Setting The Stage 9.0 MM Canadians are gluten free 1% have
celiac disease with only 5% diagnosed 6% have gluten- sensitivity
22% are gluten avoiders for non medical reasons
Slide 3
The Facts There are an estimated 2,300,000 Canadians requiring
gluten-free products for medical reasons 300,000 suffer from celiac
disease, Approximately 2,000,000 suffer from some level of gluten
sensitivity. Celiac disease is on the rise - It is 4x more common
today than is was in the 1950s. It is expected to double every 15
years. 71% of consumers buy at least some gluten-free food/beverage
products & 51% will continue to purchase. Gluten-Free Consumer
inquires are the second most requested ingredient question for
retailers & food service establishments. The Halo Group: Family
members and those seeking a gluten-free diet for its perceived
health benefits adds approximately 7,000,000 to the total number of
Canadians looking to buy gluten-free products.
Slide 4
The Facts Who is Our Consumer What they didnt realize was that
Andrew wasnt the only one who would have to get over feeling
different. I felt like one of those people who think that nothing
you do is good enough for my kid, Nettie says. From family meals at
the holidays to play dates with friends, food is the heart of their
social interactions, and when the food changed, so did everything
else. They replaced all the pots, pans, colanders and utensils,
which were too contaminated to use. Next came a new toaster and
mixer and rolling pin and a once-in-a-lifetime cleaning of the
oven. I couldnt get rid of my grandmothers cast iron skillet,
though, Nettie says. They endured their first holiday season of
saying no to Christmas cookies, and the first visit to relatives in
Louisiana where Martinez had to explain that Andrew and Danny
couldnt eat the gumbo, no matter how little flour the cook put in
the roux.
Slide 5
The Facts The cost of buying certified gluten-free foods is
astronomical, especially to such a savvy, budget conscious shopper:
o $3.50 for a baguette (They are good, but not that good, she
reports), $5 for six flour tortillas (thats why we always have corn
tortillas), o $6 for oatmeal that used to cost $2 (we dont eat as
much oatmeal anymore), o the tiniest loaves of bread youve ever
seen for $6. Thats enough bread for one round of the homemade
lunches she makes for the kids every day.
Slide 6
The Facts Martinez says that gluten-free icons and labeling
help tremendously, but sometimes you still cant be sure. Last year,
she purchased what she thought was gluten-free rice mix from
Zatarains. When she discovered it contained orzo pasta made with
wheat, she contacted the company and got coupons for three free
boxes.
Slide 7
The Facts
Slide 8
The Facts Reasons for Gluten -Free Consumption 100% 39%
Digestive Health 31% Nutritional Value 25% Lose Weight 5% Treat
Celiac Disease
Slide 9
The Facts Gluten-Free More Trend than Fad Understanding the
focus on digestion is shedding insights into what some have called
a fad and others a trend in the ongoing growth of the gluten-free
market.
Slide 10
Market Growth The 2013 market for Gluten-Free products in
Canada is currently estimated to be $90.0 million Reports show a
10% (CAGR) growth of gluten- free sales until 2018 with a value of
$145.2 million in Canada According to the researchers, the growth
is fueled by an increase in celiac disease and food allergy
awareness & diagnosis. Also the gluten- free avoider consumer
segments perceive gluten-free foods as healthier i.e. no GMO, no
preservatives, heath food store heritage *Source:
MarketsandMarkets
Slide 11
Key Market Research Findings *Source: Google Trends 2013
Slide 12
Key Market Research Findings *Source: Google Trends 2013
Slide 13
Key Market Research Findings *Source: Google Trends 2013
Slide 14
Key Market Research Findings Major drivers for gluten-free
products are health benefits & general interest in healthy
eating The winning imperative for the gluten-free products industry
is new product development High price of gluten-free products have
restricted the growth of the market However, consumers have to
serve this GF diet as there is no alternative Private label brands
will cause a significant growth of the GF market revenue The global
gluten-free food products market is dominated by US companies
*Source: MarketandMarkets 2013
Slide 15
The Facts The US market is the fastest and largest growing
gluten-free market in the world. Canada represents about 4% of
world dollar volume, but is growing at parallel rates to the US.
Region201120122013 e2018 pCAGR% 2013-2018 U.S. $ Billions
1,768.91,942.32,141.13,548.710.6 Canada $ Millions
74.582.290.0145.29.8
Slide 16
The Facts Canada Gluten Free Food Market By Revenue Type2013 e
$ million 2018 p $ million CAGR % (2013-2018) GF Bakery &
Confectionary 40.164.910.1 GF breakfast Cereals 5.48.08.3 GF
Snacks16.427.010.4 GF baking Mixes & Flours 12.820.59.9 GF Meat
& Poultry 9.114.49.5 Other GF Foods7.110.58.0
Total90.9145.29.8
Slide 17
The Facts Gluten Free Market Revenue By Retail Format 2013
Canada $ Million 2013 Canada % 2013 US $ Million 2013 US % Stand
Alone Natural10.811.9237.011.1 Natural Chains16.317.9358.216.7
Grocery48.553.41,030.948.2 Mass7.78.5236.311.0 Club4.54.976.83.6
Drug0.1 21.41.0 Other3.03.3180.58.4 Total90.9100.02,141.1100.0
Slide 18
Competitive Landscape New product launches have been the most
widely used strategy in this market. Partnerships and collaboration
of the business entities is the second most sought after growth
strategy. 75% New products 7% Expansion 12% Agreements 6% Mergers
& Acquisitions
Gluten Certification Programs Observations: Consumers have in
the past relied upon the natural channel to provide certified
brands of gluten-free products. Does this suggest the move into
grocery & more mainstream supports the need for GFCP mark?
Recent industry workshop on certification programs suggests
consumers lack trust in the food industry (i.e. Rice &
Arsenic). The use of a mark like GFCP builds confidence in brands.
Certification of gluten-free products leads to more consistency and
consumer confidence.
Slide 21
Program Benefits FeatureWSGATBenefit GFCP has CCA endorsement
only Canadian program One clear endorsed message Process not just
ingredient driven program Safety for consumer, protection for
manufacturers Ensures a brand is safeCreates trust Provides a
differentiatorAdds value to your brand Access CCA data
basesTargeted marketing opportunities across North America Simple
story for consumers to comprehend Visual and addresses language
issues Access to GFCP marketing programs Targeted and cost
effective reach of the gluten-free target audience across North
America
Slide 22
Summary The gluten-free category in dynamic growth appears to
be a strong trend not just a fad. GFCP is the only Canadian program
endorsed by the CCA in Canada. Market research confirms the
effectiveness of the mark on brands and higher trial and purchase
intent scores with consumers. The GFCP is a cost effective way to
build trust between your brand and consumers. You are part of a
program directing the development of the gluten-free market and
food industrys future.
Slide 23
Thank-you www.glutenfreecertification.ca
Twitter.com/glutenfreecert Facebook.com/glutenfreecert Marketing
Tricia Ryan 1-866-817-0952 [email protected]