According to a new report published by Allied Market Research titled, "Clean Label Ingredients Market by Type, Application, and Form: Global Opportunity Analysis and Industry Forecast, 2019-2026," the global clean label ingredients market size was valued at $38.8 billion in 2018, and is projected to reach $64.1 billion by 2026, growing at a CAGR of 6.8% from 2019 to 2026. In 2018, North America accounted for nearly 41.8% share of the clean label ingredients market.
The growth in value sales for ingredients is attributable to surge in demand for different clean label ingredients, which facilitate better taste. Thus, increase in willingness of customers for different types of natural tastes in food & beverages is expected to fuel the demand for clean label ingredients.
The food industry has been evolving in terms of innovations and demand. Manufacturers are focusing on key innovations that cater to the requirements of their target consumers. Increase in awareness toward health and wellness has been witnessed among people residing in the developed as well as the developing countries. This has resulted in increased demand for various types of special clean label ingredients made using organic products. Thus, clean label ingredients are gaining increased traction among food & beverage manufacturers, which significantly drives the growth of the global clean label ingredients market analysis.
Clean label ingredients have witnessed higher rate of penetration in North America and Europe. However, low availability has been observed for this product in some major parts of Asia-Pacific and LAMEA, which is attributable to low performing macro-economic factors such as internet penetration and aggressive marketing strategies by the manufacturers. Thus, lower penetration of such products limits the clean label ingredients market growth.
There has been an increase in number of users in various social media sites with rise in internet penetration. Taking this into consideration, most of the key players in the clean label ingredients market strategize on promoting their products on these social media platforms. Thus, through social media marketing strategy, the clean label ingredients market sights critical opportunity in gaining traction.
Key Finding of The Clean Label Ingredients Market:
- Depending on type, the starch & sweetener segment garnered 44.9% of clean label ingredients market share in 2018, and is expected to grow at a CAGR of 4.8% from 2019 to 2026.
- The natural flavor segment in clean label ingredients market was valued at $8.5 billion and is expected to reach $15.8 billion by 2026, registering a CAGR of 8.3 %.
- In 2018, by application, the dairy & frozen dessert segment accounted for 18.8% share of the clean label ingredients market, and is expected to grow at the highest CAGR of 9.2%.
- The beverage segment accounted was valued at $11.6 billion and is expected to reach $18.1 billion by 2026, registering a CAGR of 6.0%.
Region wise, North America accounted for a prominent market share in 2018, and is anticipated to grow at a CAGR of 6.2% throughout the clean label ingredients market forecast period.
The key players operating in the global clean label ingredients industry include Cargill Inc., Archer Daniels Midland, company, Corbion Inc., Kerry Group PLC, Ingredion Incorporated, Tate & Lyle, Sensient Technologies, Frutarom, koninklijke DSM N.V., Chr Hasen A/S, and Dupont.