Mintel forecasts UK free-from sales to reach over £500 million in 2016

The latest research from Mintel has revealed that sales of free-from foods are forecast to grow 13% to reach £531 million in 2016, up from an estimated £470 million in 2015.

The market intelligence agency also forecasts the market will continue to grow to reach £673 million by 2020.

From the six months to September 2015, a third (33%) of Brits have purchased or eaten free-from foods, with 22% buying or eating gluten-free products, 19% dairy substitutes, 16% wheat-free and 16% lactose-free. Almost half (48%) of those who eat or buy free-from said that they are likely to increase consumption over the next year.

This market growth comes with an increase in product innovation, says Mintel, with 12% of new food products launched in the UK in 2015 carrying a gluten-free claim, up from 7% in 2011.

“The free-from market enjoyed remarkable growth in 2015, and further growth is likely to come from the existing pool of users intending to spend more,” said Kiti Soininen, head of UK food, drink & foodservice research at Mintel. “The growing availability of free-from food and drink products at mainstream supermarkets has allowed established users to widen their repertoires, with easy availability potentially prompting more regular use. ”

One in four (27%) Brits say they or someone else in their household avoid certain ingredients as part of a general healthy lifestyle, compared to one in five (19%) who report avoidance due to an allergy or intolerance. And 8% avoid gluten as part of a healthy lifestyle, compared to 5% who report avoidance due to an allergy or intolerance.

In fact, the top reason free-from users cite for eating free-from foods is because it makes them feel better (39%), while a fifth (19%) say they eat free-from because they are trying to lose weight.

“The ‘health halo’ of free-from foods is a key driver of uptake and has resulted in a much larger group of users than the limited number of actual or suspected allergy or intolerance sufferers. However, this leaves the free-from food category exposed to changes in consumer opinion and media coverage. The importance of health in driving uptake also means that companies need to ensure that nutrition profiles are best in class.” Soininen adds.

However, the research shows that the nutritional credentials of free-from food do matter, as over half (54%) of those who eat free-from would stop doing so if they thought these were less healthy than standard offerings, for instance if they were higher in fat or sugar.