The gluten-free retail opportunity is real. The market is poised to explode. Watch as the number of small-batch artisans escalates to meet rising consumer demand. Their nimbleness, innovation and outside-the-box thinking will breed success. It’s also likely to draw the attention of big CPG manufacturers looking to ride the “free from” wave. And expect more retailers will consider creating gluten-free/free-from destinations to drive traffic and increase shopper loyalty. It could be just what the doctor ordered to create a differentiated compelling competitive advantage and boost store productivity.
Note: This is an excerpt from the premium insights report: GLUTEN-FREE Retail Opportunity: Tapping Trends at the Store Shelf. For more information or to purchase the full report, <click here> or contact me at Sandy@GlutenFreeRetailHQ.com.
Gluten-Free Retail Opportunity: Top 10 Takeaways
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Gluten-free startup Eban’s Bakehouse of Columbus, Ohio is gaining traction with mainstream retailers and natural grocers in Ohio and other Midwestern states.
Differentiate with small-batch startups. The future of food manufacturing may very well be about creating more specialized and often premium-priced products and less low-margin commodities. An entire cottage industry of small, nimble startups is cropping up to fill the void in the gluten-free product space. And these gluten-free artisan bakers and throngs of small manufacturers are gaining traction with consumers as well as retailers.
- Highlight trusted CPGs on gluten-free shelves. National brand marketers won’t sit idly by and watch a high-growth, albeit niche category – and related market share – slip away to small lesser-known startups. Expect a growing roster of consumer packaged goods manufacturers to explore, experiment and enter the gluten-free space – through grassroots efforts, acquisition and venture capital funding. But they must prepare for some out-of-box thinking. Different rules apply when marketing and merchandising gluten-free and other allergy-friendly foods.
- Use private label as value alternative. Gluten-free private label products offer shoppers a much needed value alternative to pricey name brand equivalents and items historically available only at specialty retailers. This favorable price/value proposition could be enough to entice consumers to not only try but perhaps make a permanent switch to gluten-free store brands.
- Feature “fresh” in gluten free. In the coming years, watch as more retailers begin to offer “fresh” (i.e., not frozen or packaged) gluten-free options – prepared meal solutions, bakery, etc. – through organic means or creative partnerships with local bakeries and other foodservice providers. Think pop-up shops and leased space. Cross-contamination must, however, be carefully managed at store level.
- Open up new channels with grab & go. Above all else, maintaining a gluten-free lifestyle is anything but “convenient.” Manufacturers and other suppliers that offer grab & go and heat & eat alternatives likely will be met with open arms – and wallets. Small pack sizes also represent a huge opportunity to penetrate additional channels. Think dollar stores, c-stores, vending, airport/travel stores, hotel gift shops and quick-service/fast food restaurants.
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Target featured a dedicated gluten-free section during the Halloween selling season. The retailer added special signing to call attention to gluten-free treat options.
Raise the merchandising bar. The jury is out regarding gluten-free merchandising best practices. Does a dedicated “healthy” aisle or gluten-free section work best? Or should gluten free and other free-from foods be integrated into the conventional center store set? Retailers increasingly use a hybrid approach, but what actually works best for shoppers is yet to be determined.
- Seize shopper engagement opportunities. Shoppers increasingly will look to supermarkets and other retailers as health care stewards. Retailers and brand marketers must seize opportunities to engage shoppers and educate them regarding healthy lifestyle choices. Going forward, registered dietitians, nutritionists and others versed in gluten-free and other food allergy-friendly diets will be in high demand across the grocery industry.
- Tap a socially connected gluten-free community. Shoppers with Celiac Disease, gluten sensitivities and other food allergies are extremely engaged via digital and social media means. Both good and bad news spreads quickly among the gluten-free community. Retailers and brand marketers obviously want to end up on the good side of the equation – so being proactive and forthcoming about product information and news through social media is paramount.
- Empower shoppers with product transparency. Product and supply chain transparency is paramount for gluten-free shoppers. Fortunately, the gluten-free shopper journey is becoming more manageable as new technology and tools, like mobile apps, come on board. Food manufacturers and retailers must embrace these tools and ensure their brands are adequately and accurately represented.
- Minimize merchandising missteps. Most retailers today remain ill-prepared – in terms of appropriate knowledge, adequate staff training, shopper marketing materials and more – to handle unique demands associated with gluten-free and other free-from merchandising. What sounds good in the board room doesn’t necessarily translate to the store floor. Store-level execution is where the rubber meets the road as far as consumers are concerned. Unfortunately in the gluten-free space, it often falls short.
Note: This is an excerpt from the premium insights report: GLUTEN-FREE Retail Opportunity: Tapping Trends at the Store Shelf. For more information or to purchase the full report, <click here> or contact me at Sandy@GlutenFreeRetailHQ.com.