Clean Label Ingredients Market by Ingredient Type (Flours, Colors, Flavors, Preservatives, Starch), Source (Plant-Based), Form (Dry Form, Liquid Form), Application (Food (Bakery and Confectionery, Meat Products) and Beverages) - Global Forecast to 2030

The Clean Label Ingredients Market is projected to reach $80.69 billion by 2030, at a CAGR of 6.9% during the forecast period of 2024–2030. The growth of this market is attributed to the growing consumer preferences for organic and natural ingredients, increasing focus on health & wellness, growing health concerns associated with artificial ingredients, growing consumer demand for clean label meat alternatives, and the rise of e-commerce and online grocery shopping. However, the high cost of clean label ingredients compared to artificial ingredients restrains the market’s growth. The food manufacturer’s focus on reforming food products and increasing demand for vegan and plant-based foods are expected to provide growth opportunities for the stakeholders in this market.

Key Players

The report offers a competitive analysis based on an extensive assessment of the leading players’ product portfolios and geographic presence and the key growth strategies adopted by them in the last 3–4 years. Some of the key players operating in the clean label ingredients market are Archer-Daniels-Midland Company (U.S.), BENEO GmbH (Part of Südzucker AG) (Germany), Brisan Group (U.S.), Cargill, Incorporated (U.S.), Chr. Hansen Holding A/S (Denmark), Corbion NV (Netherlands), Groupe Limagrain Holding (France), Ingredion Incorporated (U.S.), International Flavors & Fragrances Inc. (U.S.), Kerry Group plc (Ireland), Koninklijke DSM N.V. (Netherlands), Sensient Technologies Corporation (U.S.), and Tate & Lyle PLC (U.K.).

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Growing Consumer Preferences for Organic and Natural Ingredients Fuels the Growth of the Clean Label Ingredients Market

Nowadays, consumers are becoming increasingly concerned about their health, and thus, they are paying more attention to their lifestyles and dietary habits. In the last few decades, the world has experienced a rapid surge in population. According to the Population Reference Bureau (PRB), the world population is expected to reach 9.8 billion by 2050, an increase of 22% from around 8.0 billion in 2022. The global demand for healthy and nutrition-rich diets is rising with the growing world population. Moreover, as per FAO’s projection, this rapidly growing population will increase food demand by 70% in 2050. In recent years, consumers have become more conscious about the quality and safety of the food they consume, and they are gradually seeking products that are free from artificial ingredients. Clean-label ingredients are natural, free from artificial ingredients, and sourced from organic or non-GMO sources. These ingredients are safer, healthier, and more sustainable than artificial ones.

Furthermore, the increasing consumer awareness regarding health risks related to artificial ingredients, such as artificial flavors, colors, sweeteners, and preservatives, has driven consumers to seek out products with cleaner labels. Consumers are more inclined to read product labels and ingredients and prefer products without artificial ingredients. For instance, as per the Tate & Lyle Proprietary Research survey, more than 84% of consumers from 14 countries had read ingredient labels and preferred beverages with no artificial ingredients in 2020. This shift in consumer preferences leads to increased demand for clean label ingredients across various food and beverage sectors, including bakery, dairy, beverages, snacks, and sauces. Thus, food and beverage manufacturers are also increasingly reformulating their products to meet the changing consumer demand for natural and organic ingredients. For instance, in June 2021, the U.S.-based company, International Flavors & Fragrances Inc. (IFF) unveiled a new clean-label solution for South American Bakers. The company had launched a clean label ingredient, GRINDSTED POWERBake Clean, as an alternative ingredient to currently used dough strengtheners in bread formulations. In February 2021, BENEO GmbH (Germany), a functional ingredients manufacturer, launched and made available throughout the world the first ever functional native rice starch, Remypure S52 P, for clean label applications in cold processed sauces, dressings, dairy desserts, and bakery fillings.

Therefore, the growing consumer preference for organic and natural food ingredients and increasing consumer awareness regarding the health and environmental benefits of clean label products are expected to drive the growth of the clean label ingredients market.

Key Findings in the Clean Label Ingredients Market Study:

In 2024, the Flour segment is Expected to Dominate the Clean Label Ingredients Market

Based on ingredient type, the global clean label ingredients market is primarily segmented into flour, colors, flavors, sweeteners, starch, preservatives, and other ingredients. In 2024, the flour segment is expected to account for the largest share of the global clean label ingredients market. The large market share of this segment is attributed to the rapidly growing global processed food industry and rising demand for clean label wheat, rice, and corn flours from bakery and confectionery products, sauces and dressings, dairy products, packaged meals, and processed food products around the world. Moreover, the increasing number of health-conscious consumers, rising per capita spending on nutritious foods, and rising demand for natural and organic foods are further expected to support the growth of this market.

Furthermore, based on type, the global clean label flour market is further segmented into wheat flour, corn flour, rice flour, and others. In 2024, the clean label wheat flour segment is expected to account for the largest share of the global clean label flour market. The large market share of this segment is mainly attributed to the growing global bakery industry and demand for gluten-free, non-GMO, and organic wheat flour in the bakery and confectionary industries. For instance, in April 2024, the U.S.-based Mightylicious, Inc. (formerly Mighty Monkey, LLC) launched a cookie with clean ingredients, gluten-free, and non-GMO ingredients from wheat, rye, and barley flours.

In 2024, the Plant-based Source Segment is Expected to Dominate the Clean Label Ingredients Market

Based on source, the global clean label ingredients market is segmented into plant-based and other sources. In 2024, the plant-based source is expected to account for the larger share of the global clean label ingredients market. The large market share of this segment is primarily attributed to the increasing consumer preferences for plant-based foods, increasing environmental safety concerns, and the growing vegan population. Moreover, this segment is further projected to register a higher CAGR during the forecast period due to the growing consumer demand for dairy alternative products and plant-based meat products.

In 2024, the Dry Form Segment is Expected to Dominate the Overall Clean Label Ingredients Market

Based on form, the global clean label ingredients market is segmented into dry and liquid forms. In 2024, the dry form segment is expected to account for the larger share of the global clean label ingredients market. The large market share of this segment is attributed to its ease of storage, higher shelf life compared to liquid form, flexibility to handle, and low cost of processing. Moreover, this segment is further projected to register the highest CAGR during the forecast period of 2024–2030 due to increasing demand for dry flour from bakery and confectionery food manufacturers.

In 2024, the Food Segment to Dominate the Overall Clean Label Ingredients Market

Based on application, the global clean label ingredients market is segmented into food and beverages. In 2024, the food segment is expected to account for the larger share of the global clean label ingredients market. The large market share of this segment is mainly attributed to the rapidly growing global food industry, increasing health-consciousness among consumers, and rising demand for vegan, organic, and plant-based food products. Moreover, rising technological advancements in the food sector and the growing focus of food manufacturers on product innovations and development are further expected to support the growth of this market during the forecast period.

However, the beverages segment is projected to register the highest CAGR during the forecast period of 2024–2030, owing to the growing consumer inclination towards natural and healthy beverages and rising consumer demand for plant-based beverages.

North America: The Dominating Regional Market

Based on geography, the clean label ingredients market is segmented into North America, Europe, Asia-Pacific, Latin America, and the Middle East and Africa. In 2024, North America is expected to account for the largest share of the global clean label ingredients market, followed by Europe, Asia-Pacific, Latin America, and the Middle East & Africa. The large market share of this region is mainly attributed to the presence of major food manufacturers; growing demand for organic, vegan, and plant-based food and beverages; and rising health and wellness. Moreover, the stringent regulations from the U.S. Food and Drug Administration (FDA) on artificial ingredients are further expected to spur the demand for clean label food ingredients in the region during the forecast period.

However, Asia-Pacific is slated to register the highest CAGR during the forecast period of 2024–2030 owing to the rising health consciousness regarding the negative effects of artificial ingredients, increasing consumer demand for functional ingredients and healthy foods, the rising health-conscious population and their spending on nutrient-dense foods, rising trend of vegan, natural, and organic food products, and the growing clean-label food trend in Asian countries.

Scope of the Report:

Clean Label Ingredients Market Assessment, by Ingredient Type

• Flours
  • Wheat Flour
  • Corn Flour
  • Rice Flour
  • Other Flours
• Colors
• Flavors
• Sweeteners
• Preservatives
• Starch
• Other Ingredients

Clean Label Ingredients Market Assessment, by Source

• Plant-based Source
• Other Sources (Animal-based sources, Microorganisms, etc.)

Clean Label Ingredients Market Assessment, by Form

• Dry Form
• Liquid Form

Clean Label Ingredients Market Assessment, by Application

• Food
  • Bakery and Confectionery
  • Condiments
  • Dairy and Frozen Dessert
  • Ready-To-Eat Foods
  • Meat Products
  • Other Foods
• Beverages

Clean Label Ingredients Market Assessment, by Geography

• North America
  • U.S.
  • Canada
• Europe
  • Germany
  • France
  • U.K.
  • Italy
  • Spain
  • Rest of Europe
• Asia-Pacific
  • China
  • India
  • Australia
  • Japan
  • Rest of Asia-Pacific
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• Middle East & Africa

Key Questions Answered in the Report: