The US Allergen Free food Market Research Report: Forecast (2023-2028)

Market Definition

Allergen Free Food refers to food ingredients that do not contain any ingredient that causes an allergic reaction in an individual. These products include milk, eggs, peanuts, tree nuts, wheat, soy, fish, shellfish, etc. As these products can be life-threatening for an individual, therefore, as per the Food Allergy Labeling and Consumer Protection Act (FALCPA), there is a need to mention Allergen Free Food on the label of the food packet.

Market Insights & Analysis: US Allergen Free Food Market (2023-28)

The US Allergen Free Food market is projected to grow at a CAGR of around 8% during the forecast period, i.e., 2023-28. The rising necessity of residents to consume food products with fewer allergic reactions based on their immune health is a key factor augmenting the market growth. The US witnessed considerable demand for this food in the historical years, and the same demand pattern is anticipated to continue in the upcoming years.

The growing immune health issues, including diabetes, etc., especially among the millennial generation have led food manufacturers to develop these products. For instance, according to the National Diabetes Statistics Report, in 2022, by the CDC (Centers for Disease Control) around 37.3 million people in the US are suffering from diabetes. Similarly, in the US, children are more prone to severe allergic diseases due to weak immune systems.

Moreover, many consumers now prefer Allergen Free Foods & beverages, believing they would improve their digestive health, weight management, and overall well-being. Hence, to minimize the health risks & medical liabilities associated with the consumption of traditional food products, the residents of the US are increasingly switching towards the consumption of these food products. Furthermore, the most common categories of this food include gluten-free, dairy-free, nut-free, and soy-free products. These products are widely used in conventional foods, therefore, these products are widely available in supermarkets, health food stores, and online retailers by various brands in the US.

Hence, an individual with a food allergy has to buy the basic items cautiously otherwise, they can be life-threatening. This results in high demand for this food in the country. According to food allergy research & education, there are around 85 million Americans are living with life-threatening food allergies & intolerance. Thus, the heightened consumer awareness & demand for healthier & more inclusive food options in the market is presumed to continue to grow in the coming years.

US Allergen Free Food Market Driver:

Rising Awareness Campaigns to Support the Market Growth - The growing initiatives to create awareness through campaigns by associations & online communities, such as Food Allergy & Anaphylaxis Connect Team (FAACT), Kids with Food Allergy (KFA), etc., have been facilitating the consumption of Allergen Free Food. These campaigns motivated customers in the country to opt for these food products owing to their several health benefits.

For instance, Food Allergy Awareness Week was organized in 2022 by the Food Allergy & Anaphylaxis Connect Team (FAACT) to build awareness of anaphylaxis & allergic reactions. Such kind of initiative increases the prevalence of this food in the US, due to which prominent players like Halelife & Enjoy Life have entered the market & come up with various food categories, for example, gluten-free flour mixes, cookies, chocolates, etc. Hence, contributing to the revenue growth of the market in the forecast years.

US Allergen Free Food Market Possible Restraint:

High Price to Limit the Sales Among the Middle Income Groups - The manufacturing of Allergen Free Food requires high capital investment due to the excessive price of raw materials & compliance with regulatory requirements for allergen labeling & testing. This results in the outrageous price, making it less affordable & accessible for lower- & middle-income consumers. Furthermore, allergen-free products often require specialized ingredients & processing methods, which makes it expensive for the manufacturers & costly for the consumers. Thus, the high cost of producing food products is a significant challenge for this industry, limiting the market for these products & making them less accessible to middle-income consumers.

US Allergen Free Food Market Growth Opportunity:

Rising Awareness Among Consumer Regarding Allergen-free Products - The growing awareness among consumers regarding the availability & accessibility of the products in the market creates an opportunity for Allergen Free Food. A consumer who is allergic to food products can opt for this food option according to their choice, need, and health requirements. Companies manufacturing these products get the idea of the preferences of consumers by which they can expand their product portfolio according to the highest preferences of the customers. For instance:

• In 2022, Kafodle organized a food allergy campaign to make individuals aware of Allergen Free Food products.

This results in an enhanced demand for allergen-free products in the coming years. Thus, increased awareness & education about food allergies & intolerances, expanding the customer base, improving understanding of the importance of allergen-free options, and fostering innovation, would create opportunities for this food in the US market.

US Allergen Free Food Market Key Trend:

Growing Inclusion of Allergen Free Food by Restaurants to Augment the Development - A shift has been observed recently in the food service industry towards offering more diverse & inclusive menus in restaurants that cater to a wide range of dietary needs, including those with food allergies & intolerances. Additionally, the rising awareness among consumers about Allergen Free Food restaurants creates the demand for these food products. As a result, many restaurants & cafes, such as Chipotle, Sweet Green, Cheesecake Factory, etc., are offering such food options & modifying their menus to accommodate specific dietary restrictions. For instance:

• In 2021, Starbucks introduced its four oat-based drinks to enhance its product portfolio for lactose-intolerant consumers.

This has resulted in building consumer trust & loyalty by demonstrating a commitment to inclusivity & food safety. Hence, the rising awareness, accessibility, and inclusion of Allergen Free Food options are expected to have a positive impact on the growth of the market in the forecast years.

US Allergen Free Food Market (2023-28): Segmentation Analysis

The US Allergen Free Food Market study of MarkNtel Advisors evaluates & highlights the major trends & influencing factors in each segment & includes predictions for the period 2023–2028 at the regional, and national levels. Based on the analysis, the market has been further classified as:

Based on the Distribution Channel:

• Offline
• Online

Above all, Offline Distribution Channel plays a vital role in the US, as consumers prefer to buy groceries offline. Individuals believe that shopping offline provides them an opportunity to physically inspect the product & get proper product satisfaction. Therefore, purchasing Allergen Free Foods, which is a new product for consumers, and buying it offline is more in trend than online. Hence, positively impacting the sales from hypermarkets & supermarkets, and retail stores. According to the Bureau of US Census Data report, 90% of US residents prefer to shop from offline distribution channels despite the availability of online channels & this growth is expected to be significant in the coming years.

Based on Product Category:

• Snacks (Granola Bar, Chips, Crackers, Cookies, etc.)
• Chocolate
• Butter
• Plant-based Milk
• Flour Mixes
• Confectionary

Here, the Confectionery product category witnessed prominent demand in the past years & is expected to be the same during the forecast period. The growing population of allergic reactions to confectionary food due to the ingredients, like wheat, added to it led to people opting for allergen-free confectionary food. Moreover, according to the National Confectioners Association, 72% of consumers believe in the US that chocolates & candies are vital for their social well-being, owing to which the residents feel that the exchange of sweets is an important cultural tradition.

This has led the manufacturers to introduce alternate confectionary food like baking cakes, cookies, etc., which contain no allergic reaction ingredients & fulfill the consumer’s taste buds. Due to this, the demand for allergen-free confectionary products would boost the market growth in the forthcoming years.

US Allergen Free Food Industry Recent Developments 

• 2022: Nepra Food Inc. has announced, the commercial production of plant-based allergen-free pasta for the consumer to highlight the nutritional & environmental advantages of hemp protein.
• 2022: Komo Plant Based Foods has announced to be available on an online distribution channel through GTFO It's Vegan, which is an online vegan products distribution market, to distribute allergen-free products throughout the United States.

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