Market Overview
Ingredients for food coatings are substances added to food to improve its aesthetic appeal. They are used as food ingredients in various bakeries and confectionary products to enhance the flavors and appearance of cakes, rolls, treats, chocolates, toffees, and other things. Cocoa and chocolates, sugars and syrups, flavors and flavors, starches, hydrocolloids, fats and oils, scraps, and flours are the most frequently used fixings for coverings. The growth of the food handling industry has a significant impact on the market for food coating ingredients. They are used in the food and beverage industry to enhance food products’ taste, surface, appearance, and flavor. The market for food coating ingredients is being driven by the high tendency of the developing population to have the item.
The global food coating ingredients market was valued at USD YY million in 2022. It is forecasted to reach USD YY million by 2030, growing at a CAGR of 6.9% during the forecast period (2023-2030).
Market Dynamics: Developing food handling skills for meat, pastry, snacks, and breakfast oatmeal drives the market expansion
Meat, snacks, pastry kitchen items, and breakfast oatmeal are a few examples of the important uses of food preparation equipment. Due to the fast urbanization of consumers’ lifestyles, ready-to-eat and ready-to-cook meat, candy store items, and pastry shop items are becoming more and more popular because they are prepared foods requiring less time and effort to prepare while still ensuring sustenance and strength. Additionally, consumers’ rising preferences for protein-based foods, the popularity of frozen foods, and the growing frequency of snacking are fueling consumer interest in these products, which is driving the growth of the market for ingredients like flavors, fats and oils, cocoa, flours, and sugar and syrups. As a result, it is also anticipated that demand will increase for equipment such as coaters, instruments, and enrobers.
However, the growing demand for food coating ingredients and fluctuating fixings prices have become significant barriers to the development of food coating. The significant cost of ingredients has led to high production costs. This further reduces the likelihood that the producer will accept new covering innovations due to the ensuing lower margins and extended time needed to reach the breakeven point for food producers.
Market Segmentation: Liquid segment accounted for the highest share in global food coating ingredients market
Liquid coating holds the highest share of the food coating ingredients market. Ice cream coatings, flavored nuts, granola bars, and confections like candy bars all use liquid coating in their formulations. For flavorings on solid food products like nuts, cakes, doughnuts, cookies, sugar wafers, ice cream bars, and fruit pieces, manufacturers may use coatings, which are made of fat-based formulations that are melted and then applied to the products. For instance, liquid food coating ingredients like batter are used in products like chicken nuggets and wings. The demand for liquid food coating ingredients has increased due to batter coatings’ ability to add color, flavor, texture, and shelf life to these products.
On the other hand, the meat and seafood segment are anticipated to have the fastest share in terms of application. North American large-scale usage primarily drives the market. A coating is applied to meat and seafood products to prevent spoilage. As a result, savory flavors and the crispy texture of meat and seafood products can be added. The market for this application is also being steadily driven by America’s rising consumption of crispy, fried chicken coated in batter and crumbs.
Geographical Penetration: North America is the dominating region during the forecast period.
During the forecast period, the North American region is anticipated to dominate the market for food coatings. The area uses automatic equipment to coat food ingredients and is supported by cutting-edge food coating technologies. Most snacks consumed by consumers in the US and Canada are salty, like potato chips, which require a dry coating. In addition, these nations eat frozen food that needs a coating for a longer shelf life. Cereal, which also needs coating, is a popular breakfast choice in this area. Additionally, the US is a sizable market for confectionery goods.
On the hand, the food coating equipment market is expected to grow at the fastest rate in the Asia Pacific region. Rapid industrialization, rising demand from numerous applications, and rising government spending on aiding food producers & processors in modernizing their technologies & processes are driving the growth of the coating equipment market. Focusing on these developing markets, numerous multinational corporations are expanding their footprint by establishing manufacturing facilities, distribution centers, and R&D facilities. Several multinational corporations are investing heavily in India, which is expected to have the fastest growth rate in the region due to the country’s favorable business environment and affordable labor costs.
Competitive Landscape:
Global food coating ingredient market is competitive in nature, with the leading players capturing a whopping share in revenues. Ashland Inc. Cargill Inc., Archer Daniels Midland Company, Associated British Foods PLC, Agrana Beteiligungs-Ag, Kerry Group, Tate & Lyle PLC, Ingredion Incorporated, Cooperatie AVEBE U.A., Pioneer Foods and among others, are focused on technology advances for new launches at affordable prices. The major players are utilizing strategies including acquisitions & mergers, regional expansion, and partnerships to stand out as strong competitors in the market. Increased focus on R&D and new product launches are additional ways the key players improve their market presence. Innovation by various leading players in the market is expected to offer lucrative growth opportunities for players in the global food coating ingredient market. For instance, regardless of the coating material, adding spices, seasonings, and flavorings to the matrix are becoming more common to change the flavor and frequently adds heat to the finished product. In some cases, the flavorful additions help the dish to be healthier.
COVID-19 Impact: Negative impact on the global food coating ingredient market
COVID-19 has caused consumption to soar, which has had an impact on almost every industry. Because many people prefer fresh, healthy food and are becoming more health conscious, COVID-19 has several detrimental effects on the market for food coating ingredients. Before the pandemic, there was a higher consumption of bakery goods, snacks, and confectionery items than during the pandemic. The market for food coating ingredients has grown due to people’s evolving lifestyles and preferences for ready-to-eat foods. People were concentrating on eating healthy foods during the lockdown, which decreased the consumption of preserved food. Due to a disturbed demand for the ingredients used in food coatings and a limited supply of raw materials, many businesses have shut down their manufacturing facilities. Due to social distance, some businesses ran on a very small workforce. The disruption of transportation and the sealing of international borders affected the flow of raw materials.
The global food coating ingredient market report would provide an access to approximately 53 market data tables, 50 figures and 200 pages