Clean Label Starch Market by Source (Corn, Wheat, Potato, Tapioca, Others) by Form (Powder, Liquid) by End-user (Food & Beverage, Paper Industry, Feed Industry, Others): Growth, Future Prospects & Competitive Analysis, 2015 - 2027

Clean label starch is unmodified starch or native starch that doesn’t undergo any chemical addition or modification. Native starch is a white, odorless, and tasteless mixture that is insoluble in alcohol or cold water and which is primarily used in the paper and food industry for thickening and binding purposes. It has a high process tolerance and helps in increasing the viscosity of the mixture in which it has been mixed. The Clean Label Starch Market is expected to cross-market value of USD 2,078.25 million in 2027 from USD 1,093.59 million in 2020. It is expected to grow at a CAGR of over 8.73% during the forecast period.

Key Market Drivers and Restraints     

Food & Beverage segment held the largest market share in total consumption of clean label starch. Healthy food demand is driven by busy lifestyles, ageing population, and increasing health risks associated with synthetic chemicals of additives used in food ingredients/foods. In addition, increasing awareness among consumers regarding the benefits of functional and high nutritional value food and food ingredients to be added in food products has triggered the clean label movement. Change in consumer preference has led to immense innovation in the food category, pushing food manufacturers to reduce the number of ingredients, particularly ingredients that are not recognized and difficult to pronounce with functional benefits. This in turn expected to drive the demand for clean label starch.

However, the high cost related to conventional starch products is a major factor that hampers the growth of the global market to a certain extent. Moreover, the availability of cost-effective modified starch across the world is a major challenge for industry participants. Modified starch is still used in higher volumes as compared to clean label starch in emerging regions such as Asia Pacific, Latin America, Middle East & Africa. Lower price and lack of health awareness among consumers in these regions is one of the major factors affecting the growth of this industry in the region. 

Impact of COVID 19

COVID-19 had a massive impact on the food supply chain across the globe. Due to the spread of COVID-19, the rising number of death cases, and continuing health impacts. This has caused in the government to impose simple lockdown rules and regulations, affecting all features of the economy. Governments across the globe have developed policies for replying to the numerous impacts produced by COVID-19 for circumventing supply chain troubles, complex raw material charges, and severe financial outcomes for employees. In addition, several companies from different countries are coming up with advanced technologies that are friendly to the environment and protect the clean label starch end-user products from pollution with germs.

Europe to Dominate the Global Clean Label Starch Market

The global Clean Label Starch Market covers the regions such as Asia Pacific, Europe, North America, Middle East, and Africa, Latin America (LATAM), including all the key economies in these regions. The Europe market is projected to account for the highest revenue share in the global market due to rising demand for clean label starch and the high spending power of consumers for premium products. A higher level of awareness among end-users regarding the health benefits of clean label ingredients as well as food in the region is forcing food manufacturers to adopt clean label ingredients in food manufacturing. Moreover, easy availability and strong penetration of clean label ingredients manufacturing companies in the region is also one of the important factors mobilizing the demand for clean label starch in the region. Ongoing clean label movement and constant support by domestic food manufacturers with increasing acceptance of clean label ingredients is one of the major factors driving the growth of clean label starch demand in the region.

North America is projected to register a significant revenue share in the target market due to the increasing disposable income of individuals and growing spending on food & beverages. On the other hand, the Asia Pacific is anticipated to register maximum CAGR in the global market over the forecast period due to growing demand for bakery products.

Global Clean Label Starch Market is led by the Corn

Corn, Wheat, Potato, Tapioca, and others sources in the Clean Label Starch Market. In 2020, the Corn segment is accounted for the largest share of the Clean Label Starch Market. However, the Potato segment is anticipated to grow at the fastest CAGR during the forecast period.

The powder would continue to dominate the global Clean Label Starch Market in terms of form

Powder and Liquid are some of the major types of forms. The powder segment accounted for the largest share in 2020 of the Clean Label Starch Market in 2020. Clean label starch industry participants are mainly focusing on research & development. Frequently changing consumer preferences are compelling manufacturers to focus on extensive research & development for the development of innovative products. For instance, Tate & Lyle, one of the leading global manufacturers of food and beverage ingredients and solutions, has recently expanded its portfolio of clean label products with the addition of CLARIA EVERLAST®. CLARIA EVERLAST® is an innovative clean label starch that facilitates excellent shelf life that helps reserve food quality, particularly during adverse storage environments.

Moreover, another leading ingredient solutions manufacturer Ingredion has included a functional native starch to its portfolio of clean label starches. NOVATION® Indulge 2920 starch is a corn-based starch that goes well with lower-fat and lower-calorie products and other food products with a healthier profile. NOVATION® Indulge 2920 starch is expected to facilitate food and beverage manufacturers to enhance mouthfeel by providing the same functionality as modified starch while substituting or lowering ingredients such as fat and oil.

Frequently asked questions about the global industry.

Corn, wheat, potato, tapioca, etc., are major sources of clean label starch, out of which the corn segment dominated the global market with just under two-third share in the global market. The dominance of the corn segment can be attributed to the abundance of its availability across the world.

Some of the major players operating in the clean label starch industry include Ingredion Inc., Tate & Lyle PLC., ADM, Roquette Freres SA, BENEO GmbH, and Cargill, Inc. These six players collectively accounted for over 45% share in the global market.

Food and Beverage is the largest application of clean label starch, which held over 50% share in the global consumption in 2020

Europe holds the largest share owing to large demand of clean label starch in several industries and a high level of awareness among end-users regarding health.

The market is anticipated to grow at a CAGR of 8.73% throughout the forecast period in terms of revenue

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Published Date:  Oct 2018
Category:  Food & Beverage
Report ID:   59418
Report Format:   PDF
Pages:   120
Rating:    4.4 (69)
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