Rice Flour and the Gluten-Free Demographic: As Commodity Prices Go Up, Food Manufacturers Find Solace in Niche Markets

Danisco's recent announcement that their natural preservatives will now be certified gluten free is a logical response to recent trends in the market.

While commodity prices are up on the whole, and spending is still down (though somewhat recovered from two years ago), niche markets that cater to specialty foods are still doing well.

One example is the gluten-free market, which is fueling the still-growing popularity of rice flour, soy flour, potato flour, and other wheat alternatives. As Danisco has found, the demand for such foods is going up even during a time of economic difficulty, and higher pricing doesn't deter those who prefer such foods.

Only a small percentage of those who purchase gluten-free foods do so because they suffer from Celiac Disease, an autoimmune disorder that makes it impossible to digest wheat. Most people purchase gluten-free foods because they believe that such products are higher in nutrition and quality.

Which is why "gluten-free" labels have begun appearing in mainstream grocery stores, and rice flour is often offered in the bakery isle.

This particular demographic is also interested in gluten-free foods that are already prepared or offered in simple kits or mixes. This is due to the fact that the demand for gluten-free foods has outpaced the public's understanding of how to prepare their dishes in a way that is devoid of wheat, and yet still tasty.

Of the flours most commonly used to replace wheat, rice flour tops the list. Soy flour follows behind as second. For food manufacturers looking for a new market for expansion, would be wise to consider the popularity of the gluten-free demographic.