Clean label Ingredients Market Overview, 2024-29

In the era where clarity rules supreme, the global clean label ingredients market reinvents the rules on transparency, enabling an unwavering view where every ingredient works as a stamp of purity and integrity. "Clean label ingredients gain fame as a result of their natural origin and minimal processing, which is only gaining prominence as a subset of the emerging paradigm of healthier and more ethical consumption." Somehow, the concept of clean label ingredients has undergone very interesting changes in the last few decades.

From an initial thrust on the removal of artificial additives and preservatives, the concept of a clean label has grown to encompass much wider issues of ingredient sourcing, environmental impact, and ethical practices. These were preceded initially by consumer backlash against artificial ingredients and demand for organic and natural products. Nowadays, clean labels have become inseparable from many food and beverage products, reflecting a far broader societal trend toward health and sustainability. Sustainability is an intrinsic ingredient in the clean label ingredients market.

In contemporary times, consumers look with the naked eye for products that are environmentally and ethically friendly. This stretches into the realms of interest to ingredients coming from regenerative agriculture, minimal packaging, and reduced carbon footprint. Businesses are forced to become sustainable, such as powering their production with renewable energies and strategies of waste reduction. Innovation in ingredient extraction and processing technologies, like high-pressure processing and cold-pressed techniques, is again enabling the production of high-quality clean label ingredients with minimal processing.

Greater attention is paid to biotechnology and fermentation in the production of natural preservatives and functional ingredients. Governments around the world are rolling out programs to promote clean label practices. In the European Union, the Green Deal and the Farm to Fork Strategy will pave the way toward greater demand for sustainability and clean label. Regulatory bodies, such as the FDA in the United States, update labeling requirements with a view to improved transparency. Other countries are also coming up with regulations and standards that help in making clean label claims and following sustainable practices.

Certifications form a significant part of the clean label ingredients market since they give consumers Independently verified information about the product claim. Typical certifications include USDA Organic, Non-GMO Project Verified, and Fair Trade. These certifications help build trust with the consumer and ensure adherence to some particular standards that relate to ingredients that are natural or sustainable.

According to the research report "Global Clean Label Ingredients Market Overview, 2029," the market is anticipated to cross USD 68 Billion by 2029, increasing from USD 46 Billion in 2023. The market is anticipated with a 6% CAGR from 2024-29. Precision agriculture technologies such as drones and data analytics have significant influences on ingredient sourcing with respect to sustainability and quality. Advanced processing techniques that drive transparency and integrity in clean label products include high-pressure processing and blockchain for traceability.

Biotechnology and fermentation drive innovation, offering natural alternatives to synthetic additives and supporting trends in personalized nutrition. The effect of geopolitical tensions and trade policies will be because of their influence on ingredient availability and costs. Examples may include trade restrictions, tariffs, and international conflicts, all of which raise a lot of disturbance within supply chains and fluctuate the price of ingredients. In such a context, companies face difficulties in developing resilient supply chains and sourcing strategies in order to assure continuous supplies of clean label ingredients.

There are a number of concerns attached to the clean label ingredients market. Ingredient authentication and prevention of mislabelling become very important in order to avoid losing consumer trust. Further, while clean label products often generate premium pricing, striking a balance between cost and affordability becomes important. Other continuous challenges that companies must address in order to be successful include supply chain disruptions and regulatory compliance. The market is geographically expanding with certain positive growth trends in North America, Europe, and the Asia-Pacific region.

The emerging markets in South America and Middle East and Africa are contributing to the growth of the market as consumer awareness and regulatory frameworks reach a higher degree of maturity. Industry events and trade shows are indispensable for new product introductions and trends of clean label ingredients. These include Natural Products Expo, Food Ingredients Europe, and the SupplySide West conference each acting as a forum for companies to introduce new products, technologies, and developments within the industry. These events also aid in networking and collaboration between industry individuals.

Market Drivers

• Increasing Consumer Demand for Transparency: The growing consumer demand for transparency is a primary driver of the global clean label ingredients market. Modern consumers are increasingly concerned about the origins and integrity of the products they consume. They seek detailed information about ingredient sources, processing methods, and potential additives. This shift towards greater transparency is pushing food and beverage companies to adopt clean label practices, which emphasize natural, minimally processed ingredients and clear, honest labeling. As consumers become more health-conscious and eco-aware, the demand for clean label products continues to rise, compelling companies to align their offerings with these values to meet market expectations.
• Rising Health and Wellness Trends: Health and wellness trends are significantly driving the clean label ingredients market. There is a growing consumer focus on foods that contribute to better health outcomes and overall well-being. This trend includes a preference for natural, organic, and minimally processed ingredients that are perceived as healthier alternatives to synthetic additives and preservatives. The clean label movement is supported by increasing awareness of the potential health risks associated with artificial ingredients and additives. As consumers prioritize functional foods that offer additional health benefits, such as improved digestion or enhanced immunity, the demand for clean label ingredients that align with these wellness goals is escalating.

Market Challenges

• <>b>Ingredient Authenticity and Verification: Ensuring the authenticity of clean label ingredients presents a significant challenge in the market. As clean label claims gain popularity, the risk of mislabeling and fraudulent claims increases. Consumers and regulators demand transparency and verification, but maintaining accurate and trustworthy labels requires robust verification processes and supply chain controls. Companies must invest in technologies and practices to verify ingredient authenticity and prevent mislabeling. This includes rigorous testing, third-party certifications, and traceability systems to ensure that clean label claims are accurate and reliable. The challenge lies in effectively implementing these measures while managing costs and operational complexities.
• Regulatory Compliance and Variation: Navigating the complex landscape of regulatory compliance is another major challenge for the clean label ingredients market. Regulations and standards for clean labeling vary significantly across regions, creating a fragmented compliance environment for global companies. Adhering to different regulations in each market can be resource-intensive and complicated. Companies must stay informed about evolving regulatory requirements, which can include specific labeling mandates, ingredient restrictions, and certification processes. This regulatory complexity can pose challenges in maintaining consistent clean label practices across diverse markets and ensuring that products meet local standards while remaining competitive globally.

Market Trends

• Growth in Plant-Based and Functional Ingredients:A prominent trend in the clean label ingredients market is the increased focus on plant-based and functional ingredients. As consumers seek healthier and more sustainable options, plant-based ingredients are gaining popularity for their perceived health benefits and lower environmental impact. Functional ingredients, such as probiotics, antioxidants, and adaptogens, are also on the rise as consumers look for foods that offer additional health benefits beyond basic nutrition. This trend reflects a broader movement towards wellness and sustainability, driving innovation and expansion in clean label ingredient offerings.
• Advancements in Technology for Ingredient Processing and Transparency: Technological advancements are transforming the clean label ingredients market by enhancing ingredient processing and transparency. Innovations such as high-pressure processing (HPP) and cold-pressed techniques are enabling the production of clean label ingredients with minimal processing, preserving their natural integrity and extending shelf life. The blockchain technology is improving traceability and transparency, allowing consumers to verify ingredient sourcing and authenticity. These technological advancements are addressing consumer demands for higher quality and transparency in clean label products, driving growth and innovation in the market.

The growth of natural flavors in the global clean label ingredients market is due to the increasing demand from consumers for authentic tastes and transparency in product formulations.

With enhanced consumer vigilance of food and beverage intake comes a rising preference for recognizable, natural components that deliver on taste and quality. Natural flavors derived from plants or animals are very much in tune with this trend and provide a clear route through which manufacturers can develop the sensory appeal of their products while keeping a clean label. The other major driving force behind the growth of natural flavors is the changing consumer perception toward artificial flavors. Most consumers associate artificial flavors with processed foods and unhealthy ingredients. Therefore, there is a preference by consumers for natural flavors.

Natural flavors are extracted from fruits, herbs, spices, and vegetables, and are viewed as healthier and more real. For example, natural vanilla extract in ice cream or natural citrus oils in beverages can truly make a difference in this product's appeal to the health-conscious consumer seeking clean-label options. In general, consumers following such diets tend to value products containing natural, less-processed ingredients, including flavors. Use of natural flavors in these products not only serves dietary preferences but helps to reinforce clean label positioning.

In the case of plant-based meat alternatives using natural flavors obtained from vegetables and spices, it becomes easier to cater to a more appealing and clean label product for consumers. Tactics like pressing, supercritical CO2 extraction, and fermentation make concentrated natural flavors of high quality that preserve real taste characteristics in their source form possible. Because of this, manufacturers can bring natural flavors into a whole range of confectionery, bakery, snack savoury, and beverage products without loss of taste or clean label status.

Increased regulation around food labelling and increased scrutiny around health claims has been a driving force for manufacturers to reformulate their products in line with clean label standards. Natural flavors can provide a workable solution for enhancing taste and aroma in products while adhering to strict regulatory requirements. For example, the regulations on flavourings of the European Union and the U.S. The stance that the Food and Drug Administration has adopted towards natural flavors has led manufacturers to opt for natural alternatives in their formulations.

The Beverage up along with the growth of the Clean Label ingredients market globally is due to the increase in consumer demand for cleaner, healthier, and more natural drink options with easily understandable ingredient lists.
A sure sign of a changing consumer outlook, with increased awareness of the interrelationship between food, drink intake, and healthy living need for products devoid of artificial additives, preservatives, and complex chemical ingredients. One main factor driving this surge is the rising acceptance of functional beverages. Today's consumers are increasingly drawn to seeking out beverages that quench thirst but offer additional health benefits. For example, several commercially available probiotic drinks designed from natural raw materials have enjoyed popularity, as they are said to contribute to the maintenance of a healthy gut.

The fermented tea beverage known as Kombucha has emerged as a clean label alternative to traditional soft drinks, primarily offering attributes related to probiotics and antioxidants. The category for drinking products without milk, such as almond milk and oat milk, is respectively rising, as customers demand alternatives to milk and strictly seek products with recognizable ingredients that are easily read and understood. In many cases, such products are characterized by short ingredient lists that emphasize their naturalness and little processing Many people tend to condemn traditional energy drinks as being highly loaded with sugars and artificial ingredients.

Natural energy drinks using green tea extracts, guarana, and natural fruit juices are increasingly taking market share away from other sources of energy as consumers increasingly seek cleaner sources of energy. Major changes in soft drinks have been made toward natural sweetener and flavour beverages. Botanicals are being used in plants such as stevia, monk fruit extract, and other ones for making lower-cal soft drinks without artificial sweeteners. Twenty-five years ago natural flavour extracts and fruit essences started replacing the artificial flavors in most beverage formulations.

Increasing growth in the global clean label ingredients market is found by liquid ingredients due to the ease of formulation, enhanced functionality, and maintenance of product integrity and freshness.
Liquid ingredients such as extracts, concentrates, and purées are convenient for formulation. This makes them of high interest to manufacturers since they help to reduce the complexity of the production process while remaining compliant with the clean label requirements. Liquid ingredients are easily mixed, blended, and dispersed into foods and beverages of any kind. For example, liquid honey in beverages or liquid fruit purées in yoghurts does not only streamline the manufacturing process but grants clean label status for that specific product.

Many liquid ingredients often bring improved functionality to the fore, therefore defining both textural and sensory attributes in the final product. They can naturally bind, emulsify, or humectant thereby allowing manufacturers to either reduce or replace artificial additives in formulations. This is highly useful functionality in the clean label market, whereby consumers are in search of products with recognizable and natural ingredients.

For instance, liquid egg products can serve as natural emulsifiers in baked goods, whereas liquid vegetable concentrates can help to enhance the texture and flavour of soups and sauces with a clean label claim. A key driver behind the growth of liquid ingredients is product integrity and freshness preservation. Liquid formats will help retain the native colors, flavors, and nutrients from the raw ingredients, thus ensuring that the end product delivered to the consumer retains the intended sensory and nutritional properties. This becomes most important for the clean label market, where customers expect products to deliver both on taste and nutrition promises.

For example, the liquid botanical extracts in beverages provide for dynamic colouring and true flavour, while the liquid concentrates of vitamins and minerals can naturally fortify products to meet consumer demands for clean labelling. New processing technologies expand the range of liquid ingredients available for clean label applications. Techniques such as cold-pressing, high-pressure processing, and aseptic packaging help to get good-quality liquid ingredients that really freeze the freshness and purity from their sources.

There is a rise in the APAC region in the clean label ingredients market, impelled by the rise of the middle class and increasing concern for health with a strong demand for transparency and food safety.
The rapid economic growth witnessed in this region has fostered the emergence of a middle class with higher disposable incomes, allowing consumers to attach higher precedence to healthier and quality food intake. This kind of consumer behaviour has accelerated the market for clean label products, where consumers seek food and beverages containing recognizable, natural, less processed ingredients. An cardinal reason APAC is driving the growth of clean label ingredients is because of increased awareness about health and wellness trends. This has made regional consumers lead healthier lifestyles by adopting preventive healthcare techniques through balanced diets.

This has driven consumer demand towards products with no artificial additives, preservatives, and genetically modified organisms. For example, the increasing popularity of traditional medicine and natural remedies in countries like China and India has created a demand for food products with natural and clean label ingredients. Examples include the incorporation of turmeric and ginger extracts into beverages and functional foods in a manner that reflects both cultural tradition and clean label principles. Demand for transparency and food safety is, therefore, another major driver of the clean label market in APAC.

The region has been hit by various food safety scandals in recent years that seriously undermined consumer confidence in the food manufacturing industry. Therefore, increasingly, consumers are putting more emphasis on reading the product label for assurances regarding origin, quality, and safety of ingredients used. The clean label, answering the demand for transparency in the ease of reading simple, recognizable ingredients help to rebuild trust with consumers. For example, rising demands for organic and non-GMO certifications in countries like Japan and South Korea demonstrate a strong consumer preference for products with very transparent, traceable ingredient lists.

• In February 2024, Ajinomoto Co. opened a new office in Silicon Valley, United States. The office provides different types of food solutions, including clean label ingredients in the US market. The purpose of this expansion was to expand the company’s business.
• In October 2023, International Flavor and Fragrances Inc. launched Methanova, a cell-compatible and filterable methylcellulose for the biotechnology industry. Methanova is a plant-based, water-soluble biopolymer derived from cellulose, the most abundant polymer in nature. It is suitable for use in cell culture media, 3D bioprinting, stem cell protection, cryopreservation, and cell media.
• In August 2022, Archer-Daniels-Midland Company announced a strategic partnership with New Culture, a pioneering animal-free dairy company. The partnership highlights both companies’ deep commitment to enabling a more sustainable food future. The partnership will enable joint product development, taking advantage of New Culture’s innovations in novel ingredients and animal-free dairy products.
• In November 2022, India-based Vecan Foods announced the launch of plant-based meals. In response to changing consumer trends, several companies are expanding their product portfolios to gain a competitive advantage.
• In October 2021, Cargill Incorporated launched a clean-label rice flour Simpure which provides texture, and functionality as maltodextrin.

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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