Free-from porridge pots could fill the gap in the market for gluten-free staples and snacks: MINTEL

Free-from porridge pots could fill the gap in the market for gluten-free staples and snacks

Source: Mintel 03-05-2013

"To capitalise on consumer demand for convenient gluten-free everyday essentials and snacks, breakfast cereal manufacturers could look to innovate with gluten-free on-the-go products such as porridge pots."

For more information, please see Mintel’s Breakfast Cereals –UK August 2012 and Meat-Free and Free From Foods – UK September 2012

What we’ve seen

●              Despite an overall decline in volume sales in the UK breakfast cereal market, hot cereals achieved healthy 4.2% volume growth in 2012.

●              The majority (57%) of breakfast cereal users would prefer more convenient packaging in cereals, and 30% think that porridge is inconvenient to prepare.

●              At 9%, the share of the UK population that avoids gluten is broadly on a par with the 8% who avoid eating nuts and comparable to the share of those who don’t consume dairy products.

Hot cereals are driving value growth in the UK breakfast cereal market

Volume sales in the UK breakfast cereals market have fallen each consecutive year since 2010, as the category struggles to compete with other breakfast options. Porridge is the only category in which a countertrend is visible; Mintel’s Breakfast Cereals –UK, August 2012 estimates that volume sales of hot cereals increased by 12% between 2007 and 2012, while hot cereal value sales skyrocketed by 79% to a total of £204m.

The on-the-go breakfast cereal pots market is growing faster than the in-home segment, partly thanks to its growth coming from a low base, and is helping to attract new customers to the category. As 57% of breakfast cereal users say they are interested in more convenient packaging for cereals, and 30% agree that porridge is inconvenient to prepare, it is not surprising that the convenient on-the-go pots segment is doing so well.

FIGURE 1: ANNUAL % CHANGE IN UK VALUE SALES OF BREAKFAST CEREALS, BY SEGMENT, 2008-17

Base:

* Mintel estimate **Mintel forecast

MINTEL/BASED ON SYMPHONYIRI GROUP INFOSCAN

Specialist brands target coeliacs with gluten-free porridge

Late 2012 and the first months of 2013 have seen the launch of a number of porridge products that target the UK gluten-free market. Free-from specialists such as Perk!er Foods and Nairn’s have introduced new gluten-free porridge products, while Waitrose has also strengthened its presence in this market with the launch of its Waitrose Love Life Free From Porridge Oats.

Beyond premium, specialist brands such as these, gluten-free NPD in the UK breakfast cereals category has been fairly limited.

  

Consumer interest in gluten-free staples and snacks

So how widespread is consumer demand for gluten-free products?

One in ten UK consumers report that someone in their household avoids gluten either because of an allergy/intolerance or as part of a general healthy lifestyle according to Mintel’s Meat-Free and Free-From Foods – UK September 2012. As 12% of consumers who have bought free-from food say the whole family eats these foods because one member has an allergy/intolerance, the actual number of consumers who consume gluten-free product may be significantly larger than 9% of the population. Notably, 8% of adults report buying gluten-free products.

However, the free-from market appears to be underserved when it comes to certain types of food. Of UK consumers who have bought free-from food, 36% say they would like to see a wider range of everyday essentials, and 35% would like to see a wider range of on-the-go/snack items in free-from foods. With breakfast cereals positioned both as everyday and as on-the-go products, there may be a match between what free-from consumers want and what breakfast cereal manufacturers could offer.

FIGURE 2: ATTITUDES TOWARDS FREE-FROM FOODS, JUNE 2012

Base: 297 internet users aged 16+ who have bought free-from foods

GMI/MINTEL

Opportunities for affordable and convenient gluten-free breakfast cereals

Many of the leading food retailers have in recent years actively expanded their free-from foods offering. However, the likes of Waitrose, Tesco or Sainsbury’s that do offer some own-label gluten-free breakfast cereals tend to focus on larger packs that are not as convenient for snacking and on-the-go occasions as the highly successful porridge pots.

The market for conveniently-packaged gluten-free breakfast cereals thus remains in the hands of the specialists recently entering it, yet there is scope for the own-brand operators to expand into this segment.

What it means

●              The hot cereals segment is expected to drive sales in the UK breakfast cereal category due to growing consumer interest in warm breakfast and snack options.

●              There is a sizeable demand among free-from food users for more everyday essentials and snack products, which items such as gluten-free porridge pots could meet.

●              Gluten-free porridge pots could offer a further expansion target for own-brands, following their recent activity in free-from.