Clean Labelled Food Additives Market

Market Overview:

The global clean labelled food additives market size reached US$ 42.5 Billion in 2023. Looking forward, IMARC Group expects the market to reach US$ 70.9 Billion by 2032, exhibiting a growth rate (CAGR) of 5.84% during 2024-2032. The increasing health consciousness among the masses, the rising interest in identifying the ingredients in food and beverage products, and the escalating demand for convenience foods across the globe are some of the major factors propelling the market.

Clean labelled food additives are ingredients added to foods to enhance their taste, texture, or shelf life, which also meet consumers' expectations for transparency and simplicity in their food's ingredient list. They usually refer to food items that are natural, organic, non-GMO, and devoid of chemical preservatives, colors, and flavors. Additionally, they include natural preservatives, including rosemary extract, natural colors derived from fruits and vegetables, and natural sweeteners, such as stevia or honey. They offer a safer and more health-conscious alternative to traditional synthetic additives, enabling consumers to understand and feel comfortable with what they're eating.

The changing consumer preferences majorly drive the global market. This can be supported by rising awareness about health and wellness among consumers across the globe. Consumers are now more informed about the adverse effects of synthetic additives and seek foods with clean, understandable ingredients. The increasing demand for sustainable and ethically sourced ingredients is significantly supporting the market. In addition, marketing and social media also play significant roles. Clean-label products are often associated with quality and premium positioning, making them attractive to certain demographic groups. Moreover, continuous advancements in technology are creating a positive market outlook. Some of the other factors driving the market include rapid urbanization, the advent of home delivery models, the changing dietary patterns of individuals and inflating disposable income levels of the masses.

Clean Labelled Food Additives Market Trends/Drivers:

The implementation of clean label regulations

Regulatory agencies and governments are taking initiatives to enhance food labeling regulations and provide clearer information to consumers, which is significantly supporting the market. Several countries are implementing stricter regulations on food labeling, requiring manufacturers to disclose the use of additives and their origins. Clean labelled food additives comply with these regulations and provide manufacturers with an opportunity to meet the stringent labeling requirements. Therefore, food manufacturers are also leveraging clean labelled food additives as a means of product differentiation, which is also driving the market. Also, the introduction of natural, healthier alternatives to conventional options attracts health-conscious consumers, thus acting as another growth-inducing factor.

Widespread preference for clean-label products adhering to clean-label standards

The rise of clean-label products, which are characterized by minimal processing and a short list of natural ingredients, is driving the demand for clean labelled food additives. As clean-label products gain popularity, manufacturers are seeking clean labelled additives to maintain the desired product attributes while adhering to clean-label standards. Additionally, clean labelled food additives resonate with consumers who are seeking transparency and trust in the food they consume. This is encouraging manufacturers to incorporate clean-label claims into their marketing strategies. Clean labelled additives are often highlighted on packaging and advertising materials, emphasizing the use of natural and recognizable ingredients, thereby influencing the demand on the global level.

The growing demand from foodservice industry

The escalating shift in the foodservice industry, including restaurants, cafes, and catering services, toward healthier and cleaner options is positively influencing the market. Food service providers are opting for clean labelled food additives to enhance the quality and perception of their offerings to meet the rising demand across the globe, which is creating a significant demand for clean labelled additives in the foodservice sector. In addition, the rise of e-commerce platforms and the increasing availability of food products are introducing consumers to a wider range of options. As consumers become more informed and have access to a variety of choices, the demand for clean labelled food additives rises. Thus, online platforms and globalization are contributing to the dissemination of information about clean labels, driving consumer interest and demand.

Clean Labelled Food Additives Industry Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the global clean labelled food additives market report, along with forecasts at the global, regional, and country levels for 2024-2032. Our report has categorized the market based on type and application.

Breakup by Type:

• Sweeteners
• Natural Preservatives
• Natural Colors
• Starch
• Natural Flavors
• Others
   

The report has provided a detailed breakup and analysis of the market based on the type. This includes sweeteners, natural preservatives, natural colors, starch, natural flavors, and others.

The clean labelled food additives industry is experiencing a rise in demand for natural color types, driven by the increasing consumer awareness regarding the health impacts of synthetic additives. This is leading to a shift towards more naturally derived alternatives, thereby impacting the market. Additionally, regulatory policies are also driving this trend, with several governments’ strict controls on artificial food additives, further encouraging the shift toward natural colorants.

Along with this, the growing concern over the health impacts of artificial sweeteners and high-sugar diets, such as diabetes and obesity, is encouraging consumers to seek out natural and healthier alternatives. This trend is led by the rising prevalence of health-conscious and fitness-oriented consumers globally, who are consuming food products with reduced sugar content. In confluence with this, the escalating demand from consumers following specific dietary lifestyles, such as keto, paleo, and vegan, where certain natural sweeteners are preferred is significantly supporting the market.

The demand for natural preservatives in the clean labelled food additives industry is currently on the rise, due to the increasing health consciousness among consumers. This can be supported by heightened scrutiny of food labels, with a clear preference for natural, recognizable ingredients over synthetic, chemical-sounding names. Moreover, continual advancements in food technology improving the efficiency of extraction and incorporation of natural preservatives into food products, are contributing to the market.

Breakup by Application:

• Snacks and Cereals
• Dairy
• Meat and Meat Based Products
• Bakery
• Sauces and Condiments
• Beverages
   

A detailed breakup and analysis of the market based on the application has also been provided in the report. This includes snacks and cereals, dairy, meat and meat based products, bakery, sauces and condiments, and beverages. 

The application of clean-label additives in the meat and meat-based products industry is increasing due to the rising consumer demand for transparency in food production and processing. Consumers are opting for products that are free from artificial preservatives, colors, and flavors, necessitating the use of clean-label additives in the meat industry. Moreover, continual technological advancements enable the effective use of natural additives without compromising the taste, texture, and shelf-life of meat products, facilitating their adoption in the industry.

In addition, an increasing number of consumers are examining product labels before purchasing, opting for products with ingredients they recognize and trust, thus driving the need for clean label additives in snacks and cereals. Also, the growing trend of plant-based and gluten-free diets also necessitates the use of specific clean label additives in the manufacturing of snacks and cereals, which is acting as another growth-inducing factor.

Apart from this, the growing preference for ethnic and gourmet foods is influencing the demand for natural and authentic ingredients in sauces and condiments. The rise of vegan, gluten-free, and other specific dietary preferences also propelled the use of clean-label ingredients.

Breakup by Region:

• North America
  • United States
  • Canada
• Europe
  • Germany
  • France
  • United Kingdom
  • Italy
  • Spain
  • Others
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Australia
  • Indonesia
  • Others
• Latin America
  • Brazil
  • Mexico
  • Others
• Middle East and Africa
   

Europe exhibits a clear dominance, accounting for the largest clean labelled food additives market share

The report has also provided a comprehensive analysis of all the major regional markets, which include North America (the United States and Canada); Europe (Germany, France, the United Kingdom, Italy, Spain, and others); Asia Pacific (China, Japan, India, South Korea, Australia, Indonesia, and others); Latin America (Brazil, Mexico, and others); and the Middle East and Africa. According to the report, Europe represented the largest segment.

The clean label food additives industry in Europe is experiencing robust growth, driven by the growing health consciousness among consumers, leading to a preference for food products with natural, identifiable ingredients. Regulatory support is also a significant factor, with the implementation of strict guidelines on artificial additives, propelling the shift to clean label alternatives. Also, considerable rise in demand for organic and non-GMO food products, as well as a growth in vegetarian, vegan, and flexitarian diets, are also contributing to this trend. Furthermore, the increasing preference for transparency in food production is pushing manufacturers to adopt a clean label approach to meet evolving consumer expectations across the region.

On the contrary, Asia Pacific is estimated to expand further in this domain due to the widespread popularity of specific dietary trends, such as organic, non-GMO, and plant-based diets,. The influence of Western eating habits and an increase in lifestyle diseases, such as diabetes and obesity, are other significant drivers for the adoption of clean labelled food additives across the region.

Competitive Landscape:

The market is experiencing significant growth due to the growing trend towards health and wellness, offering immense potential for food and beverage manufacturers to differentiate their products by integrating clean label additives. Along with this, the rising demand for products with easy-to-understand, natural, and minimal ingredients, is providing lucrative opportunities for top companies. In addition, the rise in specific dietary trends, such as veganism, vegetarianism, gluten-free, and organic, offers companies a chance to cater to these niche markets with targeted clean label products. Apart from this, the rising awareness and demand for non-GMO and organic foods are encouraging leading companies to innovate in the sourcing and production of clean label additives from these sectors.

The report has provided a comprehensive analysis of the competitive landscape in the market. Detailed profiles of all major companies have also been provided. Some of the key players in the market include:

• Archer-Daniels-Midland
• Cargill Incorporated
• Chr Hansen Holding A/S
• Corbion NV
• Ingredion Incorporated
• Kerry Group PLC
• Koninklijke DSM N.V.
• Tate & Lyle PLC

Recent Developments:

• In November 2023, Kerry Group PLC released Acryleast Pro, the upgraded version of Acryleast, the brand's iconic acrylamide-reducing non-GMO (non-genetically modified) yeast.
• In April 2023, Ingredion Incorporated introduced the two natural rice starches having specific functions for enhancing colour and flavour release.
• In October 2021, Cargill Incorporated announced the launch of SimPure rice flour which is a clean-label bulking ingredient that functions similarly to maltodextrin in terms of flavour, texture, and functioning. The new component was formally presented by the firm at the SupplySide West trade exhibition. The main objective of this innovation was to broaden the company's product line.

Clean Labelled Food Additives Market Report Scope:

Key Questions Answered in This Report:

• How has the global clean labelled food additives market performed so far, and how will it perform in the coming years?
• What are the drivers, restraints, and opportunities in the global clean labelled food additives market?
• What is the impact of each driver, restraint, and opportunity on the global clean labelled food additives market?
• What are the key regional markets?
• Which countries represent the most attractive clean labelled food additives market?
• What is the breakup of the market based on the type?
• Which is the most attractive type in the clean labelled food additives market?
• What is the breakup of the market based on the application?
• Which is the most attractive application in the clean labelled food additives market?
• What is the competitive structure of the global clean labelled food additives market?
• Who are the key players/companies in the global clean labelled food additives market?

Key Benefits for Stakeholders:

• IMARC’s report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the clean labelled food additives market from 2018-2032.
• The research study provides the latest information on the market drivers, challenges, and opportunities in the global clean labelled food additives market.
• The study maps the leading, as well as the fastest-growing, regional markets. It further enables stakeholders to identify the key country-level markets within each region.
• Porter's five forces analysis assist stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the clean labelled food additives industry and its attractiveness.
• Competitive landscape allows stakeholders to understand their competitive environment and provides an insight into the current positions of key players in the market.