Market Overview

Clean label ingredients refer to natural ingredients with no artificial ingredients and chemicals. It is a consumer-driven movement demanding a return to ‘real food’ and transparency through authenticity. Consumers are highly influenced by being aware of ingredients used in the food they consume which is driving the clean label ingredients industry globally. The type of clean label ingredients includes emulsifiers, stabilizer, and thickeners (EST), flavor, preservatives, colorants, and others. They are applicable in various industries including bakery & confectionery, dairy & frozen desserts, beverages, oils & fats, snacks, meat products, and others.

Market Forecast

The global clean label ingredients industry is increasing due to increased demand for clean label products in developed countries. Growing health concerns among the global population, together with the increasing awareness about the benefits of consuming clean label ingredients are the key driving factors for the growth of clean label ingredients industry. In addition to the changing lifestyle, the growing demand for food, beverages, confectionery, and others is expected to drive the global clean label ingredients.

Additionally, the health problems associated with the consumption of artificial food ingredients is contributing to the growth of clean label ingredients. However, the lack of ability of natural ingredients in comparison to artificial ingredients may hamper the growth of the market. Nevertheless, all these factors are projected to contribute to the estimated CAGR of 7.2% of clean label ingredients industry during the forecast period 2017-2023.

Key Players

The major players in clean label ingredients market

Cargill Inc. (U.S.)

Archer Daniels Midland Company (U.S.)

Koninklijke DSM N.V. (The Netherlands)

Kerry Group PLC. (Republic of Ireland)

Ingredion Incorporated (U.S.)

Tate & Lyle PLC (U.K)

Hansen A/S (Denmark)

Market Segmentation:

Clean label ingredients is segmented on the basis of type, which includes emulsifier, stabilizer, and thickeners (EST), colorants, flavor, preservatives, and others. Among them, the preservative is the most common type owing to the harmful effects caused due to an overdose of artificial preservatives. Moreover, the rising demand for low-fat alternatives in processed food and beverages is likely to surge in the demand for natural emulsifiers, stabilizers, and thickeners over the review period.

On the basis of the form, the clean label ingredients is segmented into dry, liquid and others. Among them, the dry segment is witnessed to gain a potential growth over the forecast period.

On the basis of application, clean label ingredients industry is segmented into beverages, bakery & confectionery, sweet and savory snacks, dairy & frozen desserts, oils and fats, and others. High use of clean label ingredients in the bakery products is dominating in this segment owing to the high use of food additives in bakery & confectionary products for its stability and increased shelf-life.

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 Regional Analysis

The global clean label ingredients industry is segmented into North America, Europe, Asia Pacific, and rest of the world (RoW). Europe is dominating the global clean label ingredients industry followed by North America. The U.K, Germany, and France are the major contributors in Europe for the clean label ingredients. In North America, the U.S. has been accounted for a higher consumption of clean label ingredients owing to increasing awareness. Additionally, consumption of healthy products with enhanced shelf-life is considered to be the key driving factor in this region.

Asia Pacific is witnessed to gain a potential growth over the forecast period owing to increasing consumer awareness and high inclination towards healthy products. Moreover, growing food and beverage industry in this region is a supportive factor for the growth of clean label ingredients market. The government’s support in various regions followed by the high focus of food & beverage manufacturers in clean label ingredients will propel the growth of the market in rest of the world.

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