Food Coating Ingredients Market Size, Share & Trends Analysis Report By Product (Cocoa & Chocolates, Fats & Oils, Flours, Hydrocolloids, Sugar & Syrups), By Application, By Region, And Segment Forecasts, 2018 - 2025

Industry Insights

The global food coating ingredients market size was valued at USD 3,195.1 million in 2016. The product is majorly used to provide dietary supplements to improve the organoleptic properties of ready to eat products, processed, fried and bakery & confectioneries. North America and Europe have been driving the global industry growth over the past years on account of rising demand for processed items. 

Changing consumer lifestyles and increasing consumer disposable income in Asia Pacific region is expected to propel growth. According to IBEF, the Indian food processing industry is valued at 39.71 billion in 2017 and is projected to reach a value of USD 65.4 billion by 2018. The market witnessed a rapid development at 11% CAGR, which is expected to fuel demand for coating ingredients in the economy over the next seven years.

Global food coating ingredients market by product, 2014 - 2025 (USD Million)

Furthermore, the Indian government has declared to promote food processing Special Economic Zones (SEZ) and food parks in an attempt to propel F&B market and draw the attention FDIs. These improvements are speculated to generate investment in the processing industry and would eventually stimulate coating ingredients in the foreseeable future.

Increasing number of supermarkets and shopping marts together with the expansion of the retail sector in India is anticipated to bolster demand in the ready to eat industry as approximately 70.0% of sales happen through such stores. Besides, with the production of these goods on the rise in Asian countries such as China and India on account of supportive government rules and regulations, the coating ingredients industry is expected to experience substantial growth. The market is also anticipated to be driven by factors including rising demand for poultry items and ready to eat confectioneries in Asia Pacific.

Stringent rules and regulations laid down by government bodies in North America, and Europe is likely to hamper the industry growth. Also, the inclination of the FDA and European Commission towards preventing the use of additives and chemicals in the F&B industry is expected to restrain production growth.

Product Insights

Sugar & Syrups segment dominated the demand with a share of about 36% in 2016 and was followed by the flours. The sugars and syrups are being used from many years as coating ingredients in the processing industry. They help induce certain properties such as color, taste, and sweetness to the items being coated. The segment is expected to reach a value of USD 3,001.8 million by 2025. 

Flours are used as a primary ingredient in bakery and confectioneries; however, it is also being used as an attractive coating ingredient for fried meat and fast food. The market segment is anticipated to be valued at over USD 995 million in the next seven years, at a CAGR of 5.2% from 2015 to 2025.

New developments in the field of antimicrobial coatings are anticipated to bolster market growth. Additionally, the usage of antimicrobial coating components demand is fueled by the presence of supportive principles and guidelines in several regions. The growing attention paid to the safety of processed food is accountable for the regulatory guidelines thereby compelling the use of antimicrobial coatings.

Application Insights 

Food coating finds its application in bakery & confectioneries, dairy, RTE cereals, snacks & nutrition bars, meat & poultry, and fruits & vegetables. Confectioneries contributed to over 23% of overall revenue and are expected to grow rapidly over the forecast period followed by meat & poultry products.

food coating ingredients market by application, 2016 (%)

Acceptance of fast food items in developing countries and mounting popularity of outlets namely KFC and McDonald's is anticipated to spur the demand for coated poultry products from 2017 to 2025. Also, rising per capita income and consumers’ willingness to spend in emerging economies is projected to experience growing demand in the foreseeable future.

Rising popularity for low saturated fat levels in confectionery coatings is expected to drive the nutritional coatings market, without compromising on the flavor content of the consumables. This is further expected to create a competition between coating ingredients companies to showcase consistency with the nutritional claims as they mention on the product labels. Usage of all-natural ingredients coupled with adherence to regulation norms is anticipated to result in additional costs for the manufacturers.

Regional Insights

The largest share in food coating ingredients industry was captured by North America owing to the booming demand for meat & poultry products and confectioneries in the region. In 2014, North America constituted more than 40.0% of global consumption and can have in prospect a larger share in the next seven years. 

A substantial increase in fruits, vegetables, and cereals and snacks being exported coupled with the diversified consumer base spread across regions has given impetus to the use of coatings such as oils and polyvinyl alcohol for preservation.

Asia Pacific is the fastest growing market owing to the growing processed food products demand, increasing disposable income, and increasing population in this region. Furthermore, Europe is likely to hold around 30% of the market share by 2025.

Food Coating Ingredients Market Share Insights

The market players are engaged in constant strategic initiatives including joint ventures and merger & acquisition. Efforts toward global footprints and capacity enhancement are undertaken by major companies including Ashland Inc., Archer Daniels Midland Company, and Dohler. Prominent companies are also working to diversify their product range to obtain a competitive edge over the others in growing regions including Asia Pacific. 

Key participants include Bowman Ingredients, Ashland Inc., E. I. DU Pont DE Nemours and Company, Archer Daniels Midland Company (ADM), PGP International, Inc., Sensory effects Ingredient Solutions, Tate & Lyle PLC, Agrana Beteiligungs-AG, Ingredion Inc., Cargill Inc., Newly Weds Foods, Kerry Group PLC, and Dohler

Report Scope

Segments covered in the report

This report forecasts revenue growth at global, regional & country levels and provides an analysis on the industry trends in each of the sub-segments from 2014 to 2025. For the purpose of this study, Grand View Research has segmented the global food coating ingredients market on the basis of product, application, and region:

• Product Outlook (Volume, Kilo Tons; Revenue, USD Million, 2014 - 2025)

  • Cocoa & Chocolates

  • Fats & Oils

  • Salt, Spices & Seasonings

  • Flours

  • Batter & Crumbs

  • Starches

  • Hydrocolloids

  • Sugars & Syrups

  • Others

• Application Outlook (Volume, Kilo Tons; Revenue, USD Million, 2014 - 2025)

  • Bakery Products

  • Confectioneries

  • R.T.E. Cereals

  • Dairy Products

  • Snacks & Nutritional Bars

  • Fruits & Vegetables

  • Meat & Poultry Products

  • Others

• Regional Outlook (Volume, Kilo Tons; Revenue, USD Million, 2014 - 2025)

  • North America

    • The U.S.

  • Europe

    • Germany

    • UK

    • France

  • Asia Pacific

    • China

    • India

    • Japan

  • Central & South America

  • Middle East & Africa