and gluten-free NPD activity
• One in seven people avoid gluten or wheat, with this market booming
“With just as many people avoiding gluten and wheat as part of a general healthy lifestyle as because of an allergy/intolerance, there are opportunities for gluten-free cakes to take a healthier positioning”
Gluten-free NPD activity in bakery reaches a high
The sustained gluten-free trend is clearly evident within innovation in the UK bakery market. In 2014, 12% of new launches in this category featured a gluten-free claim, double that seen in 2012. This is in line with the wider growth in gluten-free NPD within the total food market.
Bread has a lead over cake and cake bars in this respect, with gluten-free products accounting for 15% of new products entering the bread and bread products market in 2014, compared to 10% for cake and cake bars.
Gluten-free credentials may not marry as well with cakes as with bread given that the former tend to be inherently unhealthy products with a strong indulgent treat positioning. This is illustrated in the finding that half of users of cake/cake bars typically eat these products to treat themselves, making this the primary motivation for use. While gluten-free cakes are likely to find an open audience among people avoiding wheat or gluten because of an allergy or intolerance, they may struggle among those who avoid these ingredients as part of a general healthy lifestyle. Any benefit that might be perceived to be gained from buying a gluten-free cake is likely to be diluted or completely outweighed by the typically high fat and sugar content.
Meanwhile, bread being a daily staple more so than a treat provides a good fit for people looking to make everyday healthy choices. Gluten-free bread has successfully positioned itself as an acceptable mainstream option, with only 10% of consumers believing that these products are only suitable for people who are intolerant to gluten, according to Mintel’s Free- from Foods – UK, November 2014. (See Figure 1)
A lack of better-for-you gluten-free cake NPD
Despite a steady rise in launches of gluten-free cakes, gluten-free products which also offer other health credentials remain a largely unexplored area. For example, there were no gluten-free cake launches in 2014 which also carried a low/no/reduced fat, sugar or calorie claim. This suggests opportunities for brands to explore better-for-you gluten-free cakes – a move made all the timelier given the ongoing sugar debate.
Indeed, heightened consumer awareness of the dangers associated with consuming too much sugar has had a real impact on consumers’ eating habits. For example, 26% of adults are limiting the amount of sugar in their diets more now than a year ago, with one in five buying more items specifically labelled as low/no/reduced sugar, according to Mintel’s Consumer Attitudes Towards Sugar and Sweeteners – UK, January 2015.
The problem with creating healthier gluten-free products lies in the difficulties with making these products taste good. While gluten-free baking with reduced fat or sugar presents technical challenges, given that health concerns are a real issue for the cake category and that the gluten-free market is booming, there may be lucrative rewards for companies looking to go down this route. Over a fifth (22%) of consumers think that there are not enough lower calorie free-from products available, according to Mintel’s Free-from Foods – UK, November 2014.
One in seven people avoid wheat or gluten
The gluten- and wheat-free food market is thriving, with value sales estimated to have increased by 38% between 2012 and 2014 to reach £184 million, according to Mintel estimates. As such, it makes up half of the total free-from food market. The proliferation of gluten-free products in a wide range of categories has helped to boost growth in recent years, alongside the growing awareness and diagnosis of allergies and intolerances. The number of diagnosed coeliacs in the UK has increased fourfold since 1991 according to Coeliac UK. (See Figure 2)
However, the overarching health trend also has a role to play. Indeed, the share of people choosing to avoid gluten and wheat for general health reasons is on a par with that of consumers avoiding these ingredients due to an allergy or intolerance. This signals that these products have managed to break into the mainstream, leveraging a perceived healthier positioning.
Given the high fat and sugar content of most cakes, these are unlikely to attract the people who specifically avoid wheat or gluten as part of a generally healthy lifestyle choice. This also suggests that products which have a gluten-free claim could benefit from accompanying it with other better-for-you claims, such as low/no/reduced fat or sugar, in order to chime with people looking for a guilt-free snack.
The analyst's view
• There are opportunities for the development of healthier gluten-free cakes in order to target these “lifestylers” who want to have a guilt-free treat.
• Given the ongoing conversation about the dangers of sugar - seeing many people take steps to reduce their sugar intake – and the rapid growth of the gluten-free market, NPD in lower sugar gluten-free cakes is a timely opportunity.
