Canada Gluten Free Foods & Beverages Market - Growth, Trends, Covid-19 Impact, and Forecasts (2023 - 2028)

Canada Gluten Free Foods & Beverages Market - Growth, Trends, Covid-19 Impact, and Forecasts (2023 - 2028)

The Canadian gluten-free foods & beverage market is projected to witness a CAGR of 9.1% during the forecast period (2022-2027).

The Covid-19 pandemic had a massive impact on all industries but had a short-lived impact on the food and beverage industry. Moreover, various intolerance food products witnessed a growth spike of around 20.1% (y-o-y) in Canada in 2020. Thus, during the pandemic, the Canadian Celiac Association connected with the food industry, along with Health Canada, to ensure a steady supply of gluten-free products in the Canadian market.

The market for gluten-free food and beverages in the county has risen from being a specialty product to mainstream products. The rising number of celiac diseases in the country has created awareness among consumers for switching to gluten-free products in their regular diet. As per information released by the Canadian Celiac Association (CCA) and Allergen Control Group (ACG), the increasing awareness of celiac diseases and other related immune diseases has resulted in the rise in demand for gluten-free food products.

• Bakery products such as bread, cookies, and biscuits dominate the gluten-free foods and beverages market in Canada. Moreover, the increased availability of gluten-free products at mainstream retail outlets, such as Sobeys and Atlantic Superstore, has further facilitated the market growth.

The significant increase in demand for organic, natural, and good-for-health products has increased the demand for gluten-free products in the Canadian market. Consumers are getting more aware of the adverse health effects associated with gluten-containing grains, such as wheat and barley, which are used in uncomplying quantities in food and beverages. The rising awareness of free-from ingredients in the country has created an upsurge in the trend of gluten-free claims. Consumers are more interested in investing in food and beverages which contains free-from ingredients, giving a forward push to the gluten-free products in the market. Alongside, the rising cases of celiac disease in Canada have also led to the inclination of consumer demand toward gluten-free products. Companies are now focusing on new product development, owing to the changing market demand. For instance, in 2021, The Very Good Food Comapny Inc. announced the launch of its Butcher's Select product range. This range came with two products namely Spicy Meatballs and The Very Good Steak. These products are gluten-free as well as soy-free.

Bread and other bakery products usually contain gluten as they are majorly prepared from wheat and are not accepted by people who want a gluten-free diet. The demand for gluten-free food has increased recently because of the substantial increase in the demand for gluten-free bread and bakery products. Associations like Health Canada are also playing a prominent role in maintaining the diet patterns of the country, which has extended the opportunities for the gluten-free bread and bakery products market in the country. The association also keeps a close watch on the circulation of the gluten-free product in the local market and constantly reviews the regulatory requirements surrounding the gluten-free category keeping a close check on the purity and safety of ingredients being incorporated into the products. The different local and regional players are focused on product innovation to cater to the rising demand of consumers for gluten-free bakery products. For instance, in 2021, a Canadian gluten-free and plant-based baker, Little Northern Bakehouse, launched new gluten-free bread products, namely Organic Original, Organic Ancient Grain, and Organic Oatmeal. These organic and gluten-free bread are certified organic products.

The market is highly competitive, with a prominent presence of private label brands and global brands. The market is fragmented, with many local and regional players competing with the global players. Global players like PepsiCo In., Nestle SA, General Mlls Inc., and Conagra Brands Inc., among others, are some of the prominent players in the market. The regional players such as Grupo Bimbo and Kinnikinnick Foods Inc. hold a significant share of the market. New product launches, mergers and acquisitions, and expansions are the major strategies adopted by the companies in this market. Owing to the rapidly developing nature of the market, new product innovation has become the most commonly used strategy among all, as it helps in understanding the changing needs of the consumers in the market.

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