The reluctance of consumers to out-of-home food consumption on the back of the outbreak of COVID-19 has led to significant reduction in demand for product lacking ‘essential’ status. It has also propelled the home dining trend among consumers. Hotels, restaurants, and cafes worldwide have witnessed a dramatic decline in customer footfall, thereby directly impacting the profits of foodservice outlets. This has significantly increased the trend of purchasing food items with increased focus on clean label products.

Rising awareness among consumers will drive clean label ingredients market. In addition to this, the market will benefit from higher disposable incomes and consequent willingness to spend on organic food. In developed markets, sales are likely to remain high. Also their purchasing power is comparatively high, which will support the growth of the market. Furthermore, clean label ingredients are gaining traction in the cosmetics industry. For instance, Glico, a Japanese company that deals in skin care ingredients made up of corn starch-based glycogen is planning to launch all their products in the global market. However, demand-supply gap is widening amid widespread supply chain disruptions.

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Manufacturers’ Inclination towards Clean Label Ingredients to Attract a Larger Consumer Base

The market landscape of clean label ingredients is seeing a surge in investments on the launch of clean label products. The use of organic colors such as the extraction of brown colors from rice is surging the demand for clean label ingredients in the processed food industry. Similarly, manufacturers are extracting and using organic orange color from carrot and pumpkin extracts.

Further, they are largely using stevia, pectin, gums, and clean label flour in food production. Presently, consumers are inclining towards organic based products, which is further enhancing clean label ingredients market growth. Changing trends towards food that are minimally adulterated, whilst maintaining the natural content of food will hugely impact the clean label ingredients market growth in the near future.

Easy-to-use and easy-to-carry snack options offering healthy benefits will substantially improve product demand. With changing lifestyles and hectic work schedules, the demand for easy-to-use and ready-to-eat products is growing. Increasing awareness regarding clean label ingredients encourages consumers to identify the ingredients used in these aforementioned products.

Moreover, growing consumer focus on the nutritional value of specific food product such as organically processed food with high protein and vitamin content is expected to leverage demand for clean label ingredients. The demand for these products will continue to mount across the globe, particularly in developed countries.

Clean Label Ingredients Trends to Pave Way for Exciting and Profitable Opportunities

Consumer awareness about deleterious effects of unnatural foods, processed foods, and artificial ingredients has initiated the new trend of transparency regarding food content. This is rapidly adopted by several market leaders to see expedited consumer demand. Following are the key companies who have concentrating on embracing clean label packaging on their products.

  • DDW’s, a natural food color extracting company, offers a wide range of colors. They extract ingredients from fruits and vegetable juice concentrates, keeping the labels clean and products colorful and organic.
  • Kalsec, provides natural food color to food manufacturing companies. The company extracts color for dairy applications such as pink, orange, and yellow from carrot, annatto, turmeric, and paprika. Further, it also produces beet extracts that give a perfectly pink shade for berry-flavored ice cream or strawberry-flavored milk.

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What’s Next for Clean Label Movement?

Consumers are never satisfied, they will continue to look beyond the products and the demand for product transparency will continue to grow. Food companies are investing heavily in R&D activities. Their investments in manufacturing unadulterated organic food to set a healthy trend will continue to expand in the following years. As the “clean label” trend gains traction, building consumer trust will be paramount. In the search for foods and beverages that meet their “clean label” needs, many shoppers are deep diving to understand the ingredients used in the production of the product. Moreover, cornstarch is gaining tremendous traction in the clean label ingredients market.

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