Thematic Intelligence: Clean Label in Consumer Goods
Summary
This report focuses on how the pursuit of clean label credentials by consumer goods companies is changing the industry as a whole.
The clean label theme can be understood as an easier-to-understand, more consumer-friendly label with products comprised of natural ingredients and fewer additives and artificial chemicals, as well as sustainable and ethical sourcing and production. The parameters of what constitutes a clean label product are subjective and there is no legal definition, meaning that brands must interpret what the most important attributes are for their specific products, in line with consumer expectations. In food and beverages especially, this requires the prioritization of health attributes such as sugar and fat reduction, whereas ethical attributes such as cruelty-free are more important to the personal care sector. Across all sectors, the concept of natural, unprocessed, and/or organically produced ingredients is also a common identifier of a clean label product.
Scope
Reducing processed fats and sugar content is a key clean label initiative, as is the replacement of artificial ingredients with natural alternatives.
Developments in AI are unlocking new possibilities in ingredient discovery. From a clean label point of view, AI’s maturing utility in ingredient discovery could enable consumer goods companies to minimize the number of ingredients used in products, replace artificial and animal-derived ingredients with plant-based alternatives, and reduce resource consumption.
Blockchain is also being used to improve supply chain transparency, which can support ethical sourcing claims.
Reasons to Buy
Understand the relevant consumer trends and attitudes that drive and support innovation success so you can tap into what is really impacting the industry.
Gain a broader appreciation of the fast-moving consumer goods industry by gaining insights from both within and outside of your sector.
Access valuable strategic take-outs to help direct future decision-making and inform new product development.
Executive Summary
Players
Thematic Briefing
Key stakeholders and processes within the clean label theme
Consumer motivations for clean label
Priority sectors in clean label
The importance of product claims in clean label
Trends
Technology trends
Macroeconomic trends
Regulatory trends
Industry trends
Industry Analysis
Market size and growth forecasts
Case studies
AI is revolutionizing ingredient discovery
Brands are turning to blockchain to improve supply chain transparency
Brands must balance their clean label ambitions with taste requirements
PepsiCo cuts sugar in classic cola beverage by 57%
Natural preservatives hitting the EU market
Timeline
Signals
M&A trends
Venture financing trends
Value Chain
Supplier and manufacturer
Consumer drivers
Health & wellness
Comfort and uncertainty
Sustainability & ethics
Sub-trends
Trust and transparency
Simplicity
Moderation and avoidance
Fresh and natural
Ethical consumption
Environmental responsibility
Companies
Leading clean label adopters in consumer
Relevant tech vendors
Sector Scorecard
Consumer goods sector scorecard
Who's who
Thematic screen
Valuation screen
Risk screen
Glossary
Further Reading
GlobalData reports
Our Thematic Research Methodology
About GlobalData
Contact Us
List of Tables
Table 1: Technology trends
Table 2: Macroeconomic trends
Table 3: Regulatory trends
Table 4: Industry trends
Table 5: Key M&A transactions within the clean label theme since 2019
Table 6: Key venture financing deals associated with the clean label theme since January 2021
Table 7: Leading clean label adopters in consumer
Table 8: Relevant tech vendors
Table 9: Glossary
Table 10: GlobalData reports
List of Figures
Figure 1: Who are the leading players in the clean label theme, and where do they sit in the value chain?
Figure 2: Regulations and accreditations are beneficial to every stage of a product's supply chain
Figure 3: Health and wellness is the most dominant mega-trend influencing spending choices
Figure 4: Children's products that fail to leverage clean label trends are unlikely to be successful
Figure 5: Consumers are most influenced by health claims on product packaging
Figure 6: Food and beverage ingredients are scrutinized by consumers the most
Figure 7: Natural ingredients are valued most highly in the food and drinks industries
Figure 8: Between 2022 and 2027, food leads in absolute sales value growth, while alcoholic beverages and non-alcoholic beverages are forecast to experience the greatest CAGRs
Figure 9: The clean story
Figure 10: Clean label-related mergers and acquisitions are few and far between
Figure 11: There is relatively little venturefinance activity focused on the clean label theme
Figure 12: The clean label value chain
Figure 13: The clean label value chain - Consumer drivers
Figure 14: Who does what in the consumer goods space?
Figure 15: Thematic screen
Figure 16: Valuation screen
Figure 17: Risk screen
Figure 18: Our five-step approach for generating a sector scorecard