North America Clean label Ingredients Market Outlook, 2029

North America Clean label Ingredients Market Outlook, 2029

The North American clean label ingredients market is at the forefront of a revolution that ushers in transparency and health consciousness into the consumer preference landscape, redefining the way we understand and trust what we eat. Innovations in technologies are acting as a vital driver in the development of clean-label ingredients. Developments in food processing and ingredient formulation make it possible to yield foods that meet clean label standards but with no such compromise as taste, texture, or shelf life. For instance, the innovations in the area of natural sweeteners and thickeners could effectively institute the displacement of those that are artificial in a wide range of food products. A good instance of this kind of trend, the originating outfall of the clean-label movement has to be personalization in nutrition. Consumers are now looking for products that meet their personal needs and tastes in health matters. Clean label ingredients with specific diets in mind, such as gluten-free, keto, and low-sugar options, are fast becoming a trend. Top market players in North America clean label ingredients are Cargill, Inc., Tate & Lyle PLC, Ingredion Incorporated, Kerry Group plc, Corbion N.V., Sensient Technologies Corporation, and Archer Daniels Midland Company. The North America Clean Label Ingredients market is dominated by the United States, with very high consumer awareness and strict regulatory frameworks. Market innovation in product development and key players constantly accelerates the market. The market grows with the same burgeoning expanse of consumer trends in Canada and supportive regulatory environments. More and more local as well as international companies are joining the Canadian market to satiate the increasing demand for clean label products.

According to the research report ""North America Clean Label Ingredients Market Overview, 2029,"" published by Bonafide Research, the North America Clean Label Ingredients market was valued at more than USD 13 Billion in 2023. Supply chain complexities are abundant in the clean label ingredient market, especially with dependable and sustainable sources of raw material. Natural ingredients may be more variable in terms of quality and availability, impacted by seasonality and environmental conditions. Putting in place strong suppliers and, critically, sound supply chain management to ensure a consistent supply of top-quality ingredients is very painful and costly. Consumer behaviour in North America attests to the increased preference for clean label ingredients. As health-conscious consumers peruse the ingredient list, the trend has been toward those products that are as natural, less processed, and without artificial additives as possible. This tendency is clearly visible among millennial and Generation Z, with health and wellness being at the helm of what they consider when buying products. The clean label movement involves not only health and wellness but sustainability and ethical sourcing. And, with more consumers asking for products that are healthy, clean, and green, at the same time made in a way that's beneficial to the planet and fair to society, the landscape is rapidly changing. Canada places strict controls on food labelling and ingredient transparency. Online marketing contributes significantly toward reaching health-conscious consumers. It uses social media, influencer partnerships, and online content to spread the clean label claim to a tech-savvy audience. These standards are endorsed and regulated by Health Canada and the CFIA, thus supporting the clean label movement in terms of consumer protection.

Market Drivers
• Consumer Health Consciousness: In North America, the heightened focus on personal health and well-being is significantly driving the clean label ingredients market. Consumers are increasingly aware of the potential health risks associated with synthetic additives and are actively seeking out products that list natural, recognizable ingredients. This trend is not just limited to organic and natural foods but extends to all categories where consumers prefer transparency about what goes into their food. This shift is supported by educational campaigns, health influencers, and greater access to information, which collectively push manufacturers to reformulate products to meet the growing demand for clean labels.
• Regulatory Support: North America benefits from a robust regulatory environment that promotes clean labelling practices. Agencies such as the U.S. Food and Drug Administration (FDA) and Health Canada impose strict regulations on ingredient labelling, requiring manufacturers to disclose accurate information about their products. This regulatory framework is designed to protect consumers and ensure the safety and authenticity of food products. As a result, companies are motivated to adopt clean label ingredients to comply with these regulations and to appeal to the increasingly informed consumer base that values transparency and integrity in food labelling.

Market Challenges
• Cost of Natural Ingredients: The higher cost of natural ingredients presents a significant challenge in the North American clean label ingredients market. Natural ingredients often require more expensive production processes and have a more limited supply compared to their synthetic counterparts. These costs are compounded by the need for rigorous testing and certification to meet regulatory standards. As a result, manufacturers may face difficulties in maintaining competitive pricing while incorporating clean label ingredients, potentially impacting their profit margins and market positioning.
• Complex Regulatory Compliance: Navigating the complex web of regulatory requirements across different North American jurisdictions can be challenging for companies. While the FDA and Health Canada provide broad regulatory guidelines, specific requirements can vary, particularly for claims related to natural and clean labeling. Companies must invest significant resources in ensuring compliance with these diverse standards, including conducting thorough documentation, implementing quality control measures, and managing potential regulatory audits. This complexity can be particularly daunting for smaller companies or those new to the clean label market.

Market Trends
• Growth of Plant-Based Ingredients: The North American market is seeing a significant shift towards plant-based ingredients as part of the clean label trend. Consumers are increasingly interested in plant-based diets for health, ethical, and environmental reasons. This trend is leading to a surge in the use of plant-based proteins, natural colorants, and flavorings in a variety of food products. Manufacturers are responding by innovating and expanding their portfolios to include plant-based clean label options, thereby aligning with consumer preferences and tapping into the growing market for plant-based foods.
• Innovation in Clean Label Technologies: Innovation in clean label technologies is a major trend in North America, driven by the need to improve the functionality and appeal of clean label products. Advances in ingredient processing and preservation techniques are allowing manufacturers to develop new clean label solutions that maintain product freshness and stability without relying on synthetic additives. These innovations include natural preservatives that extend shelf life, new extraction methods that enhance ingredient purity, and improved formulations that optimize the sensory qualities of clean label products.

Flours lead the clean label ingredients market of North America due to the strong consumer demand for familiar, minimally processed, and locally sourced ingredients.

Flours, due to their core positioning in this region's food culture, will well correspond with these affinities, thus empowering and shaping their lead position within the clean label market. North American consumers review more keenly product labels for ingredients that are familiar and easy to understand. Flours, as such, suit this criterion have simple names, and their application stretches into many domestic kitchens, giving trust and comfort to consumers. An example of this clean label market driving up the use of flours is in the interest of locally sourced and sustainable products. The varied agricultural landscape across North America allows for the production and sourcing of different flours domestically. This reduces the environmental impact by sourcing it, but also keeps money within the local communities, playing well with that increasingly conscious consumer who looks to sustainability. For instance, with the increasing demand for ancient grains such as quinoa, spelt, and sorghum, the increased cultivation and processing take place within the region to provide local and clean label options for manufacturers. North America represents strong health and wellness trends, thereby acting as a driver of demand for nutritionally beneficial flours. Consumers are reaching out for increasingly fiber-rich, protein-rich, and nutrient-dense products. On its part, whole grain, legume, nut, and seed flours meet these needs, providing manufacturers with the wherewithal to come up with products that wed clean label attributes with improved nutritional profiles. For example, whole wheat flour in bread products and chickpea flour in pasta help manufacturers suck up to health-conscious consumers without muddying the label. The regulatory setting has been a major factor for the dominance of flours in the North American clean label market. With increasing regulations being put up and added scrutiny on the use of food additives, there is a continuous seek for options by the manufacturers against artificial ingredients. Flours, which have natural functionalities, certainly do pose as alternatives to a lot of additives.

Food will maintain its lead in the North America clean label ingredients market due to the broad demand from consumers for transparency and simplicity in ingredient lists, powered by health, wellness, and sustainability trends.

The demand for transparency comes as health and wellness consciousness rises, with consumers seeking to know what they eat and how this impacts their bodies. This preference can be catered to by the food manufacturers through simplifying ingredient lists and removing some ingredients that sound unfamiliar or artificial. With this, trust can be built with consumers. Some specific diets and lifestyles, such as organic, non-GMO, gluten-free, and plant-based, have added to the clean label trend in North America. Generally, adherents of specific diets normally reach for clean label products because they feel that they are healthier and align well with their values. For instance, innovations in using plant-derived ingredients that not only meet clean label criteria but deliver desired taste, texture, and nutritional profiles are driven by the growing demand for plant-based products. This is evident in the rise of plant-based milks, meat alternatives, and other such products touting clean and recognizable ingredients. The trend toward sustainability and ethical concerns is playing an enormous role in the North American clean label market. Increasingly, consumers care about the environmental and social impact of their food. Many clean label products make a direct link to these concerns because they are typified by cleaner, simpler ingredients with less processing that are generally easier on the environment. North America has witnessed a conducive regulatory environment for the growth of the clean label market. Tighter regulation in food labeling, greater scrutiny of health claims, and potential conflict-of-interest reformulations could push companies to reformulate products according to clean label standards. For example, in the U.S.,. Updates to nutrition facts labels from the FDA, along with guidance on the marketing use of terms like ""natural"" and ""healthy,"" helped drive these manufacturers to review ingredient choices for cleaner formulation.

Dry ingredients have dominated the North American clean label ingredients market primarily owing to their practical advantages and compatibility with a host of food products.

Dry ingredients like flours, starches, powders, and spices are easily mixed and blended, stored, and most versatile for manufacturers who want to simplify production processes while meeting clean label standards. For example, dry ancient grain flours can easily be used in bakery products and dry powdered vegetables in soup mixes; such dry ingredients can easily be mixed and processed. The other important advantage of dry ingredients is its extended shelf life that is extremely important not only for the manufacturers but for the customers. The less amount of moisture in these dry ingredients results in lower rates of spoilage and microbial growth, which provides a longer storage period. This attribute is quite interesting to manufacturers looking to meet clean label criteria while ensuring product longevity and reducing waste. Dry herbs and spices, for example, can maintain their flavor and potency for extended periods to remain fit for use in seasoning blends and marinades catering to clean label preferences. This means that dry ingredients have another highly important function maintaining the quality and uniformity of the product, central to consumer trust and loyalty. The consistency is especially very critical in the clean label market, where consumers expect products to deliver both on taste and nutrition. For example, dry milk powders in dairy-based products or dry fruit powders in beverages provide homogeneous flavor and nutritional profiles without the variation of fresh raw materials. The improvements in processing technologies have increased the availability of dry ingredients for clean label formulations. Techniques such as freeze-drying, spray-drying, and drum-drying, among many others, have given the capability of transforming a wide variety of fresh ingredients into dry formats while retaining their nutritional value and sensorial qualities, opening up new opportunities for innovation in the clean label market. For example, freeze-dried fruits and vegetables can help boost the nutritional content of snack foods, cereals, and baked goods by enhancing flavor without disrupting their clean label status.

The leading position of the USA in North America's Clean Label ingredients market has been because of its tough consumer demand for healthier and more transparent food and beverage choices, with a well-developed food industry to cater quickly to innovations and changing preferences.

The United States has emerged at the forefront of the clean label ingredients market in North America, driven by a complex interplay between consumer awareness, the regulatory environment, and industry innovation. American consumers are now health-conscious and label-savvy, reaching out for products with simple, recognizable ingredients and minimum processing. This change in behaviour is driven by the ease of access to information through digital platforms, social media, and health-focused influencers that have built a much more educated and sophisticated customer base. For instance, Panera Bread and Whole Foods Market are among the companies that have been at the forefront of this clean label movement. Panera went as far as to release a blacklist of ingredients it vows never to use in its products, its so-called ""No No List"". Domains associated with the clean label trend in the US include a long array of food and beverage products. Simple Mills and RXBar are two snack food brands that have similarly grown in popularity through their minimalist ingredient lists in packaging. This trend has spilled over to beverages, with brands such as Honest Tea and La Croix offering drinks devoid of artificial ingredients and preservatives. Even traditionally indulgent categories, like ice cream, have hopped on the clean label bandwagon with brands like Halo Top and Arctic Zero that please both the taste buds and diet strictures with creamier, lower-calorie takes that have cleaned up their ingredient decks. The US regulatory environment has also played a part in boosting the clean label market. While there is no official definition for ""clean label"" by the FDA, it has brought in stricter labeling requirements and banned certain artificial ingredients, pushing companies to seek cleaner alternatives. The new Nutrition Facts label, which went into effect in 2020 and will require added sugar disclosure, further pushed companies toward cleaner formulations. In the US, there is not only a well-developed agricultural sector buta robust supply chain for natural and organic ingredients. This is rather helpful to make the sourcing of clean-label components easier. In addition to this, strong farmers' market heritage and local food movements have contributed to consumer appreciation for simple, wholesome ingredients.
• In 2023, Ingredion announced the launch of its new line of clean label ingredients, Ingredion NOVATION®. Ingredion NOVATION® ingredients are designed to help food and beverage manufacturers produce clean label products that meet the needs of their consumers.
• In May 2023, California-based Olli Salumeria launched the first preservative-free salami in the North American market.
• In September 2021, Clean Energy, a provider of sports nutrition products announced the launch of on-the-go smoothie packs sourced from organic vegetables and fruits. The pack is available in flavors such as strawberry, blueberry, spinach, and flaxseed.

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.

***Please Note: It will take 48 hours (2 Business days) for delivery of the report upon order confirmation.