TheFood Coating Marketwas valued at USD 2.85 billion in 2020 and is anticipated to grow to 4.65 billion at a Compound Annual growth rate (CAGR) of 6.2% between 2021 and 2028.Food coating is part of the food processing operation and is used to improve product texture, taste, and quality. Coating food products with batter and bread is a common practice throughout the world. Meat, vegetables, and cheeses are some examples of products that are pre-fried to create a unique texture and flavour. Commercial production uses high-volume lines / complex semi-automation, which basically mimics conventional hand coverings but can produce hundreds of similar products in a short period of time.
The COVID-19 epidemic has created many opportunities for independent players to emerge from the market, in order to meet the growing demand for food products. This, in turn, benefited many producers of food coatings. New snack products have always been in high demand in developed countries, due to the simplicity associated with the storage, consumption, and rapid supply of nutritious food and energy when consumed. Therefore, such factors propel the market through these unstable times.
The market is driven mainly by large-scale use in North America. The increasing American consumption of glossy, fried chicken, mixed with dough and crumbs is driving the market to a slower pace. Rising prices for ingredients and their subsequent variability have emerged as important barriers to food security. Food and equipment manufacturers need huge investments to establish a new production unit in a developing country. In addition to in-house investments, manufacturers also need to invest more in the development of an efficient supply chain network and in the maintenance of raw materials and finished goods. Inadequate development infrastructure in countries such as Brazil, India, and Argentina and the lack of government support for foreign companies in countries such as China emerge as significant challenges for manufacturers of ingredients and equipment, thus hampering the growth of the food coating market. Although low material prices and labour costs benefit food analysts, the cost of investing in infrastructure development is a major challenge for small-scale companies.
Considering the development of technology, the semi-automatic segment is expected to grow at a very high growth rate in the next five years. Semi-automatic food wrappers are generally accepted by small and medium manufacturers, as their production scale is limited. Developing countries in the Asia Pacific and South America regions have a large number of small and medium-sized producers of food processing products using automated equipment. From divisions based on ingredients, the liquid coating is used in the manufacture of bakery products, spiced nuts, ice cream greens, granola bars, and confectioneries such as sweets. Ingredients include a composition based on melted fats and used in solid food products such as nuts, cakes, doughnuts, cookies, sugar wafers, ice cream cones, and fruit pieces made by manufacturers to add flavour. Batter coats add colour, flavour, texture, and extend the shelf life of these products, thus increasing the need for ingredients to cover liquid foods in the area and boosting the market growth.
Some of the major companies that are present in the global food coating market areCargill (USA), Archer-Daniels-Midland (USA), Tate & Lyle (UK), Kerry Group (Ireland),Döhler(Germany), John Bean Technologies (USA), PGP International (USA).