Introduction: Navigating the Clean-Label Ingredients Landscape
The clean label ingredients market is undergoing a process of expansion based on the growing demands for transparency and the health-conscious choices of consumers. At the same time, the stricter regulations in favor of natural formulations have increased the demand for natural products. This has resulted in the emergence of several new players, such as food companies, food manufacturers and new players, who are trying to seize leadership in this market by deploying technologically based differentiators, such as artificial intelligence-based consumer insights, automation of production processes and Internet of Things-based traceability systems. The traditional players are strengthening their portfolios with green initiatives and the new entrants are capturing niche markets with their own sustainable innovations. Strategically, the trend towards aligning product development with the demand for transparency and sustainability is increasing. The strategic planners and C-level managers need to be able to adapt to the dynamic competitive environment.
Competitive Positioning
Full-Suite Integrators
These companies offer comprehensive solutions across the entire spectrum of clean-label ingredients, integrating various technologies and services.
| Vendor | Competitive Edge | Solution Focus | Regional Focus |
|---|
| Cargill Inc. |
Diverse ingredient portfolio |
Food ingredients and solutions |
Global |
| Archer Daniels Midland Company |
Extensive supply chain capabilities |
Agricultural and food ingredients |
North America, Europe, Asia |
| Kerry Group PLC |
Strong innovation in taste and nutrition |
Taste and nutrition solutions |
Global |
| Ingredion Incorporated |
Focus on clean-label solutions |
Starch and sweetener solutions |
North America, South America, Asia |
| Tate & Lyle PLC |
Expertise in health and wellness ingredients |
Food and beverage ingredients |
Global |
Specialized Technology Vendors
These suppliers are the market leaders in terms of the particular ingredients or processes they have developed for clean label products.
| Vendor | Competitive Edge | Solution Focus | Regional Focus |
|---|
| Koninklijke DSM N.V. |
Strong focus on sustainability |
Nutritional ingredients |
Global |
| Hansen A/S |
Natural fermentation expertise |
Cultures and enzymes |
Europe, North America |
| DuPont |
Advanced biotechnology applications |
Food ingredients and probiotics |
Global |
| Sensient Technologies Corporation |
Innovative natural colors and flavors |
Color and flavor solutions |
Global |
| Corbion N.V. |
Leader in biobased ingredients |
Preservatives and emulsifiers |
Global |
Emerging Players & Regional Champions
- NutraBlend (US): a company that specializes in clean-label plant-based ingredients. It recently signed a contract with a major food manufacturer to supply clean-label ingredients for a new product line. The company is challenging the established suppliers with more sustainable and transparent sourcing.
- Purely Elizabeth (USA) : Focuses on organic and clean label granola and snack products, recently entered into a partnership with a major grocery chain, complementing the established brands by offering health-conscious consumers with new flavors and ingredients.
- Beneo (Europe): a range of natural and clean-label ingredients from natural sources, including a new range of prebiotics that meet the growing demand for products that benefit gut health. Beneo is a real challenger to the more traditional ingredient suppliers because it highlights the health benefits of its products.
- Innova Food (Asia): Provides clean-label emulsifiers and stabilizers based on natural ingredients. Recently it has entered into contracts with several local food producers, who are reworking their products. In this way it complements the offer of established suppliers and completes the gap in the Asian clean-label market.
Regional Trends: In 2024 there is a noticeable increase in the use of clean label ingredients in Europe and North America, as a result of the consumers’ demand for transparency and health. The Asia-Pacific region is also becoming a significant market, with a focus on natural and organic ingredients. The trend in specialization is moving towards plant-based solutions and ingredients that support health claims, a development which is in line with the general trend towards health and well-being.
Collaborations & M&A Movements
- Ingredion and DuPont Nutrition & Biosciences are entering into a partnership to develop and market new ingredient solutions with the aim of increasing product transparency and thus the consumers’ trust, thus strengthening their position in the health-oriented food sector.
- In the meantime, BASF has acquired a majority interest in a leading company for the production of plant-based foodstuffs, in order to extend its range of products for the clean-label and sustainable food industry and to increase its share in the plant-based foodstuffs market.
- Cargill and ADM have teamed up to create a new range of clean-label sweeteners, with the aim of using their combined expertise to capture a larger share of the health-conscious consumer market.
Competitive Summary Table
| Capability | Leading Players | Remarks |
|---|
| Natural Sourcing |
Ingredion, Cargill |
Ingredion has established a secure supply chain for natural ingredients, with a strong emphasis on transparency and traceability. Cargill’s sustainable agriculture commitment adds to its clean-label credentials. Its recent initiative to promote non-GMO crops is an example of this. |
| Product Innovation |
DuPont, BASF |
Then the emulsifiers of vegetable origin, a product of DuPont, which are gaining in popularity, have been pushed into the market. In the meantime, BASF has been concentrating on the development of natural preservatives, and has launched a line of these, which has been a great success. |
| Regulatory Compliance |
Kerry Group, Tate & Lyle |
It is very good at navigating the complex regulatory environment, and is good at ensuring that its clean label products meet the standards of the world. It has established a professional compliance team that works closely with customers to ensure that all clean label ingredients meet the local and international standards, which is helpful for customers' trust. |
| Consumer Education |
ADM, Naturex |
ADM has been investing in consumer education and in developing resources to explain the advantages of clean label ingredients. Naturex has developed a series of workshops and webcasts designed to educate manufacturers about the importance of clean label trends, thereby encouraging uptake. |
| Sustainability Practices |
Unilever, Nestlé |
Unilever has set itself ambitious goals in this respect. Its aim is to ensure that all agricultural raw materials are derived from sustainable sources. This is directly related to its clean-label policy. In the process, Unilever is repositioning itself in the clean-label market. |
Conclusion: Navigating Clean-Label Market Dynamics
The clean label ingredient market is highly competitive and fragmented, with established and emerging companies competing for market share. In the near future, consumers in the region are expected to favour ingredients with a high degree of transparency and a sustainable origin. These trends will be reflected in the strategies of suppliers. In this context, the established players are relying on their established supply chains and brand recognition, while the newcomers are focusing on innovation and agility to tap niche markets. As the market develops, the ability to invest in automation, artificial intelligence, and sustainable production will be the key to success. Suppliers must therefore prioritise these areas to maintain a strong position and meet the increasing demand for clean label products.
