Is Going Gluten-Free Too Costly?

The gluten-free food market in the U.S. is estimated to grow by USD 1,175.34 million from 2022 to 2027, at a compound annual growth rate of 9.94 percent, according to Technavio. 

The bakery segment will be significant for the U.S. gluten-free food market's growth between now and 2027. Demand has been propelled by the changing diets of consumers, increasing incidences of celiac disease, and innovation in baking. 

Bakers of gluten-free products expand their presence and increase the availability of gluten-free bakery products by launching exclusive outlets. For instance, in March 2020, Breadblok opened a gluten-free bakery in Los Angeles. Hence, the growing number of gluten-free bakeries is expected to drive the U.S. gluten-free food market growth during the projected period.

The rising demand for gluten-free bakery products is significantly fueling the U.S. gluten-free food market growth. The demand for healthy foods, especially gluten-free baked goods, increased during the pandemic to improve immunity, which led to a rise in the sales of gluten-free bakery goods such as bread, cookies, and biscuits. This, coupled with the growing prevalence of irritable bowel syndrome (IBS), has increased the demand for gluten-free food. 

However, a challenge holding the gluten-free food market back is the costliness of its products. The high costs are aligned with the manufacturing process of gluten-free food products with complexities not present in gluten-based products. 

More expensive ingredients, such as rice and corn, are used instead of wheat in gluten-free products, contributing to the costly manufacturing process. In combination with the cost of certifications, exclusive carriers to avoid cross-contamination, specialised supply chains, and logistics pose significant challenges for the market.