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The clean label ingredients market size is estimated to grow by USD 16.84 billion at a CAGR of 7.08% between 2023 and 2028. In today's health-conscious world, consumers are increasingly seeking out nutritious and convenient food options. One company, Innovative Foods, is meeting this demand with its latest product launch: a line of frozen meals that are both processed and rich in essential nutrients. These meals are made with high-quality ingredients, free from artificial preservatives and additives, and are designed to provide a balanced and satisfying meal in just a few minutes. With the rising trend of health-conscious consumers and the convenience of processed food, Innovative Foods' new product offering is poised to make a significant impact in the market. Their commitment to providing nutritious and convenient meals aligns with the evolving needs of consumers, making it an exciting addition to the food industry.
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The market is witnessing significant growth due to increasing consumer preferences for natural and organic food products. Natural ingredients, plant-based additives, fiber-rich additives, herbs, spices, and natural extracts are gaining popularity over artificial ingredients. Companies like Ingredion (US) are focusing on providing clean label solutions to meet the demands of consumers. Clean label ingredients offer various functionalities such as enhancing taste, improving texture, and extending shelf-life. Ingredients like fiber-rich additives and plant-based ingredients are in high demand due to their health benefits. Vegan Foods and Honest Organic Kids are some of the B2C brands that are emphasizing clean labels. B2B companies are also adopting clean label ingredients to cater to their clients' demands. Ingredients like natural alternatives to artificial preservatives and colorants are being used to meet the clean label trend. The demand is also driving the market for clean label ingredients. Overall, the clean label ingredients market is expected to continue its growth trajectory in the coming years. Our researchers analyzed the data with 2023 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
New product launches is notably driving market growth. The market has experienced significant growth due to increasing consumer demand for minimally processed ingredients and avoidance of synthetic additives, chemicals, and allergens. This trend is particularly noticeable in various food sectors, such as gluten-free baked goods, tomato-based condiments, processed meats, sauces, bakery fillings, and healthier beverages. For instance, plant-based foods, including vegan nutrition and vegetarianism, have gained popularity, leading to an increase in demand for clean label ingredients. In response to this consumer preference, food ingredient manufacturers have launched numerous clean label alternatives to synthetic additives, such as natural flavors and colors. For example, Divi Nutraceuticals, an Indian company, introduced CaroNat, a naturally-sourced food ingredient derived from concentrated carrot juice, as a natural food coloring agent. This organic ingredient imparts a dark yellow to orange color to various food and beverage products, including dairy items. Moreover, sustainability and regenerative sources have become essential considerations for consumers, particularly among parents and those following specialty diets like vegan or allergen-free. As a result, clean label ingredients have gained traction in various industries, including fast food products and specialty stores. This market trend is expected to continue as consumers prioritize diet and health, and seek transparency in ingredient lists. Thus, such factors are driving the growth of the market during the forecast period.
The growing demand for natural ingredients is the key trend in the market. Consumers' health consciousness is on the rise, driving a growing preference for naturally sourced ingredients in food and beverages. This trend is particularly prominent in the markets for gluten-free baked goods, tomato-based condiments, processed meats, sauces, bakery fillings, and plant-based foods. Sustainability and regenerative sources are key considerations for many shoppers, leading to increased demand for minimally processed ingredients. Natural flavors and plant-based alternatives are replacing synthetic food additives and preservatives in various food categories, including specialty stores, fast food products, and healthier beverages. The shift towards vegan nutrition, vegan diets, and vegetarianism is further fueling this trend. Food ingredient manufacturers are responding to these consumer demands by producing clean-label ingredients, which are free from synthetic chemicals and allergens. The benefits of clean-label ingredients extend beyond health considerations. They also align with the growing concern for the environment and animal welfare. As a result, organic food sales continue to surge, and allergen-free products are becoming increasingly popular. By prioritizing natural and minimally processed ingredients, manufacturers can cater to the evolving needs of consumers while promoting transparency and honesty in food labeling. This approach is particularly important for parents and families, who want to ensure the health and well-being of their loved ones. Thus, such trends will shape the growth of the market during the forecast period.
Low awareness level is the major challenge that affects the growth of the market. The market encompasses a wide range of natural and minimally processed components used in various food and beverage applications, including gluten-free baked goods, tomato-based condiments, processed meats, sauces, bakery fillings, and plant-based foods. Consumers, particularly parents and those following vegan diets or vegan nutrition, are increasingly demanding honest and transparent food labels, leading to a growing preference for clean label ingredients. Sustainability and regenerative sources are also essential factors driving market growth, as consumers seek healthier alternatives to synthetic food additives and preservatives. However, a significant challenge faced by vendors in this market is the limited awareness among consumers about the health benefits of various clean label ingredients. The lack of scientific evidence to prove the benefits of newly developed ingredients restricts their adoption by food and beverage manufacturers. This issue negatively impacts marketing initiatives and hinders the use of clean label ingredients in fast food products, specialty stores, and beverages. Ingredient lists for allergen-free products and organic food sales continue to grow, emphasizing the importance of clean label ingredients in catering to diverse dietary needs and preferences. Food ingredient manufacturers must invest in research and development to provide robust scientific evidence to support the health benefits of their clean label ingredients and effectively market these benefits to consumers. Hence, the above factors will impede the growth of the market during the forecast period.
The market forecasting report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth analysis strategies.
Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
Archer Daniels Midland Co. - The company offers tapioca starches which help in the thickening of soups, stews, and gravies for gluten-free baking to provide superior taste.
The market research and growth report also includes detailed analyses of the competitive landscape of the market and information about key companies, including:
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The beverages segment is estimated to witness significant growth during the forecast period. Consumer preferences have evolved, leading to a heightened focus on clean label ingredients in the food and beverage industry. Brands are responding to this trend by shifting towards natural and nutritious alternatives, moving away from artificial additives and ingredients of questionable origin.
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The beverages segment accounted for USD 8.48 billion in 2018. Ingredient suppliers like Ingredion (US) are meeting this demand with plant-based additives and fiber-rich alternatives, ensuring nutritional integrity and meeting regulatory requirements. Natural ingredients, such as herbs, spices, and natural extracts, are increasingly being used to enhance functionality and flavor, while maintaining product stability and shelf-life. The middle class consumer base, particularly those who are health-conscious, is driving this shift towards clean label products. Food safety and food technology are also playing a crucial role in this transition. For instance, Acerola powder, a natural source of vitamin C, is being used as a natural alternative to synthetic preservatives in various food applications. Similarly, citrus limes and lemons are being used as natural flavor enhancers in place of artificial flavors. Brands are leveraging marketing tactics to position their products as clean label, focusing on the convenience factor and organic sourcing. Vecan Foods, for example, offers a range of clean label, plant-based ingredients for B2B and B2C customers.
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North America is estimated to contribute 51% to the growth of the global market during the market forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.
Consumer preferences for clean label ingredients continue to shape the food industry, with a growing demand for natural and plant-based additives. Companies like Ingredion (US) are responding to this trend by offering functionalities such as fiber-rich additives and natural alternatives to artificial ingredients. However, ensuring naturalness, nutritional integrity, and regulatory compliance can be challenging. Middle-class consumers prioritize food safety and health-conscious choices, driving the demand for clean-label products made with organically sourced ingredients, herbs, spices, and natural extracts. Shelf life and product stability are critical considerations for manufacturers. Food technology and agricultural abundance enable the production of clean energy and long-lasting, plant-based ingredients. Vecan Foods, for instance, offers a range of clean-label B2B and B2C solutions, including texturizers derived from citrus limes and citrus lemons. Marketing tactics, including greenwashing, can complicate the landscape, so transparency and clear labeling are essential. Clean-label products extend to various food categories, such as vegan foods, ready-to-eat meals, and dressings. Acerola powder, for example, is a natural source of vitamin C that can enhance the nutritional value of these items. Regulatory requirements vary by region, so manufacturers must stay informed to maintain compliance. Overall, the clean label ingredients market is a dynamic and evolving space, driven by consumer preferences and advancements in food technology.
The market report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD billion " for the period 2024-2028, as well as historical data from 2018 - 2022 for the following segments.
The Clean Label Ingredients Market is witnessing significant growth due to increasing consumer preferences for natural and healthier food options. Ingredients derived from natural sources, such as plant-based additives and fiber-rich additives, are gaining popularity over artificial ingredients. Companies like Ingredion (US) are focusing on providing clean label solutions to meet this demand. Functionalities of clean label ingredients, such as nutritional integrity, food safety, and longer shelf-life, are key factors driving market growth. Regulatory requirements and consumer concerns over greenwashing are also influencing marketing tactics in the clean label ingredients market. Natural alternatives, such as herbs, spices, and natural extracts, are increasingly being used in place of artificial additives. Ingredients like Acerola powder, citrus limes, and citrus lemons are popular choices for their natural flavors and health benefits. The middle class, with their growing purchasing power, is driving demand for clean label products in both B2B and B2C markets. Food technology and agricultural abundance are also contributing to the availability of a wide range of clean label ingredients. Clean energy and vegan foods are gaining popularity, leading to increased demand for texturizers and other plant-based ingredients. Ready-to-eat meals and dressings are also seeing a shift towards clean label solutions. In conclusion, the clean label ingredients market is expected to continue its growth trajectory, driven by consumer preferences, regulatory requirements, and the convenience factor. Companies must ensure product stability and health-conscious consumers' trust by using organically sourced ingredients and maintaining transparency in their labeling.
Market Scope |
|
Report Coverage |
Details |
Page number |
156 |
Base year |
2023 |
Historic period |
2018 - 2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 7.08% |
Market growth 2024-2028 |
USD 16.84 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
6.49 |
Regional analysis |
North America, APAC, Europe, South America, and Middle East and Africa |
Performing market contribution |
North America at 51% |
Key countries |
US, China, Germany, Japan, and France |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Archer Daniels Midland Co., Brisan Group, Cargill Inc., Chr Hansen Holding AS, Corbion nv, DuPont de Nemours Inc., Givaudan SA, Groupe Limagrain, Handary SA, Ingredion Inc., International Flavors and Fragrances Inc., Kerry Group Plc, Koninklijke DSM NV, Nestle SA, ROHA Dyechem Pvt. Ltd., Sensient Technologies Corp., SMS Corp. Co. Ltd., Tate and Lyle PLC, The Hershey Co., Tiba Starch and Glucose Manufacturing Co., Ulrick and Short Ltd., and VIVESCIA |
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for forecast period |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Application
7 Customer Landscape
8 Geographic Landscape
9 Drivers, Challenges, and Opportunity/Restraints
10 Competitive Landscape
11 Competitive Analysis
12 Appendix
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