Ethical Label Market size was over USD 938.46 billion in 2023 and is poised to exceed USD 2.23 trillion by 2036, growing at over 6.9% CAGR during the forecast period i.e., between 2024-2036. In the year 2024, the industry size of ethical label is evaluated at USD 990.26 billion.
Increasing awareness and concerns regarding the right food consumption drive F&B companies toward transparency and for the adoption of ethical label food products. What influences the global market is the rising interest in fair trade practices, ethical sourcing, and sustainability in the consumer groups. People now are highly aware of the impact of individual consumption of food products on the environment which may boost the demand for labelling, which in turn is anticipated to promote the growth of the market to grow at a significant CAGR during the forecast period. The promotion of high moral measures for manufacturing and consumption is highly stimulating the market and motivating companies to go for ethical label that respect environmental sustainability, promotes social justice, animal well-being, and equality, and makes the workplace better.
Growth Drivers
Over the last decade, consumer interest and awareness of sustainable consumption (SC) have grown strongly all over the world which is driving the demand for ethically correct labelling in the market. In a complementary way, environmental concerns of consumers represent an important part of consumer ethics. People now are more concerned about what they consume and how that effects the environment. Owing to the increasing concern for health there is a general preference for organic products over chemical products and these are few major factors that ascribe to the growth of market in future.
Consumption of meat is considered as one of the greatest factors contributing to global warming. Several tests and analysis conducted in this direction show that consumers are informed of the impact of meat consumption on the planet, which may give a push to the global ethical label market. Though the people who have actually changed their meat intake for ecological concerns are a small minority, but in the upcoming years, the number will experience a significant rise as more and more people are inclining towards veganism owing to its health benefits. Such a factor is anticipated to fuel the growth of market.
Challenges
The entire world is suffering through the COVID pandemic, which has also impacted the raw materials supply, and hence can impact the market. The supply chain of raw materials and products has been severely affected due to the logistics challenges faced by the vendors, which may restrain the growth of the market. Almost the whole of the world has imposed strict regulations regarding inter-state and intra-state movements. Also, stringent isolation rules worldwide have resulted in the short supply of raw materials and workforce. This can slow down the growth rate of market.
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Base Year |
2023 |
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Forecast Year |
2024–2036 |
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CAGR |
6.9% |
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Base Year Market Size (2023) |
USD 938.46 billion |
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Forecast Year Market Size (2036) |
USD 2.23 trillion |
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Regional Scope |
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The global ethical label market is segmented on the basis of label type, product type, and distribution channels. The label type is further divided into halal, organic, clean, sustainability & fairtrade labels, kosher, animal welfare labels and vegan labels. Out of these, the halal segment accounted for the largest share in 2019 owing to the increasing Muslim population all over the world, however, it is anticipated that the organic and kosher segment of the market will experience the fastest CAGRs during the forecast period. Growing awareness about the health benefits of kosher and organic food is the reason behind this growth.
Our in-depth analysis of the global market includes the following segments:
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By Label Type |
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By Product Type |
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By Distribution Channel |
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On the basis of regional analysis, the global ethical label market is segmented into five major regions including North America, Europe, Asia Pacific, Latin America and Middle East & Africa region. Out of them all, Asia Pacific industry is set to hold largest revenue share by 2036, in view of the spreading consciousness among purchasers and desirable government regulations. Also, packaged foods are obtaining excellent traction owing to the hectic work schedules, expansion in the number of working women, and a tilt towards on-the-go food consumption, which is anticipated to raise the growth of market across the food sector. Alongside, North America and Europe are also calculated to remain the most profitable regions in the market as the range of consciousness and acceptance among customers is higher than in other regions.
Author Credits: Abhishek Anil
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