Free-from products: Stock wide range for healthier sales

Vegan, vegetarian, pescatarian, flexitarian – these are not mere fancy buzzwords anymore. Over recent years, these trends – or rather lifestyle choices – have started strongly influencing consumption habits of Britons.

By 2025, vegans and vegetarians are projected to make up a quarter of the British population with just under half of all UK consumers identifying as flexitarians.

As consumer sentiments continue to evolve, makers too continue to flood the market with all kinds of free-from foods options like bread, pasta, chocolates, cakes, ice cream and even beer, making them omnipresent in every aisle.

The trend favours c-store owners a lot. Consumers preferring free-from foods are of high value, according to Lumina Intelligence, which states that these consumers visit more frequently (+15 percent), spend more in total (+9 percent) and more per item (+11 percent).

Matt Collins, Trading Director at KP Snacks, believes that while health has been a priority, the pandemic and proposed HFSS legislation have led to more focus on healthy snacking.

Emilie Grundy, Marketing Controller at Saputo Dairy UK, highlights that appetite for plant-based eating is at an all-time high, with “almost two and a half million UK households now having a vegan or vegetarian household member”.

Dairy-free

Combined effects of dairy intolerance and veganism have led to a niche market for dairy-free products.

One in three Britons drink plant-based milk, according to the Mintel report, up from 25 percent in 2020. The report also revealed that oat milk has become the UK’s plant-based milk of choice. 

The rise of oat milk can be partially attributed to Swedish brand Oatly, which has enjoyed runaway success thanks to a combination of quirky marketing and good timing. 

Dairy free spreads too are increasingly gaining popularity among niche shoppers.

Saputo Dairy UK’s topseller Vitalite spread has delivered revenue growth of 91 percent in traditional convenience in the latest year, Grundy told Asian Trader.

Apart from Vitalite, Unilever’s Flora Original, Naturli’ and Kerry Foods’ Pure are also some sought-after dairy-free spreads. 

Though still niche in the convenience channel, dairy free alternatives to cheese are now worth £41m and have grown by 13.4 percent volume (12.4 percent value).

Gluten-free

About one in ten Britons now avoid gluten, either for fitness reasons, health issues or simply as a lifestyle choice.

According to Mordor Intelligence, the gluten-free foods and beverage market in the UK is anticipated to witness a CAGR of 6.2 percent between 2020 and 2025.

Global market leader in soy sauce brand Kikkoman is capitalising on this growing consumer interest. Over the last few years Tamari Gluten Free Soy Sauce has been steadily increasing its share of the total soy sauce market with latest data showing it is now at 9 percent.

“Our gluten-free Tamari Soy Sauce is made to the age-old brewing process to preserve and enhance the unique flavours consumers come to expect from the Kikkoman family of products,” Bing-yu Lee, Manager of Kikkoman UK, told Asian Trader.

Gluten-free brand Dr. Schär is set to enter the fresh bread market with its recent acquisition of Glasgow based allergen-free, fresh bread manufacturer GDR Food Technology Ltd (GDR).

Back to Nature’s gluten-free multi-seed rice crackers, Highkey Mini Cookies, KIND’s gluten-free bars, McVitie’s Gluten Free Hobnobs and Eat Real Hummus Chips are also some of the popular gluten-free snacking products.

Plant-based

According to an analysis conducted by Finder.com, 14 percent of adults in the country (7.2 million) are following a meat-free diet and a further 8.8 million Brits plan to go meat-free in 2022.

Pilgrim’s Food Masters, owner of some of the UK’s best-loved brands including Richmond and Fridge Raiders, is forecasting strong growth for the plant-based category, expecting it to be worth £998m by 2026 – a staggering 74 percent increase over the next four years.

“As we look ahead to what’s in store for 2022, now is the perfect time for retailers to regroup and take stock of their plant-based offering to ensure they’re responding to what consumers really want,” Dawn Spencer, Marketing, Category, Innovation & Sustainability Director GB & I at Pilgrim’s Food Masters, told Asian Trader, adding that plant-based segment is currently “underserved”.

The company’s Richmond Meat-Free Smoked Streaky Bacon Rashers mimic traditional bacon in the sensory qualities of crispiness, flavour and texture but contains fewer calories and less salt and fat. 

Snacking that is both enjoyable and healthy is becoming increasingly important to consumers.

KP Snacks’ recently launched popchips Veg Vibes is a light and crunchy new snack made of chickpea, rice and sweet potato combined with deeply “satisfying flavours that consumers don’t usually see in vegetable based crisps”, Collins said.

KP Snacks has also expanded into the premium segment by launching Tyrrells Lentil Crisps in two popular flavours- Sour Cream & Onion and Sweet Chilli & Red Pepper. 

“At KP Snacks, we have 30 products with 100 calories or fewer per pack, including popchips, Penn State, Butterkist, Skips, POM-BEAR, and Hula Hoops Puft,” Collins said.

Another very obvious but often overlooked plant-based range is fresh produce. With one-third of people looking to eat more fruit and veggies, as per IGD Shopper Vista – Shopper Trends 2021-22, retailers have a profit-boosting opportunity right here.

“Health is a key consideration for shoppers and has been for some time,” Polly Davies, Category Controller at Florette UK, told Asian Trader. 

“By stocking a beacon brand like Florette, which is currently bought by one in four UK households and worth over £7m in convenience, retailers can make a statement about their commitment to driving a fresh produce presence into their stores.”

Plant-based and/or free-from artificial flavour confectioneries are something that parents too can’t say no.

Last year, Mondelez launched Cadbury Plant Bar- a new plant-based alternative to Cadbury Dairy Milk, replacing milk ingredients with almond paste. Cadbury Plant Bar is available in two flavours- Smooth Chocolate, and Smooth Chocolate with Salted Caramel pieces.

Maynards Bassetts’ successful Soft Jellies product Maynards Bassetts Fizzy Fish is also certified as vegan.

“New Sour Patch Kids Watermelon will offer shoppers an affordable and delicious authentic candy treat with an RRP of £1.32,” Susan Nash, Trade Communications Manager at Mondelēz International told Asian Trader.

Sour Patch Kids Watermelon will be available in a PMP format this year, allowing for strong stand out on shelf with the convenience of clear on-pack pricing.

Kervan Gida UK Ltd’s soft candy brand Bebeto is also a great option in this niche segment. With veganism showing no signs of slowing, the maker is in a strong position offering 13 formats and flavours to retailers.

Gummy vitamin brand Nutrigums is another noteworthy product here as they are GMO-free and vegan-friendly.

Merchandise it right

Allergen food labels often become a source of confusion. According to Mintel, only 37 percent of consumers agree that it is easy to identify which allergens a product is free from by its label. 

While shoppers are looking for healthy and other free-from products in the store, it becomes the onus of the store owner and the staff to help them make informed decisions.

“As a responsible snacks manufacturer, KP is committed to providing more ‘permissible’ snack products and communicating openly, to help people make informed decisions about the snacks they’re buying,” Collins said.

Stocking a diverse range helps here so that each shopper can find something or the other for themselves.

Gabriella Egleton, Senior Brand Manager at Kervan Gida UK Ltd, points out that different consumers will also require different amounts of assistance. Consumers with allergens may be more seasoned eaters and therefore require little assistance while new, eager-to-learn vegans may need assistance.

Signage is the key here. Stickers, shelf barkers or wobblers are great for leading consumers to free-from products.

Free-from diets aren’t all about healthy eating, these shoppers impulse buy too. 

However, where to place the alternatives – segregation or integration- are still a topic of debate and there is no “absolutely correct” answer here. 

An IGD research states that vegetarian shoppers often find it uncomfortable to shop the meat aisle for plant-based meat alternatives. In contrast, flexitarians are frequently deterred by plant-based meats when they are stocked in vegetarian bays as they tend to associate them with poor taste.

Most retailers opt for the middle path here- placing free-from alternatives along with conventional in the ambient and grocery section while stocking them separately (but side by side) in the frozen section.

Wrap

Increasing health awareness was driving this segment over recent past years. Now that pandemic jolted humanity like never before, there is a renewed respect for health. As we crawl back to pre-pandemic habits, healthy eating is here to stay.  

Collins echoed a similar opinion by pointing out that 39 percent of parents of under-16s said eating healthily has now become a higher priority.

Plant-based alternatives can no longer be an afterthought, so retailers need to ensure they are investing in a “robust plant-based offering”, Spencer said.

However, free-from and dairy-free brands are often perceived by shoppers as premium and more expensive. As the inflation touches 30-year-high and households continue to struggle with increasing cost of living, people are expected to tighten their wallets in the coming months.

With Natasha’s Law in force and upcoming HFSS regulation amid demands for warnings relating to highly-processed food products, free-from and healthy has never been more in the spotlight. Good news here is despite the rapid growth, there is still a vast headroom for further growth and sales.