Ethical Labels Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)

The report covers Global Ethical Label Market Analysis and it is segmented by Label Type (Halal, Organic, Clean, Sustainability and Fairtrade labels, Kosher, Animal Welfare Labels, Vegan Labels, and Other Label Types), Product Types (Food and Beverages), Distribution Channel (Offline and Online), and Geography.

Ethical Label Market Size

Ethical Label Market Summary
Study Period 2019 - 2029
Market Size (2024) USD 0.94 Trillion
Market Size (2029) USD 1.41 Trillion
CAGR (2024 - 2029) 7.10 %
Fastest Growing Market Asia Pacific
Largest Market North America

Major Players

Ethical Label Market Major Players

*Disclaimer: Major Players sorted in no particular order

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Ethical Label Market Analysis

The Ethical Label Market size is estimated at USD 0.94 trillion in 2024, and is expected to reach USD 1.41 trillion by 2029, growing at a CAGR of 7.10% during the forecast period (2024-2029).

A high degree of awareness and concern regarding the right food consumption drives food and beverage companies toward transparency and adopting ethical labels for their products.

  • The increased consumer interest in sustainable practices, fair trade, and ethical sourcing drives the ethical labels market. The market is expanding because consumers are increasingly interested in learning how individual food products affect the environment. The ethical labels market is driven by the acceptance of certain foods & beverages and the shift in consumers' consumption habits. The contribution of Jewish and Muslim consumers can be attributed to the rise of kosher and halal ethical-certified products.
  • The advocacy of high ethical standards for manufacturing and consumption increasingly influences companies to opt for ethical labels, which promote environmental sustainability, animal well-being, social justice, equality, and adherence to a more promising workplace and worker qualities, thereby boosting the market.
  • A sizeable population, especially millennials, has been influential in increasing awareness toward healthy and clean-certified products. This trend is increasing in the baby boomer population as well. There is a gradual shift among consumers toward more nutritious eating habits. According to the Global Organic Trade Guide, in 2022, the retail sales value of health and wellness (HW) packaged food and beverages in Japan amounted to around USD 56.3 billion. The sector was forecast to grow steadily and exceed USD 57.3 billion in 2025.
  • However, ethical labels often require additional certifications and compliance measures, which can lead to increased costs for manufacturers and suppliers. These additional costs may be passed on to the consumers, making ethical products relatively more expensive compared to non-ethical alternatives.
  • Another restraint for the studied market is the limited availability of products with ethical labels in some regions or markets. This can be due to various factors like limited production capacity, distribution challenges, or lack of demand in certain areas. Also, standardized regulations or guidelines for ethical labeling can create clarity and consistency in the market.

Ethical Label Market Trends

Beverages To Occupy Highest Market Share

  • The beverage industry is anticipated to occupy a robust market share as there is a growing concern over consuming alcoholic, carbonated, and sugar-based beverages; now, the focus has shifted toward non-alcoholic, plant-based alternative beverages among health-conscious consumers worldwide.
  • Further, the beverage industry faces challenges in maintaining the reputation of ethical treatment of animals and ensuring safety. The emergence of plant-based beverages, like packaged coconut water and non-dairy milk beverages, is another primary driver for the vegan label market.
  • According to Kilne & Company, healthy living has evolved to include a holistic approach to self-care. This encourages ​​eating a healthy organic diet, taking supplements, using cleaner products, exercising, and managing stress. In their quest to live greener and more hygienic, consumers choose beverages they perceive as 'clean' or 'natural.' Products claiming to be gluten-free, non-GMO, free of artificial colors and preservatives, organic, and grass-fed are gaining more and more space on retail shelves.
  • In terms of geography, the Asia-Pacific region is expected to offer significant growth opportunities as the economic growth of the region has significantly enhanced the disposable income of the consumers, along with a changing lifestyle. These factors are expected to influence the demand for packaged beverages in this region. According to the National Bureau of Statistics of China, in November 2022, about 10.97 million metric tons of non-alcoholic beverages were produced in China.
  • Conventional beverages such as tea, coffee, cocoa-based, and packaged water are witnessing high adoption. Additionally, halal, ethical-certified products have found their way into packaged water, gaining consumer traction. Further, adopting low-calorie variants in conventional beverages, such as carbonated soft drinks, also influences the demand for clean labels.
  • Soft drinks hold a substantial share of the market studied, owing to the popularity of such beverages and increasing consumption worldwide. Soft drinks offer various flavors and formats to suit every drinking occasion; according to UNESDA, sugar-free, low-calorie beverages currently account for up to 30 percent of sales in many European markets. According to Britvic Soft Drinks Review Convenience and Impulse, the total cola sales volume was 45.03 million liters in 2022 in the United Kingdom.
  • Moreover, manufacturers in the beverage industry are choosing ethical label which is niche enough to differentiate them from other competitor brands and want to appeal to a broad base of customers. This is further fueling the growth of the ethical label market in the beverage industry.
Ethical Label Market: Leading Soft Drinks Ranked By High Street Sales Volume, In Million Liters, United Kingdom, 2022

The Asia Pacific Region is Anticipated to Register Robust Market Growth Rate

  • The changing consumer demand and the need for consistent food quality have created the need for ethical labeling solutions to maintain high quality and productivity in the Asia Pacific region.
  • The increasing beverage production and consumption in the Asia Pacific region is likely to offer lucrative opportunities for the growth of the studied market. For instance, according to the National Bureau of Statistics of China, in January and February 2023, around 26.9 million metric tons of soft drinks were produced in China, showing a 0.5 percent increase compared to the same period of the previous year. In addition, in November 2022, approximately 11 million metric tons of beverages were produced in China. Furthermore, in August 2022, approximately 18.85 million metric tons of soft drinks were produced in China.
  • Further, according to the National Bureau of Statistics of China, in 2022, China had an output of approximately 39.3 million metric tons of cow's milk, the highest volume in recent years.
  • In the region, packaged foods are gaining high traction owing to busy work schedules, the rising number of working women, and the shift toward on-the-go consumption, which is anticipated to increase the utilization of innovative and sustainable ethical label markets across the food sector. This is likely to fuel the market's growth during the forecast period.
  • According to Agriculture and Agri-Food Canada, packaged food retail sales in China were about USD 298.01 billion recently. Further, the packaged food retail sales are expected to reach USD 366.7 billion in 2025.
  • Additionally, the switching cost is becoming moderate due to the decreasing price differentiation of low-end and high-end products due to the emergence of numerous vendors in certain segments like halal, organic, and clean certifications. Several players are anticipated to expand their presence worldwide during the forecast period, especially in the APAC region.
Ethical Label Market - Growth Rate by Region

Ethical Label Industry Overview

The ethical label market is consolidated and dominated by a few major players like Archer-Daniels-Midland Company, Cargill Inc., Garden of Life (Nestlé S.A.), etc. The vendors compete based on product quality, clean, free tags, and competitive pricing. Sustainable competitive advantage can be gained through design, technology, and application innovation. Some of the key developments in the market are:

In March 2023, ingredion introduced two citrus fiber texturizers, Fibertex CF 502 and Fibertex CF 102, to its range of functional, clean-label ingredient solutions. This move is in response to the increasing consumer preference for food products containing ingredients they recognize and are familiar with and those that are beneficial to health and have natural, fresh claims. The new citrus-based texturizers are part of the company's effort to meet the accelerated demand for clean-label food and the rising popularity of nutrition, health, and wellness trends.

In March 2022, DSM developed DelvoGuard cultures to meet the needs of producers who want to use clean-label ingredients. This solution also helps to extend the storage life of dairy products like yogurt, cheese, and sour cream.

Ethical Label Market Leaders

  1. Archer-Daniels-Midland Company

  2. Cargill Inc

  3. Garden of Life (Nestlé S.A.)

  4. The Kraft Heinz Company

  5. Ingredion Incorporated

*Disclaimer: Major Players sorted in no particular order

Ethical Label Market Concentration
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Ethical Label Market News

  • September 2023: Maranello launched its ethical label. To obtain the Maranello on Earth label, a product must fulfill one of 4 criteria: a useful, sustainable promotional object that can be recycled and that is biodegradable, or a renewable promotional object that uses fewer materials or eco-designed materials produced using organic and recycled materials. It can also be a promotional object with a low carbon footprint, using locally-produced raw materials and green transport over short distances, or a promotional object with a socially positive contribution, environmentally ethical, using European, national, or even local know-how; using local or international, charity-based, socially responsible or fair-trade manufacture.
  • June 2023: Kerry, a global player in taste and nutrition, introduced Biobake EgR, an enzyme solution that decreases the number of eggs needed in various baking applications, facilitating European manufacturers to switch from caged to free-range or organic eggs without facing increased costs. As per the company, many consumers are also looking for more ethical label claims in egg-based products. Including “cage-free” and Biobake EgR allows bakers to achieve that goal cost-effectively while mitigating volatile egg prices by switching to a more consistent, lower-cost, natural alternative.

Ethical Label Market Report - Table of Contents

  1. 1. INTRODUCTION

    1. 1.1 Study Assumptions and Market Definition

    2. 1.2 Scope of the Study

  2. 2. RESEARCH METHODOLOGY

  3. 3. EXECUTIVE SUMMARY

  4. 4. MARKET INSIGHTS

    1. 4.1 Market Overview

    2. 4.2 Industry Attractiveness - Porter's Five Forces Analysis

      1. 4.2.1 Bargaining Power of Suppliers

      2. 4.2.2 Bargaining Power of Consumers

      3. 4.2.3 Threat of New Entrants

      4. 4.2.4 Threat of Substitutes

      5. 4.2.5 Intensity of Competitive Rivalry

    3. 4.3 Industry Value Chain Analysis

    4. 4.4 Assessment of the Impact of COVID-19 on the Industry

  5. 5. MARKET DYNAMICS

    1. 5.1 Market Drivers

      1. 5.1.1 Increased Consumer Conscious toward Health and Ethical Values

      2. 5.1.2 Growth due to Online Retailing and CSR Activities

      3. 5.1.3 Reduction in Meat Consumption for Environmental Sustainability

    2. 5.2 Market Restraints

      1. 5.2.1 Increasing Competition Among Players

  6. 6. MARKET SEGMENTATION

    1. 6.1 By Label Type

      1. 6.1.1 Halal

      2. 6.1.2 Organic

      3. 6.1.3 Clean

      4. 6.1.4 Sustainability and Fairtrade labels

      5. 6.1.5 Animal Welfare Labels

      6. 6.1.6 Vegan Labels

      7. 6.1.7 Other Label Types

    2. 6.2 By Product Type

      1. 6.2.1 Food

      2. 6.2.2 Beverages

    3. 6.3 By Distribution Channel

      1. 6.3.1 Offline

      2. 6.3.2 Online

    4. 6.4 By Geography

      1. 6.4.1 North America

      2. 6.4.2 Europe

      3. 6.4.3 Asia-Pacific

      4. 6.4.4 Rest of the World

  7. 7. COMPETITIVE LANDSCAPE

    1. 7.1 Company Profiles

      1. 7.1.1 Archer-Daniels-Midland Company

      2. 7.1.2 The Hershey Company

      3. 7.1.3 Cargill Inc

      4. 7.1.4 Go Macro LLC

      5. 7.1.5 Garden of Life (Nestlé S.A.)

      6. 7.1.6 Kerry Group PLC

      7. 7.1.7 Koninklijke DSM N.V

      8. 7.1.8 PepsiCo Inc.

      9. 7.1.9 The Kraft Heinz Company

      10. 7.1.10 Ingredion Incorporated

    2. *List Not Exhaustive
  8. 8. INVESTMENT ANALYSIS

  9. 9. MARKET OPPORTUNITIES AND FUTURE TRENDS

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Ethical Label Industry Segmentation

Ethical labeling is not an unequivocal concept but may be defined differently depending on the context. In this report, ethical labeling means a product is labeled with information on whether the production process respects ethical values. The information may appear in the shape of text, a symbol on the product, or a combination of text and symbol. The report's scope is comprehensive and limited to food and beverage product types.

The ethical label market is segmented by label type (halal, organic, clean, sustainability and fairtrade labels, animal welfare labels, vegan labels, and other label types), by product type (food and beverages), by distribution channel (offline and online), and by geography (North America, Europe, Asia Pacific and Rest of the World). The market sizes and forecasts are provided in terms of value in USD for all the above segments.

By Label Type
Halal
Organic
Clean
Sustainability and Fairtrade labels
Animal Welfare Labels
Vegan Labels
Other Label Types
By Product Type
Food
Beverages
By Distribution Channel
Offline
Online
By Geography
North America
Europe
Asia-Pacific
Rest of the World
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Ethical Label Market Research FAQs

The Ethical Label Market size is expected to reach USD 0.94 trillion in 2024 and grow at a CAGR of 7.10% to reach USD 1.41 trillion by 2029.

In 2024, the Ethical Label Market size is expected to reach USD 0.94 trillion.

Archer-Daniels-Midland Company, Cargill Inc , Garden of Life (Nestlé S.A.) , The Kraft Heinz Company and Ingredion Incorporated are the major companies operating in the Ethical Label Market.

Asia Pacific is estimated to grow at the highest CAGR over the forecast period (2024-2029).

In 2024, the North America accounts for the largest market share in Ethical Label Market.

In 2023, the Ethical Label Market size was estimated at USD 0.88 trillion. The report covers the Ethical Label Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Ethical Label Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.

Ethical Product Label Industry Report

Statistics for the 2023 Ethical Product Label market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Ethical Product Label analysis includes a market forecast outlook to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.

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Ethical Labels Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)