Report Code: 12902 | Available Format: PDF | Pages: 240
The clean-label ingredients market generated revenue of USD 48.5 billion in 2023, which is expected to witness a CAGR of 6.4% during 2024–2030, reaching USD 74.0 billion by 2030. This will mainly be due to the rising preferences for organic and natural ingredients that are free of artificial or chemical ingredients, expanding food & beverage industry, and health and safety concern related to artificial food additives.
Health and wellness focus is booming, and consumers are more likely to spend on products that can improve their health, nutrition, fitness, and mindfulness. Artificial food additives have a high risk of causing cancer; for instance, a diet with a high content of nitrites and nitrates, which are commonly found in processed meats, has been linked to an increased risk of colorectal cancer.
Additionally, an additive that is mostly found in food packaging, bisphenol A (BPA), has been understood to increase the risk of endocrine dysfunction and cancer. Moreover, although it has been banned in baby products, it is still used commonly in some brands of cans, water bottles, and other kinds of packaging.
Therefore, the demand for healthier and more-transparent food options has led to a significant shift in the food industry, thereby driving the market growth for clean-label food products.
Furthermore, consumers are becoming more conscious of the food they consume and seeking detailed information on the nutritional content of food products. They are rapidly inclining toward understanding the impact of food on their health, which has resulted in an increase in the demand for transparent and clean nutritional labeling. As these ingredients are naturally sourced and minimally processed, consumers are inclining toward them as they can be easily recognized and pronounced.
In the U.S., the ingredients label is placed either before or after the Nutrition Facts panel, as many consumers are concerned about what they are actually consuming. Moreover, people who are overly sensitive or even allergic to food products need this information because it helps them determine whether a food is safe for them to eat or likely to cause a severe reaction.
Based on the form, the powder category held the larger share, of 60%, in 2023. This is mainly due to powdered ingredients’ longer shelf life and ease of handling and storage. As these materials can be easily blended into dry mixes and batters, they reduce the risk of spoilage and allow for extended product storage. Moreover, as they are in dry form and contain less water content, they are lightweight. These attributes result in easy and cost-effective transportation, especially in the case of long-distance shipments. Moreover, powdered natural flavors, colors, and sweeteners are commonly used in baking, dry mixes, confectionery, and beverages.
The liquid form also held a significant market share in 2023.
Report Attribute | Details |
Market Size in 2023 |
USD 48.5 Billion |
Market Size in 2024 |
USD 51.0 Billion |
Revenue Forecast in 2030 |
USD 74.0 Billion |
Growth Rate |
6.4% CAGR |
Historical Years |
2017-2023 |
Forecast Years |
2024-2030 |
Report Scope |
Market Trends, Drivers, and Restraints; Revenue Estimation and Forecast; Segmentation Analysis; Impact of COVID-19; Companies’ Strategic Developments; Market Share Analysis of Key Players; Company Profiling |
Segments Covered |
By Type; By Form; By Application; By Distribution Channel; By Region |
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Based on type, natural flavor category dominated the market in 2023. Due to their growing focus on a healthy lifestyle, consumers are more inclined toward natural and healthy flavoring agents than artificial ones. Moreover, the consumer demand is shifting toward food products that are healthier, i.e., contain less fat, sugar, and artificial additives; and are more sustainable.
Common natural flavors, such as hydrolyzed vegetable protein (HVP) and autolyzed yeast extract (AYE), are added to foods for flavor and taste enhancement. The rising pace of innovations and launch of natural flavorings have profited the natural flavor industry. For instance, in September 2022, Solvay SA expanded the range of Rhovanil Natural CW with three new natural flavors: Alta, Delica, and Sublima. The flavors are extracted from vanillin.
The fruit & vegetable ingredients category is expected to witness the highest CAGR, of 10%, in upcoming years.
Flour category also holds a significant market share, as chia, quinoa, and hemp flour are widely used to produce gluten-free corn/rice bread. The use of 5–14% whole chia flour increases the levels of lipids, proteins, and dietary fiber compared to the gluten-free white breads. Moreover, many consumers are opting for gluten-free or allergen-free diets, which creates a high demand for clean-label flour.
Based on application, the beverages category held the largest share, of 30%, in 2023, and it is expected to witness a CAGR of 9% during 2024–2030.
Based on the distribution channel, B2B category held the larger share, of 80%, in 2023, as B2B companies can assure customers that their goods meet the particular quality parameters and can satisfy customer preferences. The stricter labeling laws are pushing business-to-business companies to sell minimally processed products.
Moreover, B2C category will witness significant progress in the coming years.
Geographically, Europe held the largest share, of 45%, in 2023. This is mainly due to the presence of numerous market players, along with their rising investment in R&D. Moreover, the government initiatives to promote healthy eating are driving the growth of the market. According to studies, more than half of Germany’s population buys organic food and drinks, as they are GMP-free and do not contain pesticides and other chemicals. Moreover, there are no artificial additives and preservatives in organic food and drink products.
North America is expected to witness a significant CAGR over the forecast period.
APAC is expected to witness the highest CAGR, of 8%, over the forecast period. The primary reason for this is the elevating living standards of people in India and China. Their population is more than ever focused on health and wellness, starting to choose clean-label products so that they are aware of what they are consuming. Further, in India, the government has implemented stringent food safety standards in order to boost consumer trust in processed food and beverages.
This report offers deep insights into the clean label ingredient market, with size estimation for 2017 to 2030, the major drivers, restraints, trends and opportunities, and competitor analysis.
Explore
The industry for clean-label ingredients will reach USD 51.0 billion in 2024.
The clean-label ingredients market value will reach USD 74.0 billion in 2030.
The European market for clean-label ingredients is the largest.
The growing food & beverage sector and the increasing fondness for natural & organic ingredients are the major clean-label ingredients industry drivers.
Beverages hold the larger clean-label ingredients market share.
The clean-label ingredients industry is observing the fastest growth in APAC.
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