Expert updates: Natural ingredients February 2020

Category : Market information: figures and trends

Published on 18/02/2020

image Expert updates: Natural ingred...

Today’s new ingredients will be tomorrow’s new products

The various economic, ecological and health crises that have shaken the food sector – along with the media’s demonisation of certain ingredients and additives – have damaged consumer confidence in processed products. Sincerity, authenticity, and transparency have become the watchwords to meet the expectations of consumers who now rely on apps (e.g., yuka, scanup, dietsensor) to make their choices. Clean label means much more than simply removing artificial additives from the list of ingredients. It encompasses issues of authenticity, traceability, sustainable and organic farming, animal welfare, and complete transparency regarding the origin of ingredients. The products should be lightly processed and created in a traditional and sustainable way by real people using familiar ingredients.

The Market
o According to a Market Data Forecast study, the clean label ingredients market reached $39 billion in 2019 and should reach $54.2 billion in 2024, representing an average YOY growth of 6.79%.
o According to Innova Market Insights, the number of product launches worldwide with a “clean label” claim is growing by 13% per year. It now represents nearly 1/3 of product launches
o The market’s drivers are:
o Consumer expectations in terms of health
o Consumer expectations in terms of sustainable development
o The influence of apps, media, and social media
o The search for simplicity and familiar products
o The obstacles are:
o Lack of time
o The search for new sensations
o Price
o The natural food colouring sector has surpassed the artificial sector since 2011. It stood at $1.3 billion in 2016 and is expected to reach $2.1 billion in 2023 (Source: Research Nester)
o The natural flavouring market is expected to reach $7.7 billion in 2023 ($4.9 billion in 2015) (source: Credence Research)
o The National Agency for Food, Environmental, and Occupational Health Security (ANSES) studied more than 30,000 consumer products between 2008 and 2016 and reached the following conclusion: more than 18% of foods are additive free today, vs. 13.7% ten years ago.

Consumers

• 94% of consumers around the world want “natural” products (GlobalData).
• To the question “What does ‘natural’ mean to you?” this is what consumers answered (source GlobalData 2019):
o Made with real ingredients: 62%
o Free from preservatives: 60%
o Free from artificial ingredients: 54%
o Organic: 49%
o Eco-friendly: 46%
o Minimally processed: 41%
o Vegetarian: 39%
• 46% of consumers worldwide would choose one brand over another because it has more natural ingredients.
• ¾ of consumers believe artificial additives are bad for health (GlobalData 2018)