One of the key challenges faced by the food intolerance products market is ensuring proper labeling, transparency in ingredients used, and prevention of cross-contamination. With many consumers suffering from various food allergies and intolerances such as gluten, nuts, dairy, etc., it is imperative for manufacturers to clearly list all ingredients and call out any risks of cross-contamination. However, achieving full transparency in the supply chain is difficult due to the involvement of many stakeholders. For instance, a 2020 report by BEUC (The European Consumer Organisation) found that over 30% of gluten-free food products tested contained provable amounts of gluten despite claiming to be gluten-free. Overall, managing the issues around labeling, transparency and safety throughout the lifecycle from production to consumption increases business complexity and costs for companies operating in this market.
Market Opportunity: Untapped growth potential in emerging countries
The food intolerance products market has significant untapped growth opportunities in emerging countries. While developed markets in the West have seen growing awareness and acceptance of such options over the past decade, many developing nations are still in the nascent stage of this market evolution. With rising incomes and spending power, a burgeoning health-conscious middle class is emerging in countries like India, Brazil, Indonesia, and others. This demographic is expected to increasingly demand specially formulated food products that are free from allergenic and intolerable ingredients. Local manufacturing of such items can cater to this demand within emerging countries in a cost-effective manner. First mover brands have the opportunity to capture market share and benefit from future volume growth as awareness increases. Furthermore, global companies can consider strategic partnerships and contract manufacturing in these regions to participate in their market potential.
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