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Clean-Label ingredients market set to soar, driven by consumer demand for transparency and natural foods

USA 22.05.2024
Source: The DairyNews
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Leading participants in the clean-label ingredients market include Archer Daniel Midland Company, Cargill Inc., Kerry Group PLC, Tate & Lyle PLC, Ingredion Inc., Exberry, Sensient Technologies, Koninklijke DSM N.V, Corbion Inc., Frutarom, Chr. Hansen A/S, Groupe Limagrain, and Brisan Group. The market for clean-label ingredients is forecasted to surpass USD 88.4 billion by 2032.
Clean-Label ingredients market set to soar, driven by consumer demand for transparency and natural foods

Rising consumer awareness and preference for natural, minimally processed foods are fueling the adoption of clean-label ingredients, reflecting a growing inclination towards transparency and healthier food choices.

According to Agriculture and Agri-food Canada, retail sales of baked goods in the U.S. are expected to reach USD 97.7 billion by 2026. The increased utilization of clean-label ingredients in baking processes is anticipated to positively impact market growth. Stringent regulations on food labeling and safety standards are compelling manufacturers to incorporate clean-label ingredients to meet compliance requirements and establish consumer trust. The surge in clean eating trends and the emphasis on sustainability are further driving innovation and diversification in clean-label ingredient offerings.

The starch and sweeteners segment within the clean-label ingredients industry is projected to experience significant growth from 2023 to 2032. Growing demand for natural alternatives to artificial sweeteners and additives is propelling the adoption of clean-label starches and sweeteners. Their versatility in various food applications, including bakery and beverages, is driving adoption. Health-conscious consumer preferences for clean-label products devoid of synthetic ingredients are also accelerating product penetration.

The dairy & frozen desserts application segment of the clean-label ingredients market is expected to witness substantial growth from 2023 to 2032. Increasing consumer demand for natural, minimally processed ingredients in dairy products and frozen desserts is driving the adoption of clean-label ingredients. Manufacturers are reformulating products with clean-label ingredients to align with market preferences and enhance brand reputation.

The European clean-label ingredients market is projected to grow significantly between 2023 and 2032 due to increasing consumer demand for transparency and natural ingredients in food products. Stringent regulations and labeling requirements across Europe are encouraging the adoption of clean-label ingredients by manufacturers. Health-conscious lifestyles and clean eating trends are fostering opportunities for innovation and product development in the region's clean-label ingredients sector.

Key players in the clean-label ingredients market, including Archer Daniel Midland Company, Cargill Inc., Kerry Group PLC, Tate & Lyle PLC, Ingredion Inc., Exberry, Sensient Technologies, Koninklijke DSM N.V, Corbion Inc., Frutarom, Chr. Hansen A/S, Groupe Limagrain, and Brisan Group, are implementing various corporate expansion strategies such as mergers & acquisitions, collaborations, and product launches to expand their market presence. For example, in February 2024, Ingredion introduced NOVATION® Indulge 2940 starch to expand its range of clean label texturizers with the first-ever non-GMO native corn starch, offering unique texture for gelling and co-texturizing in dairy and alternative dairy products and desserts.

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