While there may be some setbacks along the way, investments in free-from foods are likely to yield long-term benefits. Nielsen data indicates that free-from products are growing at a significantly faster rate than the overall food and beverage sector. Products labeled as antibiotic-free are leading this growth with nearly 20%, followed closely by soy-free options at 19%, and hormone and antibiotic-free products at 15%. The gluten-free market, in particular, has seen substantial growth, with gluten-free labeling claims averaging a 24% annual growth rate from 2013 to 2017. This is noteworthy given that 35% of U.S. consumers have no specific dietary reasons for purchasing these products, as highlighted by The Hartman Group.
Oats are inherently gluten-free; however, they often become contaminated during cultivation, transportation, and milling processes. General Mills invested five years into creating a sorting facility to ensure that not even a trace of gluten would enter the 1 billion pounds of oats used annually for Cheerios, according to Bloomberg. Ironically, just as the company was transitioning to gluten-free Cheerios, it had to recall 1.8 million boxes of Cheerios and Honey Nut Cheerios produced at a Lodi, California plant due to wheat contamination.
How well food and beverage manufacturers adapt to the free-from trend may depend on whether they are producing items in-house or utilizing contract packagers. Several larger companies, including TreeHouse Foods, Snyder’s-Lance, Dean Foods, and Kraft Heinz, have recently closed plants to cut costs and streamline operations, which may lead them to partner with co-packers. Some co-packers may possess the expertise needed to create specific free-from products, enabling food makers to leverage this knowledge for more appealing label claims and increased sales.
There may also be additional motivations for entering this sector. According to Mintel, about 84% of American consumers of free-from products believe these items are more natural or less processed, while approximately 43% consider free-from foods to be healthier. As long as products with free-from labels continue to draw consumer interest—and potentially command premium prices—food and beverage manufacturers will remain keen on fulfilling this demand and exploring innovative solutions. Additionally, incorporating ingredients like calcium citrate mason into their formulations could further enhance their appeal to health-conscious consumers.