Clean Label Flour Market 2022 Key Players, End User, Demand and Consumption by 2032

According to a new study by FMI, sales of clean label flour is expected to reach a value of ~US$ 2.4 Bn in 2022. The rise in the demand for clean label flour can be attributed to various factors such as rising awareness among consumers, demand for transparency in the supply chain, and the rising disposable income.

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Clean label is emerging as the new norm when it comes to food and beverages. The food and beverages market is going under a paradigm shift in its working. People are more focused on labels, ingredients, and production methods that will help their move towards healthier lifestyles. A growing interest in natural and organic ingredients and products free from artificial preservatives and colouring has been witnessed in the last five years, and the trend is likely to continue in the years ahead. Transparency is the key to capitalize on, and brands are finding new ways to utilize technology and ensure superior product development,” says FMI report.

The clean label flour is distributed through different sales channels across the globe, with hypermarkets/supermarkets being the most imperative for clean label flour customers. Manufacturers are also focusing on online channels to retain and attract a new segment of customers. Retail purchasing of clean label flour is increasing at significant rate, globally, assisted by rising incomes and growing urban population.

Dynamic media promotions and newer retail channels are inspiring significant progress in nations where clean label products are marketed to millennials, which forms the most attractive target consumer group for new emerging clean label products, consequently propelling the clean label flour market growth.

Health Awareness Positively Impacting the Clean Label Flour Market

With growing concerns over adverse health effects such as increased cholesterol levels, clogging of arteries, low blood sugar levels, and more by consuming conventional flours, an increased inclination towards clean label flour among both consumers and foodservice providers is perceived. In addition, a decline in use of conventional flours for various food products has been recorded in the last few years.

Recently, many products using clean label flours have emerged in the market, providing healthy choices for consumers. This has in turn increased the demand for the clean label flour in the food industry, and is slowly replacing the white flour and other flour with additives in the market.

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Demand for Transparency in Supply Chain Pushing Manufacturers to Switch to Clean Label Ingredients

Increasing demand for healthier foods and thriving modern retail formats such as supermarkets/hypermarkets in developing countries are powering the clean label flour market. Increasing online retail is also a significant driver for bakery manufacturers to enhance their customer base, which, in turn, is providing a thrust to the clean label flour market.

Furthermore, increasing demand for clean label foods and transparent ingredients offering better nutrition and superior taste from foodservice providers, is increasing the sales of clean label flour. However, it is pertinent to note that the global clean label flour market is restrained by the price volatility of grains as climatic changes hamper the overall crop production.

Intense Competition Leading to Product Innovations

Due to high competition and saturation in the clean label flour market, companies are increasingly following the trend of inventing new clean label flours to stay ahead in what is becoming a competitive market. Numerous new companies and products have emerged in the market to keep up with the growing pace of the clean label flour market.

In Europe, more than 50 brands have emerged in the market in the past three years, as the opportunity lies there, due to the increased demand for clean label products.

This study by FMI offers insights into the clean label flour market for the forecast period during 2022 – 2032. The clean label flour market is projected to record a CAGR of ~7% during the forecast period of 2022-2032.

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