The Clean Label Natural Ingredients Market is experiencing rapid change as a result of increased health awareness, increasing demands around transparency, and new ways of developing products.
The clean label natural ingredients market will increase from a valuation of US$ 138.5 million in 2024 to $238.60 billion by 2035, representing a compound annual growth rate (CAGR) of 4.9% during the forecast period of 2025 to 2035, according to NextGen Intelligence Stats and Consulting LLP.
Other influential forces driving the growth of clean label natural ingredients:
Increasing Health Awareness
In recent years, consumers have developed a preference for healthier and more natural food and beverage products. Approximately 70% of consumers, according to the Food & Drug Administration (FDA), are seeking out products with natural ingredients. This has ultimately resulted in changes to product formulations.
Food and beverage companies have begun replacing artificial additives, preservatives, and synthetic colours with clean label natural ingredients. Companies have altered formulations to respond to these consumer demands. This is done to achieve a degree of consumer confidence, but equally importantly, for competitive purposes.
As consumers continue to place value on wellness, and mindfulness with purchasing of products, this will continue to drive demand for clean label natural ingredients on a global scale.
Market Size and Regional Analysis
North America currently holds the lion's share of the clean label natural ingredients market, at 36.8% share. This is largely due to high consumer awareness of clean labels and growing government regulation of clean label products.
It is expected that North America will hold its market share for the foreseeable future, with a projected CAGR of 5.1%, through 2035. Various strategies will be implemented to grow in North America, however, the main drivers remain product innovation and the regulatory environment whcih encourages transparency and health-claim products.
Meanwhile, Asia-Pacific is anticipated to be the fastest-growing region with a projected CAGR of 8.5%, for the same time period. Key drivers include rising disposable incomes, dietary changes in countries like China and India and a middle class that is rapidly expanding due to urbanization.
Given the large market opportunity, significant opportunity exists for market players in Asia to grow their market share with clean label natural ingredients and natural ingredients, with regionally-relevant products.
Market Segmentation and Application Insights
By Application
• Beverages
• Bakery
• Dairy and Frozen Desserts
• Prepared Food/Ready Meals and Processed Foods
• Cereals and Snacks
• Others
By Foam
• Dry
• Liquid
By Type
• Natural Colours
• Natural Flavours
• Fruit and Vegetable Ingredients
• Starch and Sweeteners
• Flours
• Malt
• Others
The clean label natural ingredients market can be segmented across several dimensions, including type, form and application. The types of ingredients include natural colors, natural flavors, vegetable and fruit extracts, starches, sweeteners, flours, malt, and others.
The market segmented by form includes dry and liquid. Excursion categories consist of beverages, baked foods, dairy and frozen desserts, prepared and processed foods, cereal and snacks, and others. This segmentation allows manufacturers and marketers to design their strategies and innovations toward high-growth categories.
They can further refine this by aligning their products to consumer needs and industry trends.
Innovation and Strategic Industry Movements
For clean label natural ingredients, major organizations such as Cargill, Ingredion Incorporated, Archer Daniels Midland Company (ADM), and Kerry Group plc are leading innovation in this class. Cargill recently announced clean label natural sweeteners aimed at lowering sugar content with taste compatibility.
ADM announced a strategic alliance with Kerry Group to accelerate the commercialization of plant-based clean label natural solutions to meet consumer preferences for foods sourced from nature as finite products.
Investment in R&D is evident;Ingredion recently indicated in their 2019-2020 annual report that they allocated significant funding to develop new natural flavors for health-specific consumers. Corbion NV provided comments and, as part of its strategy, its expansion will increase production of clean label natural emulsifiers in January 2021.
These examples reinforce the strategic decisions made by companies to coordinate their manufacturing capacity regarding current and future demand from the market.
Traction in Transparency as Catalyst for Consumer Trust
Transparency in ingredient availability, manufacturing process, and unclouded labeling is an important consideration for consumers even before putting products into their shopping carts.
An important report by the International Food Information Council (IFIC) 82% of consumers state that they prefer to choose products with simple, easily understandable ingredient statements. Clean label products, in a sense, have the advantage by simply aligning with this desire for transparency and clarity which leads to deeper brand loyalty and longer-term sustainability in the market.
An approach to market positioning that puts transparency and sustainably sourced valued to 'conscious consumers' as they build an identity around being sound consumers - this consumer insight creates brand reputations, market positioning, and in time consumer trust.
As sustainable and ethical production approaches schools of thought go from hypothetical to operational, they will now come to mean more as customers recognize them in a real and sustainable sense.
Emerging Markets and Growth Opportunities
Emerging markets are a significant opportunity for growth due to rising populations of the middle class, new consumer trends towards health and wellness, the UN estimates that by 2030 there will be 5.3 billion people in the global middle class with the Asia-Pacific holding significant share of growth - as more people shift from survival to affluent consumer that circumstance shows shifting disposable income and health awareness, which is progressively fuelling the demand for higher quality clean label products and superior market opportunities.
As companies will introduce new entrants into the market, they recognize underutilized opportunities tied to embedding health and wellness in their product care, more generally speaking meeting global and local needs and accommodating local compromises.
Strategic geographic expansion combined with product innovation is essential for capturing growing market segments in these regions.
Competitive Landscape
Companies in the industry compete aggressively with each other and emerging new players. The competitive landscape consists of several industry leaders that pursue growth through strategic partnerships, collaboration to innovate, and expansion into new geographies.
Businesses are also heavily assessing investments in sustainable practices and traceability in their production chain to meet consumer demands and regulatory requirements.
The environment encourages innovation geared toward development of trendy products that respond to market conditions and in turn, respond to demands for innovative clean label ingredient solution products for all types of consumers.
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Key Players
According to NextGen Intelligence Stats and Consulting LLP key players in the Clean Label Natural Ingredients Market consist of both international multi-national companies and small ingredient specialists, competing in this dynamic industry by means of innovation, partnerships, and growth across different geographies.
These leading companies are:
- Cargill, Incorporated
- Ingredion Incorporated
- Archer Daniels Midland Company (ADM)
- Tate & Lyle
- DuPont Nutrition & Health (now part of IFF)
- International Flavors & Fragrances (IFF)
- Chr. Hansen
- Kerry Group
- Givaudan
- Symrise
- Firmenich
- Corbion
- Nexira
- Jungbunzlauer
- Diana Food
- Sensient Technologies
- Benexia
- Frutarom (acquired by IFF)
- Azelis
- Glanbia Nutritionals
- Naturex (a Givaudan company)
- Prinova
- Natura Ingredients
- BASF Natural & Nutrition
- Terviva
These companies compete with one another through innovation of products, driving research and development activities, sustainable sourcing and clean manufacturing, to meet the consumer demand for increased clean label natural ingredients and retain a strong position in the marketplace.
These companies are innovating through new launches of product lines, expanded production capabilities, joint ventures for plant-based solutions, and keeping pace with changes in clean labeling trends and regulatory adaptations. All these activities serve to reinforce growth and progress in this competitive market.
Conclusions and Market Outlook
The clean label natural ingredients market is well position for long-term strong and sustainable growth that is driven by transfer in consumer demand, depleted ingredients and technology, and increasing global health awareness.
With strong projections for the market size and regional aspects of market size, the cleane label market is enabling opportunities across product portfolio expansion, regional expansion, and partnerships that encompass co-production and product development partnerships.
If companies can successfully demonstrate transparency, sustainability, and connection to innovation, they will lead the market potential and create deep brand loyalty. The trends toward clean, natural, and transparent food ingredients will keep changing the food landscape.
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