Clean Label Ingredient Market Size
| Study Period | 2019 - 2029 |
| Market Size (2024) | USD 42.76 Billion |
| Market Size (2029) | USD 62.12 Billion |
| CAGR (2024 - 2029) | 6.51 % |
| Fastest Growing Market | North America |
| Largest Market | North America |
| Market Concentration | Low |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Clean Label Ingredient Market Analysis
The Clean Label Ingredient Market size is estimated at USD 42.76 billion in 2024, and is expected to reach USD 62.12 billion by 2029, growing at a CAGR of 6.51% during the forecast period (2024-2029).
Consumers demand clean labels on products to learn more about the product and the type of ingredients used before consumption. This interest in identifying the ingredients present in food and beverage products has triggered the growth of the clean label ingredients market. The growing demand for transparent and natural ingredients targeted at children has increasingly pushed parents to prefer clean label ingredient-based foods. Thus, companies are producing kids-specific product ranges to cater to such demand. For instance, Honest Organic Kids offers Apple Fruit Juice Drink with claims like no added sugar, no colors, no sweeteners, and no preservatives.
In addition, a growing preference for vegan nutrition and inclination toward vegan diets are registering rising prominence in countries like Germany, increasing demand for plant-based and vegan ingredients in the market, thus boosting demand for clean label ingredients. According to the USDA Foreign Agriculture Services, Germany has the highest rate of vegetarianism compared to its European neighbors, and the number of vegans reached over 1.5 million in 2022. Furthermore, stringent government regulations are leading to the adoption of safer, natural alternatives for all food categories worldwide. This has created new opportunities for food ingredient manufacturers to offer clean label ingredients. For instance, in the United Kingdom, the ‘free-from’ claims are regulated by the provisions of the General Food Law (Regulation (EC) No. 178/2002), while rules relating to gluten are regulated by Regulation (EU) No. 1169/2011.
Clean Label Ingredient Market Trends
Increasing Health and Wellness Trends Fueling Market Growth
Rising awareness among consumers of the relationship between diet and health has made them more conscious of the ingredients present in their food. Many consumers are taking proactive steps to improve their health and well-being through informed decisions about the foods they consume. These include avoiding artificial additives, preservatives, and synthetic chemicals often found in processed foods and opting for cleaner, more natural alternatives. As per the International Food Information Council, in 2023, nearly 26% of respondents in the United States said that the term “Natural" best defines healthy food to them. In addition, the term “Non-GMO” saw a 14% response rate.
Consumers are increasingly seeking transparency regarding the ingredients used in food products. They want clear and comprehensive ingredient lists that are easy to understand and free from ambiguous or misleading terms. Clean label ingredients, which have simpler and more recognizable names, resonate with consumers who value transparency and authenticity. For instance, according to Twilio Inc., a San Francisco-based cloud communications company, during a 2022 survey carried out among consumers worldwide who purchased something online in the past six months, 60% stated that they consider trustworthiness and transparency to be the most important traits of a brand, dominating over all other traits.
Moreover, food allergies are becoming increasingly common, affecting millions of people worldwide. As a result, there is heightened awareness and concern about allergens in the food supply. This, in turn, has propelled the demand for allergen-free and clean label products.
North America Holds the Largest Market Share
The clean label streamlines the ingredient list by using natural ingredients while ignoring artificial additives, preservatives, and other chemical substances. Increasing awareness about health has led consumers to seek products with simpler, more natural ingredients. Clean label ingredients, which essentially comprise ingredients that are minimally processed and free from artificial additives, align with the health-conscious trend among consumers in North America. Clean label ingredients provide transparency as they are easily recognizable and familiar to consumers, fostering trust in the company’s food and beverage products.
Further, there is a growing preference for natural and organic food and beverages among consumers who prioritize sustainability, environmental stewardship, and ethical sourcing. Clean label ingredients, often sourced from natural or organic sources, meet these demands. As per the Organic Trade Association, organic food sales in the United States amounted to USD 57.5 billion in 2021, which increased to USD 61.67 billion in 2022. Thus, the rising demand for organic food and beverage products has boosted the growth of clean label food ingredients in the country.
In addition, the demand for clean label ingredients is fueled by consumer concerns regarding the potential health risks associated with artificial additives. As per the Public Health Agency of Canada, the most prevalent chronic disease conditions in 2022 included being overweight (35.5%), obesity (29.2%), arthritis (19.5%), and high blood pressure (17.7%). Thus, consumers are becoming more conscious about their intake, which has led to increased demand for clean label food and food ingredients in the country.
Clean Label Ingredient Industry Overview
The clean label ingredients market is highly competitive in nature due to the presence of several local, domestic, and global players. Due to the presence of several players in the clean label ingredients market, the rivalry among the competitors is also high. Leading players, like Cargill Inc., International Flavors and Fragrances Inc., Ingredion Inc., DSM-Firmenich, and Archer Daniel Midlands Company, account for a significant market share globally. Cargill Inc. dominates the market with a significantly high market share. The larger players are increasing their R&D investments, partnering with other firms, and expanding their business to maintain their position and share in the market studied. For instance, in June 2022, Givaudan, in partnership with US-based Manus Bio (biomanufacturer of natural products), launched a sustainable, natural, clean label citrus flavor ingredient called BioNootkatone. The company claims that BioNootkatone provides a refreshing, natural citrus taste that can be used in various food and beverage applications.
Clean Label Ingredient Market Leaders
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Archer-Daniels-Midland Company
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Cargill, Incorporated
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Ingredion Incorporated
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DSM-Firmenich
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International Flavor and Fragrances Inc.
*Disclaimer: Major Players sorted in no particular order
Clean Label Ingredient Market News
- 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.
- 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.
- 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.
Clean Label Ingredients Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS
4.1 Market Drivers
4.1.1 Increasing Health and Wellness Trends Fueling Market Growth
4.1.2 Rising Demand for Natural Ingredients
4.2 Market Restraints
4.2.1 High Cost Hampering Market Growth
4.3 Porter's Five Forces Analysis
4.3.1 Bargaining Power of Suppliers
4.3.2 Bargaining Power of Buyers/Consumers
4.3.3 Threat of New Entrants
4.3.4 Threat of Substitute Products
4.3.5 Intensity of Competitive Rivalry
5. MARKET SEGMENTATION
5.1 Product Type
5.1.1 Food Preservatives
5.1.2 Food Sweeteners
5.1.3 Food Colorants
5.1.4 Food Hydrocolloids
5.1.5 Food Flavors and Enhancers
5.1.6 Other Product Types
5.2 Application
5.2.1 Bakery and Confectionery
5.2.2 Dairy and Frozen Desserts
5.2.3 Beverages
5.2.4 Meat and Meat Products
5.2.5 Sauces and Condiments
5.2.6 Other Applications
5.3 Geography
5.3.1 North America
5.3.1.1 United States
5.3.1.2 Canada
5.3.1.3 Mexico
5.3.1.4 Rest of North America
5.3.2 Europe
5.3.2.1 United Kingdom
5.3.2.2 Germany
5.3.2.3 Spain
5.3.2.4 France
5.3.2.5 Italy
5.3.2.6 Russia
5.3.2.7 Rest of Europe
5.3.3 Asia-Pacific
5.3.3.1 China
5.3.3.2 Japan
5.3.3.3 India
5.3.3.4 Australia
5.3.3.5 Rest of Asia-Pacific
5.3.4 South America
5.3.4.1 Brazil
5.3.4.2 Argentina
5.3.4.3 Rest of South America
5.3.5 Middle East and Africa
5.3.5.1 South Africa
5.3.5.2 Saudi Arabia
5.3.5.3 Rest of Middle East and Africa
6. COMPETITIVE LANDSCAPE
6.1 Most Adopted Strategies
6.2 Market Share Analysis
6.3 Company Profiles
6.3.1 Cargill Incorporated
6.3.2 Ingredion Incorporated
6.3.3 Ajinomoto Co. Inc.
6.3.4 DSM-Firmenich
6.3.5 Archer Daniels Midland Company
6.3.6 Tate & Lyle PLC
6.3.7 International Flavors & Fragrances Inc.
6.3.8 Corbion NV
6.3.9 Kerry Group PLC
6.3.10 Sensient Technologies Corporation
- *List Not Exhaustive
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
Clean Label Ingredient Industry Segmentation
Clean label ingredients refer to products that are derived through simpler processes, free from genetically modified organisms (GMOs), or have label-friendly claims made by manufacturers. Additionally, products that are free from unsafe additives or ingredients and free of vague or misleading terminology that hides health risks or implies non-existent health benefits are not considered clean label ingredients.
The clean label ingredients market is segmented by product type, application, and geography. By product type, the market is segmented into food preservatives, food sweeteners, food colorants, food hydrocolloids, food flavors and enhancers, and other product types. By application, the market is segmented into beverages, bakery and confectionery, dairy and frozen desserts, meat and meat products, sauce and condiments, and other applications. By geography, the market is segmented into North America, Europe, Asia-Pacific, South America, and the Middle East and Africa. For each segment, the market sizing and forecasts have been done based on value (in USD).
| Product Type | |
| Food Preservatives | |
| Food Sweeteners | |
| Food Colorants | |
| Food Hydrocolloids | |
| Food Flavors and Enhancers | |
| Other Product Types |
| Application | |
| Bakery and Confectionery | |
| Dairy and Frozen Desserts | |
| Beverages | |
| Meat and Meat Products | |
| Sauces and Condiments | |
| Other Applications |
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Clean Label Ingredients Market Research FAQs
How big is the Clean Label Ingredient Market?
The Clean Label Ingredient Market size is expected to reach USD 42.76 billion in 2024 and grow at a CAGR of 6.51% to reach USD 62.12 billion by 2029.
What is the current Clean Label Ingredient Market size?
In 2024, the Clean Label Ingredient Market size is expected to reach USD 42.76 billion.
Who are the key players in Clean Label Ingredient Market?
Archer-Daniels-Midland Company, Cargill, Incorporated, Ingredion Incorporated, DSM-Firmenich and International Flavor and Fragrances Inc. are the major companies operating in the Clean Label Ingredient Market.
Which is the fastest growing region in Clean Label Ingredient Market?
North America is estimated to grow at the highest CAGR over the forecast period (2024-2029).
Which region has the biggest share in Clean Label Ingredient Market?
In 2024, the North America accounts for the largest market share in Clean Label Ingredient Market.
What years does this Clean Label Ingredient Market cover, and what was the market size in 2023?
In 2023, the Clean Label Ingredient Market size was estimated at USD 39.98 billion. The report covers the Clean Label Ingredient Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Clean Label Ingredient Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Clean Label Ingredient Industry Report
Statistics for the 2024 Clean Label Ingredient market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Clean Label Ingredient analysis includes a market forecast outlook to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
