Going Gluten-Free: A Business Guide to Consumer Demand, Retail Compliance & Distribution Growth

As the gluten-free market continues to grow, driven by rising health awareness, dietary restrictions, and evolving consumer preferences, food manufacturers and retailers are increasingly looking to develop and distribute gluten-free products. But entering this market requires more than a label change. Businesses must navigate strict compliance standards, secure retailer trust, and ensure operational efficiency at every step of the supply chain. 

This blog outlines the essential steps to developing gluten-free products that meet regulatory standards and market expectations and explains how EDI (Electronic Data Interchange) can help streamline the process from production to shelf. 

Understanding Gluten-Free Food Labeling Laws

In the U.S., the FDA’s gluten-free labeling rule allows products to bear a gluten-free claim only if they contain less than 20 parts per million (ppm) of gluten. This threshold is considered safe for most people with celiac disease. The same threshold is followed in many other countries, such as Canada, Australia, and the EU. 

Importantly, the FDA rule covers both ingredients and manufacturing processes. Even if a product contains no gluten ingredients, it cannot be labeled gluten-free if there’s a risk of cross-contact that pushes gluten content above the 20-ppm limit. 

Noncompliance can result in product recalls, retailer de-listings, loss of consumer trust, and legal penalties.  

Brands may also opt for third-party certifications (e.g., Gluten-Free Certification Organization or NSF Gluten-Free) or manufacture in dedicated gluten-free facilities to reinforce consumer confidence. 

Ingredients to Watch

Gluten hides in more than just wheat, barley, and rye. Common ingredients or additives that may contain gluten include: 

• Malt and malt flavoring (derived from barley) 

• Modified food starch (if wheat-derived) 

• Soy sauce (contains wheat unless tamari-based) 

• Textured vegetable protein (TVP) 

Even naturally gluten-free foods, like oats, can become contaminated during growing or processing. Therefore, it is essential to source certified gluten-free oats. 

To protect your product, consider implementing: 

• Dedicated gluten-free production lines 

• Stringent sanitation protocols 

• Supplier verification and audits 

Being proactive about compliance not only protects consumers, it also strengthens your brand’s reliability in the market.

Gluten-Free Labeling and Product Positioning

Clear labeling is more than just legal—it’s your frontline for consumer trust. Customers look for recognizable gluten-free symbols, detailed ingredient lists, and transparent allergy information. Brands today tend to use the following methods for effective labeling:  

• Use plain, easy-to-read terms 

• Clearly identify gluten-containing allergens (if any) 

• Highlight absence of cross-contamination if applicable (e.g., “Produced in a dedicated gluten-free facility”) 

Some brands also include QR codes on packaging that link to full allergen profiles, testing protocols, or sourcing information. This can enhance transparency and differentiate your brand. 

Today’s gluten-free shopper is health-conscious and often well-informed. Positioning your product as not just “free from” but also nutritious, delicious, and responsibly sourced can make a big difference.

Securing Shelf Space: What Retailers Expect

Retailers have become more selective about gluten-free products. What was once a novelty now requires proven value. When shopping for gluten-free products, buyers commonly look for:  

• Verified gluten-free claims or certifications 

• Consistent supply capacity 

• Strong branding and demand potential 

• Retail-compliant product data (ingredients, allergens, shelf life, GTINs, etc.) 

Retailers often require suppliers to submit detailed product specs, labeling info, and logistics data via EDI or online vendor portals. Without the right data in the right format, your product may never make it onto shelves. 

Being able to quickly onboard new SKUs, provide accurate nutritional breakdowns, and meet delivery SLAs sets you apart. 

Managing Consumer Demand for Gluten-Free Products

The gluten-free audience is growing, but it’s also fragmented. Some consumers have strict medical needs, while others are just experimenting with wellness trends. In today’s market:  

• Most gluten-free consumers don’t have celiac disease—they’re choosing gluten-free as a lifestyle. 

• Gluten-free baked goods, snacks, and ready meals remain top sellers. 

• Taste, texture, and price are common pain points in gluten-free products. 

To win in this market, brands must invest in R&D to improve product quality and supply chain agility to respond to fluctuating demand. It’s not just about removing gluten—it’s about adding value.

How EDI Supports Gluten-Free Manufacturers & Operations 

Going gluten-free increases supply chain complexity—especially if you’re sourcing new ingredients, working with co-manufacturers, or scaling rapidly. EDI can play a vital role in simplifying this journey. 

Key EDI benefits include:  

1. Ingredient-Level Data Sharing 
EDI enables automated transmission of detailed product specs (via EDI 832 Product Catalog), including allergen data, gluten-free status, and certifications. 

2. Supplier Traceability 
Track where each ingredient comes from using advanced shipping notices (EDI 856) and batch or lot codes. This improves audit readiness and consumer transparency. 

3. Faster Retailer Onboarding 
Retailers often require electronic item setup with compliant formats. EDI reduces manual errors and accelerates time-to-shelf. 

4. Real-Time Order and Inventory Sync 
Use EDI 850/855/856/810 messages to sync order intake, fulfillment, and invoicing across channels to avoid stockouts or overproduction. 

5. Recalls and Quality Management 
If issues arise, having end-to-end traceability enables faster, more targeted product recalls, which is crucial for allergen-sensitive items. 

Bonus: Retailer Compliance 

Retailers often have their own gluten-free shelf standards. EDI helps you stay compliant by enforcing validation rules on: 

• Unit of measure 

• Product hierarchy 

• Country of origin 

• Temperature/shelf-life details 

Launching gluten-free products is an opportunity—but it’s also a responsibility. Today’s consumers expect more than just a “gluten-free” label. They want transparency, quality, safety, and great taste. To meet these expectations, businesses must pair regulatory knowledge and ingredient expertise with modern digital infrastructure. 

Whether you’re launching your first gluten-free product or expanding your allergen-free portfolio, a combination of rigorous compliance, strategic packaging, and technology like EDI will help you go to market with confidence—and stay there. 

If you’re interested in learning how EDI can support your gluten-free businesses, reach out to an TrueCommerce representative to get a demo.