About the Report
Steady growth of the clean label pectin market is attributable to the surging demand for “no preservatives,” “no artificial ingredients,” and “all natural ingredients” across food, pharmaceutical, and personal care sectors. Future Market Insights has forecast the market to exhibit a CAGR of 6.1% between 2020 and 2028. Demand will continue surging especially on account for the increased packaged and conventional food sales.
In a new report, ESOMAR-certified market research and consulting firm Future Market Insights (FMI) studies in detail the growth trajectory exhibited by the market across 20+ countries. It uncovers hidden opportunities and gauges potential risks for companies manufacturing clean label pectin. Besides this, the report includes a section, exclusively dedicated to studying the implications of COVID-19 outbreak.
Historical and Future Outlook
Clean label trend first made appearance in 1980’s, however, it is not until last decade that the trend began encompassing diverse industries. Thanks to improving access to information, consumers are rendered conscientious about ingredients used in food, pharmaceutical, cosmetic, and personal care products. An increasing number of consumers today prefer buying food and beverages with recognizable ingredients. As such there is demand for reformulating products to remove synthetic additives.
Despite consistently rising demand, global decline in citrus fruit production created unprecedented challenges for the market in 2018. Orange is a key raw material used in the production of citrus pectin, a slump in orange cultivation therefore caused significant hindrances to growth. According to the United States Department of Agriculture, unfavorable weather caused decline in orange production in 2018, creating obstacles to growth.
Nonetheless, clean label ingredients are becoming increasingly common and experts argue that the trend is entering into its next phase, in which the meteoric proliferation of the trend will make it imperative for food and beverages companies to include “better-for-you” ingredients. FMI has forecast that the demand for natural and organic ingredients will scale higher in the future, attracting move investment in clean label pectin.
With spending power of consumers across high potential markets such as India, Malaysia, and Brazil improving, demand uptick is on cards for clean label pectin manufacturers.
How will Pectin Target Low Sugar Sweet Spots?
According to the Consumer Goods Forum, food companies have improved health profile of near 180,000 products in 2016. The same report also revealed that most common improvements included sodium and sugar reduction, besides inclusion of vitamins and whole grains. While cutting down sugar remains a key focus among food and drinks makers, lowering its content can affect the overall product texture.
Pectin, which is a naturally occurring ingredient is fruits can mitigate this challenge. For instance pectin derived from peel of citrus fruits us used to make jams and jellies on an industries scale. Moreover, for fruits that naturally have low pectin content such as strawberries, it is often necessary to add pectin so that formulations have the correct texture.
Proliferation of clean label trend is expected to gain momentum as governments around the world implement policies and guidelines favoring the use of natural ingredients. For instance, the U.S. manufacturers are motivated to reduce sugar ahead of the updated Nutrition Facts panel. According to 2020 compliance for Nutrition Facts label proposed by the Food and Drug Administration, manufacturers are required to list added sugar in the ingredients list.
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How are Potential Health Benefits Causing Shift in Food Ingredients?
A growing body of evidences are reporting the potential health benefits of clean label pectin in lowering cholesterol and risk of cardiovascular ailments. According to the World Health Organization (WHO), the number of people with diabetes rose to 422 million in 2014. Diabetes also is listed as one of the major causes of blindness, heart attack, kidney failure, and lower limp amputation. With consumers around the world becoming increasingly aware about the deleterious effects of added sugar and synthetic food additives, they are challenging manufacturers to be more transparent about ingredients used.
Rising focus on health and wellness is making consumers increasingly savvy about labels. Pectin, which is primarily a jelling agent used in jams and jellies, is currently at the forefront of the clean label trend. Its application across food industry is surging because pectin is a naturally occurring type of hydrocolloid that removes the need for including calcium salts, which are sometimes added to give proper texture to low-sugar jams.
Pectin is primarily known for its ability of improving digestive issues. Some of the researches have found that pectin may also help in acid reflux, weight loss, and diabetes management. Awareness regarding these benefits is causing shift to clean label ingredients, a trend which is expected to gain momentum in the coming years
What Advancements are Spurring Pectin Innovations?
Pectin is naturally found in apple, berries, and other fruits. Nowadays it is primarily sourced from apple pomace and citrus peel rinds. The technology of deriving pectin from citrus fruits has blossomed majorly in the last decade and now producers are able to manipulate both physical and chemical structure of pectin to better target gelling and stability.
The advent of contemporary pectin technology has made possible a wide range of consumer-pleasing beverages such as milk-juice blends, drinkable yoghurts, and fermented drinks. Pectin also is increasingly used in dairy-free fermented beverages such as kombucha. This new generation of drinks are appealing to consumers not only because of their health benefits and convenience, but the clean-label ingredient list is often regarded as their unique selling proposition (USP).
According to Mintel, nearly 43% of Americans agree that it becomes often difficult to stay healthy in their modern lifestyle. Therefore, the demand for food and beverages with clean-label ingredients is poised to surge, especially with the demand for reduced sugar-application and dairy free beverages rising.
U.S. Gains on High Familiarity with Clean Label
According to FMI, the clean label pectin market in North America was worth US$ 24.7 Mn in 2020 and is projected to surpass US$ 36.5 Mn by the end of 2028. The rising demand from the U.S. is one of the chief drivers in the region. According to the Centers for Disease Control and Prevention (CDC), the prevalence of obesity in America was 42.4% in 2017-2018. Furthermore, it is stated that obesity-related conditions such as stroke, heart disease, type-2 diabetes, and certain types of cancer are leading causes of preventable, premature deaths in the country.
Against this backdrop, an increasing number of consumers in the region are leaning towards healthy eating, which has created an environment conducive for clean label pectin sales. Several studies conducted on studying consumer preference have revealed that phrases such as “organic”, “clean”, “GMO-free” and others are common among American consumers as they seek out proper information on ingredients included.
For instance, in its 2019 Clean Label Study, Kerry Inc., has surveyed 2,100 U.S. consumers and found that 60% of the respondents were familiar with clean label and 44% said that clean label was important to them. With the demand for clean label ingredients unlikely to decelerate, the U.S. is expected to offer lucrative opportunities for clean label pectin sales in the coming years.
U.K. to See Clean Label among Top Healthy Food Trends
Europe, as per FMI, accounted for 38.6% of revenue share in the market in 2020. A recent survey conducted by Ingredion across 9 European countries have revealed that consumers, including those in the U.K. are placing more importance on ingredients’ list of food products. While manufacturers are not oblivious to the clean label wave, there is lack of proper research on regional and country-wise differences is creating hindrances.
Puratos U.K. in a latest study had predicted that clean label was among the top healthy food trends in the U.K. in 2020. It highlighted that inclination towards veganism, taste, and environment underpinned the healthy food trends of 2020. The rising demand for transparency and increasing focus on health have led to an increasing number of consumers checking lavels in the country.
Puratos revealed that almost 86% of their respondents agreed to have done this in 2019. Also, 36% of people have reportedly checked labels for information on preservatives, according to the survey. With focus on healthy living predicted to accelerate at a greater rate in the coming years, promising growth is on cards for clean label pectin sales in the U.K.
Germany Holds Sway in Europe
Studies conducted over the last few years have revealed that the demand for clean-label ingredients is poised to surge in Germany. A study conducted by the United States Department of Agriculture (USDA) revealed that German food culture is gradually shifting to vegan. According to the study, about 35% of population in Germany consider the availability of vegan or vegetarian products as “very important”.
Vegan population in Germany has vastly expanded in the last few years. A majority of vegan population in the country considers veganism a lifestyle choice and not simply a dietary restriction. The increase in focus on wellness, has been creating lucrative prospects for clean label pectin sales in Germany. With people looking for vegan and dairy free alternatives, food and beverages producers in Germany are expected to revisit their ingredient list to include healthier alternatives. Spurred by this, clean label pectin sales is projected to increase in Germany.
How Lucrative is France for Clean Label Pectin Sales?
Europe is one of the largest markets for jams, jellies, marmalades, and purees in the world and it represents nearly half of total world imports, as per CBI, Ministry of Foreign Affairs. France is among the leading importers of jams and jellies in Europe, which makes it one of the lucrative markets for clean label pectin.
The rising focus on healthier living, besides increasing income in Central and Eastern European countries is bolstering sales prospects for clean label pectin producers. As per a French consumer survey (IFOP-Charal, October 2019), twenty-five percent of French consumers are already using scoring apps to make their purchase decisions.
This trend has direct influence on product development strategies adopted by manufacturers. For example, the French retail groupe Intermarché already announced in September 2019 about eliminating 142 additives from 900 products within a year and a half. The rising use of scoring apps is indicative of increasing focus on health and wellbeing among French consumers, which is in turn creating lucrative growth opportunities for clean label pectin sales.
China Clean Label Pectin Sales Surging
Health is overtaking flavor among consumers across China, which is a key trend enabling clean label pectin sales. An increasing number of urban Chinese consumers are opting for reduction of salt intake. There is also strong emphasis on cleaner ingredients, creating growth opportunities for the clean label pectin sales in the country. Some of the leading food producers are identifying the growing opportunity for tapping into the blossoming clean label trend in China.
With prevalence of diabetes and other chronic ailments increasing in China, the demand for clean label ingredients is poised to surge. According to the WHO, the prevalence of diabetes among adults in China increased from 9.7% in 2007 to 11.2% in 2017. In 2013, the country implemented various healthcare reforms and several government initiatives for preventing, screening, and management of non-communicable diseases. With focus on health and wellness considerably rising, demand for clean label ingredients such as pectin is forecast to surge in China.
Why is High Methoxyl Pectin More Preferred?
Among products available in the market, high methoxyl (HM) pectin is more preferred than low methoxyl pectin. High methoxyl pectin is labelled as either slow-set or rapid-set. The impressive gel strength of this category of products is attributable to the increase in the presence of methylation, however, further increase in the degree of its presence, that is more than 70% could negatively impact its gel strength. The increasing use of high methoxyl pectin in the production of jellies and jams will enable growth in the segment.
According to FMI, the canning applications of HM pectin will remain high. Contrary to this, low-methoxyl pectin will be used across the food sector in the production of low sugar jams and jellies. In the coming years, HM pectin sales uptick is expected in response to the increasing demand for natural stabilizer and gelling agent. With focus on ingredients derived from natural sources rising, sales across both segment are poised to surge considerably.
Which Source is Most Preferred?
Orange has emerged as a key raw material used in the manufacturing of citrus pectin. Therefore slump in orange production could negatively impact overall production of clean label pectin. According to a biannual report by USDA, a slump in orange production was recorded in 2018 due to unfavorable weather, however, orange juice had been recovering in 2019, according to the July 2019 report.
The production of orange juice in the United States was further projected to increase by 75% in 2019. Meanwhile import of orange juice was forecast to decline by 16% in the same here. A similar pattern of increase is likely for citrus fruits. Surge in orange production is expected to reflect positively on the clean label pectin production.
What Drives Demand in Food & Beverages Sector?
The food and beverages industry will remain key end user of clean label pectin. The rising focus on health and wellness worldwide has cause considerable shift in eating patterns. While the demand for food and beverages items containing natural ingredients is on a rise, consumers are leaning towards clean label. This has resulted in increasing focus on ingredient list among food producers.
Spurring application of clean label pectin in the food sector can also be attributed to studies highlighting the various health benefits of pectin. According to a research presented at the American Society of Clinical Oncology (ASCO) Genitourinary Cancer Conference, modified citrus pectin has the potential of slowing down or completely halting the growth of prostate cancer cells.
In order to leverage unique medicinal properties of the ingredient, some of the leading manufacturers are taking recourse of advanced technologies. Such efforts are boosting prospects for clean label pectin sales in the food industry.
Clean label pectin market is projected to go mainstream backed by rising application in food and beverages, pharmaceuticals, personal care, and cosmetics products. With consumers consciously shifting towards ingredients derived from natural and organic sources, producers are compelled to offer clean label ingredient list. A study on the market activities reveals that clean label pectin manufacturers are leaning towards expansion of the manufacturing facilities besides entering into strategic collaborations to gain competitive advantage.
- CP Kelco announced the expansion of the manufacturing strength of its Danish pectin plant by 15% in September 2019
- CP Kelco also has increased its regional penetration following a partnership with Azelis in May 2019
- Palmer Holland Inc., a leading player in the U.S. has collaborated with Ceamsa from Spain to expand its operations across Europe
- In 2018, France-based manufacturer Naturex SA acquired a Switzerland based company Givaudan SA with an intent of expanding its business activities
Some of the leading companies operating in the market are:
- E. I. DuPont De Nemours And Company
- Cargill, Inc.
- CP Kelco
- Kraft Heinz
- Naturex S/A.
- Herbstreith & Fox Group
- Compañía Española de Algas Marinas S.A. (CEAMSA)
- Silvateam s.p.a.
- B&V SRL
- Lucid Colloids Ltd.
- DSM Andre Pectin Co. Ltd.
*The list is not exhaustive, and only for representational purposes. Full competitive intelligence with SWOT analysis available in the report.
Scope of the Report
Historical Data Available for
USD Million for value and Volume (MT
Key Regions Covered
North America, Latin America, Europe, APEJ, Japan, Middle East & Africa
Key Countries Covered
US, Canada, Germany, U.K., France, Italy, Spain, Poland, Russia, China, South Korea, India, Thailand, Malaysia, Vietnam, Indonesia, Australia, New Zealand, Japan, GCC Countries, Turkey, Northern Africa, South Africa
Key Segments Covered
Product Type, Source, Application, and Region
Key Companies Profiled
Market Forecast, brand share analysis, competition intelligence, DROT analysis, Market Dynamics and Challenges, Strategic Growth Initiatives
Customization & Pricing
Key Questions Answered in the Report
Q1. Which is the most lucrative market for clean label pectin?
Europe currently accounts for leading share in the global clean label pectin market. The rising demand from the U.K., Germany, and other countries will support growth in Europe. However, over the forecast period, APEJ is forecast to emerge as a highly lucrative market exhibiting a CAGR of 8.1% between 2020 and 2028.
Q2. Which type clean label pectin is most preferred?
High methoxyl pectin finds increasing application in production of jams, jellies, and marmalades. The demand is expected to rise consistently especially as consumers lean towards clean label ingredients list.
Q3. Which is the more preferred source for extracting clean label pectin?
Orange has emerged as a key raw material used in the production of clean label pectin, besides apples, lemon, and others.
Q4. Which are some of the leading companies manufacturing clean label pectin?
Some of the leading companies manufacturing clean label pectin are E. I. DuPont De Nemours And Company, Cargill, Inc., CP Kelco, Kraft Heinz, Naturex S/A, Compañía Española de Algas Marinas S.A. (CEAMSA) among others
Q5. Which sector exhibits higher demand for clean label pectin?
The demand for clean label pectin will consistently rise in food and beverages sector. The rising focus on health and wellness among consumers, besides their inclination towards reading ingredient list before final purchase is encouraging producers to replace synthetic additives with clean label ingredients such as pectin.
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- High Methoxyl Pectin
- Low Methoxyl Pectin
- Food and Beverages
- Dietary Supplements
- Personal care & Cosmetics
- North America
- Latin America
- East Asia
- South Asia
- Middle East and Africa (MEA)