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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.

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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.

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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.