Clean Label Ingredients Market - Forecast(2023 - 2028)

Clean Label Ingredients Market Overview

Clean Label Ingredients Market size is estimated to reach $62.8 billion by 2027, growing at a CAGR of 6.7% during the forecast period 2022-2027. The clean label indicates food supplements or ingredients pertaining to fruits, vegetables, colors, flavors, flours, starch, sweeteners, malt, and others that conform to any or all of the principal determinants (like fewer product ingredients with no chemical name, effortless to comprehend, no artificial supplements) and a minimum of one secondary determinant (inclusive of natural, organic and non-GMO products). In an endeavor to eliminate constituents from food without jeopardizing the product taste, texture, security, and shelf life, biobased ingredients like lactic acid and lactates are opted for together with abundant know-how or skill. Carbon has developed Verdad® for the meat industry which is their family of natural and clean label solutions that deliver on food safety, shelf life, and added functionalities. Their Verdad® Ferments are really rare blends of cultured corn sugar and vinegar that offer food safety and expand shelf life without jeopardizing the eating experience for consumers. The proliferating health issues associated with the intake of artificial food supplements in conjunction with the raised awareness of health and caution regarding food safety amidst consumers is set to drive the Clean Label Ingredients Market. The surging inclination of parents towards clean label ingredients-based food like food based on biobased ingredients like lactic acid and lactates owing to the burgeoning demand for transparent and organic ingredients aimed at children is set to propel the growth of the Clean Label Ingredients Market during the forecast period 2022-2027. This represents the Clean Label Ingredients Industry Outlook.

Report Coverage

The report: “Clean Label Ingredients Market Forecast (2022-2027)”, by Industry ARC, covers an in-depth analysis of the following segments of the Clean Label Ingredients Market.

By Form: Powder, Liquid.
By Type: Natural Colors, Natural Flavors, Fruit & Vegetable Ingredients, Starch And Sweeteners, Flour, Malt, Culinary Products, Others (Cereal Ingredients Like Bran And Fibers, Natural Preservatives, Fermentation Ingredients).
By Application: Beverages, Cereals And Snacks, Bakery, Prepared Food/Ready Meals And Processed Foods, Dairy & Frozen Desserts.
By Geography: North America (the U.S, Canada, and Mexico), Europe (Germany, France, UK, Italy, Spain, Russia and Rest of Europe), Asia-Pacific (China, Japan, South Korea, India, Australia & New Zealand, and Rest of Asia-Pacific), South America (Brazil, Argentina, Chile, Colombia, Rest of South America), and Rest Of The World (Middle East, Africa).

Key Takeaways

• Geographically, Europe Clean Label Ingredients Market accounted for the highest revenue share in 2021 and it is poised to dominate the market over the period 2022-2027 owing to the extensive series of ingenious food preservation technologies which may involve biobased ingredients like lactic acid and lactates principally bestowed by the existence of leading clean-label ingredient makers who are consistently engaged in research and launching innovative products in the European region.

• Clean Label Ingredients Market growth is being driven by the onset of the COVID-19 pandemic which has made people more guarded regarding food leading to people consuming healthier diet options than under normal circumstances with consumers keeping up steady focus on clean-label for at-home and out-of-home buys resulting in the soaring application of clean label ingredients like biobased ingredients like lactic acid and lactates in different food applications. However, the soaring cost of clean label ingredients is one of the major factors hampering the growth of the Clean Label Ingredients Market.

• Clean Label Ingredients Market Detailed Analysis on the Strength, Weakness and Opportunities of the prominent players operating in the market will be provided in the Clean Label Ingredients Market report. 

Clean Label Ingredients Market: Market Share (%) by Region, 2021

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Clean Label Ingredients Market Segment Analysis – By Type:

The Clean Label Ingredients Market based on type can be further segmented into Natural Colors, Natural Flavors, Fruit & Vegetable Ingredients, Starch And Sweeteners, Flour, Malt, Culinary Products, and Others. The Natural Colors Segment held the largest market share in 2021. This growth is owing to the adverse health consequences of artificial colorants, particularly in dairy and beverage products. Clean label ingredients may include biobased ingredients like lactic acid. Natural colors may be extracted from fruits, vegetables, and other plants. The increasing availability of natural colors in liquid and powder format is further propelling the growth of the Natural Colors segment.

Furthermore, the Fruit & Vegetable Ingredients segment is estimated to grow with the fastest CAGR of 7.4% during the forecast period 2022-2027 owing to the effortless accessibility of clean label ingredients in the fruit and vegetable ingredients including purees and puree concentrates, juice concentrates and multi-vegetable blends, fruit cells, and fruit pieces apart from biobased ingredients like lactic acid.

Clean Label Ingredients Market Segment Analysis – By Application:

The Clean Label Ingredients Market based on the application can be further segmented into Beverages, Cereals And Snacks, Bakery, Prepared Food/Ready Meals And Processed Foods and Dairy & Frozen Desserts. The Bakery segment held the largest market share in 2021. This growth is owing to the extensive demand for healthier clean label baked products. Biobased ingredients like lactic acid are included in the category of clean label ingredients. The soaring demand for baked cereals and the benefits of clean label ingredients like minimizing constipation are further propelling the growth of this segment.

Furthermore, the Processed Foods segment is estimated to grow with the fastest CAGR of 7.7% during the forecast period 2022-2027 owing to the surging western influence worldwide in conjunction with the increasing inclination of young adults towards processed foods amidst their frantic lifestyles and the increasing predominance of incessant ailments like obesity wherein clean label ingredients like lactic acid comes as a welcome relief.

Clean Label Ingredients Market Segment Analysis – By Geography:

The Clean Label Ingredients Market based on geography can be further segmented into North America, Europe, Asia-Pacific, South America, and the Rest of the World. Europe (Clean Label Ingredients Market) held the largest share with 35% of the overall market in 2021. The growth of this region is owing to the surging awareness of consumers to the adverse health consequences related to the intake of different synthetic or artificial food ingredients like colorants and flavors in the region. The different research projects and bans launched by the governments are further driving the growth of the Clean Label Ingredients Market in this region. The soaring assistance provided to the makers in their marketing and branding strategies through the application of clean label ingredients involving biobased ingredients like lactic acid and the existence of key players like ALDI in the region is further propelling the growth of the Clean Label Ingredients Market in the European region.

Furthermore, the Asia-Pacific region is estimated to be the region with the fastest CAGR rate over the forecast period 2022-2027. This growth is owing to factors like increasing living standards of the consumers in the Asia-pacific region. The existence of key players like Cargill in countries like India in the region in conjunction with the boost in demand for convenience goods with clean label ingredients like lactic acid is further fueling the progress of the Clean Label Ingredients Market in the Asia-Pacific region. 

Clean Label Ingredients Market Drivers

Soaring Application Of Clean Label Solutions Involving Lactic Acid, Lactates And Corn Sugar Is Projected To Drive The Growth Of Clean Label Ingredients Market:

A clean label typically indicates constituents that are comprehensive and identifiable, organic and nominally processed, and include nil additives or preservatives. To eliminate constituents from food without jeopardizing product taste, structure, security, and shelf life, biobased constituents like lactic acid and lactates need to be adopted with ample skill, Carbion has developed Verdad®, their family of organic and clean label solutions that deliver on food security, shelf life, and added functionalities for the meat industry.  Verdad® Ferments established by Carbion are really rare mixes of cultured corn sugar and vinegar that offer food security and expand shelf life without jeopardizing the eating experience for consumers. Verdad Vinegar developed by Carbion are accessible in liquid and powders, organic or low/no sodium, and are the all-natural solution for restricting Listeria and expanding shelf life. Verdad Avanta involves rare organic mixes planned to deliver beyond food safety and shelf life and improve flavor, yield, texture, organic curing, and freshness. The extensive application of clean label solutions inclusive of lactic acid, lactates, and corn sugar is therefore fueling the growth of the Clean Label Ingredients Market during the forecast period 2022-2027.

Surging Alertness And Demand Of Consumers For Transparency Are Expected To Boost The Demand Of Clean Label Ingredients:

Consumers are unsure about the supplements industry. They are seeking more information at their fingertips than ever before through daily connectivity. Consumers need products that are more organic, less processed, and prepared with identifiable constituents. Amidst the COVID-19 pandemic, consumers are increasingly cautious of what they consume, a lot more than before. There are heightening product recalls. Allergy scares are intimidating. Supplements with unrecognized names need to be dealt with. Social media is being utilized on a large scale. The focus is presently on cleaner label ingredients involving biobased ingredients like lactic acid in conjunction with superior transparency and certifications. The proliferating alertness in conjunction with burgeoning consumer demand for transparency is therefore driving the growth of the Clean Label Ingredients Market during the forecast period 2022-2027.

Clean Label Ingredients Market Challenges

Cost And Formulation Challenges Are Hampering The Growth Of The Clean Label Ingredients Market:

Though clean-label ingredients are in great demand, formulating with these solutions has inherent impediments termed cost and formulation challenges. Non-GMO products are likely to be more expensive. Hence it can be demanding for beverage makers to keep up the price tag. With clean-label and non-GMO ingredients, the cost of manufacturing suddenly rises in comparison with traditional beverages. The makers need to work around their profit margins or optimize their distribution routes to gain profits. However, for the makers who aim their beverages with non-GMO ingredients to consumers who can purchase them, acquiring non-GMO ingredients is an issue. GMO crops are responsible for most of the cultivation as they are more affordable and are therefore suited to satisfy the requirements of a bigger proportion of the population. Makers of clean-label and non-GMO foods and beverages need to be involved in continuous consumer feedback and attend to affordability. These issues are thus hampering the growth of the Clean Label Ingredients Market.

Clean Label Ingredients Industry Outlook

Novel product launches, expansions, and R&D financing are key strategies adopted by players in this market. Clean Label Ingredients top 10 companies include:

1. Cargill
2. Archer Daniels Midland Company
3. Kerry Group PLC
4. Ingredion Incorporated
5. Tate & Lyle PLC
6. Sensient Technologies Corporation
7. Corbion N.V.
8. Chr. Hansen A/S
9. ALDI
10. Quick BENEO GmbH

Acquisitions/Product Launches:

• In November 2021, Scientists at Cargill have established a greatly soluble rice flour that can take the place of maltodextrin in a series of uses and provide a clean label option to formulators. The constituent can take the place of maltodextrin in a series of uses, inclusive of minimized sugar bakery products and dairy, powdered beverages, and more. Utilized as a 1:1 replacement for maltodextrin and calorie counterpart, the constituent is a portion of a toolbox for sugar minimization.
• In November 2021, Cargill has gained an edible oil refinery situated in Nellore, Andhra Pradesh. The $35 million investment to gain and upgrade the facility will “significantly" extend Cargill's edible oil manufacture capacity and footprint in southern India, as per the firm. The facility is anticipated to be completely operational by May 2022.
• In January 2021, Cargill gained ProPortion Foods, a Los Angeles-based processor of completely cooked beef, pork and poultry products for customers in the foodservice and retail segments. The financial terms of the acquisition were not revealed. Founded in 2019, the firm operates two processing plants that are involved in the purchase – one in Vernon, Calif., and the other in Round Rock, Texas.

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