+353-1-416-8900REST OF WORLD
+44-20-3973-8888REST OF WORLD
1-917-300-0470EAST COAST U.S
1-800-526-8630U.S. (TOLL FREE)

Clean Label Ingredient Market - Growth, Trends, and Forecasts (2023-2028)

  • PDF Icon


  • 120 Pages
  • April 2023
  • Region: Global
  • Mordor Intelligence
  • ID: 4771850

Quick Summary:

In a world where transparency is key and consumer health is paramount, the Global Clean-Label Ingredients Market continues to gain ground. With a heightened awareness about the potential risks of synthetic food additives, consumers globally are clamoring for cleaner, safer, and more understandable ingredient labels. This demand is fortified by the increased government regulations and restrictions on food additives. Agencies across nations are committed to ensuring that consumers aren't unknowingly exposed to harmful substances and products are clearly labeled.

Accompanying this transformation is a shift towards 'free-from' food options, providing healthier alternatives without compromising on the convenience factor. Additionally, the young consumer base presents an untapped potential for promoting clean-label ingredients, given their preference for ready-to-eat meals. The rise in preference for organic and natural ingredients also reflects in food manufacturers steering towards these options - significantly driving market growth. Lastly, with the strong demand for greater transparency from consumers, emerging market trends support the use of clean-label ingredients for bolstering marketing and branding strategies. In short, the entire food value-chain from production to consumption is propelling the growth of the Global Clean-Label Ingredients Market.

The Global Clean-Label Ingredients Market is projected to grow at a CAGR of 6.75% over the next five years.

'Clean labeling' is no longer a trend but a highly-rated consumer demand that the global food industry is responding to by putting additional emphasis on these aspects while processing a food product. ​ Due to multiple research projects, bans, and limits, introduced by governments, consumers are becoming more aware of the adverse health effects of consuming various synthetic food additives, such as colorants, flavors, texturizers, fat replacers, and sweeteners. For instance, such synthetic ingredients consumption can lead to hyperkinesia, tumors, skin rashes, kidney damage, migraine, sleep disturbance, asthma, and ill-gut health. These health issues have led to a consumer shift toward natural additives.​ The government regulatory bodies of various nations are getting involved in labeling products from multiple industries due to the increase in artificial products on the market. For instance, the Food and Drug Administration (FDA) oversees ensuring that foods sold in the US are healthy, safe, and properly labeled. Due to several government study initiatives and prohibitions, consumers are increasingly becoming more aware of the harmful health impacts of consuming various synthetic food additives. Globally, food products with 'free-from' claims are appearing more frequently on grocery store shelves and restaurant menus.​

The market growth is attributed to the growing interest in identifying the ingredients in food and beverage products globally, majorly among health-conscious consumers. Free-from products have been booming in the retail shelf spaces over the recent past across all formats.

The primary factor driving the market's growth is the increasing demand for convenience foods. Young consumers spend most of their income on convenient, ready-to-eat food products, which are evolving with the invasion of the healthy ingredients concept, thus, promoting clean-label ingredients in return.

Clean Label Ingredient Market Trends

Rising Preference For Organic and Natural Ingredients

The food additive manufacturers have also adapted the production of organic additives that can be helpful while developing clean-label products. These additives have applications in various food products, including egg replacement in low- and high-fat vegan food, dressings, white cooking sauces, ready meals, and other applications. Thus, food and beverage manufacturers are also increasingly reformulating their products to meet the changing consumer demand for natural and organic ingredients. For instance, in March 2020, Ingredion Inc. introduced its first clean-label emulsifier, EvanesseCB6194, to the United States and Canadian markets. This emulsifier range caters to the rising demand for clean labels and acts as an apt solution for vegan products, as it is a vegan chickpea broth. Therefore, such ingredients are projected to drive the market with escalating veganism. Similarly, owing to the trending organic food colorants with vibrant shades in the market, prominent players such as Diana Food is introducing a new line of organic colors for food and beverage application in Europe.

Clean-label ingredient use also assists manufacturers in their marketing and branding strategies. As a result of the growing demand for greater transparency regarding the ingredients and additives used in consumer food, the market for clean-label food ingredients is expected to increase during the forecast period. Thus, food and beverage manufacturers are also increasingly reformulating their products to meet the changing consumer demand for natural ingredients

Asia-Pacific is the Fastest Growing Market

The Asia-Pacific clean-label ingredients market is among the fastest-growing market for clean-label ingredients. The primary reason for the fast-moving market in Asia is the increasing consumer living standards. Consumers in the region are increasingly taking time to check the product's ingredient list before purchasing. The increase in demand for convenience goods with clean labels is also boosting the market. China is the largest market for clean-label ingredients in the Asia-Pacific region. Key players are focusing on the Asia-Pacific region to promote the benefits of clean-label ingredients due to the high interest of consumers in healthy eating habits and increased awareness of ingredients used in food products. Moreover, several food service providers in the region, including several restaurants, are shifting toward the clean-label trend and away from artificial food additives to meet the rising consumer demand. It is thus propelling the further application of clean-label ingredients in the region.

Clean Label Ingredient Market Competitor Analysis

The clean-label ingredients market is competitive and dominated by major players. The leading players, like Cargill Inc., Kerry Group plc, Ingredion, and Tate & Lyle, accounted for a significant global market share. Cargill Inc. dominates the market with one of the highest market shares. The considerable players are increasing their R&D investments and expanding their business to maintain their position in the market studied. For instance, in June 2020, Renmatix and Cargill signed a joint development agreement to explore new technology to make label-friendly, functional food ingredients from unused plant materials to meet consumer demand. ​ Similarly, Cargill Inc., one of the market leaders, set up R&D centers in Minneapolis and Shanghai to offer innovative food ingredients.

Additional benefits of purchasing the report:

  • The market estimate (ME) sheet in Excel format
  • 3 months of analyst support

This product will be delivered within 2 business days.

Table of Contents

1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
4.1 Market Drivers
4.2 Market Restraints
4.3 Porter's Five Forces Analysis
4.3.1 Bargaining Power of Suppliers
4.3.2 Bargaining Power of Buyers/Consumers
4.3.3 Threat of New Entrants
4.3.4 Threat of Substitute Products
4.3.5 Intensity of Competitive Rivalry
5.1 Ingredient Type
5.1.1 Colorants
5.1.2 Flavors and Flavor Enchancers
5.1.3 Food Sweeteners
5.1.4 Preservatives
5.1.5 Starch
5.1.6 Other Ingredients
5.2 Application
5.2.1 Beverage
5.2.2 Bakery and Confectionary
5.2.3 Sauce and Condiment
5.2.4 Dairy and Frozen Dessert
5.2.5 Meat and Meat Products
5.2.6 Other Applications
5.3 Geography
5.3.1 North America United States Canada Mexico Rest of North America
5.3.2 Europe Spain United Kingdom Germany France Italy Russia Rest of Europe
5.3.3 Asia-Pacific China Japan India Australia Rest of Asia-Pacific
5.3.4 South America Brazil Argentina Rest of South America
5.3.5 Middle-East and Africa South Africa United Arab Emirates Rest of Middle-East and Africa
6.1 Most Adopted Strategies
6.2 Market Share Analysis
6.3 Company Profiles
6.3.1 Cargill Inc.
6.3.2 Archer Daniels Midland Company
6.3.3 Corbion Inc.
6.3.4 Kerry Group PLC
6.3.5 Ingredion Incorporated
6.3.6 Tate & Lyle
6.3.7 Sensient Technologies
6.3.8 IFF (International Flavors & Fragrances Inc.)
6.3.9 Koninklijke DSM NV
6.3.10 Chr Hansen Holding A/S

Companies Mentioned

A selection of companies mentioned in this report includes:

  • Cargill Inc.
  • Archer Daniels Midland Company
  • Corbion Inc.
  • Kerry Group PLC
  • Ingredion Incorporated
  • Tate & Lyle
  • Sensient Technologies
  • IFF (International Flavors & Fragrances Inc.)
  • Koninklijke DSM NV
  • Chr Hansen Holding A/S