Global Food Coating Ingredients Market Grows Steadily at a CAGR of 6.1%

Introduction

Coating is a process used in the food industry to apply a layer of liquids or solids to a product. It consists primarily of setting the product particles in motion and simultaneously applying the coating ingredient in a specific pattern to expose one to the other. It consists of adhesion, friction, viscosity, surface tension, and crystallization occurrences.

Common ingredients for food coatings include oils, fats, spices, flour, syrup, chocolates, flavor enhancers, sugar, and batter. They aid in preserving the nutritional profile and structural integrity of products, enhancing the quality of food products, altering the surface gloss, and preventing the migration of moisture and lipids.

Market Dynamics

Growing Demand for Processed Food Drives the Global Market

Rapid urbanization, an improved consumer lifestyle, and a substantial disposable income all contribute to the growth of the processed foods market. For instance, over fifty percent of the world's population resides in urban areas today. By 2045, the urban population will increase from 3 to 6 billion. Factors such as the increase in the number of millennials, the increase in the number of working women, hectic work schedules, and on-the-go consumption patterns are anticipated to drive revenue growth for global processed food products.

Additionally, the significant expansion of the food and beverage (F&B) industry has led to an increase in the demand for healthy ready-to-eat (RTE) and ready-to-drink (RTD) foods and beverages. This has stimulated the adoption of food coating ingredients to enhance the organoleptic properties of processed, fried, bakery, and consumer goods, a key factor driving market growth.

Increasing Research and Development Creates Tremendous Opportunities

There has been a surge in R&D to develop novel eco-friendly food coatings for the market in response to the growing interest in sustainability. According to a recent study published in ACS Food Science & Technology, avocados can be coated with a chitosan-based substance to extend their shelf life. This study demonstrated that chitosan, a biomaterial derived from the exoskeletons of shellfish, possesses antibacterial properties when applied as a coating to avocados and other fruits.

Similarly, in September 2022, researchers at the Indian Institute of Technology (IIT) Guwahati created a coating that enhanced the shelf life of fruits and vegetables by over two months. The researchers at IIT Guwahati believe that their innovation could assist the country in achieving Sustainable Development Goal (SDG) target 12.3, which seeks to reduce food losses throughout production and supply chains, including post-harvest losses. Such developments create opportunities for food coating ingredients market vendors to develop new products.

Regional Analysis

North America is the most significant global food coating ingredients market contributor and is expected to expand substantially during the forecast period. The region's dominance is attributable to the high consumption of salty snacks (which require dry coating) and the rising consumption of frozen food products in nations such as the United States and Canada. In response to growing health concerns among individuals in the region, industry leaders are launching novel coating products to cater to this emerging demand. For example, Startchy, Inc. announced the U.S. release of Yumbrella, their organic coating for the apple industry, in December 2021. This is the first washable coating for the fruit and vegetable industry in the United States.

In addition, CSM Ingredients announced in June 2023 that its Hi-Food division would enter the United States. Hi-Food specializes in researching, developing, and producing natural value-added ingredients for the food industry. These developments are anticipated to accelerate market expansion.

 

Key Highlights

• The global food coating ingredients market was valued at USD 05 billion in 2022. It is estimated to reach 5.19 billion by 2031, growing at a CAGR of 6.1% during the forecast period (2023–2031).
• Based on product, the global food coating ingredients market is divided into cocoa and chocolates, fats and oils, salt, spices and seasonings, flour, batter and crumbs, starches, hydrocolloids, sugars and syrups, and others.
• Based on application, the global food coating ingredients market is segmented into bakery products, confectioneries, R.T.E. cereals, dairy products, snacks and nutritional bars, fruits and vegetables, meat and poultry products, and others.
• North America is the most significant global food coating ingredients market contributor and is expected to expand substantially during the forecast period.

Competitive Players

1. Bowman Ingredients
2. DU Pont DE Nemours and Company
3. Archer Daniels Midland Company (ADM)
4. Ashland Inc.
5. PGP International Inc.
6. Tate & Lyle PLC
7. Agrana Beteiligungs-AG
8. Ingredion Inc.
9. Cargill Inc.
10. Newly Weds Foods
11. Kerry Group PLC

Recent Developments

• March 2023- Melodea Ltd., an Israel-based provider of eco-friendly coating products for consumer-packaged goods, introduced its most recent packaging solution. VBseal offers resistance to water vapor, oils, aromas, and heat-sealing properties. The coating material is intended to replace single-use plastics in packaging for fresh food, fast food, cereal, and sweets.

• February 2023- International Flavor and Fragrances (IFF) agreed to divest its Flavor Specialty Ingredients (FSI) business to Exponent, a prominent private equity group based in the United Kingdom. The transaction is valued at USD 220 million and will be settled in cash.

Segmentation

1. By Product
   1. Cocoa and Chocolates
   2. Fats and Oils
   3. Salt, Spices, and Seasonings
   4. Flours
   5. Batter and Crumbs
   6. Starches
   7. Hydrocolloids
   8. Sugars and Syrups
   9. Others
2. By Applications
   1. Bakery Products
   2. Confectioneries
   3. T.E. Cereals
   4. Dairy Products
   5. Snacks and Nutritional Bars
   6. Fruits and Vegetables
   7. Meat and Poultry Products
   8. Others