Avoiding growing pains in a growing market

Why it’s important for brands to stay ahead of the curve and lead the change in the ‘free from’ market.

As markets progress and consumers become more informed and demanding, it is important for brands to stay ahead of the curve and lead the change. The Free From market is a great example of a market that has seen increasing interest and is currently moving from niche to normal. However, this growing market is not without some growing pains.

‘Free From’ foods were initially created for consumers who had serious medical conditions and could not consume foods that contained certain ingredients such as wheat, gluten, lactose, nuts etc. This audience were diagnosed by their doctor and had symptoms from mild to the extremely severe. According to Allergy UK, the UK has one of the highest diagnosed allergy rates in the world with one in three people suffering from an allergy (including non food-related allergies) at some point in their lives.

Awareness of allergies and intolerances has increased and nowadays even those who are not diagnosed with a serious condition can be suspicious that they may be ‘sensitive’. In 2014 YouGov found that 1 in 5 in the UK considered themselves to have a food allergy or intolerance and 76% of sensitivities were suspected rather than diagnosed. This group of ‘self-diagnosed’ are increasingly reaching for products that allow them to ‘try out’ exclusionary diets and in 2014, Mintel reported that, of those who have purchased ‘Free From’ product, 55% do not suffer or live with anyone who suffers from any allergies. In terms of new brand launches, it is interesting that 50% of all baby food launches in Europe in 2014 were gluten free (double the 2012 levels). Within the UK, the market for Free From product continues to grow and is predicted to increase to £538 million in the UK by 2018. Beyond these ‘sensitivities’, consumers are also aware of celebrities who have attributed their improved performance or weight loss to an exclusionary diet, such as Novak Djokovic, Cheryl Cole and Gwyneth Paltrow. This has created a certain aspirational halo and high expectations of the benefits of the category.

The growth in the Free From market is coming from the emerging ‘self diagnosed’ and ‘life-style’ audience coming into the market, but critically they have different needs, expectations and behaviours to the original customers. Thus, while it was previously sufficient to communicate the functional benefit of the brand being ‘gluten free’, now communications and packaging design need to work much harder and connect emotionally.

Dragon Rouge has worked with many different successful clients launching into and playing in this Free From market. We have learned first-hand from consumers what they are eating, and experimenting with, Free From products for a wide array of reasons; perceived better health, the ability to lower inflammation, to help them lose weight and to alleviate the symptoms of depression. We use this consumer insight to help brands to connect more effectively with consumers through brand strategy, innovation and design. We helped Warburton’s create a new Free From brand, Newburn Bakehouse, which is now one of the biggest brands in Free From breads offering wheat-free, gluten-free and dairy-free alternatives. We carried out ethnographic research with the core and emerging audiences and developed product propositions and an innovation pipeline that would build the brand over time. Since launching in 2012, it has moved into a leadership brand in the category as well as moving into foodservice.

What used to be the preserve of smaller niche brands is now reaching wider conscious and the bigger brands are getting on board. Look at the impact of Ben & Jerry’s launching non-dairy ice cream. There is clearly a market of consumers crying out for good quality free-from alternatives.

What is really important to remember is that these emerging ‘lifestylers’ are not stuck for choice — they have customisable and individualist diets that they can dip in and out of. They don’t necessarily choose between a small array of free-from brands, they choose between free-from brands and brands in the original market — so they might purchase gluten-free pasta today and might purchase a regular brand of pasta next week. Their choice is broader and their motivations are more subject to change. They can leave as quickly as they came. There are more factors employed in their decision-making process, such as price, who they are purchasing for, convenience and health benefits. All of these come into play in different ways for the various segments within this interesting emerging audience.

The potential fickleness of these new consumers is not the only issue. The growing pains are coming as consumers question benefits in terms of taste and nutrition. In the USA, the number thinking gluten free was generally healthier fell from 46% in 2010 to 35% in 2012; those thinking it is effective in weight management fell from 30% to 27% during the same period. 38% of Free From consumers think the Free From foods don’t taste as good as regular foods.

While the forecasts for growth are promising and the consumer demand is increasing, this is a complex marketplace. Staying ahead of the curve and avoiding the potential pitfalls requires consumer and branding expertise. Dragon Rouge are excited to continue helping our clients to identify unmet needs, be proactive and innovative and capitalise on the growth in the market. Lead the change, don’t fall behind.