The Global Clean Label Market is estimated to reach over USD 94.15 billion by 2030, exhibiting a CAGR of 7.8% during the forecast period.
Clean label is a consumer-driven word that refers to producing food that is natural, organic, and free of preservatives and additives. One of the key clean label ingredients industry trends that is positively driving market growth is the growing demand for natural ingredients. Furthermore, rising clean label product launches are expected to drive the clean label ingredients market forward. Furthermore, the market for clean label components is expected to be hampered by health concerns about artificial food additives and food safety events. The inability of clean ingredients to replace artificial components, on the other hand, is expected to hamper the market growth.
Also, in the approaching years, the rise of natural ingredients with functional benefits will create additional potential for the clean label ingredients industry to expand. Additionally, rising R&D efforts, government initiatives to employ sustainable components in manufacturing, and investments by major players are expected to create lucrative revenue possibilities for players in the global clean label market over the forecast period. Besides, Low awareness level is one of the challenges hampering the clean label ingredients market growth over the upcoming years.
The Clean label market is segmented based on product and application. Based on its applications, the clean label ingredient market is segmented into Food, Snacks, Bakery, Confectionary, Dairy & Frozen food. Based on Product, the Market is segmented into Baking Staples, Emulsifiers, Starch and Sweeteners, Food Colors and Flavors and Other Products.
Based on product, the Food segment is accounted as a major contributor to the clean label market.
The Food category is expected to hold a significant share in the global clean label market in 2021. The dominance of this application is attributed to customers' busy lifestyles, which drive them to prefer convenience foods. Clean label ingredients are gaining popularity among customers as a convenient and healthier alternative to junk food, which is driving the clean label ingredient market in the food sector around the world. This is also because of the growing awareness of clean label food ingredients as a superior alternative to other products.
The food colors and flavors segment witnessed growth at a rapid rate.
The food colors and flavors segment are projected to grow at a rapid rate in the global clean label market, owing to an increase in the demand for natural and sterile label items. Furthermore, the market for natural food colors and flavors is growing due to the rise in the number of distinct color hues and multi-functional flavors. Furthermore, as consumers become more aware of the negative consequences of synthetic dyes and artificial colors and flavors, the market for natural food colors and flavors is expected to grow, primarily in economics such as the US, Germany, UK, China, and India.
The North American Clean label market holds a significant revenue share in the region.
The North American Clean label ingredients market is expected to register the highest market share in terms of revenue soon due to the rise in the rate of traction for different types of organic ingredients owing to their augmented demand from the food & beverage industry. Furthermore, significant vital players are expected to boost the clean label ingredients market's growth. Besides, Clean label ingredients have become more prevalent in Asia-Pacific as people become more conscious of the need to eat healthy foods. Furthermore, consumer awareness of clean label components is expanding in many countries, prompting businesses to favor natural clean label ingredients over artificial chemicals.
There has been a surge in mergers, acquisitions, and joint ventures amongst leading players in the global clean label market to expand their product portfolio and boost their global market presence in the clean label industry. Some of the major key players in the clean label market are Cargill (U.S.), Archer Daniels Midland Company (U.S), Koninklijke DSM N.V. (Netherlands), E. I. du Pont de Nemours and Company (U.S.), and Kerry Group Plc (Ireland). Other companies such as Ingredion Incorporated (U.S), Tate & Lyle PLC (U.K), Sensient Technologies Corporation (U.S), Corbion N.V. (Netherlands), Groupe Limagrain (France), Chr. Hansen (Denmark), and Brisan (U.S.).