Booming Food Intolerance Market

Latest research from Mintel highlights rapid growth of some 165% in the food intolerance and allergies market since 2000. Valued at £55.6 million in 2002, there have been a number of key factors driving this sector, including the growing number of consumers who perceive that they have a food allergy/intolerance.

Dubbed a 'designer disorder', there has also been a recent trend towards the fashionable nature of suffering from food intolerance and avoiding specific food and ingredients. Growing awareness of food intolerance/allergies among the medical profession has boosted the market, resulting in an increase in the number of consumers being given medical advice to follow elimination diets to test for food intolerance. Aside from the incidence of food tolerance, sector growth reflects the entrance of grocery multiples to the category. The competitive nature of the retail market and quest for retailer share is leading to wider product offerings, including the development of own label ranges.

Exclusive consumer research questioning 1,000 housewives finds the health issues that mostly concern respondents to be high blood pressure (33%) and high blood cholesterol (25%). Those associated with food intolerance/allergy include irritable bowel syndrome (12%) and migraine (14%). Concerns over wheat (4%) lactose and gluten (2%) and nut and other food allergy/intolerance (3%) appear relatively low down on consumers' lists of health concerns. This is perhaps a reflection of the fact that food intolerance/allergy affects only a small proportion of consumers, and also suggests that awareness may be very low or even non-existent among respondents who have a food intolerance/allergy but who are not aware of it.

Collectively, one in ten housewives avoid eating wheat/lactose and gluten. This compares to nearly two in three who avoid high-fat foods, around one in three who avoid sugar and saturated fat, one in four who avoid salt and one in five who avoid artificial sweeteners, GM foods/ingredients, E numbers, chillies/spicy foods and shellfish. 'As well as avoiding food for food intolerance and allergies, these foods will also be avoided for other reasons as well, eg cheese and nuts are high in fat, consequently, these responses overplay concerns about allergies. This indicates that food intolerance and food allergies are a less common reason than healthy eating for avoiding particular foods and ingredients, but nevertheless point to a substantial market demand for specialist foods' comments James McCoy, Senior Consumer Analyst.

The sector is forecast to more than double in value between 2002 and 2007 reaching £138 million. Although the market is expected to remain a niche market, it is likely to be subject to further innovation and promotion, as the category occupies increasing shelf space in stores. Various forms of activity from the grocery multiples are likely to be seen in the short term. It is a strong possibility that those multiples already offering a branded range are likely to introduce their own-brand ranges. Price is a key issue and the introduction of more own-label ranges will ensure the multiples a greater opportunity to compete on price.

Although food intolerance and allergies will be the principal drivers of growth in this market, increasingly some consumers will see the appeal of free from foods, whether or not they medically require such foods. 'The onus will be on manufacturers to further boost awareness among consumers who are looking to maintain a healthy diet but not necessarily requiring 'free-from' foods if the market is to realise its potential, as lack of awareness can be a barrier to further growth' comments James McCoy.

Consumers on special diets want to be able to keep to their regime with the minimum of effort and inconvenience. Such consumers therefore demand a wide choice of convenience foods suitable for their particular needs. For the 'free from' market, this means plenty of scope for new product development. One potential area of differentiation for branded and own-label ranges is the opportunity to address any potential dietary insufficiencies or additional dietary requirements that may arise from following avoidance diets. This might be achieved for example by fortifying foods to ensure such consumers are eating a balanced diet. More differentiation along these lines is likely to be seen in the future. Indeed, products offering more than one perceived key attribute are another area for development, to ensure that products will appeal to a wider consumer audience.

All articles 2006-23 written and edited by Mel Crowther and/or Nick Thomas unless otherwise stated.

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