Clean Label Starch – A Need in Developed Countries, A Want in Developing Countries
The clean label market is set to record a volume sales tantamount to ~232 thousand MT in 2019, and is likely to grow to ~407 thousand MT by 2029. This above-average growth of the clean label starch market is attributable to the shifting attitude of consumers towards healthy food and beverages.
According to a recent report published by Transparency Market Research (TMR), consumers are willing to buy clean-labelled food products, even at a premium price, which has been favoring the movement of the clean label starch market. Being home to the thriving bakery and confectionary industry, there has been a sharp rise in demand for clean label starch in Europe; however, in developing markets, market players look at their products as a way to differentiate their offerings with an effective brand messaging strategy.
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Since consumers’ choices are fickle, market players can adapt to the new consumer preference for clean label products by introducing products with enhanced viscosity and texture for improving the taste of end products.
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Low Penetration Rate of Clean Label Starch in Developing Countries
Being physically extracted from corn, potatoes, wheat, and other organic food products, clean label starch is obtained in low quantities and requires raw materials in abundance, which directly passes on to the overall cost of the clean label starch. Contrary to this, modified starch is chemically treated and boasts better time-to-market than its clean-labeled counterpart. Though technological improvements are likely to aid manufacturers of clean label starch in speeding up the extraction process, the end product will still encounter the ‘high-cost’ issue.
In cost-sensitive regions, especially where health concerns haven’t occupied a prominent place, market players tend to leverage low-cost ingredients to increase their profit margins, which is projected to exert a highly negative impact on the adoption rate of clean label starch.
Exponential Growth Opportunity Coming from Non-Food Industry
Several research pieces have found some unique properties of clean label starch, which has generated interest among manufacturers operating in the pharmaceutical industry. Nontoxic, nonirritant, and versatility of clean label starch have made it a vital ingredient for the industry. With the rise in research & development activities in the landscape, there has been a rise in the use of clean label starch as a lubricant, binder, and diluent for the manufacturing of tablets and capsules. In addition, the use of clean label starch as a disintegrant has been integral for enabling tablets and capsules to disintegrate into smaller parts, so that drugs can be released quickly for better absorption.
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Yet another profitable opportunity for clean label starch manufacturers is generated from the animal feed industry, as livestock farmers seek quality feed to improve the output of their farms.
The report also shows that, in 2019, ~73% of the total clean label starch consumed will be in the powdered form. A key success factor for the sales of powdered clean label starch can be attributed to its high soluble property and long shelf life. In addition, as boundaries no longer define the sales of food products, powdered clean label starch can be more easily shipped as compared to the liquid ones.
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