Ethical Label Market Trends

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 ethical label 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 global ethical label market to grow at a significant CAGR during the forecast period, i.e., 2020-2028. The promotion of high moral measures for manufacturing and consumption is highly stimulating the global ethical label 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. 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 global ethical label 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. CLICK TO DOWNLOAD SAMPLE REPORT

Growth Drivers

Increasing Preference for Health and Values amongst Consumers

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 global ethical label 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 the global ethical label market in future.

Increasing Awareness for Veganism

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 ethical label market.

Restraints

Supply Chain of raw Materials and Products Affected Due to COVID Pandemic

The entire world is suffering through the COVID pandemic, which has also impacted the raw materials supply, and hence can impact the global ethical label 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 global ethical label 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 global ethical label market.