The global food coating ingredients market is estimated to reach USD 4 billion in 2024. It is anticipated to grow at a CAGR of 6.6% during the assessment period and reach a value of USD 7.6 billion by 2034.
| Attributes | Description |
|---|---|
| Estimated Global Food Coating Ingredients Market Size (2024E) | USD 4 billion |
| Projected Global Food Coating Ingredients Market Value (2034F) | USD 7.6 billion |
| Value-based CAGR (2024 to 2034) | 6.6% |
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The demand for food coating ingredients is expanding significantly due to the surging consumption of convenience and processed foods, partly driven by evolving preferences of consumers. For instance, India’s middle class is set to almost double in percentage by 2047, according to People Research on India’s Consumer Economy (PRICE) and India’s Citizen Environment. The working class is a significant consumer of convenience foods and hence, the rising middle class population is positively influencing demand for it.
The 2023 value of the food coating ingredients market was USD 3.7 billion, while in 2024 the value is estimated to be USD 4 billion, a Y-o-Y growth of 8%. When it comes to the ingredient type, sugar & syrups are the most sought-after, expected to account for 11.2% of the market share in 2024. The ingredients are majorly used in making confectionery products, expected to take up 24.1% of the market share in 2024.
The rising demand for processed and convenience food is a key factor in the propagation of food coating ingredients’ demand. The rise of the middle class, bringing along with it a rise in urbanization and busy lifestyles, is leading to greater recourse towards convenience food. Food coating ingredients are responsible for giving texture and flavor to a significant number of convenience food products. Hence, the increase in convenience food demand is helping the market to grow.
The following table highlights the urbanization rate as well as the urban population in select countries/regions, highlighting the increase in consumer base for convenience food.
The number of QSRs has increased as more consumers seek snacking options. QSRs have thus penetrated rural areas too, diversifying the consumer base. These QSRs provide a wide variety of menu items that use innovative food coatings to make taste better.
Prominent chains like McDonald's, KFC, and Taco Bell are examples of this trend, using coatings to make crispy fried chicken, flavorful tacos, and other appealing offerings that attract a diverse customer base. The success of these establishments underscores the importance of high-quality food coatings in delivering a satisfying dining experience.
The following table highlights the number of McDonald’s outside of North America and Europe, according to the World Population Review, highlighting that QSRs are growing majorly in non-Western nations as well.
| Countries | No. of Outlets (2024) |
|---|---|
| Japan | 5,000 |
| China | 4,500 |
| India | 600 |
| Philippines | 740 |
| Argentina | 420 |
| Saudi Arabia | 412 |
| South Korea | 399 |
Healthy snacking options are also driving demand for food coating ingredients. Consumers are looking for nutritious convenience foods and manufacturers delivering healthy snacks with coatings like whole grains and plant-based ingredients. Food coating ingredients are also being used in snacks with reduced sodium and manufacturers are increasing the production of such snacks.
For instance, in 2021, Food For Life Baking Co. launched three new products with low sodium. They are called Ezekiel 4:9 Low Sodium Sprouted Flourless English Muffins, Ezekiel 4:9 Low Sodium Sprouted Flourless Crunchy Cereal, and Ezekiel 4:9 Low Sodium Sprouted Flourless Tortillas.
Another key factor for the growth of the food coating ingredients market is the increased demand for natural and clean-label ingredients. Consumers are becoming increasingly aware of the health implications of artificial ingredients, driving demand for natural alternatives. For instance, a survey conducted by snacking brand Farmely found that 73% of those surveyed look at the ingredient list and the nutrition provided by a given food product.
The demand for natural and clean-label ingredients is not even globally. Different regions show different tendencies for these ingredients. The below table highlights the adoption of natural and clean-label ingredients in 10 major countries.
| Country | Adoption of Natural and Clean Label Food Coating Ingredients |
|---|---|
| United States | Consumers demand transparency, leading to increasing elimination of synthetic additives from food manufacturers. |
| China | Past safety concerns lead consumers to natural ingredients |
| Japan | Very high adoption, with 94% of consumers checking product labels, according to the Kerry Group. |
| Germany | Younger generations leaning heavily towards natural ingredients. |
| India | Synthetic additives are omnipresent, but urban consciousness around natural ingredients developing. |
| United Kingdom | New products with natural ingredients being launched at a rapid pace. |
| France | Cultural preference for natural ingredients in food. |
| Brazil | Growing adoption, with clean label product launches increasing from 2,512 in 2012 to 5,045 in 2016, according to the Kerry Group. |
| Italy | Traditional cuisine paving the way for adoption of natural ingredients. |
| Canada | Similar to the United States, the profile of natural ingredients is ever-growing. |
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Compliance with regulations is a significant challenge for manufacturers. Since different countries have different requirements when it comes to receiving natural and clean-label certificates, manufacturers have to be cognizant of a significant number of regulations.
Therefore, companies are required to keep abreast of all the regulations as regards transparency and safety. This means more resources going into research, testing, and documentation, further squeezing the capacities of operations. The following table highlights the regulations for food coating ingredients for various countries.
| Country | Highlights |
|---|---|
| United Kingdom | Additives must be authorized with usage limits. |
| India | Lists approved additives with maximum permissible levels. |
| China | Includes approved additives, their functional categories, and maximum usage levels. |
| France | EU-compliant; additives require authorization; specific safety standards. |
| Germany | Follows EU-wide rules; authorized additives must be used within limits. |
| Italy | EU-aligned; national enforcement under Ministry of Health guidelines. |
| South Korea | Positive list of approved additives with usage limits and functional classifications. |
| Japan | Approved additives listed in the official positive list; safety evaluations and usage limits apply |
New technologies make the path easier for the introduction of natural and clean label ingredients. The following table highlights new technologies in the market and the companies incorporating them.
| Technology | Companies Adopting Technology |
|---|---|
| Edible Coatings |
|
| Nanotechnology-Based Coatings | Blue California - Employment of nanotechnology in developing coatings |
| Bio-based and Sustainable Coatings | Akorn Technology - Natural coatings for fruits and vegetables |
| Controlled Release Coatings | Givaudan - Development of flavor delivery systems that control the release of flavors in food products |
| Advanced Application Technologies |
|
There are various food coating ingredients, such as cocoa & chocolate, fats & oils, flours, breeders, batter, sugar & syrups, salts, spices, & seasonings, and others. Sugar and syrups are the most common food coating ingredient used in cooking.
Sugar and syrups are expected to account for 11.2% of the market share in 2024. Sugar and syrups provide the dual function of enhancing the taste of a food product while also making it visually appealing. Snacks, confectionaries, and baked products all use sugar and syrups to obtain a distinctive taste. Their moisture retention abilities are also appreciated.
Food coating ingredients come in the form of dry and liquid ingredients. Dry ingredients are preferred due to their ability to last longer.
Food coating ingredients are used in meat & seafood products, confectionery products, bakery products, bakery cereals, and snacks. The most common use for them is in bakery products as the need for sweet treats increases worldwide. The increasing penetration into Asian nations of the bakery sector also plays a pivotal role.
| Countries | CAGR 2024 to 2034 |
|---|---|
| India | 6.3% |
| China | 5.5% |
| United Kingdom | 7.1% |
The United Kingdom food coating ingredients market is estimated to advance at a CAGR of 7.1% over the 2024 to 2034 period. In the United Kingdom, sustainability and ethical sourcing are the two key factors invigorating the market. Consumers are more aware than ever about the food ingredients they are consuming, with a notable clamor for sustainability among consumers. Manufacturers are following suit by increasing eco-friendly food production.
For instance, Tate & Lyle has a sustainable agriculture program geared towards increasing the sustainability profile of their food products. The company also aims to reduce emissions and waste, while reducing the use of water. Major players in this market include Tate & Lyle and Associated British Foods.
The food coating ingredients market in China is expected to register a CAGR of 5.5% from 2024 to 2034. Rapid urbanization coupled with increasing disposable income levels is driving the demand for more convenience foods, which make extensive use of effective coating ingredients.
Premiumization trends have led companies to invest in the latest advancements in food coating technologies so that they can reap significant revenue through premium product lines. Major companies include China National Cereals, Oils and Foodstuffs Corporation (COFCO), and Tingyi Holding Corp.
The food coating ingredients market in India is set to progress at a CAGR of 6.3% from 2024 to 2034. Health consciousness among Indians is a compelling force behind the demand for clean label food coating ingredients in the country. A substantial portion of Indian consumers are demanding products that do not have any artificial additives in them. Manufacturers are hence incentivized to develop healthier options in food coatings.
E-commerce in the food sector has also increased the scope of business. Online channels have opened up new opportunities for stakeholders, with more consumers having access to Western-style convenience foods. Key players are Britannia Industries and ITC Limited.
| Countries | Emerging Trend |
|---|---|
| India | Health-conscious eating and clean labels |
| China | Urbanization and premiumization of convenience foods |
| United Kingdom | Sustainability and ethical sourcing |
The food coating ingredients market has a mixed level of competition between established international corporations and small-scale regional companies. New entrants in the market are making up ground by focusing on niche sub-segments like gluten-free food or plant-based coatings The following table provides some of the major highlights of companies’ policies as well as the recent steps taken by them.
| Company | Key Developments |
|---|---|
| Kerry Group | Expansion of its clean label product line. |
| Cargill | Introduction of coatings enriched with plant sterols, aimed at improving heart health. |
| DSM | Developing bio-based coatings to promote sustainability. |
| Marel | Development of advanced coating equipment with precision spraying techniques. |
| Nestlé | Ai-driven solutions for personalized nutrition solutions, including customized food coatings. |
| Unilever | Following regulatory requirements, ensuring food coatings comply with standards. |
The market is segmented into cocoa & chocolate, fats & oil, flour, bread, batter, sugar & syrup, salts, spices, & seasonings, and others by ingredient.
The forms of food coating ingredients include dry and liquid.
Applications of food coating ingredients include meat & seafood products, confectionery products, bakery products, bakery cereals, and snacks.
The market is analyzed region-wise including, North America, Latin America, Europe, East Asia, South Asia, Oceania, and the Middle East and Africa.
The market’s value for 2023 was estimated to be USD 3.7 billion.
The market is predicted to reach a size of USD 7.6 billion by 2034.
The market is anticipated to be valued at USD 4 billion in 2024.
The market is predicted to witness a CAGR of 6.6% during the forecast period.
The United Kingdom is set to be a promising country, with a CAGR of 7.1% over the next ten years.
| Market Value for 2024 | USD 65.20 billion |
|---|---|
| Market Value for 2034 | USD 104.79 billion |
| Market CAGR (2024 to 2034) | 5.80% |
| Estimated Market Value (2024E) | USD 310.9 billion |
|---|---|
| Projected Market Revenue (2034F) | USD 551.4 billion |
| Value-based CAGR (2024 to 2034) | 7.2% |
| Market Size 2022 | USD 21.6 Billion |
|---|---|
| Market Size 2032 | USD 34.9 Billion |
| Value CAGR (2022 to 2032) | 4.9% |
| Estimated Value (2032) | USD 30.9 Billion |
|---|---|
| Value-based CAGR | 11% |
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