Global clean label ingredient market is expected to value USD 47.50 billion by 2023, registering a CAGR of 6.8% during the forecast period. Clean label ingredient includes the ingredients, which are obtained by minimal process, have simpler ingredient composition on the label and can be claimed natural on the label.
Increasing Consumer Demand for Clean Label Products
Consumers demand clean labels on the products to know what exactly they consume and at what level. Their interest in identifying the ingredients present in the product has triggered the clean label products market. Consumers globally are highly concerned about the long-term effects of synthetic colors on health and so prefer natural colorants in their foods. They are found to avoid consuming of such products that contain synthetic colorants despite the price difference as there have been various studies published, which state that, natural colors help avoid hyperactivity disorders and behavioral issues among other benefits in children. A Study shows that around 88% of consumers are willing to pay a premium price for products containing naturally sourced ingredients. Around 80% of the consumers give importance to reading ingredient lists on the product before purchasing. The future for clean label products is even brighter as various country governments are also endorsing such products.
Natural Colors with Its Organic Properties Witnesses High Demand
Consumer preference for innovative flavors, health benefits, convenience, and alternative sources for nutrient supplements, has augmented the market. There has been much interest in the development of new natural colorants for use in the food industry, which is apparently due to strong consumer demand for more natural products globally. The health enhancing properties of natural colours combined with the organic properties in the natural products is also increasing their appeal. Restraints in natural colorants are mainly due to the higher production cost of fermentation pigments compared to those of synthetic origin or extracted from natural source.
Today, food industry is producing natural colors at a commercial level. The natural colors, which are widely used in food industry are Caramel, Carotenoids, Anthocyanin, and Carmine.
Asia-Pacific Shows the Fastest Growth
Asia-pacific has the fastest growth rate for clean label products. According to the research conducted by the ingredient company Ingredion, Asia-Pacific showed the strongest demand for clean label products compared to any other region.
The European Clean label ingredient market continues to capture the second largest market share, owing to growing health awareness and EU ban for non-GMO and antibiotic ingredients in food products. The Western Europe accounted for 29% of total clean label ingredients market share, majorly dominated by Germany and France.
- Tate & Lyle launched Claria® instant functional clean-label starches. Tate & Lyle expanded the portfolio of CLARIA® Functional Clean-Label Starches with the introduction of two new instant starch products: CLARIA® Instant 340 and 360. The product meets consumer demands for ‘cleaner-label’ ingredients without sacrificing texture. CLARIA® Instant line delivers a clean taste and neutral color
- Cargill launched clean label coating & fillings. Cargill Cocoa & chocolate has introduced new range of coatings and fillings to fulfill consumer needs for clean label
- Arjuna, a leading Indian manufacturer of botanical extracts has launched clean label preservative lines in US. Consumers are aggressively seeking for safe products without artificial additives in US
Clean label products are marketed to consumers, who prefer wholesome, nutritious food, devoid of unnatural elements, to provide energy, owing to their focus on a healthy lifestyle. For example, one in ten new products launched in 2014 in the United States had an “organic” claim, and new products labeled with a “GMO-free” label, launched globally, grew more than 40% in 2014, with no signs of slowing.
Major Players: Cargill, Archer Daniels Midland, Koninklijke Dsm N.V., Kerry Group Plc, Tate & Lyle Plc, And Ingredion Inc.
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- Analyzing outlook of the market with the recent trends and Porter’s five forces analysis.
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- Market segmentation analysis including qualitative and quantitative research incorporating the impact of economic and non-economic aspects.
- Regional and country level analysis integrating the demand and supply forces that are influencing the growth of the market.
- Competitive landscape involving the market share of major players, along with the key strategies adopted for development in the past five years.
- Comprehensive company profiles covering the product offerings, key financial information, recent developments, SWOT analysis, and strategies employed by the major market players.
- 3-month analyst support, along with the Market Estimates sheet in excel
Customization of the Report
- Revenue of the GMO food market
- Revenue of natural food colorants market
- Revenue of natural food preservatives market
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1.1 Key Deliverables of the study
1.2 Study Assumptions
1.3 Market Definitions
2. Research Approach and Methodology
2.2 Research Design
2.3 Study Timelines
2.4 Study Phases
2.4.1 Secondary Research
2.4.2 Discussion Guide
2.4.3 Market Engineering & Econometric Modeling
2.4.4 Expert Validation
3. Market Overview
3.1 Market Trends
4. Market Dynamics
4.1.1 Increase in Demand for Natural and Healthy Food Ingredients
4.1.2 Consumer Awareness of Clean Label Concept
4.1.3 Health Issues Related to the Use of Artificial Food Additives
4.2.1 Lack of Ability of Clean Label Ingredients to Take Over Artificial Ingredient Market
4.2.2 Increased Cost of Clean Label Products
4.3.1 Development of Economic Natural Clean Label Ingredients
4.4 Porter's Five Forces Analysis
4.4.1 Bargaining Power of Suppliers
4.4.2 Bargaining Power of Buyers
4.4.3 Threat of New Entrants
4.4.4 Threat of Substitute Products and Services
4.4.5 Degree of Competition
5. Market Segmentation
5.1 By Ingredient Type
5.1.1 Natural Color
5.1.2 Natural Flavor
5.1.3 Starch and Sweeteners
5.1.4 Natural Preservatives
5.2 By Application
5.2.2 Bakery & Confectionery
5.2.3 Sauces & Condiments
5.2.4 Dairy & Frozen Dessert
5.2.5 Other Processed Food
5.3.1 North America
188.8.131.52 United States
184.108.40.206 Rest of North America
220.127.116.11 Rest of Europe
18.104.22.168 Rest of Asia-Pacific
5.3.4 South America
22.214.171.124 Rest of South America
126.96.36.199 South Africa
188.8.131.52 Rest of Africa
6. Competitive Landscape
6.1 Market Share Analysis
6.2 Most Active Companies
6.3 Strategy Adopted by Key players
7. Company Profiles
7.2 Archer Daniels Midland Company
7.3 Koninklijke DSM N.V.
7.4 E.I. Dupont De Nemours and Company
7.5 Kerry Group PLC
7.6 Ingredion Incorporated
7.7 Tate & Lyle PLC
7.8 Sensient Technologies Corporation
7.9 Corbion N.V.
7.10 Groupe Limagrain
7.11 Chr. Hansen A/S