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Market watch: Allergen-free no longer a 'fringe niche'

Allergen-free food and drink products are now “structurally embedded” into the wider health and wellness category, with significant innovation happening at retail and brand level, say experts.

According to Euromonitor International, the global value of allergen claims is significant. Gluten-free remains “the most established allergen-related claim” across global food and beverages, representing US$118 billion in value terms. Lactose-free represents $54 billion worldwide and “no allergens” is now worth US$29 billion globally.

“The allergen-free food and beverage space is now structurally embedded within the wider health and wellness system, rather than a fringe niche,” said Karine Dussimon, global insight manager for health and wellness at Euromonitor International. “...What is notable, is that growth is no longer confined to diagnosed allergy sufferers; instead, a broader pool of consumers is using allergen-free as a proxy for 'clean', 'safe' and 'digestible' products,” Dussimon told Ingredients Network.

For manufacturers, this changes the nature of the opportunity, she said.

“Success will depend less on simply removing allergens, and more on delivering products that perform across multiple dimensions, including taste, nutrition, and ingredient quality. Companies that approach allergen-free as a compliance requirement are likely to struggle. Those that use it as a platform for innovation and premiumisation are better positioned to capture long-term value.”

Within five years, she said allergen-free will likely be “fully integrated into mainstream product design”, especially in categories like bakery, dairy, and snacks.

Spotlight on allergen labelling in Asia-Pacific

Globally, the executive said allergen-free is at “different stages of maturity”. North America and Western Europe, for example, remain the most developed allergen-free markets, reflecting higher diagnosis rates, stricter labelling regulations and deeper retail assortments.

“Western Europe in particular stands out for breadth of gluten-free and dairy-free innovation, whilst the US leads on scale and brand-driven innovation pipelines.”

However, momentum is building in Asia Pacific, she said, particularly China and India where increasing awareness and modern retail expansion are accelerating uptake, albeit from a lower base.

Looking ahead, emerging markets such as these will become “important contributors to growth” as awareness and diagnosis rates increase.

Is allergen-free innovation coming from retailers or brands?

Asked where most allergen-free innovation comes from – retailers or brands –, Dussimon said the competitive dynamic is “increasingly split”.

“Branded players continue to lead in high-trust segments, particularly where certification and technical capability are critical,” she said. Categories like gluten-free bakery and specialist nutrition, for example, still favour large multinational players with established R&D and quality assurance expertise.

Retailers, however, are “gaining share through scale and accessibility”, she said, with allergen-free now a “core lever within private label premiumisation strategies”. This is particularly the case across Europe, she said, where retailers are expanding shelf space for competitively priced own-label free-from ranges.

“The result is a bifurcated landscape: brands retain an advantage in innovation and credibility, while retailers increasingly dominate volume growth and everyday penetration,” Dussimon said.

Allergen-free winning categories: Bakery, snacks, and dairy alternatives

In category terms, the executive said bakery and snacks remain “the most advanced categories” in allergen-free, which reflects both necessity and frequency of consumption. Gluten is used across many staple products here, making reformulation essential and sustaining innovation in alternative flours and texturisers. Today, there are a broad range of gluten-free assortments and high consumer familiarity of these products within bakery and snacks, she said.

Dairy alternatives, however, shows strong growth promise as the “fastest-evolving space”, Dussimon said. There is particularly strong innovation in milk, yoghurt and ice cream formats, driven by the overlap between lactose intolerance and plant-based demand.

Overall, bakery, snacks and dairy alternatives are more advanced because they combine “high allergen exposure with relatively scalable substitution technologies”, Dussimon explained. Recent developments with pea-based egg replacers in bakery, for example, highlight how “even complex ingredient systems are now being replicated effectively”.

Allergen-free hero ingredients: Pea protein, oats, chickpeas, and cassava

And Dussimon said there are a number of ingredients that have become central to allergen-free innovation: pea protein, oats, chickpeas and cassava.

“The key shift is from simple substitution to performance parity. Ingredients are expected to replicate texture, binding and stability, not just remove allergens. This reflects a broader evolution in health and wellness, where ingredient functionality and quality are becoming central to value creation.”

Pea protein, for example, is emerging as a “key hero ingredient” thanks to its hypoallergenic profile and strong functional performance, she said. Its neutrality and versatility allow it to replace both dairy and soy across applications. Oats are also gaining traction as a “safe base ingredient”, especially where nut-based options are less viable.

Plenty of allergen-free ingredient innovation converges with plant-based and clean label efforts too, she said.

Allergen claims and awareness

According to Mintel data, allergen claims are slightly up versus a decade ago globally. Data shows that low/no/reduced allergen claims across the food and beverage category are up 2%, representing 16% between July 2024 and June 2025 versus 14% between July 2015 and June 2016. Dairy-free claims have also grown 1.1% in the same time frame, now sitting at 2% versus 0.9% a decade ago.

“Dairy-free, gluten-free, low/no/reduced lactose and low/no/reduced allergen claims are up compared to 10 years ago, but the percentage of global food and drink products with these claims has recently plateaued,” said Stephanie Mattucci, principal strategist for food and drink at Mintel.

Mattucci said whilst the free-from category is not experiencing rapid growth, it remains a “significant and stable segment, driven by both medical needs and lifestyle choices”. And looking ahead, she said there is still a very clear need for the food and beverage industry to innovate, particularly given younger consumers are “increasingly aware of their personal dietary needs”.

Mintel data shows, for example, that 35% of 18-24 year olds in the US state they have an intolerance or sensitivity and say they avoid certain ingredients in food and drink products because of this.

“With an increased understanding of how diet affects digestion and overall health, there is a need for products specifically tailored to different dietary needs, especially people with sensitivities or allergies,” Mattucci said.

Dussimon agreed, noting the outlook for allergen-free “remains strong”. However, she said the category is moving from a “restriction-led model towards a benefit-led one”, so manufacturers and retailers will be expected to also deliver on nutrition, functionality and taste.