Enjoy complimentary customisation on priority with our Enterprise License!
The ethical label market size is forecast to increase by USD 245.9 billion and is estimated to grow at a CAGR of 4.5% between 2023 and 2028. In today's health-conscious world, consumers are increasingly focused on making informed food choices and adopting shifting consumption habits. This trend is driven by concerns over nutrition, wellness, and sustainability. Online retailing has emerged as a preferred platform for purchasing food items, offering convenience, variety, and access to a wider range of options. Consumers are seeking out certified organic, locally sourced, and ethically produced food products. Additionally, Community Supported Agriculture (CSA) activities have gained popularity as a means of directly supporting local farmers and reducing the carbon footprint of food transportation. These developments reflect a growing awareness of the importance of food quality and sustainability, and the role that individual choices can play in promoting a healthier and more sustainable food system.
For More Highlights About this Report, Request Free Sample
Ethical labels have gained significant importance in today's market as consumers increasingly demand transparency and environment-friendly practices in their food choices. Sustainability standards, such as organic farming and fair trade, are driving the growth of the ethical food market. Authorities worldwide are emphasizing food safety and setting regulations to ensure the authenticity of ethical labels. The market for ethical food is diverse, encompassing various dietary requirements and cultural preferences. Organic food, free from cancer, diabetes, and cardiovascular diseases, is a significant segment. Halal food, adhering to Islamic dietary laws, is another growing sector, especially among the Muslim population. Ethical labels also extend to animal welfare certifications and clean labels, which emphasize no artificial sweeteners or flavors. Technological advancements, such as blockchain, global positioning system, and artificial intelligence, are being integrated into the ethical food supply chain to ensure traceability and transparency. Flexitarian consumers, who consume mostly plant-based foods but occasionally eat meat or fish, are also driving the demand for ethical labels. Online channels are increasingly becoming popular for purchasing ethical food products, making it easily accessible to consumers worldwide. 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.
Concerns over and awareness of consuming the appropriate food is notably driving market growth. The ethical label market has experienced significant growth due to increasing consumer awareness and preference for clean-label and healthier food options. Millennials and Baby Boomers are leading this trend, accounting for nearly half of the demand for ethical labels by 2025. This shift is driven by changing consumption patterns and lifestyle choices, with a growing perception that vegan, kosher, and animal welfare-designated items are healthier than traditional animal-based meals.
Moreover, the focus on non-alcoholic, plant-based beverages is also increasing, as health-conscious consumers move away from alcoholic, carbonated, and sugar-based options. Physical retail stores, supermarkets, and hypermarkets are responding to this demand by offering a wider range of ethical and certified food products to cater to flexitarian consumers. Thus, such factors are driving the growth of the market during the forecast period.
Concerns over and awareness of environmental sustainability of meat products is the key trend in the market. The ethical label market has experienced notable growth due to increasing consumer awareness and concern for sustainable food consumption worldwide. This trend is driven by a growing interest in organic food items and a shift towards healthier, chemical-free alternatives.
Moreover, the millennial population and baby boomer generation are key demographics contributing to this trend, with an increasing number of consumers opting for labels indicating no artificial flavors or preservatives. In physical retail stores, supermarkets, and hypermarkets, commercial buyers are prioritizing clean-label food and beverage products to cater to the demands of flexitarian consumers. Thus, such trends will shape the growth of the market during the forecast period.
Challenges with regard to changing food regulations is the major challenge that affects the growth of the market. The European Union's food safety legislation is extensive, regulating the food industry as one of the most closely monitored sectors. Food manufacturers must comply with regulations categorized into product, process, and presentation. Compliance with regulations such as (EC) 178/2002, which holds manufacturers responsible for ensuring product safety, poses challenges.
Moreover, a unified Hazard Analysis Critical Control Point (HACCP) system is mandatory, making manufacturers accountable for the safety of their food products and implementing in-house production controls. Millennials and the baby boomer population increasingly prefer food and beverages with no artificial flavors or preservatives. 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.
Blue Diamond Growers: The company offers ethical label such as gluten-free and kosher label.
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 food segment is estimated to witness significant growth during the forecast period. Ethical labels play a crucial role in ensuring the transparency and accountability of foods and beverages production. Companies adhering to environment-friendly practices and sustainability standards are increasingly using ethical labels to differentiate their offerings from competitors.
Get a glance at the market share of various regions Download the PDF Sample
The food segment was the largest segment and valued at USD 617.90 billion in 2018. Authorities worldwide are implementing favorable regulations to encourage the production and consumption of organic food, free from cancer, diabetes, and cardiovascular diseases risks. Food safety and hygiene are paramount, and ethical labels ensure traceability through blockchain technology, global positioning system, artificial intelligence, and machine learning. Hence, such factors are fuelling the growth of this segment during the forecast period.
For more insights on the market share of various regions Download PDF Sample now!
Europe is estimated to contribute 35% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. Ethical labels play a significant role in ensuring the production and consumption of environmentally friendly and sustainable foods and beverages. Authorities have established sustainability standards for food safety, hygiene, and working population welfare. Organic food, free from cancer, diabetes, and cardiovascular diseases, is a growing preference among consumers. Ethical labels such as Halal, Organic, Clean, Fairtrade, Kosher, Animal Welfare, Vegan, and others, are essential for transparency and trust. Hence, such factors are driving the market in Europe during the forecast period.
The market research report provides comprehensive data (region wise segment analysis), with forecasts and estimates in "USD Billion" for the period 2024 to 2028, as well as historical data from 2018 to 2022 for the following segments.
You may also interested in below market reports:
Print Label Market Analysis APAC, Europe, North America, South America, Middle East and Africa - China, US, Japan, Germany, UK - Size and Forecast
Labels Market by End-user, Type, And Geography - Forecast and Analysis
Self-Adhesive Label Market Analysis APAC, Europe, North America, South America, Middle East and Africa - China, US, Japan, Germany, France - Size and Forecast
Ethical labels have become increasingly important in today's marketplace as consumers demand transparency and accountability from the food industry. Environment friendly practices and sustainability standards are at the forefront of this movement, with authorities enforcing stricter regulations on food safety, hygiene, and working conditions. The market landscape depends on the Ready to eat food products, Radio frequency identification chips, millennial and Generation Z consumers, Halal ethical certified products, organic and kosher segments, clean free tags. Organic food production, free from cancer, diabetes, and cardiovascular diseases, is a significant part of this trend. Foods and beverages carrying ethical labels, such as Halal, Organic, Clean, Sustainability, Fairtrade, Kosher, and Vegan, are gaining popularity among the working population.
Moreover, halal food, in particular, caters to the Muslim population, while animal welfare certifications ensure ethical treatment of animals. Technological advancements, including Blockchain, Global Positioning System, Artificial Intelligence, and Machine Learning, are revolutionizing the food industry. These technologies enable traceability, ensuring that food products meet sustainability standards and are free from harmful additives like artificial sweeteners. Sensors that monitor temperature, humidity, and air quality during transportation and storage help maintain the integrity of food products. Sustainable farming practices, such as the use of clean labels and no artificial additives, are also gaining traction. Online and offline channels are essential for reaching consumers in today's market. Ethical labels provide a competitive edge, especially in the packaged food industry, where consumers are willing to pay a premium for products that align with their values. Favorable regulations and online channels further propel the growth of the ethical label market.
Market Scope |
|
Report Coverage |
Details |
Page number |
138 |
Base year |
2023 |
Historic period |
2018-2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 4.5% |
Market growth 2024-2028 |
USD 245.9 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
4.23 |
Regional analysis |
North America, APAC, Europe, South America, and Middle East and Africa |
Performing market contribution |
Europe at 35% |
Key countries |
US, Japan, China, UK, and Brazil |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Abbots Butcher Inc., Archer Daniels Midland Co., BASF SE, Blue Diamond Growers, Cargill Inc., Danone SA, Earths Own Food Co. Inc., Ferrero International S.A., Garden of Life LLC, Kellogg Co., Kerry Group Plc, Koninklijke DSM NV, Marks and Spencer Group plc, Mars Inc., Nestle SA, Nuzest Life Pty Ltd., PepsiCo Inc., Starbucks Corp., The American Halal Co. Inc., The Hain Celestial Group Inc., The Hershey Co., The Kraft Heinz Co., and Unilever PLC |
Market dynamics |
Parent market analysis, market report , market forecast , 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 Product
7 Customer Landscape
8 Geographic Landscape
9 Drivers, Challenges, and Opportunity/Restraints
10 Competitive Landscape
11 Competitive Analysis
12 Appendix
Get lifetime access to our
Technavio Insights
Quick Report Overview:
Cookie Policy
The Site uses cookies to record users' preferences in relation to the functionality of accessibility. We, our Affiliates, and our Vendors may store and access cookies on a device, and process personal data including unique identifiers sent by a device, to personalise content, tailor, and report on advertising and to analyse our traffic. By clicking “I’m fine with this”, you are allowing the use of these cookies. Please refer to the help guide of your browser for further information on cookies, including how to disable them. Review our Privacy & Cookie Notice.