Market Trends of South America Clean Ingredients Industry
Rising demand for clean ingredients in Processed Food Industry
The demand for clean-label ingredients in the processed food industry has surged due to evolving consumer preferences for healthier, more transparent food choices. The clean label is characterized by its natural origin and easy-to-understand description, aligning with growing healthy eating trends. The industry for clean-label ingredients in South America essentially thrives on the broader technological and functional benefits of these ingredients in terms of high quality, safety, affordability, and nutrition.
Moreover, food manufacturers have also adapted the production of natural additives that can be helpful while developing clean-label products. These additives have applications in various food products, including egg replacement in low- and high-fat vegan food, dressings, cooking sauces, ready meals, and other applications. Thus, food and beverage manufacturers are also increasingly reformulating their products to meet the changing consumer demand for natural and organic ingredients. For instance, in March 2022, DSM launched DelvoGuard cultures, targeting producers looking for clean-label solutions while also providing them with a solution to extend the shelf life of their processed food solution.
Increasing Acceptance of Clean Label Ingredients in Argentina
In recent years, consumers in Argentina have reduced the consumption of sugar soft drinks and beverages. Domestic players are offering stevia-infused beverages. Stevia- and polyol-sweetened beverages have reached the Argentine market, increasing the demand for clean-label ingredients in the country. According to a survey supported by the Global Stevia Institute in Argentina, consumers preferred natural sweeteners, with stevia among the top choices. Households with teenagers expressed a stronger intent to purchase foods and beverages with stevia to help reduce dietary sugar intake.
Argentina is a potential market, significantly due to economic growth and the shift of consumers' preferences toward healthy and value-added food. As per World Bank data, Argentina's economy has recovered faster than expected after the pandemic, with an increase of 10.4% of GDP in 2021 and 5.2% in 2022. Rising disposable income and the health-conscious population drive the demand for low-calorie, low-sugar beverages with natural ingredients. As per the CIP data, 73% of Argentines are on a trend of healthy eating habits in the coming years. Sports nutrition in Argentina is also driving the market for clean label and specialty ingredients, as the demand for health/fortified drinks continues to grow in the forecast period, thus driving the market studied forward in Argentina.
