Global Clean Label Ingredients Market - 2023-2030

Overview:

The Global Clean Label Ingredients Market reached US$ 54.8 billion in 2022 and is expected to reach US$ 186.1 billion by 2030, growing with a CAGR of 16.5% during the forecast period 2023-2030.

The global clean label ingredients market is experiencing significant growth due to increasing consumer demand for natural and transparently labeled products and is expected to continue as consumers prioritize health and wellness. The clean label ingredients market is expanding beyond food and beverages to include personal care and cosmetics, pharmaceuticals, and pet food sectors creating new opportunities for clean label ingredient suppliers.

The increasing embrace of clean label certification initiatives, such as Non-GMO Project Verified and Organic certification, is enabling manufacturers and brands to align with consumer expectations for openness and genuineness. Emerging markets in Asia-Pacific, Latin America, and Africa are demonstrating a growing affinity for clean label products. With the surge in disposable incomes in these regions, consumer preferences are evolving towards healthier and more wholesome choices, propelling market expansion.

Europe is witnessing a surge in products carrying clean label certifications, such as organic and non-GMO labels. This is helping European brands and manufacturers build trust with consumers and gain a competitive edge in the market. European food manufacturers are at the forefront of innovation in clean label products. They are reformulating existing products and launching new ones with clean label ingredients to cater to consumer preferences.

For instance, on April 5, 2023, Mycorena partnered with several European plant-based firms to enhance the ingredients further. The company is set to introduce the product to the market commercially under the fresh brand name Mycolein. This addition will complement its existing mycoprotein brand, Promyc.

Dynamics:

Increasing Consumer Demand for Clean Labels

The market for clean label ingredients is expanding as consumers are increasingly seeking products with simpler and transparent ingredient lists leading to the introduction of new products and the reformulation of existing ones to meet clean label criteria. Companies are transparent about sourcing and ingredient choices, providing consumers with clear information about the origins and processing of ingredients and driving market growth.

Regulatory bodies in various countries have started to implement stricter labeling regulations, forcing companies to disclose more information about their products. Clean label claims often align with these regulations, further promoting their adoption. Manufacturers are investing in development to create clean label ingredients that can replace artificial additives leading to a wider variety of clean label options across different food and beverage categories.

For instance, on June 14, 2023, Florida Food Products (FFP), a prominent provider of clean label food and beverage ingredient solutions, introduced VegStable Secure, an innovative clean label antimicrobial ingredient. This breakthrough allows brands to safeguard a wide range of food products against pathogens and spoilage naturally, effectively inhibiting the growth of Listeria monocytogenes while preserving the product's functionality and flavor profile.

Growing Consumer Focus on Health and Wellness Trends

The emphasis on health and wellness is leading to a broader consumer base seeking clean label products. This expanded demand is propelling the growth of the clean label ingredients market. Consumers are increasingly prioritizing health and well-being. They are actively seeking products with cleaner and more natural ingredients, thereby boosting the market for clean label ingredients.

Clean label trends are influencing packaging as well. Companies are using packaging designs that highlight clean label claims, making it easier for consumers to identify and choose healthier options. As health-conscious consumers seek clean label options, companies are diversifying their product lines to include clean label versions. This diversification is expanding the market by offering a wider range of choices to consumers.

For instance, on February 25, 2020, ABITEC Corporation introduced NUTRI SPERSE MCT GA Powder is designed to meet various demands, boasting a clean-label, dairy-free, and allergen-free powdered formulation. NUTRI SPERSE comprises responsibly sourced, highly pure medium-chain triglycerides suspended in a gum acacia base.

Cost and Sourcing Challenges

Obtaining clean label ingredients often involves sourcing raw materials from specific, often smaller, suppliers who adhere to stricter quality and production standards leading to higher production costs for manufacturers, which are passed on to consumers in the form of higher product prices. In a competitive market, higher prices can limit market growth by reducing consumer affordability.

Sourcing clean label ingredients can sometimes be more challenging than traditional ingredients due to their limited availability making the supply chain more vulnerable to disruptions, such as weather events or geopolitical issues, which can lead to shortages and price volatility. Uncertainty in the supply chain can hinder market stability and growth.

Ingredient Instability

Ingredient instability can lead to variations in the quality and characteristics of clean label ingredients. This inconsistency can make it difficult for manufacturers to produce products with uniform taste, texture, and appearance, which can negatively impact consumer satisfaction and loyalty. In turn, this can limit market growth as consumers seek reliable and consistent products.

Ingredient instability factors such as weather events, crop failures, or fluctuations in natural resource availability. Such disruptions in the supply chain can lead to ingredient shortages and price volatility, making it challenging for manufacturers to secure a steady supply of clean label ingredients. This can hinder market stability and growth.

Segment Analysis:

The global clean label ingredients market is segmented based on ingredient, form, application, and region.

Versatility, Ease of Formulation, and Longer Shelf Life of Powder-Based Ingredients

The powder segment is asserting dominance by capturing the largest portion of the global clean label ingredients market, surpassing other product forms in terms of market share. Powdered clean label ingredients offer versatility in their applications across various food and beverage categories. This versatility contributes to their widespread adoption and market leadership.

Clean label powders are favored by food and beverage manufacturers for their ease of formulation. They could be easily integrated into a wide range of product formulations, making them a preferred choice. Many powdered clean label ingredients, such as powdered natural preservatives, contributed to extending the shelf life of products added value made them essential in the market, particularly for manufacturers seeking clean label solutions with extended product stability.

For instance, on July 17, 2023, BioVeritas, a startup specializing in bio-based ingredients in the United States, introduced a highly efficient clean-label mold inhibitor. This innovation eliminates the necessity for conventional, petrochemical-derived ingredients while preserving the product's flavor.

Geographical Penetration:

Market Leadership, Consumer Demand, Strict Regulatory Environment and Innovations in Europe

Europe held a prominent position in the clean label ingredients market, with a significant share of the global market. This leadership is evident in both the production and consumption of clean label ingredients. European consumers demonstrated a strong preference for clean label products. This heightened demand is creating a thriving market for clean label ingredients as manufacturers seek to meet consumer expectations for transparency and natural ingredients.

Europe's stringent regulatory environment for food labeling and ingredient transparency is encouraging the adoption of clean label ingredients. Manufacturers are compelling to adhere to these regulations, further boosting the clean label ingredients market. European food and beverage manufacturers are developing new formulations and products with clean label ingredients, contributing to market growth.

COVID-19 Impact Analysis

The pandemic disrupted supply chains globally, leading to delays in the sourcing and transportation of clean label ingredients. This affected market stability, causing shortages and price fluctuations. Lockdowns, restrictions on movement, and labor shortages hindered production capabilities, impacting the availability of clean label products. This constrained the growth potential of the market.

Regulatory agencies in certain regions temporarily eased labeling and ingredient requirements to ensure food supply continuity during the pandemic. These changes had implications for clean label claims and compliance, potentially affecting market growth. In some cases, consumers prioritized the longer shelf life of products, leading to a preference for those containing additives and preservatives rather than clean label options. This impacted the market negatively.

However, the pandemic prompted heightened awareness of health and wellness among consumers. As people became more health-conscious, there was a notable increase in the demand for clean label products, driving growth in the market. Clean label ingredients align with consumers' desire for transparency in food and beverage products. Manufacturers responding to this trend by offering clean label options saw an uptick in sales, positively affecting the market.

Russia-Ukraine War Impact Analysis

The conflict disrupted supply chains, particularly for certain raw materials and ingredients sourced from the region. The disruptions in the supply of key clean label ingredients lead to shortages, price fluctuations, and uncertainty in the market. International trade disruptions due to the conflict hinder the export of clean label ingredients from affected regions. This can limit the availability of these ingredients in the global market and potentially raise prices.

The geopolitical instability resulting from the conflict creates an uncertain business environment. Companies are cautious in their investment decisions and market expansion plans, potentially affecting the pace of market growth. Regulatory changes and disruptions in regions affected by the conflict impacted the certification and compliance of clean label ingredients. This could result in market challenges related to labeling and product claims.

By Ingredient

• Colorants
• Flavors and Flavor Enhancers
• Food Sweeteners
• Preservatives
• Starch
• Others

By Form

• Powder
• Liquid

By Application

• Beverages
• Bakery and Confectionery
• Condiments and Sauces
• Dairy and Frozen Desserts
• Meat and Meat Products
• Others

By Region

• North America
  • U.S.
  • Canada
  • Mexico

• Europe
  • Germany
  • UK
  • France
  • Italy
  • Russia
  • Rest of Europe

• South America
  • Brazil
  • Argentina
  • Rest of South America

• Asia-Pacific
  • China
  • India
  • Japan
  • Australia
  • Rest of Asia-Pacific

• Middle East and Africa

Key Developments

• Ingredion, Inc., a leading global ingredient supplier, expanded its range of functional, clean label ingredient solutions in the United States. Their latest addition to the portfolio includes Fibertex CF citrus fibers, derived from citrus fruit peels such as lemons and limes. These innovative fibers enable manufacturers to substitute undesirable and expensive ingredients while delivering distinctive textures and sensory enhancements.
• In April 2022, Ingredion introduced two specialized native rice starches aimed at enhancing color and flavor release. These starches can enhance the prominence of natural flavors and colors in various applications, including white products.
• In October 2021, Cargill Incorporated unveiled SimPure rice flour, a clean-label bulking agent that closely mimics the taste, texture, and functionality of maltodextrin. The official introduction of this innovative ingredient occurred at the SupplySide West trade show, with the primary goal of diversifying and expanding Cargill's product portfolio.

Competitive Landscape

The major global players in the clean label ingredients market include: Archer Daniels Midland Co., Cargill Inc., Chr Hansen Holding AS, Corbion NV, Givaudan, Groupe Limagrain Holding, Handary SA, Ingredion Inc., International Flavors and Fragrances Inc., and Kerry Group Plc.

Why Purchase the Report?

• To visualize the global clean label ingredients market segmentation based on ingredient, form, application and region, as well as understand critical commercial assets and players.
• Identify commercial opportunities by analyzing trends and co-development.
• Excel data sheet with numerous clean label ingredients market-level data points with all segments.
• PDF report consists of a comprehensive analysis after exhaustive qualitative interviews and an in-depth study.
• Product mapping available as excel consisting of critical products of all the major players.

The global clean label ingredients market report would provide approximately 61 tables, 62 figures and 186 Pages.

Target Audience 2023

• Manufacturers/ Buyers
• Industry Investors/Investment Bankers
• Research Professionals
• Emerging Companies