Case Study: Finnish bakery consultants Baron Foodtech assist Russian bakery to conquer the gluten-free market in Russia
Gluten-free bread ranges have been available on the shelves in the West for quite a while—it's considered healthy, trendy and you can find a wide selection of choices. The first gluten-free products were launched in the beginning of 1980s and the products were mainly found in health food stores until beginning of 2000, where after they have gradually become more mainstream depending on geographic location. Europe is the most significant gluten-free bread market, especially with increasing demand from millennials. Other regions like Asia-Pacific and North America are expected to have a major demand increase the coming years, and small and midsized food manufacturing companies are investing in the product category to meet this demand. The total global market value for the gluten-free segment is estimated to grow between 2020 and 2025, from $5.6 billion USD to 8.3 billion USD. This growth also includes increasing demand by consumers who do not as such suffer from gluten intolerance but still prefer using gluten-free products.
While the demand and growth of gluten-free category has been significant in the West for several years, the demand is only now taking wind in the East. For instance, in Russia, the gluten-free products are only now becoming visible on the shelves for consumers. This low availability of gluten-free products and the interest spurred from the West was something Sapsan construction company in Russia, with 30 years of history in property development in the Moscow region, realized to be a significant market opportunity. Sapsan decided to move ahead and acquire machinery for a bakery that could produce gluten-free products, but recognized that the general experience and recipes were lacking. This is when they decided to contact the Finnish bakery consulting group Baron Foodtech from Finland who also assist companies in the development of new recipes for new markets. Six months later, the Sapsan company had a new gluten-free bread range on the shelves in Russia, with 7 different breads. And what was even more impressive, Sapsan company is a construction company who decided also to diversify to the bakery industry.