Table of Contents
Overview
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- What you need to know
- Products covered in this Report
Executive Summary
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- The market
- Media buzz and increased availability boost free-from sales 2012-17
- Inflation to continue over 2017-22
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- Figure 1: UK retail value sales of free-from food and drink, 2012-22
- Health credentials of exclusion diets called into question
- Companies and brands
- Alpro continues to lead the free-from category in 2017
- Retailers lead on gluten-free bakery NPD in 2016/17
- Plant-based milks remain the main focus of dairy-free and L/N/R lactose NPD in 2016/17
- Tesco leads on dairy-free and L/N/R lactose launches in 2016/17
- Advertising spend rises, but at a slower rate than in previous years
- Alpro remains the top advertiser, with a focus on permissibility
- The consumer
- Half of UK adults report avoidance in their household
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- Figure 2: Avoidance of foods/ingredients, by reason, September 2017
- Rise in reported usage of free-from products
- Health is a key factor for free-from food and drink
- Few non-users have actively negative views
- Consumer concerns about sugar affect free-from category
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- Figure 3: Behaviours relating to free-from food and drink, September 2017
- Shoppers are divided on in-store positioning
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- Figure 4: Free-from food and drink buyers’ behaviours, September 2017
- ‘Shortcut’ and premium products appeal widely
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- Figure 5: Users’ attitudes towards free-from food and drink, September 2017
- What we think
Issues and Insights
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- Need for companies to demonstrate good health credentials
- The facts
- The implications
- Premium products can succeed even as incomes come under pressure
- The facts
- The implications
- Brands must find ways to appeal beyond their free-from status
- The facts
- The implications
The Market – What You Need to Know
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- Media buzz and increased availability boost free-from sales 2012-17
- Inflation to continue over 2017-22
- Health credentials of exclusion diets called into question
Market Size, Segmentation and Forecast
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- Media buzz and increased availability boost free-from sales 2012-17
- Stronger growth in dairy-/lactose-free 2015-17
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- Figure 6: UK retail value sales of free-from food and drink, by segment, 2015-17
- Inflation to continue over 2017-22
- Income squeeze to hinder sales
- Limited ability to find new users
- Slowing growth predicted going forward
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- Figure 7: UK retail value sales of free-from food and drink, 2012-22
- Figure 8: UK retail value sales of free-from food and drink, 2012-22
- Forecast methodology
Market Drivers
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- Inflation hits the market
- Income squeeze threatens category growth
- Government considers withdrawing gluten-free prescriptions
- Media buzz and celebrity endorsement buoy up free-from products
- Media backlash against clean eating in 2017
- Health credentials of free-from food and drink called into question
- Osteoporosis Society warns young people that they risk future bone fractures
- Scientific group advises against gluten-free diets without a medical need
- University medical department warns of risk of iodine deficiency from dairy avoidance
- European Court rules that dairy substitute products cannot use dairy-style names
- Serving suggestions and in-store positioning can help to address consumer uncertainties
- Vegan advertising campaigns attack the dairy industry
- Dairy industry mobilises its forces
Companies and Brands – What You Need to Know
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- Alpro continues to lead the free-from category in 2017
- Retailers lead on gluten-free bakery NPD in 2016/17
- Plant-based milks remain the main focus of dairy-free and L/N/R lactose NPD in 2016/17
- Tesco leads on dairy-free and L/N/R lactose launches in 2016/17
- Advertising spend rises, but at a slower rate than in previous years
- Alpro remains the top advertiser, with a focus on permissibility
Market Share
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- Alpro continues to lead the free-from category
- In-store positioning gives a further boost to Alpro
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- Figure 9: Leading brands’ sales and shares in the UK free-from market, by value, 2015/16-2016/17
- Genius sees values rise on flat volumes
- Improved in-store visibility and NPD help Schär to grow
- Bfree gains distribution
- Own-label raises the competition for brands as retailers expand their free-from ranges
Launch Activity and Innovation
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- Free-from claims rise over 2013-16
- Gluten-free remains the primary free-from claim in 2016
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- Figure 10: New product launches in the UK retail food and drink market with selected free-from claims, by claim, 2013-17
- Non-dairy claims rise sharply, though from a low base
- Gluten-free
- Retailers lead on NPD in 2016/17
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- Figure 11: Gluten-free product launches in the UK bakery market^, by top 10 companies, 2013-17
- Tesco adds premium free-from products
- Morrisons promotes its new launches as a good value choice
- Sainsbury’s debuts freshly-baked gluten-free breads
- Leading players launch on-the-go gluten-free items
- Genius unveils new look and half loaves
- More artisan-style products in gluten-free
- Warburtons removes Newburn name in rebrand
- Baking mixes/ingredients lead in gluten-free bakery in 2016
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- Figure 12: Gluten-free product launches in the UK bakery market^, by sub-category, 2013-17
- Companies promote health benefits to add permissible element
- Delicious Alchemy targets special occasions with new cake kit
- Sweet biscuits retake the lead in NPD in 2017
- Mr Kipling extends into gluten-free
- Dairy-free and L/N/R Lactose
- Plant-based milks remain the main focus of NPD in 2016/17
- Organic brands innovate with ingredients and types
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- Figure 13: Dairy-free and L/N/R lactose launches in the UK dairy market, by sub-category (sorted by 2016), 2013-17
- Nut milk yogurts make their UK debut
- Ben & Jerry’s almond milk ice creams arrive in the UK
- Unilever expands its dairy-free spreads range
- Tesco leads on NPD in 2016/17
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- Figure 14: Dairy-free and L/N/R lactose launches in the UK dairy market, by top ten companies (sorted by 2016), 2013-17
- Alpro unveils no-added-sugar yogurts
- Organic brand Rachel’s makes its debut in the free-from category
Advertising and Marketing Activity
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- Advertising spend rises in 2016, though rate of growth slows
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- Figure 15: Total above-the line, online display and direct mail advertising expenditure by companies operating in the free-from food/drink market (sorted by 2016), 2013-17
- Alpro retains its advertising lead
- Go On yogurts reference health credentials to add permissibility
- Breakfast campaign aims to appeal to variety seekers
- Ice cream advert calls out the product’s reduced-sugar proposition
- Continued emphasis on environmental credentials
- Unilever continues to support Flora Freedom
- Adverts for flavoured variants emphasise health and versatility
- Online advertising continues to focus on the environment
- Genius appeals to the senses in new online campaign
- Tesco puts emotional focus on fish fingers advert
- Sainsbury’s credits social media buzz as key to success of its cheese alternatives
- The Coconut Collaborative makes its outdoor advertising debut
- Nielsen Ad Intel coverage
The Consumer – What You Need to Know
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- Half of UK adults report avoidance in their household
- Rise in reported usage of free-from products
- Health is a key factor for free-from food and drink
- Few non-users have actively negative views
- Consumer concerns about sugar affect free-from category
- Shoppers are divided on in-store positioning
- ‘Shortcut’ and premium products appeal widely
Avoidance of Foods/Ingredients
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- Half of UK adults report food/ingredient avoidance in their household
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- Figure 16: Avoidance of foods/ingredients, by reason, September 2017
- Under-35s are particularly likely to report avoidance
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- Figure 17: Repertoire of foods/ingredients avoided in the household, September 2017
- Dairy avoidance unchanged despite pro-vegan advertising campaigns
- Red meat avoidance slips as media spotlight fades
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- Figure 18: Avoidance of foods/ingredients, by type, September 2017*
Types of Free-from Food and Drink Used and Bought
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- Labelling helps to drive increase in reported usage
- …but some products enjoy notable usage outside of exclusion diets
- In-store positioning boosts visibility of free-from products
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- Figure 19: Usage and buying of free from food and drink, September 2017
- Families are key users of free-from food and drink
- …as are under-35s
- Avoidance diets do not always help free-from products
- Ethical labels and meal deals are promising means to appeal to non-user avoiders
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- Figure 20: Types of Free-from Food and Drink Used and Bought, September 2017
- Media and advertising buzz fuels rise in dairy substitutes
- Concerns around animal welfare and the environment are key motivations for dairy substitutes users
Reasons for Eating/Drinking Free-from Food and Drink
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- Media buzz strengthens free-from products’ health halo
- Companies must ensure their nutritional credentials are sound
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- Figure 21: Reasons for eating/drinking free-from food and drink, September 2017
- Desire for variety is a key reason for using free-from food/drink
- Meal deals and discount vouchers should allow companies to tap into consumer interest in variety
Barriers to Eating/Drinking Free-from Food and Drink
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- ‘Functional’ image lingers around free-from food and drink
- Various options for companies looking to grow usage of free-from food and drink
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- Figure 22: Barriers to eating/drinking free-from food and drink, September 2017
- Few non-users have actively negative views of free-from products
- Weakened household incomes likely to hinder free-from products’ ability to find new users
- Promotions could allow companies to overcome the price barrier
Behaviours relating to Free-from Food and Drink
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- Consumer concerns around sugar affect free-from products
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- Figure 23: Behaviours relating to free-from food and drink, September 2017
- Opportunities for expansion in L/N/R sugar versions
- Premium products can capitalise on consumer interest in meal deals
- Meal deals can allow companies to attract ‘missing’ potential users
- Ethical labels have wide appeal
Free-from Food and Drink Buyers’ Behaviours
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- Opinions are divided on in-store positioning
- Dedicated aisles can help supermarkets to showcase their free-from ranges
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- Figure 24: Free-from food and drink buyers’ behaviours, September 2017
- Weakened household incomes are a threat to category growth
- Opportunities remain for ‘shortcut’ and premium products
Users’ Attitudes towards Free-from Food and Drink
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- Short ingredients lists are favoured
- Opportunities for clean label products
- Explaining unfamiliar ingredients should give extra reassurance to consumers
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- Figure 25: Users’ attitudes towards free-from food and drink, September 2017
- ‘Shortcut’ products for cooking/baking appeal to many
- Products seen as close to homemade should especially benefit
- Premium prepared meals can step in where restaurants are seen to fail
- …and can do well even where incomes are squeezed
- Premium products are rare within free-from
Appendix – Data Sources, Abbreviations and Supporting Information
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- Abbreviations
- Consumer research methodology
Appendix – Market Size and Forecast
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- Figure 26: Forecast of UK retail value sales of free-from food and drink, best- and worst-case, 2017-22
- Forecast methodology
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