Gluten Free Products Industry ESG Thematic Report, 2023

Environmental, Social and Governance (ESG) in Gluten Free Products Industry

Combining Environmental, Social, and Governance (ESG) within the investment and decision-making processes contributes to responsible investing. Investment into ESG has been significantly rising since 2013; moreover, Gluten Free Products Industry, can be considered as a powerful tool to achieve certain ESG goals across the globe which had a large infusion of investment capital since 2020.

Gluten free products have witnessed rising interest in recent decade due to diseases arising out of unhealthy lifestyle and under nourished food intake alongside consumer interests in these products. Most diseases prone to this are also coupled with sedentary lifestyle such as obesity, diabetes, heart diseases, metabolic syndrome, etc. Irritable Bowel syndrome and celiac diseases arises while consuming gluten contained products, which made customers to be preferring gluten free products.

Focus in ESG domain for gluten free product sector would be product quality which can be assessed from nutritional contents and related to the United Nations’ Sustainable Development Goal 3: which calls for Good Health and Wellbeing, followed by responsible marketing and product labelling of those nutritional contents which comes under UNSDG 16: Peace, Justice, and strong institutions. Packaging of products and waste disposal of products is associated with waste management which is UNSDG 12: responsible consumption and production patterns. In addition to that, diversity and inclusion among the work force has also been a concern and some of these companies are having diversity targets within a speculated year.

ESG Trends

Gluten free products theme has both environmental and social criteria on its focus or priority. Most of these products are certified with various labels with chemical compositions and provide procedures to ensure welfare of end users. Various studies show diseases which are related to gluten products have been more prevailing to Children or new generation. To Ensure responsible marketing or sustainability in marketing practices companies have engaged with a lot of community engagement initiatives for different segments of society based on various factors like age, class, and gender.

Sustainable packaging has been used in most of the companies which reduces waste from the end user, even though it is not completely in place companies do have target for reducing plastic packaging and providing more environmentally friendly methodology. For example, Conagra has introduced bowls which are made from plant fibers, to reduce GHG emissions space efficient design within which trucks have been reduced.  Equal opportunities for diverse candidates have been followed throughout these companies, as well as they are having targets ensuring inclusive nature throughout the hierarchy.

ESG Challenges

The most important concern this space has been facing is the expenditure or affordability of these products for different socio-economic classes which prevents inclusiveness among communities thereby asking companies to be more inclusive with respect to their products (SDG 10: Reduced Inequalities).  Even though, sustainable packaging and minimizing waste has been introduced it has not come to complete effectiveness, as a result companies have set foreseeable target to cope up with them. Even though gluten free products are having impact in current market, there are risks associated with Gluten free products like lack of fiber, increased risk of Type 2 Diabetes, lack of essential vitamins and nutrients and long-term consumption can also lead to weight gain as per various studies which directly impacts SDG 3.

Growth of the Gluten Free Products Market

The gluten-free products market size has been valued at USD 5.9 billion in 2021 globally and is expected to expand at a compound annual growth rate (CAGR) of 9.8% from 2022 to 2030. The rising prevalence of celiac disease and other diseases owing to unhealthy lifestyles is expected to drive the demand for gluten-free products. Consumption of healthy food products to prevent health disorders, such as heart diseases, diabetes, obesity, chronic pulmonary disease, and metabolic syndrome is expected to drive the growth of this market. The outbreak of the COVID-19 pandemic has exponentially impacted the usage of gluten-free products due to rising health, and wellness-related concerns among the end users and at the same time asking improved sustainability from these companies.

Key Companies in this theme

    • Conagra Brands, Inc.

    • The Hain Celestial Group Inc.

    • General Mills Inc.

    • Kellogg Co.

    • The Kraft Heinz Company

Scope of the Gluten Free Products Industry ESG Thematic Report

    • Macro-economic and ESG-variable analysis of the industry, including regulatory, policy, and innovation landscape

    • Key insights on infrastructure developments and ESG issues affecting the theme

    • Identify key initiatives and challenges within the industry

    • Identify ESG leaders within the industry

    • Understand key initiatives and the impact of companies within the sector to fuel an informed decision-making process

    • Analysis of industry activities based on multi-media sources, including significant controversies and market sentiment

Key Benefits of the Gluten Free Products Industry ESG Thematic Report

    • Developing a comprehensive understanding of macro-economic, Policies & Regulations and innovations affecting the gluten free products space, globally

    • Key insights into environmental developments and ESG issues affecting the theme

    • Identifying ESG risks and opportunities to business among leading players in the gluten free products

    • Obtaining a clear and relevant understanding of company actions, progress, and impact and find opportunities for investment into the sector