Clean Label Ingredients Market

[181 Pages Report] The global clean label ingredients market is on a trajectory of significant expansion, with an estimated value projected to reach USD 69.3 billion by 2029 from the 2024 valuation of USD 50.2 billion, displaying a promising Compound Annual Growth Rate (CAGR) of 6.7%. The demand for clean label ingredient demand is rising sharply due to a confluence of factors that span consumer preferences, regulatory pressures, and advancements in food technology. This trend is significantly transforming the landscape of food production and marketing, driven by an increasingly health-conscious and informed consumer base.

Consumers are becoming more educated about the potential health risks associated with artificial additives, preservatives, and genetically modified organisms (GMOs). This increased awareness is propelling them to seek out products that contain natural, minimally processed ingredients. For instance, according to a 2021 survey by the International Food Information Council (IFIC), 63% of consumers are paying more attention to ingredient lists. The desire for transparency in food labelling has led companies to adopt clean label practices, ensuring their products meet consumer expectations for simplicity and wholesomeness.

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Market Dynamics

Drivers: Rise in clean label product launches fueled by consumer demand

The clean label ingredients market is driven primarily by evolving consumer preferences for healthier and more transparent food options. As people become increasingly health-conscious and concerned about the ingredients in their food, there has been a surge in the demand for products with clean labels. These labels typically signify that the product is made with simple, recognizable ingredients, free from artificial additives, preservatives, and other undesirable substances.

Consumers are actively seeking out products that align with their values of health, sustainability, and transparency. They are scrutinizing ingredient lists more closely, preferring natural and minimally processed options over synthetic alternatives. This growing demand for clean label products has prompted food manufacturers to respond by reformulating their products or launching new offerings that meet these criteria. For instance, in March 2023, Ingredion (US) introduced a new range of texturizers to its US portfolio of clean label ingredient solutions. These innovative texturizers, known as Fibertex CF citrus fibers, are derived from the peels of citrus fruits such as lemons and limes. By harnessing the natural properties of citrus peels, Ingredion aims to assist manufacturers in addressing clean label challenges while meeting evolving consumer preferences.

Restraints: Limitations/inability of clean ingredients to replace artificial ingredients

While the demand for clean label products is on the rise, manufacturers often encounter challenges when attempting to replace artificial ingredients with their natural counterparts. One significant restraint lies in the functionality and versatility of clean label ingredients compared to their synthetic equivalents. Artificial ingredients are often chosen for their ability to enhance flavor, texture, shelf-life, and other desirable characteristics of food products. However, finding suitable natural alternatives that can replicate these functionalities without compromising on quality can be a complex and costly endeavor. Clean label ingredients may not always offer the same level of performance or stability, leading to potential issues such as flavor inconsistencies, shorter shelf-life, or altered texture.

Moreover, some natural ingredients may be limited in availability or subject to seasonal fluctuations, making them less reliable for large-scale production compared to synthetic alternatives that can be manufactured consistently year-round. These inherent limitations pose a significant restraint for manufacturers looking to transition to cleaner formulations while maintaining product quality and consistency.

Opportunities: Development of natural ingredients with functional benefits

Nowadays, consumers are not only seeking products with clean labels but also demanding added health benefits and functional properties. This presents a promising opportunity for ingredient suppliers and manufacturers to collaborate in the creation of natural ingredients that not only meet clean label criteria but also offer enhanced nutritional value and functional advantages. For instance, there is increasing interest in ingredients such as plant-based, fiber-rich additives, and natural ingredients that can contribute to improved health outcomes and cater to specific dietary preferences.

The convergence of food science and technology has enabled the development of novel extraction and processing techniques that preserve the nutritional integrity of natural ingredients while unlocking their full functional potential. From enhancing texture and stability to fortifying products with vitamins and minerals, the possibilities for innovation in clean label ingredient development are vast.

By capitalizing on these opportunities, companies can differentiate their products in the market, appeal to health-conscious consumers, and stay ahead of evolving regulatory requirements. The development of natural ingredients with functional benefits not only aligns with consumer preferences but also contributes to the overall advancement of the clean label ingredients market.

Challenges: False or deceptive labeling claims by manufacturers

As consumer demand for clean label products continues to soar, there is a growing risk of greenwashing – the practice of misleading consumers into believing that a product is more environmentally friendly or natural than it actually is. In an effort to capitalize on the clean label trend, some companies may engage in misleading marketing tactics, exaggerating the naturalness or healthfulness of their products without sufficient evidence to support such claims. This can erode consumer trust and undermine the credibility of the entire clean label ingredients market. Regulatory bodies are increasingly scrutinizing product labeling and marketing practices to combat deceptive claims and ensure transparency and accuracy in food labeling.

Market Ecosystem

Dry Form Accounted For A Higher Market Share Among Form Segment In 2023.

The convenience factor plays a crucial role. Powdered or dry products offer ease of storage, transportation, and handling compared to other forms like liquid or solid. For instance, dry supplements and food additives are lightweight and compact, making them convenient for both manufacturers and consumers. This convenience translates into cost savings throughout the supply chain, from production to distribution.

Moreover, the versatility of dry form allows for a wide range of applications across industries. Brands can cater to diverse consumer preferences by offering a variety of formulations in dry form, enhancing their market appeal.

In September 2020, the Symrise (India) Division Diana Food introduced its first-ever clean label, organic, and Fair Trade-certified acerola powder. This marks a significant milestone, positioning Diana Food as an industry leader in catering to consumers seeking natural and health-focused solutions. Moreover, the versatility of the acerola powder opens up opportunities across various product categories, from nutritional supplements to functional foods and beverages. Its clean label and organic attributes cater to consumers seeking products with minimal additives and synthetic ingredients, further enhancing its market potential.

Asia Pacific is The Fastest-Growing Market for Clean Label Ingredients Among the Regions.

Asia Pacific is emerging as the fastest-growing market for clean label ingredients, driven by one of the primary drivers, which is the region's rapidly expanding middle class, which is increasingly health-conscious and willing to spend on premium food products. This demographic shift is accompanied by a rising awareness of food safety and nutrition, prompting consumers to seek products with natural and easily recognizable ingredients.

Local food manufacturers in the Asia Pacific are responding to this demand by innovating and reformulating products to include fewer artificial additives and more natural ingredients. This shift is supported by advancements in food technology, which facilitate the development of clean label alternatives that do not compromise on taste or quality. Moreover, the agricultural abundance in many Asia Pacific countries provides a rich source of natural ingredients, enabling the production of a diverse range of clean label products.

Key Market Players

The key players in this market include Cargill, Incorporated (US), ADM (US), DSM (Netherlands), International Flavors & Fragrances Inc. (US), Kerry Group plc (Ireland), BASF SE (Germany), Ingredion (US), Sensient Technologies Corporation (US), Corbion (Netherlands), Symrise (Germany), Chr. Hansen A/S (Denmark), Puratos (Belgium), Ajinomoto Co., Inc. (Japan), Tate & Lyle (UK), and Givaudan (Switzerland)

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Scope of the Report

This research report categorizes the clean label ingredients market, based on ingredient type, form, application, certification type, and region.

Target Audience

• Clean Label Ingredients Manufacturers
• Food & Beverage Producers
• Food Processing Manufacturers
• Government Agencies (related to food safety and regulations such as FDA, EFSA, and FSSAI)

Clean Label Ingredients Market:

By Ingredient type

• Natural Colors
• Natural Flavors
• Fruit & Vegetable Ingredients
• Starch & Sweeteners
• Flours
• Malt
• Other Ingredient Types

By Form

• Dry
• Liquid   

By Certification Type

• Organic
• Non-GMO
• Gluten-free
• Vegan

By Application

• Food
  • Dairy & Frozen Desserts
  • Bakery Products
  • Prepared Meals/Ready Meals
  • Cereals & Snacks
  • Meat, Poultry, & Seafood
  • Other Food Applications
• Beverages

By Region

• North America
• Europe
• Asia Pacific
• South America
• Rest of the World (RoW)

Recent Developments

• In December 2022, DSM introduced two innovative canola-based ingredients under its new Vertis plant protein line: CanolaPro and Textured Pea Canola Protein. These proteins are the first clean-label options to include all nine essential amino acids. CanolaPro is a protein isolate derived from canola seeds, while the Textured Pea Canola Protein blends CanolaPro with pea protein. This recent development significantly contributes to the expansion of the clean label ingredients market, meeting the demand for transparent and natural food ingredients.
• In June 2021, BASF SE introduced Spongolit Pure 10, a clean-label premium aerating agent designed to enhance the volume and texture of cakes. This recent development supports the growth of the clean label ingredients market by meeting the increasing demand for clean label food ingredients.

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