Strong growth in Free From market, the products are bringing in double-digit growth rates for food retailers in Europe and overseas and this is just the tip of the iceberg. Market researchers forecast a markedly dynamic development for the years to come.

The German food retail industry is more than satisfied with the development of the Free From segment. According to Frankfurt market research agency The Nielsen Company, the industry saw profits of around EUR 75 million with lactose-free UHT milk in 2012 alone - a 14% increase.

The growth on the marketing side was even more evident. Consumers bought some 80 million litres of lactose-free UHT milk - 22% more than the year before. Sales of gluten-free products are also cause for joy in the industry. Market researchers documented an increase of 16% in both quantity and value in 2012.

In total, the food retail sector catalogued sales of about EUR 40 million in gluten-free items. The markedly dynamic development in the Free From market will continue here as well in the coming years. According to experts, annual sales increases of 10% to 15% are expected in Germany.



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Worldwide growing demand

In the UK, the signs are also pointing towards growth in the Free From segment. Experts at renowned London market research agency Mintel forecast a profit increase of more than 50% for the British market by 2016 - which translates to about EUR 600 million.

The retail sector is currently experiencing sales amounting to about EUR 380 million with Free From products in that market. This is an increase of more than 100% compared to 2006. Gluten-free products and foods that do not contain any dairy products are the growth drivers in this market.

By way of example, retail sales for gluten-free foods increased by 30% in the UK between 2009 and 2011 to EUR 155 million. For the dairy-free segment, market researchers have identified an increase of almost 40% during the above-mentioned time frame, to a value of EUR 164 million.

The sales trend is also an upward one in the USA. In 2011 the retail sector enjoyed sales to the tune of USD 6 billion (EUR 4.5 billion) with gluten-free products alone - 27% more than two years before. Snacks such as bread and baked goods are the primary growth drivers.

And it is not only an increasingly wider range of Free From foods that is bringing about growth impulses in Europe and overseas. Significantly improved availability of products and the innovativeness of manufacturers, who are bringing a variety of new products and brands to the market, are also providing for increasing demand.

Expo Communications BV