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Food Coating Ingredients Market Size to Grow at a CAGR of 5.8% During the Forecast Period 2020–2025

food coating ingredients market size to grow at a cagr of 5 8 during the forecast period 2020 2025

Oct 22, 2020 2:54 PM ET
Food Coating Ingredi

iCrowd Newswire – Oct 22, 2020

Food Coating Ingredients Market size was valued at $5.13bn in 2019 and is poised to grow at a CAGR of 5.8% during the forecast period 2020-2025. In the processed food industry, food coating is a significant stage; and applied to various types of food products to enhance their nutritional profile and texture. Food coating varies depending on the component of food coating and the quality of the substratum used, which also enables the natural mixing of two coats. Increasing demand from the processed food industry is the primary driver of the global market for food coating ingredients. The need to keep processed foods flavorful for a long time has increased the market for ingredients in food coating.

By Type – Segment Analysis

The global Food Coating Ingredients Market based on product type has sugar & syrups, hydrocolloids, flours, fats & oils, cocoa & chocolates, and others. Sugar & syrup segment is poised to dominate the industry as they help in inducing certain properties including, sweetness, color, and taste to items. Following that, Flours are set to gain the highest revenue for the forecast period 2020-2025 owing to an increase in usage for bakery & confectionery.

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By Application – Segment Analysis

The application type of Food Coating Ingredients Market has a Bakery, Confectionary, Snacks & Nutrition Bars, Dairy, Fried Foods, Cereals, Meat & Poultry, Fruits & Vegetables, and Ready to eat Foods. The confectionery segment is set to witness significant growth owing to its wide acceptance in developing countries & mounting popularity of the outlets. The rising per capita income and consumer readiness to pay higher for healthier products likely to support the product demand.

By Geography – Segment Analysis

The global Food Coating Ingredients Market in North America and Europe are the leading regions owing to growth in the consumption of the dairy and confectionery food products and is poised to maintain its position over the forecast period (2020-2025). The Asia-Pacific shows a significant growth owing to the increase in demand for dairy and confectionary food sectors, and considerable growth in the agricultural sector in the developing countries such as China and India, which is the backbone of the Indian market, contributes to the food coating ingredients market growth.
Rapid urbanization, improving living standards, and higher investments in emerging economies have opened new growth opportunities in the Latin American region. The Middle East is highly investing in food processing techniques, thus poised to improve the market for food coating ingredients in the forecast period 2020-2025.

Drivers – Food Coating Ingredients Market

Rise in Demand for Healthy Food

The Changing preferences of consumers towards healthy foodstuffs and growth in the consumption of fried food and bakery products are augmenting the global food coating ingredients market growth in developed countries. Antimicrobial coating encourages the food coating industry to introduce new ingredients in order to increase the demand for the product in the global market. Growth in food and food processing industries is poised to drive the food coating ingredients market in the near future. Increasing the need to keep the food fresh and flavored for a long time also contributes to the rise in the food coating market.

Aligning with Clean Label Trend

In times of alternatives rather than omissions, consumers are increasingly turning away from fad diets, removing numerous food classes, and inclining towards a more healthy eating strategy. As a food, safety issues continue to grow, and consumers are more inquisitive about foods and their origins, manufacturers are focusing on supplying new products to remove allergens and be more clean-label friendly.

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Challenges – Food Coating Ingredients Market

Rise in Price

Food coating ingredients market is prone to rise material prices, and subsequent fluctuations are poised to become a challenge for food coatings. The higher cost of materials leads to higher production costs, resulting in lower margins and more time to break even for food manufacturers, making it even more difficult for manufacturers to adopt new coating technologies.

Food Coating Ingredients industry outlook:

Product launches, mergers and acquisitions, joint ventures, and geographical expansions are key strategies adopted by players in the Food Coating Ingredients Market. Key companies of this market are 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.

Acquisitions/Product Launches:

In November 2019, Tate & Lyle, a provider of food & beverage ingredients and solutions, announced the opening of its new and expanded Latin American headquarters in Sau Paulo, Brazil. The new application center includes a pilot plant and state-of-the-art experimental kitchen to help manufacturers develop products that fulfill growing consumer preferences for healthier, tastier food and beverages.

In November 2019, Cargill-Royal DSM joint venture, Avansya, started commercial-scale production of EverSweet™, a non-artificial, zero-calorie stevia sweetener at a new fermentation facility in Nebraska, U.S.

In November 2019, Agrana Group, a key player in the food coating ingredients market, announced the construction of its second wheat starch processing plant at the site of its biorefinery in Pischelsdorf, Austria. Through the new project, the company aim at a twofold production capacity of wheat starch.

Key Takeaways

Geographically, the Asia Pacific, the Middle East, and Latin America set to grow with the highest potential for the food coating ingredients market during the forecast period (2020-2025).

The demand for Food Coating Ingredients has been witnessing a rise owing to the growing per capita income and changing lifestyles of consumers.

The rising popularity for low saturated fat levels in confectionery coatings is set to drive the nutritional coatings market, without compromising on the flavor content of the consumables over the forecast period (2020-2025).

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