USD 50.16 Billion
Clean Label Ingredients Market Size, Share, Growth Analysis, By Ingredient Type(Natural Colors, Natural Flavor, Fruit & Vegetable Ingredient, Starch & Sweeteners), By Application(Food (Dairy & Frozen Desserts, Bakery Products, Prepared Meals/Ready Meals, Cereals & Snacks), By Form(Dry, Liquid), By Certification Organic, Non-GMO(Organic, Non-GMO, Gluten-Free and Vegan), By Region - Industry Forecast 2025-2032
Report ID:
SQMIG30C2104 |
Region:
Global |
Published Date: September, 2024
Pages:
198
|Tables:
123
|Figures:
77
Clean Label Ingredients Market Insights
Clean Label Ingredients Market size was valued at USD 50.16 Billion in 2023 and is poised to grow from USD 53.42 Billion in 2024 to USD 93.74 Billion by 2032, growing at a CAGR of 6.5% during the forecast period (2025-2032).
The purpose of the market is to cater to the increasing consumer preference for healthier and more sustainable food choices. The key driving factors behind the growth of the clean label ingredients market is the rising consumer awareness and demand for clean and transparent product labels. Consumers are becoming more conscious of the potential health risks associated with synthetic additives and are actively seeking products with simpler and recognizable ingredient lists. This shift in consumer behavior and preferences has prompted manufacturers to reformulate their products using clean label ingredients to meet the growing demand. The clean label ingredients market also presents its share of challenges. Developing clean label products that meet consumer expectations while maintaining product quality, stability, and shelf life can be a complex process. It requires expertise in ingredient sourcing, formulation, and production techniques. Moreover, adhering to strict regulatory requirements and ensuring consistent product quality across different batches can pose challenges for manufacturers operating in the clean label space. The global clean label ingredients market is driven by consumer demand for clean, natural, and transparent food and beverage products. While challenges exist in terms of ingredient availability, formulation complexity, and regulatory compliance, the market provides opportunities for manufacturers to meet consumer preferences, innovate with clean label solutions, and capture a larger market share in the evolving food industry.
US Clean Label Ingredients Market is poised to grow at sustainable CAGR for the next forecast year.
Market snapshot - 2024-2031
Global Market Size
Largest Segment
Powdered
Fastest Growth
Powdered
Growth Rate
6.5% CAGR
Global Clean Label Ingredients Market ($ Bn)
Country Share for Asia Pacific Region (%)
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Clean Label Ingredients Market Segmental Analysis
Global Clean label ingredients Market is segmented based on the type, application, form, certification, and region. Based on type, the market is segmented into natural colors, natural flavor, fruit & vegetable ingredient, starch & sweeteners, flour, malt and others. Based on application the market is segmented into food (dairy & frozen desserts, bakery products, prepared meals/ready meals, cereals & snacks, meat, poultry, & seafood, and others), and beverages. Based on form, the market is segmented into dry, and liquid. Based on certification the market is segmented into organic, non-gmo, gluten-free and vegan. Based on region, the market is segmented into North America, Europe, Asia Pacific, South America, and MEA.
Analysis by Form
In terms of sales in 2023, the powder category had the most share, accounting for 61.6%. Powder-based clean-label chemicals are in high demand due to their extended shelf life and simplicity of storage. The use of powdered clean label components allows for easy blending into batters, doughs, and dry mixes, giving you exact control over the ingredient ratio and the right texture for your product. Furthermore, powders provide flexibility in terms of dispersion in liquids, enabling producers to offer various product compositions.
On the other hand, the liquid segment promises a significant CAGR of 3.9% during the forecast period. The demand for the segment is being driven by elements like dispersion and ease of use in food and beverage applications. Liquid ingredients disperse uniformly resulting in a consistent distribution of the product leading to improved flavor and texture
Analysis by Type
The natural flavor segment held the largest share of 19.6% in 2023. Several consumers are seeking healthier alternatives to artificial flavors, leading to a surge in demand for flavors sourced from natural sources. In addition, favorable regulatory scenario and government support toward the usage of natural flavors in diverse applications is fueling the demand for the segment. Rising advancements and product advances in natural food flavor sources have also benefitted the natural flavor sector.
The fruit & vegetable ingredients category is predicted to demonstrate a CAGR of 7.1% throughout the forecast period. Consumers are increasingly concerned about artificial additives, preservatives, and synthetic ingredients in their food. Fruits and vegetables are natural components that can boost the attractiveness of clean-label products. Also, the increased demand for plant-based food and drinks is pushing the need for naturally sourced fruit and vegetable components.
Analysis by Application
In 2023, the food category had the most market share, accounting for 39.3%. To comply with clean label requirements, businesses have had to restructure their product lines in response to the rising customer demand for minimally processed components. According to a July 2023 Ingredion poll, 71% of customers are ready to pay more for items with clean labels.
Throughout the course of the projection period, the dairy, non-dairy, and fermented beverage category is anticipated to exhibit the quickest CAGR of 4.9%. The main factors driving the demand for clean-label beverages are the increased prevalence of allergies and the need for beverages devoid of artificial chemicals and additives.
Analysis by Distribution Channel
In 2023, the B2B sector accounted for the greatest share at 70.2%. Because of the shifting market environment, food makers and ingredient suppliers are emphasizing the use of sustainably derived products more. By using clean-label components, B2B companies may reassure their clients that their goods meet certain requirements for quality and satisfy customer preferences.
Over the projection period, the B2C category is expected to develop at a CAGR of 4.6%. Supermarkets, hypermarkets, specialty shops, and other convenience stores are all part of the B2C sector. The demand for the B2C segment is being driven by the increase in the number of businesses providing clean-label food and drinks as well as the increased accessibility of newer brands through supermarkets and online channels.
Global Clean Label Ingredients Market By Type
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Clean Label Ingredients Market Regional Insights
In 2023, the Europe area accounted for 39.09% of total income. The need for clean-label ingredients in the area is being driven by a number of factors, including the presence of major producers of clean-label ingredients, increased R&D activities, and the introduction of novel products.
Over the course of the forecast period, the clean label ingredients market in North America is anticipated to grow at the quickest rate of 4.8%. Growing consumer interest in plant-based cuisine and healthy drinks is driving up demand for clean-label ingredients in the area. There is a great market potential for businesses to investigate and offer cutting-edge products to customers in the area given the increasing demand for clean label components.
Global Clean Label Ingredients Market By Geography
- Largest
- Fastest
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Clean Label Ingredients Market Dynamics
Clean label ingredients Market Drivers
Increasing Consumer Demand for Natural and Organic Products
- Consumers are becoming more conscious about the ingredients used in their food and beverages, leading to a growing demand for clean label ingredients. They prefer products that are free from artificial additives, preservatives, and synthetic chemicals.
Stringent Food Labeling Regulations
- Governments and regulatory bodies worldwide are implementing stricter regulations on food labeling and safety. This has compelled manufacturers to use clean label ingredients and provide transparent and easily understandable information to consumers.
Clean label ingredients Market Restraints
Increased Demand for Natural Preservatives
- As consumers continue to seek cleaner and healthier food options, there has been a growing demand for natural preservatives in the market. Manufacturers are focusing on developing clean label preservatives derived from natural sources, such as plant extracts and essential oils, to replace traditional synthetic preservatives. This trend is driven by the desire to offer food products with extended shelf life while maintaining the clean label image.
Rising Popularity of Plant-based Ingredients
- The demand for plant-based ingredients in clean label products has gained significant momentum in 2022. Consumers are increasingly opting for plant-based alternatives to animal-derived ingredients, driven by concerns over sustainability, animal welfare, and health. Clean label ingredients like plant-based proteins, such as pea protein, soy protein, and rice protein, are being used as alternatives to animal-based proteins in various food and beverage applications.
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Clean Label Ingredients Market Competitive Landscape
The global clean label ingredients market is highly competitive, with a significant number of players vying for market share. The market is characterized by the presence of both large multinational companies and smaller regional players. These companies are actively engaged in product development, innovation, strategic partnerships, and mergers and acquisitions to strengthen their market position and expand their product portfolios. The competitive landscape of the global clean label ingredients market is dynamic and driven by innovation, product development, and strategic partnerships. The focus on clean and transparent labels, along with the growing consumer demand for natural and organic products, presents significant growth opportunities for players in the market.
Clean label ingredients Market Top Player’s Company Profiles
- Archer Daniels Midland Company (US)
- Cargill, Incorporated (US)
- Ingredion Incorporated (US)
- Kerry Group plc (Ireland)
- Tate & Lyle PLC (UK)
- Corbion NV (Netherlands)
- Chr. Hansen Holding A/S (Denmark)
- Royal DSM N.V. (Netherlands)
- Dupont de Nemours, Inc. (US)
- Sensient Technologies Corporation (US)
- Givaudan SA (Switzerland)
- Symrise AG (Germany)
- International Flavors & Fragrances Inc. (US)
- Kerry Inc. (US)
- Lonza Group AG (Switzerland)
- BASF SE (Germany)
- Tate & Lyle (US)
- Ingredion Incorporated (US)
- BENEO GmbH (Germany)
- Kemin Industries, Inc. (US)
Clean label ingredients Market Recent Development
- In January 2024, Israeli food-tech start-up Better Juice revealed a strategic partnership with Ingredion, a worldwide leader in specialty ingredients for the food and beverage industry. Ingredion Ventures, the venture investment division of Ingredion, will spearhead the Series A funding round for Better Juice, catapulting the company's groundbreaking sugar reduction solution into the competitive US juice market.
- In October 2023, Ingredion, a prominent global supplier of specialty ingredient solutions to the food and beverage manufacturing sector and a trailblazer in clean label ingredients, introduced NOVATION Indulge 2940. This innovative product marks the debut of a non-GMO functional native corn starch and clean label ingredient, offering a distinctive gelled texture ideal for a variety of dairy and alternative dairy products.
- In November 2023, SK Capital Partners, LP, a private investment firm specializing in specialty materials, ingredients, and life sciences sectors, finalized its acquisition of J&K Ingredients, Inc. from CORE Industrial Partners, as previously announced.
Clean Label Ingredients Key Market Trends
- Plant-Based and Vegan Ingredients: The rising popularity of plant-based diets and veganism has led to an increased demand for clean label ingredients derived from plants. Consumers are seeking plant-based alternatives to conventional ingredients such as emulsifiers, thickeners, and flavor enhancers.
- Clean Label Certification: The demand for clean label certification, such as organic and non-GMO, is on the rise. Consumers are actively seeking products that are certified as clean labels, providing them with assurance of the product's quality, authenticity, and adherence to specific standards.
Clean Label Ingredients Market SkyQuest Analysis
SkyQuest’s ABIRAW (Advanced Business Intelligence, Research & Analysis Wing) is our Business Information Services team that Collects, Collates, Correlates, and Analyzes the Data collected by means of Primary Exploratory Research backed by robust Secondary Desk research.
According to our global clean label ingredients market analysis,such ingredients are derived from natural sources and are minimally processed, providing a transparent and wholesome image to consumers. These ingredients are increasingly in demand as consumers become more health-conscious and seek products with recognizable and simple ingredient lists. The market for clean label ingredients is driven by various factors. Firstly, the growing awareness among consumers about the potential health risks associated with artificial additives has led to a shift towards cleaner and more natural alternatives. Consumers are seeking products that are perceived as healthier and more sustainable. Additionally, the rising demand for organic and natural food and beverage products further fuels the market growth. The global clean label ingredients market is driven by consumer demand for natural, transparent, and healthier products. While there are challenges in terms of ingredient availability and formulation, the market presents ample opportunities for companies to capitalize on the growing clean label trend and provide innovative solutions to meet consumer preferences.
| Report Metric | Details |
|---|---|
| Market size value in 2022 | USD 47.07 billion |
| Market size value in 2031 | USD 88.02 billion |
| Growth Rate | 6.5% |
| Base year | 2023 |
| Forecast period | 2024-2031 |
| Forecast Unit (Value) | USD Billion |
| Segments covered |
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| Regions covered | North America (US, Canada), Europe (Germany, France, United Kingdom, Italy, Spain, Rest of Europe), Asia Pacific (China, India, Japan, Rest of Asia-Pacific), Latin America (Brazil, Rest of Latin America), Middle East & Africa (South Africa, GCC Countries, Rest of MEA) |
| Companies covered |
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| Customization scope | Free report customization with purchase. Customization includes:-
|
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Table Of Content
Executive Summary
Market overview
- Exhibit: Executive Summary – Chart on Market Overview
- Exhibit: Executive Summary – Data Table on Market Overview
- Exhibit: Executive Summary – Chart on Clean Label Ingredients Market Characteristics
- Exhibit: Executive Summary – Chart on Market by Geography
- Exhibit: Executive Summary – Chart on Market Segmentation
- Exhibit: Executive Summary – Chart on Incremental Growth
- Exhibit: Executive Summary – Data Table on Incremental Growth
- Exhibit: Executive Summary – Chart on Vendor Market Positioning
Parent Market Analysis
Market overview
Market size
- Market Dynamics
- Exhibit: Impact analysis of DROC, 2021
- Drivers
- Opportunities
- Restraints
- Challenges
- Exhibit: Impact analysis of DROC, 2021
- SWOT Analysis
KEY MARKET INSIGHTS
- Technology Analysis
- (Exhibit: Data Table: Name of technology and details)
- Pricing Analysis
- (Exhibit: Data Table: Name of technology and pricing details)
- Supply Chain Analysis
- (Exhibit: Detailed Supply Chain Presentation)
- Value Chain Analysis
- (Exhibit: Detailed Value Chain Presentation)
- Ecosystem Of the Market
- Exhibit: Parent Market Ecosystem Market Analysis
- Exhibit: Market Characteristics of Parent Market
- IP Analysis
- (Exhibit: Data Table: Name of product/technology, patents filed, inventor/company name, acquiring firm)
- Trade Analysis
- (Exhibit: Data Table: Import and Export data details)
- Startup Analysis
- (Exhibit: Data Table: Emerging startups details)
- Raw Material Analysis
- (Exhibit: Data Table: Mapping of key raw materials)
- Innovation Matrix
- (Exhibit: Positioning Matrix: Mapping of new and existing technologies)
- Pipeline product Analysis
- (Exhibit: Data Table: Name of companies and pipeline products, regional mapping)
- Macroeconomic Indicators
COVID IMPACT
- Introduction
- Impact On Economy—scenario Assessment
- Exhibit: Data on GDP - Year-over-year growth 2016-2022 (%)
- Revised Market Size
- Exhibit: Data Table on Clean Label Ingredients Market size and forecast 2021-2027 ($ million)
- Impact Of COVID On Key Segments
- Exhibit: Data Table on Segment Market size and forecast 2021-2027 ($ million)
- COVID Strategies By Company
- Exhibit: Analysis on key strategies adopted by companies
MARKET DYNAMICS & OUTLOOK
- Market Dynamics
- Exhibit: Impact analysis of DROC, 2021
- Drivers
- Opportunities
- Restraints
- Challenges
- Exhibit: Impact analysis of DROC, 2021
- Regulatory Landscape
- Exhibit: Data Table on regulation from different region
- SWOT Analysis
- Porters Analysis
- Competitive rivalry
- Exhibit: Competitive rivalry Impact of key factors, 2021
- Threat of substitute products
- Exhibit: Threat of Substitute Products Impact of key factors, 2021
- Bargaining power of buyers
- Exhibit: buyers bargaining power Impact of key factors, 2021
- Threat of new entrants
- Exhibit: Threat of new entrants Impact of key factors, 2021
- Bargaining power of suppliers
- Exhibit: Threat of suppliers bargaining power Impact of key factors, 2021
- Competitive rivalry
- Skyquest special insights on future disruptions
- Political Impact
- Economic impact
- Social Impact
- Technical Impact
- Environmental Impact
- Legal Impact
Market Size by Region
- Chart on Market share by geography 2021-2027 (%)
- Data Table on Market share by geography 2021-2027(%)
- North America
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- USA
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Canada
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Europe
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- Germany
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Spain
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- France
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- UK
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of Europe
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Asia Pacific
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- China
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- India
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Japan
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- South Korea
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of Asia Pacific
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Latin America
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- Brazil
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of South America
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Middle East & Africa (MEA)
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- GCC Countries
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- South Africa
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of MEA
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
KEY COMPANY PROFILES
- Competitive Landscape
- Total number of companies covered
- Exhibit: companies covered in the report, 2021
- Top companies market positioning
- Exhibit: company positioning matrix, 2021
- Top companies market Share
- Exhibit: Pie chart analysis on company market share, 2021(%)
- Total number of companies covered
Methodology
For the Clean Label Ingredients Market, our research methodology involved a mixture of primary and secondary data sources. Key steps involved in the research process are listed below:
1. Information Procurement: This stage involved the procurement of Market data or related information via primary and secondary sources. The various secondary sources used included various company websites, annual reports, trade databases, and paid databases such as Hoover's, Bloomberg Business, Factiva, and Avention. Our team did 45 primary interactions Globally which included several stakeholders such as manufacturers, customers, key opinion leaders, etc. Overall, information procurement was one of the most extensive stages in our research process.
2. Information Analysis: This step involved triangulation of data through bottom-up and top-down approaches to estimate and validate the total size and future estimate of the Clean Label Ingredients Market.
3. Report Formulation: The final step entailed the placement of data points in appropriate Market spaces in an attempt to deduce viable conclusions.
4. Validation & Publishing: Validation is the most important step in the process. Validation & re-validation via an intricately designed process helped us finalize data points to be used for final calculations. The final Market estimates and forecasts were then aligned and sent to our panel of industry experts for validation of data. Once the validation was done the report was sent to our Quality Assurance team to ensure adherence to style guides, consistency & design.
Analyst Support
Customization Options
With the given market data, our dedicated team of analysts can offer you the following customization options are available for the Clean Label Ingredients Market:
Product Analysis: Product matrix, which offers a detailed comparison of the product portfolio of companies.
Regional Analysis: Further analysis of the Clean Label Ingredients Market for additional countries.
Competitive Analysis: Detailed analysis and profiling of additional Market players & comparative analysis of competitive products.
Go to Market Strategy: Find the high-growth channels to invest your marketing efforts and increase your customer base.
Innovation Mapping: Identify racial solutions and innovation, connected to deep ecosystems of innovators, start-ups, academics, and strategic partners.
Category Intelligence: Customized intelligence that is relevant to their supply Markets will enable them to make smarter sourcing decisions and improve their category management.
Public Company Transcript Analysis: To improve the investment performance by generating new alpha and making better-informed decisions.
Social Media Listening: To analyze the conversations and trends happening not just around your brand, but around your industry as a whole, and use those insights to make better Marketing decisions.
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