Eshbal Functional Food, a developer of gluten-free and health-focused food products, has announced developments supporting its North American expansion strategy, highlighted by the planned commercial launch of US-produced gluten-free pita bread and the asset acquisition of Swonder Bread, an Israeli-based bakery specializing in sprouted gluten-free sourdough products.
The initial rollout of pita bread produced in the United States will feature frozen products to meet distributor requirements and ensure product integrity. In parallel, Eshbal is advancing development of an ambient, shelf-stable version that has, in testing, demonstrated several months of room temperature shelf life. The Company believes this future format could enhance accessibility for retailers by reducing reliance on freezer space and streamlining logistics.
North America Leading Gluten-Free Demand
The global gluten-free products market was valued at approximately US $7.75 billion in 2024 and is projected to reach over $13.67 billion by 2030, growing at a CAGR of 10.0%. North America continues to lead sales globally, accounting for 35.1% of total market revenue in 2024 and expected to grow at a 9.3% CAGR through 2030.
Within the category, baked goods are the dominant product segment, representing more than 31.5% of global gluten-free product sales in 2023, with further growth expected at a CAGR of 11.7% from 2032 to 2033. In North America, bakery products were also the largest and fastest-growing segment in 2024, led by increased consumer demand for alternatives that meet both health and lifestyle criteria.
These trends are driven by increased awareness of celiac disease, gluten sensitivity, and broader lifestyle preferences. A growing number of consumers are seeking bakery products that replicate the taste and texture of traditional options, while also aligning with plant-based, clean-label, or reduced-carb dietary goals.
Eshbal is preparing to locally manufacture its gluten-free Pita Bread in the North American market. The upcoming launch marks the first time the Pita Bread will be manufactured and distributed locally in the United States.
For more than a decade, the Eshbal has produced and exported pita bread from Israel to a California-based restaurant group, which has provided consistent and positive feedback. It views this long-standing relationship as a strong indicator of product-market fit and future commercial potential.
Eshbal’s pita bread formulation is entirely plant-based and gluten-free, and was developed in alignment with publicly available ingredient standards used by leading health-focused retailers, to avoid substances commonly listed as non-compliant.
Expanding into Sprouted Sourdough
Meanwhile, on June 15 Eshbal completed the acquisition of Swonder Bread, an Israeli bakery specializing in sprouted-grain sourdough and vegan breads. The purchases includes all core assets — including proprietary recipes, trademarks, client base, production equipment and inventory.
Swonder’s products are gluten-free, plant-based, and free from artificial additives. They are produced using a natural fermentation process combined with sprouted grains — a method known to enhance digestibility and nutritional value. These capabilities expand Eshbal’s position in the clean-label and gut-health product space.
“From day one, M&A has been a key part of our strategy — and this transaction represents one of the many steps we intend to take,” said Eshbal CEO Bar Meir. “Swonder Bread brings unique and hard-to-develop know-how that fits perfectly with our long-term goals. We see immediate opportunities to grow this business in Israel, and we believe the underlying technology offers exciting potential for future product development in North America as well.”
