Europe Clean label Ingredients Market Outlook, 2029

Europe Clean label Ingredients Market Outlook, 2029

The clean label trend in Europe began in the early 2000s, followed by growing health and wellness awareness among consumers. First of all, there were natural ingredients and transparency in terms of labeling, as at that time there were already two major concerns are food safety and simpler ingredient lists. Health-conscious consumers and new regulation created an opportune landscape for the proliferation of the clean label movement. The key regulatory milestones in the clean-label market in Europe were framed by the European Union with the introduction of the General Food Law Regulation, EC No. 178/2002. It institutionalized principles on food safety and transparency, including requirements for clear labeling. In addition, Regulation (EU) No 1169/2011 on the provision of food information to consumers reinforced this emphasis on ingredient transparency and allergen information, supporting the clean label trend. During the 2010s, clean label took off rather rapidly in Europe. At this time, consumers in general were taking concern regarding the escalating use of artificial additives, preservatives, and GMOs added to food products. This period clearly indicated an increase in demand for naturally composited and less-processed products. This has led brands and manufacturers to reformulate products to these clean label criteria as well as introduce new products touting their natural and organic ingredients. Clean-label products are critical, but shelf life must be maintained with the development of natural preservatives. Some examples include the use of plant extracts such as rosemary and green tea, essential oils, and a few natural compounds with anti-microbial growth and oxidation activity. These innovations will help ensure the safety and durability of products without resorting to synthetic preservatives. There are still such opportunities as line extension, category entrance, and technological innovation with an enhancement in ingredient offerings. Another crucial emphasis of the clean label market is environmental sustainability. Manufacturers move toward eco-friendly practices that reduce packaging wastes, use renewable energy, and limit water usage. These sustainable sourcing and production processes are in line with consumer values and help further strengthen the environmental credentials of clean label products.

According to the research report ""Europe Clean Label Ingredients Market Overview, 2029,"" published by Bonafide Research, the Europe Clean Label Ingredients market is anticipated to add to more than USD 5 Billion by 2024–29. The European clean label ingredients market continues to get strong impetus as of the latest data. Consumer demand for transparency, health, and sustainability is a continuous driver for the expansion in this market. Some major segments in the market are natural flavors and colors, sweeteners, starches, and fruit and vegetable ingredients. Growth is supported by rising investments in research and development and innovation in ingredient formulation. Growing emphasis by European consumers on health and sustainability in food consumption is another factor. Products that are labeled as ""natural,"" ""organic,"" ""non-GMO,"" and ""free from artificial additives"" enjoy strong consumer preference. This trend is driven by growing awareness of the health impacts of artificial ingredients and environmental concerns associated with conventional methods of food production. The EU regulatory framework has been supporting the clean label movement through strict measures placed on the labeling of foods and transparency of their ingredients. Regulations controlling the EU Organic Certification, among others on food safety, dictate that clean label claims not only have a credible basis but a proper display in the label. The EU's Green Deal and Farm to Fork Strategy appeal for sustainable food systems, thus further echoing the clean label ideals. Though the market is developing, some major challenges remain to be tackled are increasing prices of clean label ingredients and deeper complications of the supply chain. In any case, manufacturers will be even more sensitive to the vigilant balancing between meeting clean-label standards and controlling costs of production.

Market Drivers
• Stringent Regulatory Standards: Europe’s stringent regulatory standards are a major driver of the clean label ingredients market. The European Food Safety Authority (EFSA) imposes rigorous guidelines for food labeling, ensuring that clean label claims are substantiated and accurate. These regulations foster consumer trust by requiring transparency and safety in ingredient labeling. As a result, manufacturers are motivated to adopt clean label ingredients to comply with these standards and meet the high expectations of European consumers.
• Sustainability Concerns: European consumers are increasingly concerned about sustainability, which drives the demand for clean label ingredients. There is a strong preference for products that are environmentally friendly, ethically sourced, and minimally processed. This growing emphasis on sustainability is prompting manufacturers to focus on clean label ingredients that align with eco-friendly practices and contribute to a more sustainable food system.

Market Challenges
• High Costs of Clean Label Ingredients: The cost of clean label ingredients in Europe can be high, primarily due to the premium associated with natural and organic products. This cost increase can impact product pricing and profitability for manufacturers, making it challenging to balance consumer demand for clean labels with economic considerations. Companies must navigate the financial implications of using clean label ingredients while maintaining competitive pricing in the market.
• Complex Compliance Requirements: Ensuring compliance with diverse regulatory requirements across European countries presents a challenge for manufacturers. The fragmented regulatory landscape requires companies to manage varying standards and guidelines for clean labeling, which can be resource-intensive. Compliance involves significant investment in quality control, documentation, and regulatory expertise to ensure that products meet the standards of each country.

Market Trends
• Rise of Plant-Based Alternatives: The European market is experiencing a rise in plant-based clean label ingredients. Consumers are increasingly seeking plant-based diets for health, ethical, and environmental reasons, leading to a surge in the use of plant-based proteins, natural colorants, and flavorings. Manufacturers are responding by expanding their portfolios to include plant-based clean label options, catering to the growing demand for plant-based and sustainable food products.
• Focus on Transparency and Traceability: Transparency and traceability are becoming key trends in Europe’s clean label market. Consumers are demanding more detailed information about ingredient sourcing and production processes. Manufacturers are responding by providing greater transparency in their labeling and supply chain practices, which helps build consumer trust and supports the clean label movement.

Flours is leading the clean label ingredients market in Europe is due to the versatility and consumer familiarity associated with this ingredient.

Flour, a natural ingredient that fits the clean label bill perfectly very few and easily recognizable constituents, highly minimal processing. It can perform a myriad of roles, from base, thickener, or binder in most food products, ranging from baked goods to sauces and processed foods. Its familiarity with consumers gives a sense of trust and transparency both key components of the clean label movement. The rising demand for gluten-free and alternative flours, like rice, corn, or legume flours, propelled the flour category further in dominating this market. These alternative flours cover certain nutritional needs without giving up on clean label appeal. The flour industry has been rather proactive in developing innovative and functional flours that answer both clean label and specific food application needs, really cementing its place as a leader in the clean label ingredients market within Europe.

Food leading the Europe clean label ingredients market is due to the rising demand from consumers for transparent, natural, and minimally processed food products.

There has been considerable buildup in the clean label movement across Europe, and most consumers have started reaching out to foods that do not contain artificial additives, preservatives, and complex chemical ingredients. The food sector has reformulated existing products and come up with new ones based on this demand founded upon clean label principles. There is an increased usage of natural ingredients with an increased interest in whole grains, fruits, vegetables, and plant-based proteins. In addition, minimum processing methods are focused on to ensure the retention of the nutritional value of ingredients and to meet the clean label standards. The European regulatory environment has contributed to this trend as well. Due to strict regulation in food labeling and transparency with regard to ingredients, the food manufacturers have moved to clean label practices that involve shifting to simpler ingredient lists and eliminating artificial colors, flavors, and preservatives from many foods. Rising interest in organic and locally sourced ingredients in foodstuffs has driven the clean label trend in food. Consumers are increasingly on the lookout for products with clean labeling and, simultaneously, assurance of sustainable and ethical modes of production. This would have raised demand for organic certifications and locally sourced ingredients in food products within Europe. Food dominates the clean label ingredients market is the versatility of the clean label solutions across these different food categories. From bakery and confectionery to dairy, beverages, and savory snacks, applications of clean label ingredients can be found in almost all segments of the food industry. This has further accelerated the growth and innovation in clean label foods.

The leading position of dry ingredients in the European clean label ingredients market are due to their versatility, long shelf life, and usability in a wide span of clean-label food products.

Ranging from dried fruits and vegetables, through powdered proteins, natural sweeteners, and several kinds of flours, these ingredients correspond perfectly to what the clean label trend is focusing on simplicity, transparency, and less processing. They are dominating the market for several reasons. First, dry ingredients can definitely provide long shelf life without artificial preservatives; they are really well-suited for clean label products. For example, dried herbs and spices can easily offer natural flavor enhancement without introducing synthetic additives. The manufacturers are able to come up with a wide array of clean label products across different food categories. For instance, plant-based protein powders from peas, rice, or hemp can be used in all types of applications, from baked goods to dairy alternatives, to support the increasing demand for clean label vegetarian and vegan options. Another point is that dry ingredients are easily moved around and stored, reducing logistic challenges and costs for manufacturers. This is especially true of ingredients like dried fruit powders, which can replace artificial flavors and colors in everything from cereals to snack bars. Interest in clean labeling has driven innovation in dry ingredient processing techniques, including developing more minimal processes that preserve more nutritional value naturally. For example, freeze-dried berries retain their color and nutritional value, so they will become really interesting clean label inclusions for cereals and confectionery. Dry ingredients often have cleaner and more recognizable names on product labels, which appeals to the transparency-seeking consumer in food choices. Either coconut sugar or almond flour is easily recognizable to consumers, unlike complicated chemical names that might pop up in more heavily processed foods. The rise of ancient grains and superfoods in dry form, such as quinoa, chia seeds, and goji berries, has precipitated the stronghold of dry ingredients within the clean label market, since perceptions associate these with naturalness and nutrition.

The present strong demand of consumers for transparency in food labeling and increasing preference towards natural and organic products in the UK mainly drive the clean label ingredients market in Europe.

The growing health consciousness among consumers clearly shows interest in products considered healthier, more natural, and free of artificial additives. This trend is powered by a growing body of research linking synthetic ingredients to a host of health issues and has undoubtedly impelled consumers to seek a clean label. This need is furthered in the UK by as many as 63% of consumers who reportedly actively look for products with simple and recognizable ingredients, a key demand for transparency in food labeling. This has pushed the market towards clean label ingredients, derived from natural sources and without artificial additives or preservatives.

This has been supported by the rather liberal regulatory environment within the UK. This is because the UK's Food Standards Agency focuses on labeling clarity and the rights of consumers, from which the meaning of clean label arises. For instance, in the UK, there has been a rise in products touting natural colors and flavors as manufacturers come forward to meet consumer preferences for ingredients that are not only safe but ethically sourced Innovative food manufacturers are involved in research and development in order to find clean label alternatives capable of withstanding product quality while meeting the expectations of consumers. For example, certain brands like Innocent Drinks and Marks & Spencer have emerged that take pride in launching clean-label products with a focus on the use of only natural ingredients to have an appeal among health-conscious consumers.
• In 2022, DuPont Nutrition & Biosciences announced the launch of its new line of clean label ingredients, DuPont Danisco Clean Label Solutions. DuPont Danisco Clean Label Solutions ingredients are designed to help food and beverage manufacturers produce clean label products that meet the needs of their consumers.
• In July 2022, Givaudan partnered with Manus Bio to announce the launch of BioNooKatone, a sustainably sourced citrus flavor sourced from natural citrus extracts.
• In February 2021, BENEO announced the launch of functional native rice starch Remypure S52 P which is ideal for the production of clean label foods such as sauces, dressings, and bakery fillings.
• In October 2020, Kerry Group announced the launch of natural citrus extracts made of orange, tangerine, lime, and lemon. The citrus extracts are ideal to use in ready-to-drink beverages and sparkling drinks.

Considered in this report
• Historic year: 2018
• Base year: 2023
• Estimated year: 2024
• Forecast year: 2029

Aspects covered in this report
• Clean label Ingredients market Outlook with its value and forecast along with its segments
• Various drivers and challenges
• On-going trends and developments
• Top profiled companies
• Strategic recommendation

By Ingredient type
• Flours
• Natural Flavours
• Starch & Sweeteners
• Fruit & Vegetable Ingredients
• Malt
• Natural Colours
• Other Ingredient Types

By Application
• Food
• Beverage
• By Form
• Dry
• Liquid

By Certification Type
• Organic
• Non-GMO
• Gluten-free
• Vegan

The approach of the report:

This report consists of a combined approach of primary and secondary research. Initially, secondary research was used to get an understanding of the market and list the companies that are present in it. The secondary research consists of third-party sources such as press releases, annual reports of companies, and government-generated reports and databases. After gathering the data from secondary sources, primary research was conducted by conducting telephone interviews with the leading players about how the market is functioning and then conducting trade calls with dealers and distributors of the market. Post this; we have started making primary calls to consumers by equally segmenting them in regional aspects, tier aspects, age group, and gender. Once we have primary data with us, we can start verifying the details obtained from secondary sources.

Intended audience

This report can be useful to industry consultants, manufacturers, suppliers, associations, and organizations related to the Clean label Ingredients industry, government bodies, and other stakeholders to align their market-centric strategies. In addition to marketing and presentations, it will also increase competitive knowledge about the industry.

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