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With ∼ 6.4% CAGR, Global Food Coating Ingredients Market Size & Share Worth USD 7.1 Billion by 2030 | Food Coating Ingredients Industry Trends, Demand, Price, Analysis & Forecast Report by Zion Market Research
Food coating ingredients are used in the coating process which includes the application of power or liquid on the surface of an edible product to impart sensory properties. It may either be used to provide the coated product with an improved physical appearance or enhance its taste amongst other properties.
The coating process used to cover different food items may vary and can cause different outputs. For instance, when ready-to-eat meals like cereals are coated with sugar syrup, the final edible item is enhanced flavor and appearance-wise. Food coating ingredients help to upgrade the organoleptic features of the food. These are properties related to the final experience that comes with the consumption of certain food and makes use of senses like smell, taste, touch, and sight. There are different types of food coating ingredients pre-dusts, which are created by blending finely grounded grains also known as a dry batter. They generally form the first layer of coating. This layer provides a surface for the rest of the coating surfaces to attach while also leading to an increased rate of coating pickup.
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The global food coating ingredients market is projected to grow owing to the growing revenue registered by fast food retail chains like McDonald's, Kentucky Fried Chicken, and Burger King. Companies serving fast food items rely heavily on fried items, which are heavily coated with food-coating ingredients. There are different types of elements used to coat the product but the most widely used coating ingredients include flour, yeast batter, beer batter, and cornmeal batter to name a few. For instance, to prepare fried chicken, makers generally use large quantities of breading ingredients which impart edible items with a crispness that forms the essential element of a fried food product.
The breading batter is made of some form of liquid like water or milk, flour, pepper, and salt. Other species like garlic powder or onion powder can also be added depending on the receipt. For instance, McDonald's operates in more than 100 countries spread across over 37000 locations. The company has already announced its plan to open around 25 to 30 outlets in India by the end of 2022. Since these companies have adopted excellent marketing strategies with the help of niche advertisement and product innovation, the revenue is projected to reach new heights leading to more demand for food coating ingredients.
Even though food coating ingredients have been in the market for a long time and are widely used, in most cases, they lack the general barrier quality expected from them. This results in the coated food item achieving unwanted undesired flavor or texture. Hence, food coating ingredients must be used in appropriate quantities and only with other ingredients they work well with. Otherwise, the market players face the loss of monetary and non-monetary resources. Many companies that constantly work with food coating ingredients have specially designed recipes and use customized equipment to obtain the desired results.
The global market is projected to grow owing to the increasing adoption of technology in developing better and more effective food coatings with a wide variety of ingredients. For instance, the issue related to the food coating ingredients lacking the necessary barrier quality can be resolved by using nanotechnology which deals with the entire process of food cultivation or final packaging conducted using tools that work on nanotechnology. For instance, in 2015, researchers at the Center of Excellence for Post-harvest Biotechnology (CEPB), Malaysia were working on developing a food coating material that could help prevent food loss due to lack of electricity and other items needed for storing food.
The end product is highly process-sensitive, and a slight deviation from the approved method can lead the final edible product to lose its taste, texture, or appearance. This poses a major challenge for the market players as they need to invest in high-grade equipment and manual power to make sure that the entire food production process is in line with the established protocol.
Based on application, the global market is segmented into dairy products, bakery products, fruits & vegetables, ready-to-eat- cereals, confectioneries, meat & poultry products, and snacks & nutritional bars. The global market witnessed the highest revenue in the confectioneries segment which dominated more than 24% of the total revenue. Confectionery products are rich in carbohydrates and sugar and include products like candied fruits & nuts, sugar candies, ice cream, chewing gum, and chocolates. The bakery industry was the second-largest contributor to global market growth.
Based on outlook, the global market divisions are batter & crumbs, fats & oils, sugar & syrups, hydrocolloids, flours, salts, seasonings, spices, cocoa & chocolates, and others. Sugar and syrups held over 36.5% of the global market share in 2021 and are projected to dominate in the coming year as well. They are used widely in the processed food segment because they allow edible items to upgrade taste, texture, or appearance. The segment may generate more than 3002 million by 2030.
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The global food coating ingredients market is projected to witness the highest growth in North America owing to the extensive use of technology in the research & development of high-grade ingredients as well as the presence of some of the large corporations that deal in the export of vast amounts of food solutions. Cargill Inc, a leading multinational conglomerate in the food business is located in the United States . As per Statista, in 2021, the company amassed more than USD 134 billion in revenue.
Cargill exports around 25% of the total grain produced in the US and as per a recent report, it spends over USD 50 million every year on innovation. Growth in Europe may be driven by the growing food & beverages sector, especially driven by the bakery industry, one of the major tourist attractions in European nations. The Netherlands generated more than Eur 2.1 billion from the production of bread and baked goods in 2022.
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