Consumer food preference and consumption patterns have witnessed dramatic changes over the past couple of decades around the globe. The change in diet plans has been influenced by various critical factors such as the rise in awareness on the health benefits associated with the consumption of healthy food, increase rate of Internet penetration in key regions, government initiatives, etc. The ‘clean label’ trend is one such enduring trend in today’s world, where consumers demand transparency and simple ingredients in whatever food that they consume. Owing to this, the starch segment is now being provided in a clean label format in various regions. As a result, clean label starch is now finding itself in a wide range of food applications such as the bakery segment, convenience food segment, snacks and confectionery segment, and other such key segments.
Innovation in Existing Product Turning Out to Be One of the Key Influential Factors for the Clean Label Starch Market
Over the years, some of the key players in the clean label starch market have been strategizing on innovative their existing as well as new products which cater to the varying needs and demands of their target customers. Change in consumer preferences from artificial or synthetic ingredient-based products to natural and clean label-based products is one of the key factors increasing the demand for clean label products. Consumers (food and beverages industry) look for clean label starch products which are easy to imply as an ingredient in various food processing applications and provide a differentiated taste for the food products that are being processed. For instance, BENEO, considered to be one of the major players in the clean label starch market, launched a clean label rice starch which helps create unique textures and excellent product stability even under harsh processing conditions. Hence, along with the food nutritive factor, innovation is now considered another prime factor which is driving the value sales for the clean label starch market.
Clean Label Starch Market Sighting its Opportunity in the Bakery and Beverages Industry in Gaining Traction
Clean label starches are widely used in bakery products, owing to their property to provide an excellent water-holding capacity and structure-forming. Clean label starch also provides uniform adhesion to food products, and adds a crispy texture, which is the primary requirement in most products. Clean label starch is also used as an egg replacement, and hence, reduces the final cost of the end product, which is a key reason in attracting a lot of new market players to enter this market, and giving an invitation to innovate new products to the ones who are already present in the market.
Higher Manufacturing Cost of Clean Label Products a Hindrance for the Clean Label Starch Market
Clean label starch is physically extracted, and no modification is done to enhance the properties of the starch. Modified starch is comparatively cheaper, owing to the abundance in availability of raw materials and low cost of chemicals used for modification. The physical extraction process is lengthy and costly, and increases the cost of the end product, which is likely to hinder the growth in the demand for clean label starch. Manufacturers tend to use ingredients with low cost to increase profit margins, which is again a setback for the clean label starch market.
Low Product Penetration of Clean Label Starch Products in a Majority of Developing Countries
Though clean label starch is used on a large scale in developed countries, its penetration rate is comparatively low when it comes to some of the developing countries, such those in Asia Pacific or the MEA regions. These regions have witnessed a higher consumption rate of dairy and bakery products. Clean label starch is not used on a large scale in the Asia Pacific region. Instead, manufacturers use modified starches to maintain the shelf life and quality of these kinds of products, owing to high profit margins.
Global Clean Label Starch Market Regional Analysis
On the basis of region, Europe accounts for a higher value share in the global clean label starch market in terms of value sales, due to the ever-rising demand for clean label products, which includes clean label starch in the region. China has been a dominant region in the clean label starch market in terms of consumption and production. North America is expected to post higher growth, with a CAGR of 8.9% over the forecast period.
This report provides a projection and study of the global clean label starch market. It provides historical data of 2013, along with estimated data for 2018, and forecast data up to 2026 in terms of revenue (US$ Mn) and volume (MT). The report also comprises macroeconomic indicators, along with an outlook on clean label starches for the global market. It includes the drivers and restraints of the global clean label starch market, and their impact on each region during the forecast period. The report also comprises the study of ongoing industry trends and opportunities for the clean label starch market. It also includes supply chain analysis. For providing users with a widespread view of the clean label starch market, we have included detailed competitive analysis, along with key players in the market, and analysis on the strategies followed by them. The competitive dashboard provides a detailed comparison of clean label starch manufacturers on the basis of revenue, product offerings, and key strategies. The study encompasses market attractiveness analysis by nature, product type, application, and region.
A detailed study of the clean label starch market has provided our analysts with the observation of a shift towards the consumption of clean label starch, over the forecast period. The market is primarily driven by a rise in the demand for healthy food products, and increasing vegan population across the globe. According to the International Food Information Council (IFIC), in 2016, 38% of the American population named 'chemicals' as their top food safety concern. This states that a majority of the North American population no longer trusts chemicals and unfamiliar-sounding ingredients. The sale of food and beverages with 'all natural' claims is increasing, and the sales of conventional processed foods or products containing artificial ingredients have stagnated or fallen. Owing to this, it is expected that, the growth trend is expected to be strong for food products that combine clean label, natural, and organic, and also promise environmental sustainability.
Consumers are increasingly shifting their preference towards natural and organic food products, with intense focus on the various health benefits clean label starch offer. Consumers are inclining towards organically produced goods, and this has been dramatically increasing over the last few decades, owing to health consciousness and increasing awareness. The sales of organic food are expected to continue to show double-digit growth during the forecast period. In fact, the demand for organic food is expanding significantly; consumer demand is exceeding some domestic supplies. According to the Organic Trade Association, in 2016, the U.S. organic food market was valued at US$ 43 Bn, an increase by 8% as compared to the previous year. According to USDA, the U.S. now spends more than US$ 1 Bn annually to import organic food. Moreover, the ratio of imported to exported products is around 8:1. In the U.S., organic products are now available in around 20,000 natural food stores, and in 3 out of 4 conventional grocery stores.
The report includes the company profiles of key manufacturers of clean label starch in North America, Latin America, Europe, Asia Pacific, and Middle East and Africa. For market sizing of clean label starch, primarily, we determined the region-wise consumption of starch products through various regional government sources. The clean label starch market, being a fragmented market, we listed down the top 10 key players in the market, and accordingly determined the revenue share allotted for clean label starch products.
A number of primary and secondary sources were consulted during the course of the clean label starch study. Secondary sources include Factiva and Hoovers, U.S. Food and Agriculture Organization Databases, and company annual reports and publications. This report covers market dynamics related to clean label starches that include the drivers and trends driving each segment, and opportunities in the clean label starch market. The report also includes analysis and insights into the potential of the clean label starch market in specific regions. Detailed profiles of the providers are also included in the scope of the report to evaluate their long-term and short-term strategies, product portfolio of clean label starch manufacturers, and recent developments in the clean label starch market space. Some of the key players analysed are Ingredion Inc., Cargill, Inc., E. I. du Pont de Nemours, Tate & Lyle PLC, Archer Daniels Midland Company, Roquette Frères S.A., Euroduna Food Ingredients GmbH, BENEO GmbH, Kent Corporation, MGP Ingredients, Inc., AGRANA – Beteiligungs AG, Tereos Starch & Sweeteners Iberia Sa, Thai Flour Co., Ltd., Manildra Group, Avebe U.A, Amylco LLC, KMC Kartoffelmelcentralen A.M.B.A, Gulshan Polyols Ltd., and SPAC STARCH PRODUCTS (INDIA) LTD., among other clean label starch manufacturers.
Global Clean Label Starch Market – By Source
Global Clean Label Starch Market – By Form
Global Clean Label Starch Market – By End Use
- Food and Beverages
- Dairy Products
- Soups, Sauces, and Dressings
- Infant Formula
- Convenience Foods
- Snacks and Confectionery
- Paper Industry
- Feed Industry
Global Clean Label Starch Market – By Region
- North America
- Latin America
- Asia Pacific
- Middle East and Africa
The data scrutiny for the global clean label starch market is estimated in terms of value and volume consumption. To arrive at the volume consumption of clean label starches, production data of countries producing raw materials across the globe has been taken into consideration. In addition, the production of application of clean label starch in top producing countries is also tracked for benchmarking purposes. Furthermore, Transparency Market Research estimated volume data on the consumption of clean label starch for several countries by understanding the demand and supply of clean label starch. It includes production, growth, volume and value sales, transition, pricing, population, consumer preference, and consumption of clean label starch among end user verticals.
TMR then determined the volume consumption of clean label starch across various regions such as North America, Latin America, Europe, Asia Pacific, and Middle East and Africa. Forecasting is done on an internal proprietary model using different macro-economic, industry-based demand driving factors impacting the market and its forecast trends, by identifying and allocating a weighted score to the forecast factors that influence the demand for clean label starch. These factors were the representative of an entire value chain, as well as macro-economic indicators such as production have been taken into consideration to arrive at the volume consumption of clean label starches in respective countries.
The weighted average selling price for clean label starch was considered to estimate the market size for top clean label starch consuming countries. These prices were captured in their respective countries, and then converted into USD to offer forecasts in one consistent currency standard.
Given the characteristics of the market, TMR triangulated the data based on supply side, demand side, and dynamics of the global clean label starch market. To develop the global clean label starch market forecast, TMR analyzed various factors to understand their respective impact on the target market. However, quantifying the market across the abovementioned segments is more a matter of quantifying expectations and identifying opportunities rather than rationalizing them after the forecast has been completed.
It is imperative to note that, in an ever-fluctuating economy, we not only provide forecasts in terms of CAGR but also analyze on the basis of key parameters, such as year-on-year (Y-o-Y) growth, to understand the predictability of the market and identify the right opportunities.
Another key feature of this report is the analysis of the global clean label starch market and the corresponding revenue forecast in terms of absolute dollar opportunity. This is usually overlooked while forecasting the market. However, absolute dollar opportunity is critical in assessing the level of opportunity that a provider can look to achieve, as well as to identify potential resources from a sales perspective in the global clean label starch market.
To understand key segments in terms of their growth and performance in the global clean label starch market, Transparency Market Research has also presented a market attractiveness index. The resulting index should help providers identify existing market opportunities in the global clean label starch market.
The report covers an in-depth analysis of all components of the value chain in the global clean label starch market. In the final section of the report on the global clean label starch market, a competitive landscape is included to provide a dashboard view of global clean label starch manufacturers.