About the report
Increasing consumer awareness for health and the environment coupled with continuously growing global population has led to a surge in demand for organic, naturally-sourced, plant-based ingredients. Labelling the product in the food & beverage industry is highly regulated, especially in developed countries, as consumers are well aware of these labels. With unprecedented rise in demand for clean label ingredients, clean label starch sales are expected to reach new heights.
To address consumer need for clean label ingredients, food manufacturers are adding new and innovative ingredients in their products. In its new study, market research and consulting firm Persistence Market Research offers insights about key factors driving demand for clean label starch. The report tracks global sales in high-potential markets, where North America and Europe top the pecking order. The report also analyzes the impact COVID-19 has had on the food industry, and how it may impact global starch manufacturing.
Find Out More about the Report Coverage
- Ingredion Inc.
- Cargill Inc.
- Tate & Lyle PLC
- Archer Daniels Midland Company
- Roquette Frères S.A.
- BENEO GmbH
- MGP Ingredients, Inc.
- AGRANA – Beteiligungs AG
- Avebe U.A.
- KMC Kartoffelmelcentralen A.M.B.A
- SMS Corporation
- Emsland Group
- Lyckeby Starch AB
- Blattmann Schweiz AG
- Banpong Tapioca Flour Industrial Co., Ltd
Historical Trends Vs Future Outlook
Over the past 5 years (2015 to 2019) the global clean label starch market expanded at a steady CAGR of 4%. Currently, highest demand in the food industry across the globe is for baked goods, followed by dairy and processed meat, which has led to rising demand for specialty ingredients that are free from chemicals. In addition, due to growing health concerns across the world, growth potential for healthier food products is also high, and consumers are looking for products made from natural, organic, and clean label ingredients. As such demand for clean label starch is set to increase further over the coming years, with the market slated to expand at a CAGR of close to 6% through 2030.
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How is changing dynamics for chemical-free additives impacting clean label starch sales?
The main purpose of a clean label product is to satisfy the expectation of consumers with healthy and naturally-sourced ingredients. Clean label starches are gaining traction among health-conscious consumers who are seeking least processed products. Demand for clean label starch has risen with increased consciousness among consumers about the ill-effects of highly processed and artificial ingredients that are added in food products. Market players associated with the starch business are expanding through the organic and inorganic approach.
Starch is one of the most important ingredients used in various food products. It is used to increase the strength, viscosity, and concentration of the end product. Demand for clean label starch has surged due to increased consumption of soups, dressing, desserts, ice cream, and processed meats. In a majority of countries across the globe, both, developed and developing, per capita spending on healthier food products is increasing, attributed to rising demand for chemical-free ingredients, which is playing a vital role in increased sales of clean label starch.
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How are innovation and new product launches helping manufacturers increase sales?
Constant investments in research & development of new ingredients by manufacturers helps provide tailored products to customers. Manufacturers are introducing new products or reformulating existing product lines to meet the specific requirements of food manufacturers. For instance,
- In November 2020, BENEO GmbH launched new functional rice starch Remypure S52P under its clean label product line. The new product delivers a soft and creamy texture, and also helps increase the stability of products such as cold processed sauces, dressings, dairy desserts, and bakery fillings. Remypure S52P enables food manufacturers to embrace the clean label trend further.
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What is the market scenario of clean label starch in Europe?
Europe is dominating the global clean label starch market, owing to changing consumer preference toward label-friendly products. With the high spending power of European consumers, demand for premium products is skyrocketing, which is boosting sales of clean labels starch in the region. Europe has the largest value share in the global clean label starch market, which is approximately 40% of the overall share. In addition, manufacturers in the starch business are expanding their presence by increasing distribution networks across the region.
Why is demand for clean label starch flourishing in the U.K.?
Surging demand for clean label ingredients in the U.K. is creating opportunities for clean label starch manufacturers to increase product penetration in the country. High disposable income of consumers has brought clean label starch from a niche to a mainstream product. Consumers are willing to pay extra for products that are healthier and natural. Food manufacturers are introducing products that comprise clean label starch to cater to this growing demand from consumers for healthier products.
What makes clean label starch highly sought-after in the U.S.?
With increasing consumer awareness about the positive impact of less processed ingredients, the U.S. is dominating the market for clean label starch in North America, with around 90% of the overall market value in the region. Robust demand for clean label products has pushed food manufacturers to add ingredients that are free from chemicals. 7 out of 10 consumers in the U.S. look at the labelling of the product before purchasing it. The consumer base in the U.S. is highly concerned regarding the sourcing of ingredients in the food they consume, and are ready to pay a higher cost for label-friendly products.
Is the growth pattern for clean label starch manufacturers positive in India?
Clean label ingredient demand has increased in India in the past few years, attributed to rising awareness of consumers for clean food products. India is estimated to have a US$ 30.8 Mn market valuation in 2020, and the market is projected to increase 2X and reach around US$ 77 Mn by the end of the forecast period. Clean label is accepted as a product containing recognizable clean ingredients, and to meet growing demand from consumers wanting high-quality clean label food, food manufacturers in the country are also responding with increased use of label-friendly ingredients.
How is the growing dairy industry complementing demand for clean label starch?
Starches have important application in the dairy industry, mainly used to stabilize water and provide a pudding-like consistency to dairy products such as yogurts, ice cream, and others desserts. Among the application segment, the dairy industry is estimated to witness consumption of around 25,785 tons of clean label starch in 2020, which is expected to increase 1.5X and reach 45,373 tons by the end of 2030. Dairy product manufacturers struggle to maintain texture and taste, which is the major reason for rising use of clean label starch in dairy applications. Manufacturers are offering products to enhance taste and reduce fat content in dairy products.
Is demand from the bakery industry rising?
Starch is an important component of bakery products, added as thickener, water binder, emulsion stabilizer, gelling agent, and fat substitute. The bakery industry is witnessing tremendous growth attributed to increased consumption of various bakery products across regions. With increasing demand for clean label ingredients from the bakery industry, sales of clean label starch are expected to surge in this sector.
3 out of 5 consumers are looking for label-friendly ingredients in food products. In a survey, 70% of consumers agreed to pay extra for food products made with ingredients that are chemical-free and less processed. Clean label ingredients are applicable in bakery products to increase stability or texture of the baked goods, and thus, demand for clean label starch is expected to witness promising growth over the coming years.
The market potential for baked goods is high in developing countries such as India and China, where consumer preference for packaged goods is growing, owing to the effect of Western culture, evolving lifestyles, and increasing demand for convenience food products. Clean label starch manufacturers are focusing or targeting businesses that produce bakery products to increase sales. Tremendous growth has been observed in the consumption of ready-to-use soups & sauces, dressings, and other convenient products, which is boosting the sales of starches, especially clean label starch.
Other market changes
Lower cost of chemically-modified starches is the major factor that may hinder market growth. Some of the major manufacturers associated with the production of clean label starch are Ingredion Incorporated, The Archer-Daniels-Midland Company, Roquette Frères S.A, Cargill Incorporated, and BENEO GmbH. All these have a large market share in the global clean label starch market.
Partial knowledge about clean label starches and their benefits is a major restraining factor in certain developing countries of the world. Governments across various regions of the world have designed guidelines to reduce the use of chemical-based ingredients and avoid health problems related to them. Developed countries such as the United Kingdom, Germany, the United States, France, and various others have developed guidelines that recommend food manufacturers to include ingredients that are least processed and chemical-free. Such support increases the inclination of consumers toward the use of clean-label ingredient-based products. Thus, manufacturers are constantly focusing on developing various functionally-enhanced clean label starch that can fulfill the requirements of consumers.
Rise in demand for value-added ingredients in animal feed as well as pet food has a significant impact on demand for clean label starch. Manufacturers are working toward offering products that can be added to animal feed and pet food products. Rising concerns of pet owners regarding the ingredients used in feeds have pushed animal feed manufacturers to add easily digestible ingredients in their products.
Persistence Market Research has profiled the following prominent clean label starch manufacturers in its report:
- Ingredion Incorporated
- Archer Daniels Midland Company
- AGRANA Beteiligungs-AG
- Tate & Lyle
- Roquette Frères S.A
- Cargill Incorporated
- BENEO GmbH
- Emsland Group
- SMS Corporation
- Cooperatie Koninklijke Avebe U.A.
- MGP Ingredients, Inc
- Lyckeby Starch AB
- KMC Kartoffelmelcentralen A.M.B.A
- Banpong Tapioca Flour Industrial Co, Ltd.
- Blattmann Schweiz AG
Key players are expected to witness growth in demand for clean label starch, majorly from the food & beverage industry, to enhance existing product portfolios and increase usage of clean label ingredients in processed food products and beverages, to meet the needs of a rising health-conscious population. Companies are trying to offer customized ingredients to fulfill the varied requirements of food & beverage manufacturers. They are focused on offering clean label starch solutions according to the specific requirements of food manufacturers.
Prominent manufacturers in the clean label starch business are also continuously expanding their business by acquiring regional starch manufacturers.
- In January 2020, AGRANA Beteiligungs-AG acquired Marroquin Organic International, a distribution company. This acquisition will expand the distribution activities of the starch segment of the company.
- In January 2019, Archer Daniels Midland Company announced a partnership with Thailand-based tapioca starch manufacturer General Starch Limited. This partnership will help the company increase its presence in Asia Pacific.
Historical Data Available for
US$ Mn for Value & Tons Units for Volume
Key Regions Covered
Key Countries Covered
Key Segments Covered
Key Companies Profiled
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Key Questions Answered in Report
How will the clean label starch market expand until 2030?
Persistence Market Research projects the global market to register a CAGR of close to 6% over the 2020-2030 assessment period. Changing consumer perceptions regarding food products and increased awareness about label-friendly ingredients are anticipated to bolster demand for clean label starch across the globe.
- Which is the largest market for clean label starch?
As per the report’s projections, Europe is expected to pivot expansion, attributed to surging demand for clean label starch from the bakery and dairy industry.
- How are leading clean label starch players responding to global demand?
Rising consumer expectations for clean ingredients and reduced number of additives in food products is challenging food manufacturers to meet these expectations. Manufacturers of clean label starch are developing new products and reformulating existing ones that can help food manufacturers cater to this demand from consumers for label-friendly ingredients.
- How are key players generating higher revenues from clean label starch?
Prominent players are adopting organic as well as inorganic approaches to expand their business and generate higher revenues. Companies are offering customized ingredients to cater to the rising demand for clean label starch. Key manufacturers are acquiring related business to increase their footprint and sale of products.
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Key Market Segments
- Rice & Peas
- Food Industry
- Bakery & Confectionery
- Dairy & Desserts
- Soups, Sauces & Dressings
- Savory & Snacks
- Animal Feed Industry
- North America
- Latin America
- South Asia
- East Asia Ex. Japan
- Middle East & Africa (MEA)