Clean Label Ingredients Market Eyeing Bigger Moves With a CAGR of 6.8%

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. 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.

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According to the report, the global clean label ingredients industry was estimated at $38.83 billion in 2018 and is expected to hit $64.1 billion by 2026, registering a CAGR of 6.8% from 2019 to 2026.

Leading players in the market-

Archer Daniels Midland company
Kerry Group PLC
Sensient technologies
Ingredion Incorporated
Frutarom
koninklijke DSM N.V
Chr Hasen A/S
Cargill Inc
Corbion Inc
Tate & Lyle
Dupont.

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The starch and sweetener segment to lead the trail till 2026-

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.

The beverage segment to maintain its top status during the estimated period-

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.

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North America to dominate the market in terms of revenue-

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.

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