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The Gluten-Free Food and Beverage Market: Trends and Developments
Worldwide, 2nd Edition
April 1, 2009
The retail market for gluten-free foods and beverages is exploding as a result of multiple
triggers. On the marketer side, giant General Mills has converted its venerable Rice
Chex Brand to gluten-free status, thus beginning what promises to be a battle of giants
as other mega-marketers look to enter the fray. The first giant marketer to create a
gluten-free product was Anheuser-Busch, which debuted a gluten-free beer, Redbridge
in 2006. Also that year the international spice giant McCormick and Co. acquired Simply
Asia Foods. Undeterred, numerous specialty marketers have sprung up, using web 2.0
networking to sell directly in what has long been a consumer driven market.
On the consumer side, demand has been growing exponentially as sufferers of a wide
variety of maladies (including celiac disease, autism, attention deficit disorder, irritated
bowel syndrome, and MS) have come to believe a gluten-free diet will provide relief.
The consumer core of celiac disease, and gluten allergy, sufferers is also growing
steadily as diagnosis and treatment of these conditions has improved and increased.
Retailers are holding up their side too. Supermarkets’ gluten-free marketing ranges from
gluten-free product lists on their websites, to gluten-free private-label reformulations, to
new gluten-free store sections. Even the Federal Government is lending a hand as it
finalizes regulatory criteria for gluten-free labeling. This new regulatory clarity should
prove a boon to marketers currently struggling through a hodge-podge of self-help
organizations for certification. Even the current economic slowdown cannot be seen as
a negative factor for the overall gluten-free foods and beverages market, as hard-
pressed consumers are motivated to try dietary self-help when mainstream medical
assistance grows out of reach.
Packaged Facts projects that this segment of the U.S. retail marketplace enjoyed a 28%
CAGR to reach $1.56 billion by the end of 2008. Packaged Facts goes on to project that
the segment will continue to grow, though not at the same torrid pace, through 2012.
The Gluten-Free Food and Beverage Market: Trends and Developments Worldwide,
2nd Edition. contains comprehensive data on the U.S. market for Gluten-Free Foods

2. And Beverages, including historical (2004-2008) and forecast (2008-2012) retail sales
data. The report discusses key trends affecting marketers, retailers and consumer
demographics. It also contains two special sections: 1) Global Spotlight, a look at
international activity; and 2) Medical Conditions Relating To Gluten, which deals with
the broad spectrum of complaints that define consumer segments. In addition, the
report profiles a broad spectrum of marketers.
Report Methodology
The information in The Gluten-Free Food and Beverage Market: Trends and
Developments Worldwide, 2nd Edition is based on primary and secondary research.
Primary research includes in-depth, on-site examinations of retail outlets and interviews
with companies, distributors and retailers to obtain information on new product and
packaging trends, marketing programs, distribution methods and technological
breakthroughs. Secondary research including data gathering from relevant sources,
including consumer and industry publications, newspapers, government reports,
company literature and corporate annual reports; Information Resources, Inc.; and other
trade sources. Consumer demographics are derived from multiple sources including the
Simmons Market Research Bureau.
What You’ll Get in This Report
Gluten-Free Foods and Beverages makes important predictions and recommendations
regarding the future of this market, and pinpoints ways current and prospective players
can capitalize on current trends and spearhead new ones. No other market research
report provides both the comprehensive analysis and data that Gluten-Free Foods and
Beverages offers. Plus, you’ll benefit from extensive data, presented in easy-to-read
and practical charts, tables and graphs.
How You’ll Benefit from This Report
If your company is already doing business in the, gluten-free foods and beverages
market or is considering making the leap, you will find this report invaluable, as it
provides a comprehensive package of information and insight not offered in any other
single source. You will gain a thorough understanding of the current market for Gluten-
Free Foods and Beverages, as well as projected markets and trends through 2012.
This report will help:
• Gluten-Free Start-Ups understand how to target the various consumer
segments; find the best path for retail and distribution; and understand the
competitive situation.
• Marketing managers identify market opportunities and decide what brands may
be ripe for gluten-free conversion as well as how to develop targeted promotion
plans for consumers.

3. • Research and development professionals stay on top of competitor initiatives
and explore demand for gluten-free foods and beverages.
• Advertising agencies working with foods and beverage clients understand the
product buyer in order to develop messages and media delivery strategies that
compel consumers to buy gluten-free foods and beverages.
• Business development executives understand the dynamics of the market and
identify possible partnerships.
• Information and research center librarians provide market researchers, brand
and product managers and other colleagues with the vital information they need
to do their jobs more effectively.
Table of Contents
Chapter 1: Executive Summary
The Products
What is Gluten?
FDA gluten-free food labeling standards are overdue
A List of the Types of Products and Categories Represented in the Gluten-free
Foods and Beverages Market
The Market
Size and Growth of Market
Market Definition
Products that Could Conceivably Contain Gluten, but Clearly Don’t
A Summary of Market Forces from 2004-2008
2008 Finishes Off with $1.56 Billion in Retail Sales
Table 1-1: Retail Sales of U.S. Gluten-free Foods and Beverages, 2004-2012
Sales Are Projected to Reach $2.6 Billion by 2012
Table 1-2: Projected U.S. Retail Sales of Gluten-Free Foods Beverages, 2008-
2012
The Marketers
Overview of Marketers: 4 Basic Types
Specialty-Marketers Still in the Majority
Health/Natural Food Marketers Convert to Gluten-Free
Supermarket’s Private-Label Brands Leap in with Both Feet
Mega-Marketers Join the Fray
The Marketplace
Different Types of Retail Channels
G-F Products are Retailed through Some Unusual Channels
Market Composition by Retail Outlet 2008
Table 1-3: U.S. Share of Sales of Gluten-Free Foods and Beverages, by Retail
Outlet 2008 (percent)
The Consumer
Numerous Medical Problems are Associated with Gluten
Gluten-Free 2.0

4. Healthy Consumers Go Gluten-Free
New Products & Trends
Vast Array of Marketers are Going Gluten-Free
Private Label is Coming on Strong
A Rash of New G-F Beers has not Yet Made a Splash in Sales
Global Spotlight
Europe, North America, & Anzac Countries are at the Forefront
Affluent Countries are Prime GF Markets
European Governments are Proactive about G-F Dieting
Chapter 2: The Products
Key Points
What is Gluten?
What is Gluten-Free?
FDA Gluten-Free Food Labeling Standards Overdue
What is a Gluten-free Food?
A List of the Types of Products and Categories Represented in the Gluten-free
Foods and Beverages Market
Sources for Gluten-Free Flour, an International Guide
Gluten-free Doesn’t Mean Home Free When it Comes to Baking
Gluten-Free Advocacy Groups’ Certification Approval Programs
Other Forms of Gluten-Free Endorsements from Gluten-Free Advocacy Groups
Self Labeling is the Most Common Form of Certification, but it has Some Pitfalls
Chapter 3: Medical Conditions Relating to Gluten and the Consumer
Key Points
Numerous Medical Problems Involve Gluten
Celiac Disease
Celiac Disease Can be Symptomatic or Asymptomatic
Only 40,000-60,000 Americans Diagnosed with Celiac Disease
Undiagnosed Celiacs Estimated at Between 1.5 to 3 million
Celiac Patients Have Influence Well Beyond their Diagnosed Numbers
Anheuser-Busch Pegs G-F Demographic Base at 3.2 Million
Gluten-free Diet is the Only Treatment for Celiac Disease, but this May Change
Gluten Allergy, Gluten-Sensitivity, Idiopathic Gluten-Sensitivity and Gluten-
Sensitive Idiopathic Neuropathy
Irritated Bowel Syndrome (IBS)
Gluten-free Dieting Embraced by IBS Sufferers, but Frowned on by Mainstream
Medicine
Autism
Autism Cuts Across All Ethnic and Income Groups
The Number of Autism Diagnoses Rising Annually
Unknown Until the 1940s, Autism Remains Mysterious
Refrigerator Mom Concept Melts Away
Autism Diets Eliminate Casein as Well as Gluten
Attention-Deficit/Hyperactivity Disorder (ADHD) and Attention Deficit Disorder
(ADD)

5. MS, RSI & Other Neurological Conditions
Cancer and Other Outlyers
Lack of Medical Evidence Does Not Deter a Public Benefiting From the Placebo
Effect
Gluten Tolerances Vary Depending on Medical Condition
Gluten-Free 2.0
Table 3-1: Diseases that Have a Major Effect on the Market and the Types of
Gluten-Free Diet Use to Treat Them
Table 3-2: A Sampling of U.S. Organizations and Support Groups with Gluten-
Free Diet Information
Chapter 4: The Market
Key Points
Market Definition
Products that Could Conceivably Contain Gluten, but Clearly Don’t
A Summary of Market Forces from 2004-2008
2008 Finishes Off with $1.56 Billion in Retail Sales
Figure 4-1: Retail Sales of Gluten-free Foods and Beverages, 2004-2008 (in
millions of dollars)
How Packaged Facts Derived its Sales Figures
Market Composition by Retail Outlet 2008
Table 4-1: Share of Sales of Gluten-Free Foods and Beverages, by Retail Outlet,
2008 (percent)
Different Types of Products Favor Different Types of Retail Outlets
Future Market Growth Factors
Mainstreaming of Gluten-Free Foods and Beverages
General Mills Opens the Floodgates
Anheuser-Busch Breaks New Ground
Retailers Use Private Label, Special Sections and Product Lists to Push Gluten-
Free
Wegmans Rides the Gluten-Free Wave
Market Driven by Consumer Activism
Web 2.0 Marketing a Key Factor
Chinese Ingredient Scandal Raises Anti-Gluten Consciousness as Gluten-free
Dons a Healthy Halo
Gluten-free Dons the Healthy Food Halo
Autism's Unlikely Gluten-Free Spokeswoman
Growing Awareness and Diagnosis of Celiac Disease
Manufacturers Expand Gluten-Free Offerings
One Large and Omnipresent Cloud on the Market’s Horizon
Economic Downswing has a Silver Lining for the Gluten-free Market
Sales are Projected to Reach $2.77 Billion by 2012
Table 4-2: Projected U.S. Retail Sales of Gluten-Free Foods Beverages, 2008-
2012 (in millions of dollars)
Chapter 5: The Marketers
Key Points

6. Overview of Marketers: 4 Basic Types
Specialty-Marketers Still in the Majority
Health/Natural Food Marketers Convert to Gluten-Free
Supermarket’s Private-Label Brands Leap in with Both Feet
Mega-Marketers Join the Fray
3 Paths into the Gluten-Free Market
Determining Market Share
Methodology for Tracking Gluten-free Sales
Monitored Retail Sales of Gluten-free Marketers in Food/Drug/Mass
Merchandiser Outlets by Category
Dry Packaged Dinners
Table 5-1: Retail Sales of Gluten-free Marketers in the Dry Packaged Dinner
Category (in dollars and percent of GF products)
Dry Packaged Dinner Category
Spaghetti/Italian Sauce
Table 5-2: Retail Sales of Gluten-free Marketers in the Spaghetti/Italian Sauce
Category (in dollars and percent of GF products)
Pasta
Table 5-3: Retail Sales of Gluten-Free Marketers in the Pasta Category (in
dollars and percent of GF products)
Frozen Pizza
Table 5-4: Retail Sales of Gluten-Free Marketers in the Frozen Pizza Category
(in dollars and percent of GF products)
Frozen Breakfast
Table 5-5: Retail Sales of Gluten-free Marketers in the Frozen Breakfast
Category (in dollars and percent of GF products)
Cold Breakfast Cereal
Table 5-6: Retail Sales of Gluten-free Marketers in the Cold Breakfast Cereal
Category (in dollars and percent of GF products)
Crackers
Table 5-7: Retail Sales of Gluten-free Marketers in the Cracker Category (in
dollars and percent of GF products)
Market Expands in Different Directions Complicating Competition
General Mills Shuffles the Deck
Using Private-Label and Special Sections, Retailers Join the Fray
Gluten-free Marketers Have the Advantage of Clarity Over Broader Based-
Marketers
Food Roulette Isn’t Something You Want to Put Your Money On
Wellshire Farms Response
Consequences for Consumers Inevitably Lead to Consequences for Marketers
Specialty Marketers Struggle with Pricing During a Downturn
Mega-Marketers Remain Poised for a Move—Watch Your Price Points!
An Ace in the Hole that No Amount of Price Points Can Take Away
Competitor Profiles
Competitor Profile: Amy’s Kitchen, Inc., Santa Rosa, California
Amy’s Markets to Consumers with a Wide Variety of Health Concerns

7. A Continuing Focus on Gluten-Free Since 2002
A Continuing Aggressive Stance on New Product Introductions
Competitor Profile: (Weetabix) Barbara’s Bakery, Inc., Petaluma, California
Weetabix Enters the Picture
A Private Equity Firm Takes Charge
Competitor Profile: Bob’s Red Mill Natural Foods, Inc., Milwaukie, Oregon
Rising Like a Phoenix from its Own Ashes, Bob’s Red Mill Relocates
A Gluten-Free Manufacturing Area Reflects Bob’s Commitment to Expanding
Gluten-free Offerings Gluten-free
Years of Double Digit Growth
Competitor Profile: Ener-G Foods, Inc., Seattle, Washington
One of the Oldest Dietary Needs Food Producers in the U.S.
A Diverse Gluten-free and Gluten-free/Casein-free Product Line
An Ever Changing Product Line
Competitor Profile: Enjoy Life Natural Brands, LLC, Schiller Park, Illinois
Changing of the Guard
The Company Acquires Perky’s
Chapter 6: The Marketplace
Different Types of Retail Channels
G-F Products are Retailed through Some Unusual Channels
Gluten-Free E-Tailers
Gluten-Free Specialty Stores:
G-F Stores also Pay Attention to Other Dietary Needs
Marketer/Producer Websites and Visitor Centers
Ethnic and International Stores and Websites
Untraditional Retail Outlets Benefit from Web 2.0 Marketing
Gluten-Free E-Tailers Battle E-Grocers
Where there’s a Mouse there’s a Way on the Gluten-free Web
Supermarkets also Use Web 2.0 to Embrace the G-F Consumer
Health/Natural Foods Stores Have a Similar, but Different Culture than Gluten-
free Specialty Stores
Whole Foods Completes $565 Million Acquisition of Wild Oats
Supermarkets Embrace the Gluten-Free Consumer
The Prime Beneficiaries of Retailers’ G-F Activities are Retailers
SuperValu Yanks Gluten-free Lists
Missing Out on G-F Private Label Customers Could be Costly for Retailers
Retail Distribution Methods
Direct Delivery Advantages
The Cost of Face-To-Face Business
Advantages of Warehouse Delivery
Smaller Marketers Work through Brokers
Introducing New Special Dietary Needs Products to the Market
Gluten-free Presence is Felt at Health/Natural Foods Expos
Local Gluten-Free Events
Chapter 7: New Products and Trends

8. Key Points
New GF Product Intros Continue to Increase Annually
Table 7-1: New U.S. Gluten-Free Food and Beverage Product Intros, U.S., 2003-
2008
Frozen Ready Meals Category Leads the Way
Table 7-2: New U.S. Gluten-Free Food and Beverage Product Intros in 2008, by
Category
Junk Food is the Strongest Trend in G-F Foods and Beverages
Table 7-3: New Gluten-Free Sweet and Snacks (Junk Food) Product Intros, U.S.,
2004-2008
Gluten-Free Beer: A World of Potential Not Yet Realized
Buckwheat & Sorghum are Most Common Grains in G-F Beer
The Great American Beer Festival Adds a Gluten-free Beer Category in 2007
Gluten-free Beer Competition “Will Grow Dramatically in the Future”, according to
Beer Fest
Anheuser-Busch’s Redbridge Takes the Gold
Lakefront Brewery’s New Grist Captures the Silver for Milwaukee
Sprecher’s Brewery Introduces Traditional African Beer
2008 Bronze Goes to Deschutes Brewery
The Vast Beer Market Beer has Room for a Profitable G-F Niche
Bard’s Tale an Exclusively Gluten-free Brewer
Passover Honey Lager, a Kosher, Gluten-Free Beer
Nouvelle-France Tries Gluten-Free Brewing North of the Border
Gluten-Free U.K. Ales Available in the U.S.
Nick Stafford’s Hambleton Ales
Green’s Gluten-free Beers
Belgian Style Ale Offers Opportunities to Gluten-Free Brewers
Carlsberg Finds a Way to Brew Gluten-free with Barley Malt
Around the World with Gluten-free Beer
Over 225 Marketers Introduced New Gluten-free Products into the U.S. in 2008
Table 7-4: New Gluten-Free Foods and Beverage Product Intros by Company,
U.S. 2008
G-F Private-label Soar—as Supermarket Chain Wegmans Leads in New Product
Introductions
Green Mountain Coffee Embraces the Junk-food Trend with Gluten-free
Chocolate
Brothers International Joins Disney to Introduce G-F Kid Snacks
Lhian Thai Rice Vermicelli Co. Comes in Fourth
Single Grain Marketers from Salba to Hemp
Ruth's Hemp Foods Hedging the Single Grain Strategy
The Marketing of Nutritional Addition vs. the Marketing of Taste Neutrality
Unique Grains More Nutritious than their Glutinous Counterparts
Taste Just as Good as a Glutinous Product —Angel’s Touch
Glutenfreeda’s “Crossover” Taste
Quinoa Corporation Emphasizes Nutritional Superiority
Unfamiliar Gluten-free Grains are Nutritional Powerhouses

9. Chapter 8: Global Spotlight
Key Points
Gluten-Free Glance at the World
Table 8-1: Gluten-Free Food & Beverage Product Introduction SKUs, 2000-2008,
by Nation
Productscan is Only a Measure of New Products and Not Existing Products
Converted to Gluten-free Status
Europe and North America are the Most Important Markets
In The Rest of the World, the Trans-Tasman Countries Stand Out
Asia, Africa and South America Have Mostly Gluten-Free Diets
World-Wide—G-F Marketing and Affluence Go Together
Spotlight on Europe
In Europe, Gluten-Free Dieting Becomes a Quality of Life Issue
Celiac Disease Occurs in One Out of Every 100 Europeans
In Europe, G-F Dieting is Even More Closely Associated with Celiac Disease
than in the U.S.
European Governments Actively Involved in Promoting Gluten-Free
Consumption
New European Gluten-Free Labeling Standards Passed in January 2009
Europe-wide Research Project to Facilitate Gluten-free Monitoring 149
Proactive Approach to Monitoring Will Benefit Market
Gluten-free Grassroots Organizations also Active in Europe
AOECS is the Most Important Grassroots Organization in Europe When it Comes
to Gluten-free Dieting
U.S. Company Alba Actively Involved in Gluten-Free Pharmaceutical Research in
Europe
Alba Sees a Turning Point in Treatment for Celiac Disease
Packaged Facts Predicts Alba’s Medication Will Not Affect the Market Over the
Short Term
Europe, a Common Market?
European National Spotlight: Germany
The Largest Gluten-free Market in Europe
Pandea GmbH
The Schär Company
European National Spotlight: Italy
Giuliani Tackles the Schär Company
European National Spotlight: Scandinavia (Denmark, Finland, Norway, Sweden)
In Certain Respects Finland is the Odd Man Out
A Leader in Organic Foods and State of the Art Manufacturing
Swedish Celiac Epidemic Linked to Baby Formula
Denmark, Compared to its Neighbors, a Bit of a Gluten-Free Slacker
Tulip and Carlsberg Supply Danes with Gluten-free Beer and Hot Dogs
Norwegians Feast on Gluten-Free McDonald's, Burger King Burgers & Other
Fast Food
Finland, the Gluten-free “Paradise”

10. Moilasen Leipomo & Friabröd Bakeries Distribute Frozen Gluten-free Goods
Throughout the Whole of Finland
Finnish Gluten-free Food has Europe-Wide Impact
Sweden’s Karolinska Institutet is a Leader in Gluten-free Medical Research . 161
Swedish Gluten-Free Marketers have European & Domestic Impact
European National Spotlight: Spain
Spain Gets Gluten-free Religion
European Marketers Roll Out G-F Products in Spain
Spanish Marketers are Active Too
European National Spotlight: The United Kingdom
Pharmacies Important Venues for G-F
Table 8-2: Prescribable Product List, January 2009
U.K. Gluten-free Marketers Comprise a Wide Spectrum
Gluten-Free Foods Ltd
Barkat Brand
North American National Spotlight: Canada
Canada Beats the U.S. to the Gluten-free Punch
The CCA’s Work has Created a Fertile Environment for Gluten-free Marketing
Exclusively G-F, Glutino Foods has Line of 60 Gluten-free Products and a
Thriving Online Business
Nature’s Path an Organic Food Marketer Can Trace its Roots Back to 1971
Nature’s Path Grows 800% in Four Years
Nature’s Path Invades Washington
Farmpure Foods & Source Salba are Leading Canadian Single Grain G-F
Marketers
Asian-Pacific National Spotlight: Australia
Coeliac Society of Australia Certifies G-F Products, Using its Trademarked Logos
Australian Companies Kez’s & Oway Self-Certify
International Gluten-free Marketers have Multiple Paths into the U.S.
Market
Nestlé
Figure 8-1: Nestlé Website Poll, Substances Nestlé’s Website Visitors are
Allergic to: (percent)
Source: Nestlé website as viewed in January 2009
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