Middle East & Africa Clean label Ingredients Market Outlook, 2029

Middle East & Africa Clean label Ingredients Market Outlook, 2029

The clean label ingredients market lies at the intersection of tradition and innovation in the Middle East and Africa and pioneers a process of producing natural foods with honest labeling. The ingredients market in MEA has matured significantly in the past couple of decades. Normally, the region's food industry was based on a staple base of ingredients that allowed little attention to be given to foods that were processed, natural, and fresh. As demand is initially steered by expat populations who would like the same global trends and is now expanding to a broader regional consumer base, the move towards cleaner labels comes as an interesting development at a time when global trends toward healthier, more transparent food options are becoming more relevant to consumer tastes. With time, the increased focus on health and wellness is increasing the demand for clean label ingredients that emphasize minimal processing and natural ingredients. Sustainability forms a base for the clean label ingredients market in the MEA region. Companies in this region are adopting sustainability to keep pace with growing consumer and regulatory demand. This has gone as far as taking interest in organic farming practices that minimize environmental effects, proper resource utilization, and green packaging solutions. For example, Almarai is one of the main few dominators in Saudi Arabia, with a contemplation of incorporating sustainability into practices emanating from eco-friendly sourcing and packaging. Such an approach within the value chain relates to the broader regional tendencies with a look towards the reduction of ecologically harmful footprints in alignment with the tendencies worldwide. Recent developments in the MEA clean label ingredients industry relate to the increasing availability and variety of natural and organic ingredients. Local start-ups and partnerships are looking to cater to increasing concerns about cleaning labels of products, often focusing on catered, regional preferences, and needs. Growth in food technologies and innovations in natural preservatives, flavorings, and colorings are also enablers of this growth, further fueling this growth. These advances have only become possible in line with improving the functionality and appeal of clean label products because of growing health concerns and changing consumer preferences toward transparency. Innovations are quickly assuming form in the MEA clean label ingredients market as new technologies and formulations are emerging to meet the pressing demands of consumers.

According to the research report ""Middle-East & Africa Clean Label Ingredients Market Overview, 2029,"" published by Bonafide Research, the Middle-East & Africa Clean Label Ingredients market is anticipated to grow at more than 6% CAGR from 2024 to 2029. Technological advances in extraction and processing technologies, such as supercritical fluid extraction, enhance the quality and efficiency of natural ingredients. They are, in fact, currently developing new ingredient combinations into plant-based proteins and natural sugars to appeal to evolving dietary predilections in consumers. For example, an Egyptian start-up, is taking the lead in plant-based proteins, while firms in UAE are forming alliances between natural flavourings and colourings. All of such innovations are increasing the variety and attractiveness of clean label offerings in the homes of the region. Certifications are quite crucial for clean label claims' substantiation and consumer trust building in the MEA. Examples of key designations include being certified organic, which is granted by the USDA Organic, and EU Organic guarantees that products are made with organic ingredients and not synthetic additives. The product is also certified as GMO-free. Similarly, the certifications in Halal are really very important for the MEA region; they are issued by such organizations as the Islamic Food and Nutrition Council of America (IFANCA) and local certifying bodies to give assurance for the products to meet the religious dietary requirements. That's why the importance of such certifications helps companies to back their claims in clean label products, which can eventually attract more consumers. Food Ingredients Africa (FIA), this is also done annually and offers the opportunity to exhibit, among others, food and beverage ingredients, as part of clean label solutions. Gulfood Manufacturing this is also done annually in Dubai and attracts representatives from manufacturers offering clean label ingredients, also giving an opportunity for networking. SIAL Middle East is part of the SIAL global network, taking place in Abu Dhabi where trends and innovations in food and beverage, including clean label ingredients, are on the program. Positioned at the intersection where centuries-old traditions meet with cutting-edge innovations, the clean label ingredients market is taking the lead in the spiraling revolution toward natural foods and unadulteratedl labeling.

With a general increased consumer demand for natural products, and clean products in particular, with more transparency in the labelling, the MEA clean label ingredients market is poised to grow at a sturdy rate. The growing modern retail channels and the emergence of clean label products are expected to push the market further. Companies are investing to establish local production with distribution channels to gain market share and quench the growing thirst for clean label solutions in respect to the dynamism and expansion of the sector. The geopolitical pressures in the MEA region affect the trade routes, supply chains, and good market environments that set the backdrop for the clean label ingredients marketplace. Regional conflicts and instability can affect the availability and pricing of raw materials, which, in turn, affects the production and distribution of clean label ingredients. In addition, the differences in regulatory standards between countries may make it particularly complex to keep up consistent clean-labeling practices. The major concerns in the MEA on clean label ingredient markets are authentification of ingredients, maintaining quality in face of supply chain weaknesses, and market vagaries due to the complex regional geopolitical situation. Another key concern is regulatory compliance, where MEA markets have different standards and levels of enforcement, which companies have to align with. This will also require transparency in labeling, along with expectation management in consumers, which is an emerging issue for companies to create trust and credibility in the market. For example, in Saudi Arabia, the Saudi Food and Drug Authority (SFDA) regulates food labeling and acts to regulate and control natural ingredients. The UAE Ministry of Climate Change and Environment supports sustainable practices and has further made guidelines under organic and clean label standards. In South Africa, the Department of Agriculture, Forestry, and Fisheries (DAFF) enforces food additive regulations to bolster transparency and the safety of use. All this is eventually supposed to help in ensuring transparency, supporting the growth of the market, and clean label integrity.

Market Drivers
• Increasing Consumer Awareness:In MEA, increasing consumer awareness about health and nutrition is driving the clean label ingredients market. As consumers become more informed about the benefits of natural and minimally processed ingredients, there is a growing demand for products that offer transparency and authenticity. This shift is pushing manufacturers to adopt clean label ingredients to align with consumer expectations and health trends.
• Growth in the Food and Beverage Sector: The growth of the food and beverage sector in MEA is a key driver for the clean label ingredients market. As the industry expands, there is a rising demand for clean label products that meet the preferences of an increasingly health-conscious consumer base. Manufacturers are responding by incorporating clean label ingredients to capitalize on this market growth and cater to evolving consumer demands.

Market Challenges
• Limited Availability of Clean Label Ingredients: One of the challenges in MEA is the limited availability of clean label ingredients. The region may face difficulties in sourcing natural and organic ingredients due to supply chain constraints and local production limitations. This scarcity can impact manufacturers' ability to offer a wide range of clean label products and may result in higher costs.

Market Trends
• Expansion of Clean Label Product Categories: The clean label trend is leading to the expansion of product categories in MEA. Manufacturers are developing a wider range of products with clean label ingredients, including beverages, snacks, and dairy products, to meet the diverse needs and preferences of consumers in the region. This trend reflects the growing demand for clean label options across various food and beverage segments.
• Focus on Halal and Natural Ingredients: In MEA, there is a growing focus on incorporating halal and natural ingredients in clean label products. Consumers in the region are seeking products that align with their dietary and religious preferences, driving manufacturers to develop clean label options that meet these requirements. This trend is contributing to the growth of clean label product offerings that cater to specific consumer needs and values.

Flours dominate the MEA clean label ingredients market due to their versatility and aligning with traditional dietary preferences, thus being a natural and culturally accepted choice of consumers and food manufacturers alike.

At the heart of their popularity is the versatility and cultural significance attributed to them, which makes them a part and parcel of the regional diet. Most of the traditional dishes in the majority of MEA countries are based on some flours like wheat, chickpea, rice, and sorghum flour. Application involves baking bread and pastries or preparation of staple foods like flatbreads, couscous, and porridges. Deep-rooted culinary heritage fosters strong consumer trust in flour-based products an aspect that obviously extends to their clean label variants. Clean label ingredients are associated with simplicity and transparency, minimally processed, and free from artificial additives. Flours already meet these criteria, more so if they are produced using traditional milling techniques that help retain their natural characteristics. With rising consumer demand in the MEA region for products perceived as healthier and more authentic, demand for clean label ingredients is on the rise. Flours, with their simple composition and lack of artificial additives, fit easily into this narrative. They deliver an easily understandable ingredient that gives consumers confidence in the quality and safety of their food. From a manufacturing standpoint, flours offer tremendous flexibility to food manufacturers when developing innovative and exciting clean-label products. On the processing side of foods, their functionality to give structure, texture, and bulk to formulations gives flours a place in a broad spectrum of products. For instance, in bakery and confectionery products, clean label flours can replace increasingly 'processed' and 'chemically treated' ingredients, thus gaining greater demand among health-sensitive consumers. The ability of flour to keep up with the frenetic pace of dietary trends gluten-free and high-fiber diets further increases their market appeal.

Food dominates the Middle East and Africa clean label ingredients market due to the rising consumer demand for transparency, health consciousness, and cultural importance of traditional and natural food products.

Consumer health awareness has increased in the MEA market and now has extensive effects on purchasing decisions, boosting demand for food products that tout more natural and less processed ingredients. On the other hand, clean label ingredients are those that are simple and clearly transparent, with no artificial additives; they, therefore, strongly resonate with the growing segment of health-conscious consumers. Traditional diets rich in natural and whole foods characterize the cultural dietary habits in the MEA region, which further resonate with the acceptability of clean label products. This demand is very strong in the MEA region, where it is traditional to attach a lot of importance to purity and naturalness in relation to food consumption. In the MEA region, extreme cultural value is attached to food. Traditional cuisines are linked to the consumption of fresh and whole ingredients; as such, there is high regard for home-cooked meals against industrially produced and packaged meals. With that, clean label ingredients will firmly complement these traditional cuisines since they give an impression of authenticity and reliability. This cultural alignment instils more confidence in consumers and hastens the acceptance pace of clean label food products. The regional culinary diversity hosting a great variety of traditional dishes from hummus and falafel to tagine and injera bodes well for clean-label opportunities. The region produces a wide array of agricultural products, from grains to fruits, vegetables, and spices, which form the basic ingredients for clean label foods. Local sourcing of such ingredients not only supports regional agriculture but also reduces the cost of production and gives more transparency to the supply chain. It supports the clean label movement by virtue of a local production capability, hence putting a focus on sustainability and ecological responsibility that further drives the appeal of clean-label foods. There is a growing trend for consumers to pay premium prices for food products offering health benefits and ethics such as sustainability and animal welfare that align with consumer values. Clean label foods, touting natural and responsibly sourced ingredients, fit these criteria, providing strong appeal for the growing middle class.

Dry ingredients have become the leading segment in the Middle East and Africa clean label ingredients market, mainly due to their practical advantages in alignment with traditional food habits and consumer preference for simplicity and shelf-life aspects.

The ideology of clean label is transparency and naturalness; dry ingredients meet these expectations by delivering minimal processing and simple compositions. One of the major factors for market domination by dry ingredients is their long shelf life. Dry ingredients, such as powdered spices and dried fruits, flours, etc., are less prone to spoilage and deterioration as compared to their fresh counterparts. This makes the former a more practical choice for consumers as well as for the manufacturing sector. For example, dried herbs like thyme and oregano are staple ingredients in a number of traditional dishes in the MEA. Long shelf life, concentrated flavor, and no requirement of preservatives or any artificial additives for their quality make them quite suitable for clean-label formulations. Through drying, fruits, vegetables, and meats have traditionally been preserved. For example, in Middle Eastern cuisine, dried dates and figs are part of life and are taken for their sweetness and high nutritional value. This generally incorporates traditional practices into clean label products to help manufacturers meet consumer preferences for authenticity and natural ingredients while adhering to the principles of clean labeling. Dry ingredients are also convenient and versatile in use, which explains their popularity in the clean label market. For example, dry powders, such as cocoa, milk powder, and baking powder, find uses in a good number of applications, from baked goods to beverages. Cleaning-label ingredients such as these facilitate formulation and allow products to be self-complete without the aid of synthetic additives. This adaptability is quite significant for the MEA market, which comprises a wide variety of culinary traditions and tastes. A number of dry ingredients are actually produced in the agricultural sector in the MEA region from grains and legumes to a mention of various spices. This sourcing not only minimizes reliance on imports but also fuels regional economies. For instance, dried chickpeas and lentils used in hummus and lentil soup reflect the typical use of locally sourced and minimally processed ingredients in the region.

Saudi Arabia is on the rise in the clean label ingredients market due to a strong shift in consumer preference toward healthier lifestyles and a rise in demand for transparency and food safety.

With rising disposable incomes, increasing urbanization, and a better understanding of diet-related health problems in the kingdom, there is definitely a burgeoning interest in healthier lifestyles among consumers. The new tendency in food and beverages underlines a preference for natural, recognizable, and minimally processed ingredients, perfectly aligning with the global trend toward clean labeling. The rising occurrence of lifestyle diseases, such as obesity, diabetes, and cardiovascular disorders, among others, is one important factor helping to fuel the clean label market in Saudi Arabia. According to the World Health Organization, Saudi Arabia has one of the highest rates of obesity and diabetes in the world. Due to this crisis, consumers have become very critical about the kind of food they take in and are constantly looking out for products that will align with their health and wellness goals. This not only creates an avenue for clean label ingredients natural, less processed, and health-authenticated but also allows the products that are positioned as being healthier than those conventionally consumed to key into these demands. The demand for transparency and safety in food is yet another major driver of the clean label market in Saudi Arabia. The kingdom has seen quite a few food safety incidents in the recent past. Consumer concerns have grown with regard to both the quality and safety of the food they consume. Nowadays, consumers are carefully checking the labels on product packaging and demanding more information about the origin, quality, and safety of the applied ingredients. Another growth driver of the market in Saudi Arabia is the effect of religious and cultural practices on clean label. In the kingdom, the intake of food and beverages is regulated by Islamic dietary laws, also referred to as halal. The concepts of halal are deeply rooted in the aspect of purity, safety, and wholesomeness regarding food, thus creating close affiliations with the clean label philosophy. Accordingly, manufacturers are increasing their offering of both halal-certified and clean label. The vision of the Saudi Arabian government, known as Vision 2030, is also helping to shape this clean-label market. This vision enforces a key direction toward healthier lifestyles with decreased chronic diseases, along with economic diversification. It has, under this initiative, set up many programs and regulations that support healthier eating and the development of the food and beverage industry. The SFDA has introduced, for instance, tighter labeling regulations and nutritional guidelines that are forcing manufacturers to reformulate their products in line with clean label standards.

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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