Asia-Pacific Clean label Ingredients Market Outlook, 2029

In the APAC market, the clean label ingredients trend developed like an interesting novel where each chapter unfolds a growing quest for purity and transparency, propelled by a compelling narrative of stringent regulations and ground-breaking ingredient discoveries. Entering new markets, such as the emerging ones within APAC like Southeast Asia and South Asia, offers significant growth opportunities in clean label ingredients. Fast economic growth, improving disposable incomes, and increasing health awareness across these geographies help to support demand for clean label products.

Another key trend that is likely to have an effect on the market for clean label ingredients is the growing trend for personalized nutrition. There is a growing desire for products that can address the personal needs of health and well-being. This shift towards personalized nutrition will further drive demand for clean label ingredients with specific health benefits, such as enhanced vitamins, minerals, and functional compounds. Government policies will shape the market of clean label ingredients in APAC due to strict regulations and certification programs.

In Japan, for example, the Ministry of Health has strict regulations regarding labelling transparency to ensure clean label claims can be traced back to accuracy. South Korea has its Food Safety and Labelling Act, which is mandated by the Ministry of Food and Drug Safety, where it has a clear disclosure for natural and non-GMO ingredients. In Australia, their Food Standards Code is the one that enforces rigorous labelling requirements, and the National Organic Program plays a role in supporting the organic certifications.

In China, there are the National Food Safety Standards to require ingredient transparency and the Certification and Accreditation Administration supervising organic certifications. In India, the clean label claims are overseen by the Food Safety and Standards Authority in line with the Food Safety and Standards Act, while organic integrity is led by the National Program for Organic Production. A few significant players drive the APAC clean label ingredients market, including global companies and regional innovators. Key players such as Cargill, ADM, and DSM are investing in clean-label ingredient technologies and expanding product portfolios. Regional players, like Daesang Corporation of South Korea and Otsuka Foods of Japan, equally are contributing to the market by their continuous effort toward natural and functional ingredients.

According to the research report "Asia-Pacific Clean Label Ingredients Market Overview, 2029," the Asia-Pacific Clean Label Ingredients market is anticipated to grow at more than 7% CAGR from 2024 to 2029. Demand for organic and non-GMO ingredients in APAC is surging due to rising customer seeking products free of genetically modified organisms and synthetic additives. This is evident from the rising popularity of organic rice and non-GMO soybeans used in a range of clean label products. Increased emphasis on organic farming and non-GMO certification is, therefore, going to influence the market as consumers are getting more conscious about the food they consume.

Technological advancement is therefore bound to play a crucial role in shaping the future of the APAC clean label ingredients market. Innovations in ingredient extraction, processing, and formulation are more likely to drive the development of new clean label products that have improved functionality and sensory qualities. For example, enzyme technologies and high-pressure processing will further enhance the efficacy and stability of naturals. Basically, it will be innovation in clean label ingredients that will drive market growth.

Advancements in extraction and processing technologies are helping formulate new ingredients, boasting superior functionality and sensory qualities. Some of the factors driving the growth of the market include innovative developments in advanced methods of natural flavor extraction and the improvement of the stability of clean label products. Clean label brands are consequently shifting to sourcing ingredients from certified organic farms and using eco-friendly packaging, in a bid to stay relevant to consumer values and build brand reputation.

Market Drivers

• Rising Urbanization and Disposable Income: Rapid urbanization and increasing disposable incomes in the APAC region are driving the clean label ingredients market. As more consumers move to urban areas and experience rising incomes, there is a growing demand for premium, natural food products. This urban shift is accompanied by changing dietary habits and a preference for healthier, more transparent food options, leading manufacturers to incorporate clean label ingredients to meet these evolving consumer expectations.

Market Challenges

• High Costs and Supply Chain Issues: The cost of clean label ingredients in APAC can be high, and supply chain issues may impact the availability and pricing of these ingredients. Limited local production and logistical challenges can lead to higher costs and potential supply disruptions. Manufacturers must manage these supply chain constraints to ensure a consistent supply of clean label ingredients.

Market Trends

• Growing Demand for Organic and Natural Products: The APAC market is seeing a growing demand for organic and natural products as part of the clean label trend. Consumers are increasingly interested in products made from organic ingredients and free from synthetic additives. This trend is leading to the expansion of clean label product offerings, including organic and natural alternatives across various food and beverage categories.

Due to its consumer-centric approach toward innovation, Flours has solidified its leading position in the APAC clean label ingredients market.

A strategic focus like this has thus equipped the company with an ability to identify and precisely meet the changing tastes and preferences of health-oriented consumers spread across the region. With a priority on natural, non-GMO, and organic ingredients, Flours has built an image founded on trust by transparency and authenticity are two very critical attributes that govern the clean label space. Flours has developed a judicious set of solutions that are easily incorporated into food and beverage applications to meet the special requirements of manufacturers looking to make a better clean label claim. Flours has developed a resilient supply chain and distribution that ensures consistency in ingredient availability and timelines of delivery across the vast APAC region. This is in association with robust customer and supplier relationships that effectively institute a collaborative-based ecosystem underpinning the firm's growth and market leadership.

Food is driving the clean label ingredients market in APAC due to increased consumer demand for transparency, health, and naturalness with regard to food products, coupled with growing concern about food safety and quality.

There is a windfall shift trending toward clean label products in the APAC market characterized by a simple and easily understandable ingredient list with no artificial additives, preservatives, or genetically modified organisms. This will largely be a reaction to the enhanced awareness of the consumer about health and food safety. This would further get amplified by the concerns related to food quality and negative effects of artificial additives in a region that traditionally values natural and minimally processed foods. The growing health consciousness of consumers from APAC countries, like China, India, Japan, and South Korea, acts as a major driver of the clean label trend.

Changing to a more urban lifestyle and diversification of diet, consumers are looking for food products that would allow them to better achieve their aims concerning health and well-being. Clean label foods emphasize natural ingredients and avoid artificial components, hence they are perceived as healthier. This growing preference can be considered as reflected in the growth of sales of products labeled organic, non-GMO, and without artificial flavors and colors. Cultural factors, too, have a strong contribution to the stronghold of food in the APAC clean label market.

Most countries in APAC have an eclectic culinary tradition mainly focused on fresh and whole ingredients, using traditional processing and cooking methods. This cultural inclination toward natural and minimally processed foods blends well with the clean label ethos. With consumers increasingly becoming aware of the associated benefits, they expect modern-day food offerings to respect traditional values. So a situation has arisen wherein formulation attempts to replace ingredients to meet the demands of clean label standards while retaining authenticity of taste and other attributes of traditional foods. On economic frontiers, clean-label food markets grow in APAC for some reasons.

With a swelling middle class and increasing disposable incomes in the region, both allowing consumers to invest in better-quality food products and premiums, the outlook is promising. Indeed, often, clean label foods bear higher prices for which consumers are willing to pay for a promise of better health benefits and more transparency. The strong agricultural backgrounds that exist in the region make for excellent sources of a wide array of natural and minimally processed raw materials, thus promoting the increasing availability of clean label ingredients.

The dry ingredients is leading the Asia-Pacific clean label ingredients market due to the multi-functionality and extended shelf life associated with these products.

Clean label products orient toward simplicity and no artificial additives. In contrast to fresh ingredients, which turn bad sometimes within no time, dry ingredients comprise powdered spices, dried vegetable parts, and flours, all of which have a much longer shelf life and make the process more convenient and cost-effective for both consumers and manufacturers.

For instance, dry spices like turmeric and chili powder are part of many APAC cuisines, be they Indian, Thai, or Chinese dishes. Given the nature of these spices, they remain potent and full of flavor for a long time with no need for preservatives, making them apt for clean label application. Drying has long since been used as a means to preserve food in most APAC countries. Dried seaweed and mushrooms,

For instance, are characteristic ingredients in Japanese and Korean cuisines, respectively. These traditional practices bring out emotions in consumers who have faith in authenticity and natural preservation methods. Through the incorporation of dried ingredients in clean label products, manufacturers achieve these cultural expectations while remaining true to the principles of transparency and naturalness. Dry ingredientsadd versatility to their prevalence in the clean label market. Ingredients like dry milk powder, cocoa powder, and different types of flours are used in a myriad of products, from bakery and snacks to beverages.

For example, dry milk powder finds an application in a wide variety of dairy and nondairy beverages, providing both convenience and a clean label friendliness alternative to liquid milk. The economic factors, too, support the stronghold of dry ingredients in the APAC clean label market. A variety of crops from the agricultural sector in the region can be easily converted into dry ingredients. For example, rice flour and soybean powder are some ingredients that have broad applications in APAC's traditional recipes. This growing consumer health awareness in APAC also fuels demand for clean label products that focus on natural and as-minimally-processed-as-possible ingredients. The more knowledgeable consumers are about avoiding artificial additives, the clearer and more straightforward dry ingredients become to fit their goals of health and wellness.

China has emerged as the largest country in the APAC clean label ingredients market since its consumers are increasingly becoming health-conscious and its regulatory environment remains conducive for the growth of clean label products.

Offering huge consumer potential with the world's largest population and one of the most rapidly rising middle classes, China serves up an environment where demand for healthier products is just beginning to take off. Coupling this trend with rising disposable incomes, urbanization, and a heightened sense of awareness toward health trends and wellness, consumers in China are in the front line of driving demand for natural, recognizable, and minimally processed food and beverage ingredients boosting demand for clean label offerings. Increasingly, therefore, Chinese consumers are demanding food and beverage products containing natural and functional ingredients perceived as possessing TCM properties, which include ginseng, goji berries, herbs of various sorts, and spices. These help satisfy the clean label trend and everything else being equal relate to cultural beliefs and tradition.

For instance, use of extracts of goji berry in beverages or incorporation of ginseng in functional foods cashes in on the popularity of TCM while meeting the clean-label demand. Together with the development of more stringent food safety regulations, there is also a growing policy in China targeting healthy and active lifestyles. These are driving regulatory reforms that push manufacturers toward the clean label standard.

For instance, the "People's Republic of China Food Safety Law," revised in 2015, further tightened control over the quality and safety of foods, giving more promotions for food manufacturers to participate in a cleaner and more transparent process in listing ingredients. Besides, the Chinese government's "Healthy China 2030" campaign appears to provide another fillip to the demand for clean-label products, as it promotes healthy lifestyles and attempts to bring down instances of chronic diseases.

• In April 2019, Firmenich SA, a Switzerland based fragrance and flavor company acquired a majority of stake in VKL Seasoning Pvt Ltd, a seasonings and flavor company in India. The acquisition will help in broadening its capabilities in clean label ingredients in the region.

Considered in this report

• Historic year: 2018
• Base year: 2023
• Estimated year: 2024
• Forecast year: 2029

Aspects covered in this report

• Clean label Ingredients market Outlook with its value and forecast along with its segments
• Various drivers and challenges
• On-going trends and developments
• Top profiled companies
• Strategic recommendation

By Ingredient type

• Flours
• Natural Flavours
• Starch & Sweeteners
• Fruit & Vegetable Ingredients
• Malt
• Natural Colours
• Other Ingredient Types

By Application

• Food
• Beverage
• By Form
• Dry
• Liquid

By Certification Type

• Organic
• Non-GMO
• Gluten-free
• Vegan

The approach of the report:

This report consists of a combined approach of primary and secondary research. Initially, secondary research was used to get an understanding of the market and list the companies that are present in it. The secondary research consists of third-party sources such as press releases, annual reports of companies, and government-generated reports and databases. After gathering the data from secondary sources, primary research was conducted by conducting telephone interviews with the leading players about how the market is functioning and then conducting trade calls with dealers and distributors of the market. Post this; we have started making primary calls to consumers by equally segmenting them in regional aspects, tier aspects, age group, and gender. Once we have primary data with us, we can start verifying the details obtained from secondary sources.

Intended audience

This report can be useful to industry consultants, manufacturers, suppliers, associations, and organizations related to the Clean label Ingredients industry, government bodies, and other stakeholders to align their market-centric strategies. In addition to marketing and presentations, it will also increase competitive knowledge about the industry.


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