Clean-Label Ingredients Market Size was valued at USD 13.5 billion in 2022. The clean label ingredients market industry is projected to grow from USD 15.8 Billion in 2024 to USD 41.8 billion by 2032, exhibiting a compound annual growth rate (CAGR) of 14.56% during the forecast period (2024 - 2032). Assessing buyer behaviour and planning techniques accurately are the key market drivers enhancing market growth.
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
The rise in consumer demand for clean label food products is expected to drive the growth of the clean-label ingredients market during the forecast period. Furthermore, rising clean-label product launches to increase consumption of clean label food products are expected to propel the clean-label ingredients market forward. Furthermore, health concerns about artificial food additives and food safety incidents are expected to dampen the growth of the clean-label ingredients market. The inability of clean ingredients to replace artificial ingredients, on the other hand, is expected to stymie the growth of the clean-label ingredients market revenue over the forecast period.
Furthermore, the expansion of natural ingredients with functional benefits will provide opportunities for the clean-label ingredients market to grow in the coming years. However, manufacturers' false or misleading labelling claims may pose a further challenge to the growth of the clean-label ingredients market CAGR.
Moreover, the growing interest in identifying the ingredients in food and beverage goods is fueling the expansion of the clean-label ingredients market. Colours and food additives, fruits and vegetables, flavours, flour, starch and sweeteners, salt, and other natural ingredients are examples of clean label material. Each primary ingredient containing chemical products, no artificial additives or substances, and at least one secondary influence such as organic, natural, and hereditarily unaltered organisms and every primary component containing chemical products, no artificial additives or substances, and at least one secondary factor involving natural, biological, and inherently untouched organisms.
The clean-label ingredients market segmentation, based on fusion type, includes EST, Colorants, preservatives, flavours & others. Over the projected period, the flour category is predicted to develop at the fastest rate. The market has a high demand for flour because it is used in the production of most goods. Businesses have improved flour production in some in order to follow the clean-label philosophy generally. For instance, although chlorine and benzoyl peroxide were once used to bleach and whiten flour, clean label flours today contain both soy flour and enzymes.
The clean-label ingredients market segmentation, based on form includes Liquid and dry. The dry form segment is expanding quickly in this market for clean-label ingredients during the anticipated timeframe. In 2021, the dry ingredient products market expanded by 15%. The market for clean-label ingredients has been fueled by the ease with which they can be handled during supply chain activities and stored for the future. They also result in lower manufacturing costs due to their practical use in a variety of applications.
Figure 1: Clean-Label Ingredients Market, by Form, 2022 & 2030 (USD Billion)Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
The clean-label ingredients market has been divided into the following categories based on application: Drinks, Bakery, Dairy & Frozen Desserts, Prepared Food/Ready Meals & Processed Foods, Cereals & Snacks, and Others (Confectionery and Condiment/Culinary Products (Sauces, Dressings, Dips, and Spreads)). The category for beverages is anticipated to increase at the fastest rate over the projection period. Expanding product portfolios and the creation of new clean-label beverage goods that offer consumers new flavours and beverages are some of the elements promoting the segment's growth. Also, it is viewed as a healthy substitute for fast food. In the anticipated time frame, each of these variables will contribute to the market growth for clean label ingredients.
By Region, the study provides market insights into North America, Europe, Asia-Pacific and the Rest of the World. The European area held the largest market share in the Clean Label Ingredients Market because Europe has the greatest number of unpolluted label items, resulting in the highest consumption of clean-label ingredients.
Further, the major countries studied in the market report are The U.S., Canada, German, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.
Figure 2: CLEAN-LABEL INGREDIENTS MARKET SHARE BY REGION 2022 (%)Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
North American clean-label ingredients market accounts for the second-largest market share. Because of rising demand from the food and beverage industries, North America has seen a higher rate of traction for various types of organic ingredients. Further, the German clean-label ingredients market held the largest market share, and the UK clean-label ingredients market was the fastest-growing market in the North American
The Asia-Pacific Clean-Label Ingredients Market is one of the fastest-growing clean-label ingredient markets. The fundamental cause for Asia's fast-moving market is rising consumer living standards. Before purchasing a product, consumers in the region are increasingly checking the ingredient list. The sector is also benefiting from a rise in demand for convenience foods with clean labelling. China is the Asia-Pacific region's largest market for clean-label ingredients. Moreover, China’s clean-label ingredients market held the largest market share, and the Indian clean-label ingredients market was the fastest-growing market in the Asia-Pacific region.
Leading industry players are investing a lot of money in R&D to expand their product offerings, which will spur further growth in the clean-label ingredients market. In addition, market participants are launching new products, entering into contracts, acquiring companies, increasing investments, and working with other organizations, among other significant market developments, to expand their footprint. To grow and thrive in a market that is becoming more and more competitive, businesses in the clean-label ingredients sector must offer affordable products.
Manufacturing locally to cut operational costs is one of the main business methods used by manufacturers in the clean-label ingredients industry to benefit customers and develop the market sector. Some of the biggest advantages to medicine in recent years have come from the clean-label ingredients sector. Major players in the clean-label ingredients market, including Cargill Inc., Archer Daniels Midland Corporation, Koninklijke DSM N.V., Republic of Ireland, Ingredion Incorporated, Tate & Lyle PLC, and others, are seeking to increase market demand by funding R&D initiatives.
Cargill, Inc. is a privately held American multinational food company with headquarters in Minnetonka, Minnesota, and was established in Wilmington, Delaware. It was established in 1865 and, in terms of income, is the biggest privately held corporation in the US. As of 2015, if it were a publicly traded firm, it would be ranked number 15 on the Fortune 500, following McKesson and before AT&T. Concerns about the environment, human rights, finances, and other ethical issues have repeatedly been raised against Cargill. In October 2021, Cargill Corporation introduced SimPure rice flour, a clean-label bulking ingredient with a similar taste, texture, and functioning as maltodextrin. The new ingredient was officially presented by the firm at the SupplySide West trade exhibition. The major goal of this innovation was to broaden the company's product offering.
Ingredion Incorporated is a American ingredient provider based in Westchester, Illinois, that primarily manufactures starches, non-GMO sweeteners, stevia, and pea protein. Corn, tapioca, potatoes, plant-based stevia, cereals, fruits, gums, and other vegetables are processed into ingredients for the food, beverage, brewing, and pharmaceutical industries, as well as many other industrial sectors. It employs around 12,000 people across 44 locations and serves consumers in over 120 countries. In April 2022, Ingredion introduced two functional native rice starches, specifically engineered to increase colour and flavour release. According to the company, natural flavours and colours of applications can shine through even in white products.
Clean-Label Ingredients Industry Developments
In April 2022 Cargill promoted a variety of plant-based lecithins to assist bakers in developing clean-mark and allergen-free products.
In March 2022DSM released Delvo Guard cultures, aimed at manufacturers searching for clean-label solutions while also giving a solution to extend the shelf life of dairy products such as yoghurt, fresh cheese, and sour cream.
In May 2021 Corbion expanded the scope of its perfect name portfolio to include stabilizers, bases, and blends for cake. The line of flawless cake bases and blends is offered in both vanilla and chocolate. The arrangements are used with Pristine's ideal name, icing stabilizers, in sweet, hot products.
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