The global food coating ingredients market size was valued at USD 3.05 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). The global food coating ingredients market is primarily boosted by the growing demand for processed food worldwide owing to rapid urbanization and changing lifestyles. Moreover, there has been a rise in the research and development to develop efficient food coatings that increase product shelf-life, creating opportunities for the vendors operating in the market.
In the food industry, coating applies a layer of liquids or solids to a product. The operation relies on mechanical energy to a significant degree. 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 comprises adhesion, friction, viscosity, surface tension, and crystallization phenomena.
Common food coating ingredients include oils, fats, seasonings, flour, syrup, chocolates, flavor enhancers, sugar, and batter. They aid in preserving the nutritional profile and integrity of items, improving the quality of food products, altering the surface gloss, and preventing the migration of moisture and lipids. Food coating ingredients include nanoparticles and antioxidants, leading to their widespread use in nutritional bars, seafood, and confections.
|Market Size||USD 5.19 billion by 2031|
|Fastest Growing Market||Asia Pacific|
|Largest Market||North America|
|Report Coverage||Revenue Forecast, Competitive Landscape, Growth Factors, Environment & Regulatory Landscape and Trends|
Rapid urbanization, an enhanced consumer lifestyle, and a high disposable income all contribute to the growth of the processed foods market. For instance, today, more than 50% of the world's population resides in urban areas. According to projections, the global urban population is expected to see a twofold increase, reaching a total of 6 billion individuals by the year 2045. Similarly, factors such as the rising number of millennials, the rising number of working women, hectic work schedules, and on-the-go consumption patterns are anticipated to drive revenue growth for global processed food products.
With the significant expansion of the food and beverage (F&B) industry, there has been an increase in demand for healthy ready-to-eat (RTE) and ready-to-drink (RTD) foods and beverages. This, in turn, has stimulated the adoption of food coating ingredients to enhance the organoleptic properties of processed, fried, bakery, and consumer goods, a key factor currently driving market growth.
The primary stakeholders in the market are implementing the introduction of novel products as a strategic measure to enhance their market dominance. For instance, in November 2021, Sufresca, an Agtech company based in Israel, introduced an invisible edible coating for extending shelf life that has been applied to a wider variety of fresh vegetables. According to the company, the newly developed edible coating has been shown to extend the shelf life of various tomatoes, including cherry tomatoes, cucumbers, and even fruits like mangoes.
Similarly, in October 2018, Pace International, an innovative and environmentally conscious post-harvest company, announced that it will debut its new high-shine, edible coating, PrimaFresh® 606 GL. PrimaFresh® 606 GL is formulated with natural and food-grade ingredients and is based on Carnauba, a natural vegetable lipid extracted from sustainably managed palm tree plantations. Consequently, the launch of such products is expected to drive market growth.
Government bodies have imposed stringent rules and regulations regarding clean-label coating ingredients, impeding the market's expansion. The FDA and European Commission's propensity to prohibit additives and chemicals in the food and beverage industry is anticipated to restrain production growth. For instance, the FDA and European Commission have prohibited using synthetic colors as coatings in the U.S. food and beverage industry due to claims of carcinogenicity, based on the Delaney Clause. Similarly, the high caloric content of some indulgent coating ingredients restrains market expansion.
With the surging inclinations towards sustainability, there has been a surge in R&D to develop eco-friendly novel food coatings in the market. For instance, according to a recent ACS Food Science & Technology study, avocados can be coated with a chitosan-based substance to help keep them fresher for longer. This research has demonstrated that naturally occurring chitosan, a biomaterial generated from the exoskeletons of shellfish, confers antibacterial activity when applied as a coating to fruits, including avocados.
Similarly, in September 2022, the scientists at the Indian Institute of Technology (IIT) in Guwahati created a coating that keeps produce fresh for more than two months after it has been harvested. The researchers at IIT Guwahati think their idea could aid the country in achieving Sustainable Development Goal (SDG) target 12.3, which is to reduce food loss along the whole food supply chain. Such developments ultimately create opportunities for the vendors in the food coating ingredients market to develop new products.
Based on region, the global food coating ingredients market share is bifurcated into North America, Europe, Asia-Pacific, Latin America, and the Middle East and Africa.
North America is the most significant global market contributor and is expected to expand substantially during the forecast period. The region's dominance can be ascribed to the high consumption of salty snacks (which require dry coating) and the rising consumption of frozen food products in countries like the U.S. and Canada. With the growing emphasis on personal well-being among individuals in the region, the prominent stakeholders in the market are launching novel coating products to meet this burgeoning consumer demand.
For instance, in December 2021, Startchy, Inc. announced the U.S. release of Yumbrella, their organic coating for the apple industry. This is the first washable coating for the U.S. produce and vegetable industry. Yumbrella is organically certified by the USDA, Canada, and the E.U. and is produced with common food ingredients. In addition, in June 2023, CSM Ingredients announced the entrance of its Hi-Food division into the United States. Hi-Food researches, develops, and produces natural ingredients with added value for the food industry. Such developments are projected to expedite market expansion.
Asia-Pacific is the fastest-growing market due to surging demand for processed food products, soaring disposable income, and rising population. For instance, India's average household disposable income will reach USD 11.09k in 2023. Further, according to a report published by the China Chain Store & Franchise Association (CCFA) in August 2021, the prepared food market in China experienced a year-on-year growth of 24.1% in 2021, amounting to approximately 310 billion yuan (equivalent to USD 42.44 billion). Therefore, the increasing demand for prepared food also increases the demand for food coating ingredients to enhance the products' properties, texture, and flavors. Western flavors and culture influence some Asian countries, where consumers are also increasingly seeking convenient foods, creating opportunities for food-coating ingredients in these expanding industries.
Europe is predicted to have a substantial share of the global market. The key players in the region have been focused on developing new products with clean labels to cope with the consumer's demand for healthy and environmentally friendly products. For instance, Kroner-Starke, a German producer of natural starch, has shifted its focus to the convenience foods market. In order to improve the negative perception associated with breaded or battered foods, the business has devised wheat starches that facilitate the production of contemporary, chemical-free, clean-label items that possess desirable texture and flavor. Such innovations are expected to boost the regional food coating ingredients market growth.
The global food coating ingredients market is segmented by product and application.
Based on product, the global food coating ingredients market share is divided into cocoa and chocolates, fats and oils, salt, spices and seasonings, flour, batter and crumbs, starches, hydrocolloids, sugars and syrups, and others.
A batter is a liquid mixture of components that can be used as a stand-alone coating for a product and to adhere to breadcrumbs and other toppings. Well-designed batters possess desirable characteristics such as strong adherence, distinct crispness, and stable coating. Other parameters, including flavor, color, viscosity, and dilution rates, can be modified according to client profiles, consumer preferences, and relevant process conditions. Following a preliminary dusting and battering procedure, the coating substance is subsequently layered with bread crumbs before undergoing subsequent processing, such as cooking. Crumbs and breadings come in various styles intended to provide flawless coatings in ovens, microwaves, and other post-processing equipment.
Based on application, the global food coating ingredients market share 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.
Confectionery is the process of preparing sugary and carbohydrate-rich sweets. Defining concepts can be a challenging task. However, the realm of confectionery is commonly classified into two overarching and interconnected classifications: baked confections and sugar confections. Bakery confections, or flour confections, consist primarily of sweet pastries, cakes, and other similar baked goods. Sugar confectionery consists of candies (also known as sweets), candied nuts, chewing gum, bubble gum, chocolates, and other confections primarily made of sugar.