Free From and Clean Label Market Research Reports

"Rise of Free From and Clean Label Foods: Trends, Data, and Future Outlook (2024 Market size: USD 60.1 billion)"!

Free From and Clean Label Industry Overview

In recent years, the free from and clean label market has experienced substantial growth, which has been fueled by the growing demand for healthful food options and transparency among consumers. The global clean label ingredients market size was USD 48.5 billion in 2023 and will be USD 60.1 billion in 2024, with a compound annual growth rate (CAGR) of 11.5%. The free from and clean label market size will be USD 143.6 billion by 2031, at a CAGR of 11.5%. Consumers' growing preference for minimally processed and natural foods, which are devoid of artificial additives, preservatives, and genetically modified organisms (GMOs), is the driving force behind this expansion. A 2023 survey revealed that 70% of consumers worldwide prioritize the purchase of products with clear labels. The global market for free-from foods, including gluten-free, dairy-free, and allergen-free products, will increase from USD 70.2 billion in 2023 to USD 80.6 billion by 2024. 

North America remains the primary market for clear label and free-from products. In the United States, more than 60% of consumers reported that they actively avoid artificial additives in their cuisine. Similarly, the European market is robust, with a substantial proportion of consumers pursuing transparency in food labeling. The Asia-Pacific region is undergoing rapid development, which is being driven by expanding urbanization and health awareness. The market will grow at a rate of 12% from 2023 to 2024. Sector innovations are especially noteworthy. Globally, 35% of all new food and beverage launches in 2023 were classified as clean label products, representing a 10% increase from 2022. Brands are increasingly emphasizing clean label formulations, making substantial investments in research and development to eliminate artificial ingredients while preserving the quality and retail life of their products. Retailers are also adjusting to this change. 

In response to consumer demand, 45% of grocery stores in the United States increased their clean label product selections in 2023. Post-pandemic, online grocery purchasing has become increasingly popular, resulting in a 20% increase in sales of clean label products on e-commerce platforms. The free-from and clean label market is significantly influenced by health and wellness trends. 68% of consumers indicate that they favor products with clearer labeling and fewer ingredients, indicating that consumers are more health-conscious than ever. The increasing prevalence of food allergies and intolerances is further supporting this trend, which has resulted in a significant increase in the demand for allergen-free products.

Top Countries Contributing in Free From and Clean Label Market

United States (2024 Market Size: USD 143.7billion)

According to cognitive market research, the United States free from and clean label market holds a significant revenue share of 25% of the total revenue generated abd its market size was USD 12.4 billion in 2023, and will be USD 14.7 billion in 2024, will grow at a compound annual growth rate (CAGR) of 9%. The food and beverage industry, personal care, and household products are the primary market that utilize free from and clean label products. The food and beverage market, in particular, is responsible for 70% of this market as a result of the substantial demand for minimally processed, natural, and organic food options. According to a 2023 survey, 62% of Americans are actively seeking products that are free from artificial additives, preservatives, and GMOs in terms of consumer preferences. The increase in the prevalence of food allergies and intolerances is also a contributing factor to the market's development, with a significant demand for gluten-free and dairy-free products. In 2023, 50% of grocery stores are increasing their clean label offerings in response to these trends. Furthermore, the e-commerce sector reported a 22% increase in the sales of pure label and free from products. Health and wellness trends are of paramount importance, as 70% of consumers favor products that contain fewer and more natural ingredients. The regulatory landscape is also changing, as evidenced by the 12% increase in certifications for clean label products in 2023. 

Germany (2024 Market Size: USD 6.3 billion)

The Germany free from and clean label market size was USD 5.1 billion in 2023 and will be USD 6.3 billion in 2024, with a compound annual growth rate (CAGR) of 11%. The food and beverage industry is the primary user, particularly in the organic and natural food segments, followed by personal care products. Germany holds a revenue share of 10% of the global market. According to a 2023 consumer survey, 65% of Germans favor products with clear labels, which is influenced by a strong cultural preference for natural and organic products. Stringent regulations and heightened consumer awareness regarding ingredient transparency and food safety are the primary factors driving market expansion. 40% of the new food and beverage products that were introduced in Germany in 2023 were classified as clean labels. Grocery stores have experienced a 20% increase in clean label offerings as retailers are expanding their product lines. In 2023, the online sales of these products experienced an 18% increase, which is indicative of a transition to digital purchasing. Additionally, Germany experienced a 15% increase in certifications for clean label products, underscoring the market's dedication to quality and transparency.

United Kingdom (2024 Market Size: USD 5.3 billion)

The U.K. free from and clean label market was valued at USD 4.2 billion and will be USD 5.3 billion in 2024, with a compound annual growth rate (CAGR) of 10%. The food and beverage market is the primary user, particularly in the categories of free from gluten, dairy, and allergens. United Kingdom holds 8% of the global market share. According to 2023 consumer surveys, 60% of British consumers are actively seeking products with clear labels due to health concerns and dietary preferences. Grocery stores have responded by expanding their clean-label product categories, with 35% of them doing so. In 2023, the online market for these products experienced a 20% increase. The trend toward health and wellness is robust, with 68% of consumers favoring products with clearer labeling and fewer ingredients. Additionally, the UK experienced a 10% increase in clean label certifications, which underscores the significance of consumer trust and transparency in this market.

France (2024 Market Size: USD 4.6 billion)

According to cognitive market research, The france free from and clean label market share is 7% of the total revenue generated and its market size was USD 3.8 billion in 2023 and will be USD 4.6 billion in 2024, with a compound annual growth rate (CAGR) of 9%. Food and beverage, notably organic and natural products, are the primary sectors, followed by personal care. According to a 2023 survey, 58% of French consumers prioritize clean-label products, which is a reflection of the country's strong culinary culture and emphasis on quality ingredients. There has been a 25% increase in clean label offerings in grocery stores as retailers have adjusted. In 2023, the online sales of these products increased by 15%. Health and wellness trends are substantial, with 65% of consumers favoring products that contain natural ingredients. The market's emphasis on quality and safety was also evident in France, as evidenced by a 12% increase in certifications for clean label products.

Italy (2024 Market Size: USD 3.6 billion)

Italy's free from and clean label market size was USD 2.9 billion in 2023 and will be USD 3.6 billion in 2024, with a compound annual growth rate (CAGR) of 10%. The primary user is the food and beverage market, particularly in the case of natural and organic food products, followed by personal care. Italy holds a 6% of the global market share. In 2023, a strong tradition of culinary excellence and natural ingredients was the driving force behind the preference for clean label products among 57% of Italian consumers. Retailers responded by expanding their clean label product categories by 30%. In 2023, online sales experienced a 17% increase, which is indicative of a transition to digital consumption. Health and wellness trends are prevalent, with 66% of consumers favoring products that contain fewer and more natural ingredients. Additionally, the market's dedication to transparency and quality was underscored by a 13% increase in certifications for clean label products in Italy.

Canada (2024 Market Size: USD 3.4 billion)

The Canada's free from and clean label market size was USD 2.7 billion in 2023 and will be USD 3.4 billion in 2024, with a compound annual growth rate (CAGR) of 11%. Food and beverage, particularly allergen-free and natural products, are the primary sectors, followed by personal care. Canada holds a 5% of the global market share. According to a survey conducted in 2023, 60% of Canadians favor clean label products due to their health concerns and dietary safety. In 2023, retailers increased their product selection by 28%. Clean label products experienced a 19% increase in online sales. Health and wellness trends are substantial, with 67% of consumers favoring products that contain fewer and more natural ingredients. Additionally, Canada experienced a 14% rise in certifications for clean label products, underscoring the market's emphasis on quality and transparency.

Australia (2024 Market Size: USD 2.9 billion)

According to cognitive market research, The Australia free from and clean label market share is 4% of the total revenue generated and its market size was USD 2.3 billion in 2023 and will be USD 2.9 billion in 2024, with a compound annual growth rate (CAGR) of 12%. The food and beverage market is the primary user of organic and natural products, with personal care following in second place. In 2023, health and environmental concerns were the primary motivators for 59% of Australian consumers to favor clean label products. Retailers expanded their product assortments by 27%. Sales grew by 18% online. Health and wellness trends are robust, with 68% of consumers favoring products that contain fewer and more natural ingredients. Australia also experienced a 15% increase in certifications for clean label products, which is indicative of the market's dedication to transparency and quality.

Japan (2024 Market Size: USD 2.4 billion)

The Japan's free from and clean label market was valued at USD 1.9 billion in 2023 and will be USD 2.4 billion in 2024, with a compound annual growth rate (CAGR) of 11%. Food and beverage, notably natural and minimally processed foods, are the primary sectors, followed by personal care. Japan holds a 4% of the global market share. Clean label products are preferred by 58% of Japanese consumers, as indicated by a 2023 survey, as a result of health and safety concerns. Retailers expanded their product lines by 26%. These products experienced a 17% increase in online sales. Health and wellness trends are substantial, with 66% of consumers favoring products with fewer ingredients. In addition, the market's emphasis on transparency and safety was underscored by a 14% increase in certifications for clean label products in Japan.

China (2024 Market Size: USD 2.2 billion)

As per cognitive market research, the free from and clean label market in China was valued at USD 1.7 billion in 2023 and will be USD 2.2 billion in 2024, with a compound annual growth rate (CAGR) of 12%. The food and beverage market is the primary user, particularly in the case of natural and organic products, followed by personal care. China holds a 3% of the global market share. In 2023, 56% of Chinese consumers favored clean label products, which was influenced by the growing awareness of food safety and health issues. The product ranges of retailers were expanded by 29%. There was a 20% increase in online transactions. Health and wellness trends are prevalent, with 65% of consumers favoring products that contain fewer and more natural ingredients. A 16% increase in certifications for clean label products was also observed in China, underscoring the market's dedication to transparency and quality.

Brazil (2024 Market Size: USD 1.9 billion)

The Brazil's free from and clean label market size was USD 1.5 billion in 2023 and will be USD 1.9 billion in 2024, with a compound annual growth rate (CAGR) of 11%. Food and beverage, particularly natural and organic products, are the primary market, followed by personal care. Brazil holds a  3% of the global market share. According to a survey conducted in 2023, 57% of Brazilian consumers prioritize clean label products due to their health and environmental concerns. Retailers expanded their product lines by 25%. These products experienced an 18% increase in online sales. Health and wellness trends are substantial, with 66% of consumers favoring products with fewer ingredients. Additionally, Brazil experienced a 13% rise in certifications for clean label products, which is indicative of the market's emphasis on transparency and quality assurance.

PESTEL Analysis of Free From and Clean Label Market

Political

The free from and clean label market is significantly influenced by the political landscape, particularly through regulations and policies that are designed to ensure food safety, labeling, and consumer protection. Stricter regulations and standards for food labeling have resulted from the growing emphasis of governments worldwide on food transparency and safety. For instance, in the United States, the FDA has established rigorous regulations regarding food labeling to guarantee that consumers are adequately informed regarding the nutritional content and constituents of food products. In a similar vein, the European Union has implemented regulations such as the Food Information to Consumers (FIC) regulation, which requires the identification of allergens and nutritional information through plain labeling. Additionally, trade policies are indispensable. The movement of clean label products across borders can be either facilitated or impeded by international trade agreements. For example, the European Union and the United States could harmonize food safety standards and lower barriers to clean label products if the Transatlantic Trade and Investment Partnership (TTIP) is implemented. 

Economical

The economic environment significantly influences the free from and clean label market's development and growth. Consumer purchasing power is influenced by economic stability and growth, which in turn impacts the demand for premium-priced clean label products. Consumers are considerably more inclined to allocate funds toward healthier food alternatives in economies that are experiencing robust expansion. For instance, the demand for free and clean label products is substantial in the United States and Europe, where disposable incomes are relatively high. Strategies regarding pricing are indispensable in this market. The increased production costs associated with the procurement of natural and organic ingredients frequently result in clean label products commanding a premium price. Consumer expenditure can be affected by economic downturns or recessions, which may result in a decrease in demand for these more expensive items. Nevertheless, health-conscious consumers may prioritize spending on essential clean label products, indicating a degree of resilience in this market segment, even during economic slowdowns. The sector is also influenced by supply chain economics. 

Social

The free from and clean label market is significantly influenced by social factors, which are driven by changing consumer preferences and lifestyles. A primary factor is the growing recognition of the importance of health and wellness. The demand for natural, minimally processed, and clean label products is on the rise as consumers become more informed about the health consequences of artificial additives, preservatives, and GMOs. Numerous surveys have demonstrated that a substantial proportion of consumers, particularly Generation Z and millennials, prioritize health and wellness in their purchasing decisions. Additionally, cultural tendencies are crucial. The clean label ethos is well-suited to the increasing popularity of traditional, natural, and organic foods in numerous cultures. For example, in countries such as Italy and France, there is a long-standing tradition of valuing high-quality, natural ingredients, which results in a strong demand for clean label products. The rising prevalence of food intolerances and allergies and dietary trends is further stimulating the market. A considerable niche has been established within the clean label sector as a result of the increasing popularity of gluten-free, dairy-free, and other allergen-free diets. Consumers who have particular dietary needs or preferences are actively pursuing products that meet their needs while maintaining the safety and health of the consumer. 

Technological

Technological advancements are essential for the growth and development of the clean label and free from market. Manufacturers have been able to produce high-quality, clean-label products without sacrificing flavor, texture, or shelf life as a result of advancements in food processing and preservation technologies. The nutritional quality and safety of food products are preserved through the use of advanced processing techniques, including high-pressure processing (HPP) and cold pasteurization, which eliminate the necessity for artificial preservatives. Another critical area is ingredient innovation. Companies are making substantial investments in research and development to identify and implement natural alternatives to synthetic additives. For example, in order to prolong the shelf life of products, natural preservatives such as rosemary extract and fermented ingredients are employed, while natural colorants and flavorings are substituting artificial ones. These technological advancements are indispensable for satisfying consumer demand for clean label products that are devoid of artificial ingredients. The transparency of the supply chain is being improved by blockchain technology and other traceability solutions. The desire of consumers to understand the origin and production process of their food is on the rise. 

Environmental

Environmental factors are increasingly impacting the free from and clean label market as consumers and companies become more aware of the environmental impact of food production. A growing emphasis is being placed on the sourcing of ingredients that are produced in environmentally friendly methods, as sustainability is a core concern. This encompasses practices such as organic cultivation, which promotes soil health and biodiversity while avoiding the use of synthetic pesticides and fertilizers. The environmental considerations in this market are significantly influenced by climate change. The carbon footprint of agricultural practices that support clean-label products is frequently lower than that of conventional farming methods. In order to mitigate greenhouse gas emissions and enhance resilience to climate change, organizations are implementing sustainable agricultural practices, including integrated pest management, conservation tillage, and crop rotation. The emphasis on sustainable procurement also encompasses water use, with initiatives to preserve water quality and reduce water consumption. Another significant environmental concern is packaging waste. The clean label market is responding by creating and employing sustainable packaging solutions.

Legal

The free from and clean label market is characterized by a complex and ever-changing legal landscape, which is influenced by regulations and standards that differ by region and market. This market is fundamentally influenced by food labeling laws, which establish the definition of a "clean label" product and guarantee consumer transparency. The Food and Drug Administration (FDA) in the United States implements stringent regulations regarding ingredient labeling, allergen disclosures, and nutritional information. The FDA's regulations necessitate the explicit and precise labeling of food products, which is essential for the preservation of consumer confidence in clean label claims. Detailed labeling requirements, such as the disclosure of allergens and the use of specific terminology for natural and organic products, are mandated by the Food Information to Consumers (FIC) regulation in the European Union. It is imperative for businesses operating in the EU market to adhere to these regulations. Additionally, the European Union enforces rigorous regulations regarding genetically modified organisms (GMOs), which are generally prohibited from clean label products. The legal framework of the clean label market is significantly influenced by certification and standards organizations. Consumers are guaranteed that products satisfy particular standards regarding sustainability, ethical sourcing, and natural constituents through certifications such as USDA Organic, Non-GMO Project Verified, and Fair Trade Certified.

Key Players of Free From and Clean Label Market

Nestlé

Nestlé generated USD 9 billion in revenue from its free from and clean label products in 2023, and will generate USD 10.5 billion in 2024, indicating a growth rate of 8%. The company invests over USD 1 billion annually in research that is focused on natural and clean-label innovations, which is the driving force behind this growth. Powdered and liquid beverages, nutrition and health science-prepared dishes and culinary aids, milk products and ice cream, and pet care comprise Nestlé's principal business segments. The nutrition and health science and milk products segments are the primary markets for the free from and clean label market as there is a significant demand for natural, organic, and allergen-free alternatives. Nestlé is considered one of the most prominent companies in the free from and clean label market, with an  global market share of 12%. 

Danone

In 2023, Danone's revenue from the free from and clean label market sector was USD 7.5 billion and will be USD 8.8 billion in 2024, representing an 9% growth rate. The company allocates USD 900 million annually to the development of clean labels and natural products, indicating a significant investment in research and development. Danone's primary business segments consist of essential dairy and plant-based products, water, medical nutrition, and early life nutrition. The primary focus of their free-from and clean-label initiatives is the essential dairy and plant-based products segment, particularly given their strong presence in the plant-based dairy alternatives market. Danone holds a 10% of the global market share in the free from and clean label market which is motivated by its dedication to sustainability and health. Their flagship brands, including Silk and Alpro, are industry leaders in the clean label and plant-based categories. In response to the increasing consumer demand for clean label products, Danone has taken a proactive approach to the elimination of artificial additives and the improvement of ingredient transparency. 

Unilever

In 2023, Unilever's revenue from the free from and clean label market was USD 6 billion and will be USD 7.2 billion in 2024 at a rate of 10%. Unilever allocates USD 800 million annually to research and development, with an emphasis on the development of natural and clean label products. Beauty and personal care, consumables and refreshments, and home care comprise the organization's principal business segments. The primary market for their free-from and clean label products is the consumables and refreshment segment, particularly with brands such as Hellmann's and Ben & Jerry's, which have a robust clean label and natural product lines. Unilever holds 8% of the global market share in the free from and clean label market. Their dedication to sustainability, comprehensive product line, and robust brand portfolio are the primary factors contributing to this share. Unilever has been actively reformulating products to increase transparency and eliminate artificial ingredients, a strategy that is well-received by health-conscious consumers. 

General Mills

General Mills generated a revenue from the free from and clean label market was USD 5.5 billion in 2023 and will generate USD 6.5 billion in 2024, indicating a growth rate of 9%. The company allocates USD 700 million annually to research and development, with a substantial portion of this investment allocated to the development of natural products and clean label alternatives. Cereals, snacks, meals, and culinary products comprise General Mills' principal business segments. Free from and clean label initiatives are conspicuously displayed in the cereals and snacks segments, where there is a high demand for minimally processed and natural foods among consumers. In the free from and clean label market, General Mills holds 7% of the global market share. This share is bolstered by their well-known brands, such as Nature Valley and Cheerios, which possess robust clean label credentials. In order to accommodate consumer preferences, the organization has prioritized the reduction of artificial ingredients and the improvement of product transparency. 

The Hain Celestial Group

In 2023, the Hain Celestial Group generated USD 4 billion in revenue from the free from and clean label market and will be USD 4.8 billion in 2024, which would represent an 8% percentage growth rate. Clean label and organic product development are the primary areas of concentration for the company's annual investment of USD 500 million in research and development. Groceries, munchies, tea, and personal care products comprise Hain Celestial's principal business segments. In the grocery and snacking sectors, the free from and clean label initiatives are particularly robust, with brands such as Earth's Best and Terra Chips at the forefront of the market. Hain Celestial holds a 6% global market share in the free from and clean label market. This share is influenced by their emphasis on organic and natural products, which are in accordance with the growing demand for healthful alternatives among consumers. The company's market position has been fortified by its proactive efforts to eliminate artificial additives and ensure ingredient transparency. Hain Celestial's dedication to ethical sourcing and sustainability is also in harmony with the clean label movement, which has a positive impact on its brand reputation and consumer trust in this industry.

Recent developments in Free From and Clean Label Market

• October 2023: International Flavor and Fragrances Inc. introduced Methanova in October 2023, a methylcellulose that is both filterable and compatible with cells, specifically for the biotechnology sector. Methanova is a water-soluble biopolymer that is derived from cellulose, the most prevalent polymer in nature and is plant-based. It is appropriate for use in cell culture media, 3D bioprinting, cryopreservation, stem cell protection, and cell media. 

Conclusion

The free from and clean label market is undergoing remarkable growth, which is being driven by the growing demand for healthful food options and transparency among consumers. The global clean label ingredients market was valued at USD 48.5 billion in 2023 and will be USD 60.1 billion in 2024, with a compound annual growth rate (CAGR) of 11.5%. The free from and clean label market size will be USD 143.6 billion by 2031, at a CAGR of 11.5%. In 2024, the free-from foods market will increase to USD 80.6 billion, which encompasses gluten-free, dairy-free, and allergen-free products. In 2023, the market was valued at USD 70.2 billion. Consumer preferences are significantly influencing the market. According to surveys, 70% of consumers worldwide prioritize purchasing products with clear labels. Artificial additives are actively avoided by more than 60% of consumers in the United States. This trend is also observed in Europe, where there is a significant demand for transparency in product labeling. The Asia-Pacific region is also experiencing rapid development, with a market expansion rate of 12% from 2023 to 2024. This growth is attributed to the increase in health awareness and urbanization.

This market is characterized by its emphasis on product innovation. Globally, 35% of new food and beverage launches in 2023 were classified as clean label products, representing a 10% increase from 2022. Clean label product offerings are being expanded by retailers, with 45% of grocery stores in the United States improving their selections in 2023. Sales of clean label products have increased by 20% on e-commerce platforms, which is indicative of the increasing popularity of online grocery purchasing. The market is still being driven by health and wellness trends. Around 68% of consumers favor products that have clearer labeling and fewer ingredients. The increasing prevalence of food allergies and intolerances further fuels the demand for allergen-free products. In 2023, there will be a 15% increase in clean label certifications, as regulatory and certification bodies are responding.