Clean Label Ingredients Market in Emerging Economies will witness a CAGR of 6.8% through 2026
Rise in consumer demand for clean label products and progress in food and beverage industry are the two major factors that drive the growth of the global clean label ingredients market. Furthermore, the rise in demand for natural colors and natural flavor and customer preference toward ready-to-eat food products have fueled the growth of the market.
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On the other hand, surge in demand for zero synthetic ingredients food products and high price of clean label ingredient product impede the growth to some extent. Nevertheless, developing markets in Asia-Pacific and LAMEA and increase in awareness regarding clean label products are expected to create an array of opportunities for the key players in the industry.
Based on type, the starch and sweetener segment held the largest share in 2018, generating more than two-fifths of the global clean label ingredients market. This is due to the innovative approaches of manufacturing food and beverages according to the customers. At the same time, the natural color segment would grow at the fastest CAGR of 9.6% from 2019 to 2026, owing to the rise in consumer preference for organic label products and surge in awareness regarding harmful effects of chemicals used in artificial colors.
Based on application, the beverage segment contributed to more than one-fourth of the global clean label ingredients market share in 2018 and is expected to rule the roost by the end of 2026. This is due to the rise in beverage consumption and preference to beverages with natural ingredients. Moreover, the dairy and frozen dessert segment would showcase the fastest CAGR of 9.2% during the study period. The rise in consumption of dairy products is expected to boost the growth of the segment.
Leading players in the market-
o Archer Daniels Midland company
o Kerry Group PLC
o Sensient technologies
o Ingredion Incorporated
o koninklijke DSM N.V
o Chr Hasen A/S
o Cargill Inc
o Corbion Inc
o Tate & Lyle
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Based on geography, North America accounted for more than two-fifths of the global clean label ingredients market revenue in 2018, and is anticipated to rule the roost by 2026. This is owing to the rise in awareness of harmful effects of synthetic ingredients and surge in demand for natural food products in this region.
Simultaneously, the region across Asia-Pacific would register the fastest CAGR of 8.7% throughout the forecast period. This is due to the rise in health consciousness among the consumers and surge in demand for natural food items.
Key Finding of The Clean Label Ingredients Market:
o 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.
o 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 %.
o 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%.
o 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%.
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