Global food coating ingredients market is growing at a CAGR of 5.8% during the forecast period (2019-2024).
Food coating is an instantaneous application of ingredients in nourishment handling and controls improvement strategy. The market is mainly driven by the increasing demand from food industrial application, especially, confectionery, bakery, fried foods and ready-to-eat foods, contributing towards color, taste, and sweetness attributes to the food product being coated. Apart from these, the requirement for anti-microbial coating is also compelling the food coating industry to introduce carious coating ingredients for food products. Among the coating ingredients used by the industries, sugars and syrups hold the major share in the ingredient market, followed by cocoa & chocolates owing to their immense scope of application. In addition to food industries, the encapsulation technique has been touted as suitable option to deliver nutraceuticals in convenient formats.
Geographically, North America and Europe are the two leading regions in food coating ingredients market due to growth in consumption of bakery and dairy products.
However, stringent rules and regulations regarding clean-label coating ingredients laid down by government bodies are hampering the growth of the market. For instance, the FDA and European Commission has prevented the usage of synthetic colors as coatings in food & beverage industry in United States on the basis of claims of carcinogenicity, on the basis of Delaney Clause, although it is still used in the European Union as later evaluations by JECFA and the EFSA concluded their use is safe. Also, the high calorific values of certain indulgent coating ingredients contribute to restrain to the market.
Key Market Trends
Increased Consumption of Confectioneries Products
The consumption of confectioneries, such as wafer bars, fondant, pastries, and candies, has been increased significantly in recent years owing to the demand arising from children, especially chocolate coated products. These coatings also extend the shelf-life of the product. Also, traditionally, the process of enrobing was slow and involved manually dipping; however, with increased demand for these products has opened room for many technologically advanced techniques such as electrostatic coating, therefore, enhancing the production rate and meeting the demand of the consumers. Additionally, the increase in the total store has boosted the growth of the confectionery market.
Asia-Pacific is The Fastest Growing Region
In the Asia-Pacific region, India and China specifically are the fastest-growing region due to the robust demand for confectionery and dairy industries, along with the growing popularity for RTE convenience foods among the working population has propelled the growth of the market. In addition to theses, changing lifestyles and increasing disposable incomes of consumers in emerging economies of the Asia-Pacific region like India and China is boosting the market sales.
Competitive Landscape
The food coating ingredients is a fragmented market, with the leading companies driving the growth. Investments & expansions formed the most preferred strategy among the key players to attract and retain new customers globally. They also focused on acquiring local players of emerging markets to expand their business on a global scale and sustain the competition prevailing in the market. New product launches also helped major players in strengthening their product portfolio. For instance, Avebe launched a clean label food coating Eliane™ Bind 12 and is primarily a potato starch that allows food manufacturers to develop high quality and crispy crusts for fish and meat in November 2015. Also, Kröner-Stärke launched a range of native wheat-based starches, consisting of clean label paired with organic and gluten-free, for battered and breaded products.
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Food coating is an instantaneous application of ingredients in nourishment handling and controls improvement strategy. The market is mainly driven by the increasing demand from food industrial application, especially, confectionery, bakery, fried foods and ready-to-eat foods, contributing towards color, taste, and sweetness attributes to the food product being coated. Apart from these, the requirement for anti-microbial coating is also compelling the food coating industry to introduce carious coating ingredients for food products. Among the coating ingredients used by the industries, sugars and syrups hold the major share in the ingredient market, followed by cocoa & chocolates owing to their immense scope of application. In addition to food industries, the encapsulation technique has been touted as suitable option to deliver nutraceuticals in convenient formats.
Geographically, North America and Europe are the two leading regions in food coating ingredients market due to growth in consumption of bakery and dairy products.
However, stringent rules and regulations regarding clean-label coating ingredients laid down by government bodies are hampering the growth of the market. For instance, the FDA and European Commission has prevented the usage of synthetic colors as coatings in food & beverage industry in United States on the basis of claims of carcinogenicity, on the basis of Delaney Clause, although it is still used in the European Union as later evaluations by JECFA and the EFSA concluded their use is safe. Also, the high calorific values of certain indulgent coating ingredients contribute to restrain to the market.
Key Market Trends
Increased Consumption of Confectioneries Products
The consumption of confectioneries, such as wafer bars, fondant, pastries, and candies, has been increased significantly in recent years owing to the demand arising from children, especially chocolate coated products. These coatings also extend the shelf-life of the product. Also, traditionally, the process of enrobing was slow and involved manually dipping; however, with increased demand for these products has opened room for many technologically advanced techniques such as electrostatic coating, therefore, enhancing the production rate and meeting the demand of the consumers. Additionally, the increase in the total store has boosted the growth of the confectionery market.
Asia-Pacific is The Fastest Growing Region
In the Asia-Pacific region, India and China specifically are the fastest-growing region due to the robust demand for confectionery and dairy industries, along with the growing popularity for RTE convenience foods among the working population has propelled the growth of the market. In addition to theses, changing lifestyles and increasing disposable incomes of consumers in emerging economies of the Asia-Pacific region like India and China is boosting the market sales.
Competitive Landscape
The food coating ingredients is a fragmented market, with the leading companies driving the growth. Investments & expansions formed the most preferred strategy among the key players to attract and retain new customers globally. They also focused on acquiring local players of emerging markets to expand their business on a global scale and sustain the competition prevailing in the market. New product launches also helped major players in strengthening their product portfolio. For instance, Avebe launched a clean label food coating Eliane™ Bind 12 and is primarily a potato starch that allows food manufacturers to develop high quality and crispy crusts for fish and meat in November 2015. Also, Kröner-Stärke launched a range of native wheat-based starches, consisting of clean label paired with organic and gluten-free, for battered and breaded products.
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Table of Contents
1 INTRODUCTION
4 MARKET DYNAMICS
5 MARKET SEGMENTATION
6 COMPETITIVE LANDSCAPE
Companies Mentioned (Partial List)
A selection of companies mentioned in this report includes, but is not limited to:
- Cargill Inc.
- Archer Daniels Midland Company
- Associated British Foods PLC
- Agrana Beteiligungs-Ag
- Pioneer Foods
- Cooperatie AVEBE U.A.
- Ingredion Incorporated
- Tate & Lyle PLC
- Kerry Group
Methodology
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