Gluten-free bread: Fresh Impetus for the category

The gluten-free market has never been stronger. Every day, more new products which are suitable for consumers with gluten intolerance (also referred to as celiacs) are launched, satisfying a need for food and beverages which provide the same experience as that enjoyed by the majority of people without food-related allergies or intolerances.

 

Gluten refers to the entire protein component of wheat. It is a mixture of gliadin and related prolamines. The proteins—gliadin and glutenin— is combined with starch in the endosperm of certain grains like wheat, barley and rye. Different grains have different protein sequences, rendering them as either toxic or safe for celiac sufferers. Gluten acts as a source of protein for consumers, either through the consumption of foods like wheat or through fortification of other foods to boost protein content. It is also commonly used as a ‘thickening agent’ in products such as ice cream, and can be used to alter the texture of baked products (making it chewier).

 

As a result, celiacs cannot eat products which contain flour. Avoiding gluten-containing foods such as bread, pasta and breakfast cereals restrict the diet and can lead to a reduction in fibre and nutrient rich foods. Wheat, after all, has numerous end uses and functional characteristics. Also, as dairy products such as milk and cheese often accompany these types of foods, there is a risk that these may become restricted, resulting in decreased calcium consumption.

 

The market for gluten-free products has burgeoned as a result of greater knowledge. One of the main inhibitors of consumption is a widespread lack of understanding. Simply put, many consumers do not understand the full details and implications of gluten intolerance. Indeed, many do not know the difference between an allergy and an intolerance. Furthermore, research shows that many consumers may have celiac disease but are either misdiagnosed or undiagnosed entirely.

 

It is difficult to truly quantify the market for two main reasons: firstly, it is not always possible to establish intolerance through medical testing (unlike allergies, which can be medically proven). Secondly, many consumers simply do not realize that they have a problem with gluten, instead believing dietary problems to be something else with similar symptoms – for example Irritable Bowel Syndrome. Based on a conservative worldwide prevalence of one in 266, Datamonitor Healthcare estimates there to be more than 25 million celiac disease sufferers worldwide. Prevalence estimates vary considerably. For example, the National Foundation for Celiac Awareness estimates that 1 in 133 Americans have the disease, and most may be undiagnosed. The number of UK residents with celiac disease is judged to be around 600,000 (one in every 100 people), according to charity Coeliac UK, although only an eighth of these realize they have it.

 

However, even if actual numbers cannot be definitely quantified, it is nevertheless the case that a growing number of consumers are being diagnosed as having a gluten intolerance, thereby increasing the potential for ‘free-from’ products. Certainly, more and more consumers are believing themselves to have some sort of allergy or intolerance. 

 

When Datamonitor asked consumers as part of its April/May 2009 global consumer survey whether or not they avoided food or beverages for allergy or intolerance reasons, 20% said they did so ‘most’ or ‘all’ the time, with another 22% doing so ‘occasionally’. In Asia-Pacific, these numbers increased to 22% avoiding such products ‘most’ or ‘all’ the time, with 26% avoiding them ‘occasionally’.

 

Yet when Datamonitor repeated the question just a year later, in its July/August 2010 wave of the research, the results had changed dramatically. Globally, more than a third (34%) of respondents claimed to avoid food or beverages for allergy or intolerance reasons ‘most’ or ‘all’ the time, and a further 22% ‘occasionally’. Once more, consumers in Asia Pacific were marginally more wary, with 39% regularly avoiding products and 24% occasionally so.

 

It is clear, therefore, that consumers are becoming more aware of the effect that food can have on their health and are erring on the side of caution. In fact, prevalence figures fall far below the proportion of respondents who claim to avoid products for allergy/intolerance reasons, which means that a large number are being unnecessarily careful and restrictive. However, it is the perception which is more important than the actual prevalence – gluten-free breads can benefit from all consumers who believe themselves to have intolerances, and not just those who actually do.

 

Bread is one of the fundamental food products eaten by consumers every day. Its versatility means it forms the basis of many meals. Consequently, celiacs desire an alternative which allows them to enjoy the experience of eating bread without the consequences of aggravating their intolerance. In Indonesia alone, Datamonitor’s Market Data Analytics database valued the bread market at $459.4m in 2010. The market value is forecast to surpass $500m by 2012, and reach $550m by 2014. This impressive growth – outstripping that of many countries in Europe and North America – outlines the potential for bread products which satisfy the needs of all consumers.

 

For many years, gluten-free products – and breads in particular – have suffered from a negative stigma regarding taste. Traditionally, consumers have regarded these alternatives as being unpalatable, with unusual textures and a dry, chalky taste. The moistness and freshness of ordinary bread has proven extremely difficult to replicate. Furthermore, many supermarkets have chosen to stock only shelf-stable gluten-free breads – not acknowledging the demand for ‘fresh’ varieties from an increasing celiac demographic.

 

The UK is a market which is pioneering new options in the gluten-free bread category. The product which sparked this development is Genius Bread – a fresh-baked product that is nevertheless suitable for celiacs. Genius Bread was devised by Lucinda Bruce-Gardyne, who formulated a bread suitable for her gluten-intolerant son. Bruce-Gardyne—a professional cook—formulated the recipe using her son as a taster, with the primary goal of helping him enjoy the kinds of products that others took for granted. Once she perfected the recipe she took it to United Central Bakeries (UCB)—part of the prominent Finsbury Food group.

 

Up until the launch of Genius, celiacs had no fresh bread options, as supermarkets were reticent to stock products they saw little demand for and therefore represented a high wastage risk. However, within two weeks of Genius launching in 700 Tesco outlets it had become the supermarket’s best-selling ‘free-from’ product. It has now become the largest brand in the entire ‘free-from’ market. In September 2010, Finsbury declared that the Genius brand was worth more than £10m at retail level. To contextualize this, UCB commercial director Paddy Cronin revealed to FoodManufacture.co.uk that the entire gluten-free bread market had been worth a total of £8m before Genius was launched.

 

A number of fresh ‘free-from’ breads have launched since Genius, including varieties from Nutrition Point and Mrs Crimble’s. Britain’s biggest bakery Warburtons invested £2.5m (US$3.9m) in building a dedicated bakery to produce a new gluten-free range (which has been 4 years in the making).

 

Globally, it seems that manufacturers have woken up to the potential of gluten-free breads. Datamonitor’s Product Launch Analytics database tracked 334 SKU launches from 2006¬-2010, with almost a third (107) coming in 2010 alone, following a period of flatness between 2007 and 2009. However, all the development has tended to come from Europe and North America – and the US in particular. Within the Asia Pacific region, launches have been conspicuous by their absence. What this does mean, however, is that there is an opportunity for manufacturers to gain first-mover advantages by creating a genuinely popular product that resonates with celiac across the region.

 

Further potential for gluten-free bread lies outside of the celiac demographic. Increasingly, consumers without gluten intolerances have viewed such a diet as more healthy than one incorporating significant amounts of gluten. This trend has been assisted by a growing number of popular celebrities being associated with a gluten-free diet. While it is undoubtedly the case that many of these consumers will regard it as a ‘fad’ – to be disregarded once the novelty has worn off – there is still potential for non-celiacs to be turned into purchasers in the medium or long-term if products can satisfy on a sensory level. Ultimately, this demographic requires gluten-free breads to taste great because they always have the option of reverting to ordinary varieties instead.

 

The key to continuing the growth of gluten-free bread is therefore to carry on focusing on the taste element, and combining this with a marketing strategy based on encouraging consumers to change their preconceptions about gluten-free. The soy industry has had similar problems with consumers reluctant to try new products after having negative experiences in the past. The formulation of fresh products can go a long way to helping remove this stigma. If there is no discernible difference between the taste of a gluten-free product and that of a flour-based alternative, then the potential to leverage the possible health benefits of gluten-free becomes more real.

 

Of course, the main audience for products will always be celiacs, regardless of how products might taste to non-celiacs. By catering to them in ways which replicate the options available to those without dietary restrictions, these consumers can have a more enjoyable and varied consumption experience and not have the feeling of having to compromise. It seems inevitable that gluten-free bread will continue to develop. As a result, the market will become more competitive, but ultimately a lot more lucrative. It seems that taking a ‘fresh’ look at the sector will be the way forward for manufacturers.