Market Analysis: Clean Label Starch Demand in Health-Conscious Consumers

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The global clean label starch market is poised for notable growth, with an estimated valuation of US$ 2.5 billion by 2031, up from US$ 1.5 billion in 2022. This growth is projected at a CAGR of 5.7% from 2023 to 2031, driven by a significant shift in consumer preferences and industry trends.

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Analyst Viewpoint

Consumer demand for healthy and natural ingredients is a key driver of the clean label starch market. As more individuals gravitate towards ready-to-eat food options, the need for clean label starches, which serve as effective thickening agents, is on the rise. These starches find diverse applications, particularly in the food and beverage sector, enhancing the texture and stability of products.

In the paper industry, wheat starch is favored for its ability to improve printability and paper strength. In food and beverage applications, specially processed food-grade wheat starch meets the growing demand for clean label products. This trend is expected to bolster market revenue significantly.

Key players in the industry are increasingly investing in research and development to innovate and enhance clean label starch products. These new formulations aim to provide better mouthfeel, stability, and texture, catering to the evolving preferences of consumers.

Market Introduction

Clean label starches are primarily derived from cornwheatpotatoes, and tapioca. Each type of starch offers unique properties: wheat starch is appreciated for its gluten-free characteristics, while corn starch is recognized for its versatility. Tapioca starch is commonly used as a thickening agent, and potato starch is valued for providing a smooth texture. Alternatives like arrowrootrice, and sorghum are also gaining traction in various food industries due to their distinct benefits.

Beyond the food sector, clean label starches play a crucial role in animal feed, improving digestibility and nutritional value. They are also utilized across industries such as textiles and pharmaceuticals, thanks to their binding and adhesive properties.

Drivers of Market Growth

Rise in Consumer Preference for Healthy Ingredients

Health consciousness among consumers has dramatically shifted the market landscape. Concerns regarding artificial additives, excessive processing, and the presence of pesticides and hormones have led to a growing demand for organic products. This movement is further fueled by increased awareness of health issues such as cancer, high cholesterol, and obesity.

As consumers prioritize safety and quality in their food choices, the demand for organic and clean label starches has surged. In the U.S., a remarkable 83% of Americans purchase organic products regularly, with millennials leading the charge. Among American parents, 52% of organic food buyers are millennials, while 35% belong to Generation X, indicating a significant generational shift towards healthier eating.

Increase in Consumption of Ready-to-eat Food Items

The convenience of ready-to-eat foods is another catalyst for the clean label starch market. With busy lifestyles and a growing preference for quick meals, consumers are increasingly turning to ready-to-eat options. This trend is supported by the rise of quick-service restaurant (QSR) chains and the café culture, which further fuels the demand for these products.

Research from Mintel highlights that 86% of UK adults consume ready meals, with a significant portion opting for chilled ready meals weekly. Clean label starches play a vital role in enhancing the flavor and texture of these products, reinforcing their importance in the food and beverage sector.

Regional Outlook

Leading Region: Europe

Europe stands as the leading region in the clean label starch market, holding the largest market share in 2022. Factors contributing to this dominance include a growing preference for packaged foods, busy lifestyles, and increased consumer awareness about the benefits of clean label products.

As disposable incomes rise and the population ages, especially among single-person households, the demand for ready meals is expected to continue increasing in Europe. According to Statistics Denmark, the aging population is notable, with those aged 80 and older exceeding 280,000 in 2021, compared to 230,000 in 2011.

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Analysis of Key Players

The competitive landscape of the clean label starch market is characterized by substantial investments in research and development. Companies are increasingly pursuing strategic collaborations to enhance product innovation and expand their reach in both regional and international markets.

Prominent players in the clean label starch industry include:

  • Cargill, Inc.
  • Ingredion Inc.
  • Tate & Lyle PLC
  • Archer Daniels Midland Company
  • Frutarom Industries Ltd
  • Roquette Frères S.A
  • BENEO GmbH
  • MGP Ingredients, Inc.
  • AGRANA – Beteiligungs AG

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Transparency Market Research, a global market research company registered at Wilmington, Delaware, United States, provides custom research and consulting services. The firm scrutinizes factors shaping the dynamics of demand in various markets. The insights and perspectives on the markets evaluate opportunities in various segments. The opportunities in the segments based on source, application, demographics, sales channel, and end-use are analysed, which will determine growth in the markets over the next decade.

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