The food coating equipment market is estimated at USD 5.7 billion in 2023 and is projected to reach USD 7.7 billion by 2028, at a CAGR of 6.3% from 2023 to 2028. The food coating ingredients market is estimated at USD 3.6 billion in 2023 and is projected to reach USD 4.9 billion by 2028, at a CAGR of 6.2% from 2023 to 2028. The food processing industry in the world is growing at a significant rate and is a key factor that is positively impacting the food coating ingredients in the world. Market expansion has been hampered by the rising demand for and consumption of processed food. The food’s shelf life is extended due to food coatings. The fast-paced lifestyle of modern society has led to an increased demand for convenience foods. Coated food products, such as pre-breaded frozen chicken nuggets or fish sticks, provide a quick and easy meal solution for busy individuals.
Food Coating Market Drivers: Rising consumption of processed food to propel the market
The increasing demand for convenient and time-saving food options, driven by the fast-paced and busy lifestyles of consumers in urban areas, has resulted in a significant market for food coating ingredients and equipment. Ready-to-eat and ready-to-cook meat, confectionery products, and bakery food items have gained popularity due to their ease of preparation, nutritional value, and long shelf life. Additionally, consumers’ growing preference for protein-based foods, the rise in frozen food consumption, and the increasing snacking habits have further fueled the demand for these products. Consequently, the market is experiencing a surge in the need for various ingredients like spices, fats, oils, cocoa, flours, sugar, and syrups. This increased demand for ingredients is also expected to drive the sales of equipment such as coaters, applicators, and enrobers.
Meat processors select the equipment for processing meat based on the specific meat type. Meat processing involves various physical and chemical treatment methods, generally combining various methods. According to the US Department of Agriculture (USDA), farmers and meatpackers produced a record 4.5 billion pounds of red meat and poultry alone in April 2022, which, in turn, will need more processing capacity, further leading to higher demand for food coating equipment such as bread and batter applicators.
Similarly, snacks and bakery products require coating equipment for flavoring, glazing, and enrobing the end products, adding taste and texture and ensuring longer shelf life. Food coating equipment reduces the product’s ingredient waste, processing time, and cost.
Food Coating Market Opportunities: Growing investment opportunities to develop new food coating technology
With the increasing influence of globalization, consumers are becoming more aware of various food trends. Concurrently, food manufacturing companies are expanding their operations worldwide, thanks to trade liberalization. This expansion has prompted food manufacturers to explore new and untapped markets. Even domestic players are enhancing their product offerings to keep up with the escalating competition in the market. Notably, manufacturers in China, India, and Japan have developed their own food coating equipment that rivals the quality of imported equipment or the offerings of established market leaders in coating technology. To gain a competitive advantage in both domestic and international markets, companies prioritize innovation in their food coating technology. They employ cutting-edge technologies such as electrostatic coating, which achieves a remarkable 98% coating coverage on all products, surpassing traditional flavoring methods and further enhancing coating efficiency.
To cater to the changing demand from food manufacturers, food coating equipment manufacturers focus on the R&D of various technologies used in equipment. The key features required by food manufacturers include better and more large-scale handling of food products, increasing the shelf life of products, improved production capacity, and reducing the wastage of ingredients.
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Based on Application, the meat & seafood products sub segment of the food coating ingredient market is anticipated to dominate the market.
Commonly used ingredient for the coating of meat & seafood products is flour, which helps to provide appealing colors and flavors. Different coatings are applied to the surface of meat loaves, sausages, and other meat food products. Both fresh and frozen types of meat, when subjected to extended storage, lose substantial water due to evaporation. It is desirable to have the meatloaves coated as the coating lends protection to the product and gives it more appealing organoleptic characteristics.
The Asia Pacific market is projected to dominate the food coating equipment market.
The region’s growing demand for processed food, improved manufacturing industry growth over the past decade, and advancements in the food industry have provided new opportunities for the food coating ingredients market. An increase in processed and convenience food production and innovations in segments such as meat, snacks, and bakery & confectionery products drive the demand for coating ingredients in the Asia Pacific region. China and India are set to experience continual demand during the forecast period. Many global companies are focusing on these emerging markets and are increasing their footprint by setting up manufacturing facilities, distribution centers, and R&D centers. India is projected to be the fastest-growing market in the region as there are many investments being made by several multinational corporations due to favorable support of the government and low labor cost. The Asia Pacific food & beverage industry is greatly influenced by rising consumer preference for conscious food habits, the growing trend toward natural & organic foods, and the increasing demand for convenience food products. With emerging economies, growing industrialization, increasing demand for processed foods, and consumer preference for quality products, ingredient suppliers are optimistic about the growth of the food & beverage industry. These trends and preferences have associated with the increasing consumption of coated food products.
Top Companies in the Food Coating Market
Major key players operating in the food coating market Cargill Incorporated (US), Kerry Group plc. (Ireland), ADM (US), Ingredion (US), Newly weds Food (US), Associated British Foods PLC (UK), Tate & Lyle (UK), Solina (France), Idan Foods (US), POPLA International, Inc. (US).
Cargill, Incorporated (US)
Cargill, Incorporated, a privately held US corporation, specialises in the manufacturing and distribution of different food components, bio-industrial goods, animal nutrition and health solutions, protein, and salt products, as well as agricultural supply chain services, financial services, and metals. Cargill’s commercial operations are divided into two major segments: specialty food ingredients and applications and bulk ingredients. As part of its specialty food ingredients and applications portfolio, the firm provides a wide range of food coating ingredients.
Cargill’s research and development centers are strategically placed throughout Europe and North America. With a global presence, the organization offers its services across Africa, Europe, Asia, Latin America, North America, and the Middle East. Cargill operates in 70 countries and has a 125-country distribution network.
Kerry Group plc (Ireland)
Kerry Group plc. is a prominent manufacturer and provider of food ingredients and flavors. The company specializes in producing and marketing food ingredients and flavors for the food, beverage, and pharmaceutical sectors. Kerry Group operates through two main business segments: Taste & Nutrition and Dairy Ireland. Under the Taste & Nutrition segment, the company offers a wide range of food coating products along with other food and nutrition-related ingredients such as emulsifiers and sweeteners.
With a strong emphasis on research and development, Kerry Group boasts a dedicated team of over 1,000 R&D scientists who work towards continuous innovation. The company supplies an extensive portfolio of more than 18,000 products to customers across 150 countries in Europe, the Middle East, and Africa (EMEA), the Americas, and Asia Pacific. Kerry Group operates 149 manufacturing facilities spread across 31 countries, ensuring a robust and efficient production network.
ADM (US)
ADM, which stands for Archer Daniels Midland Company, is involved in the production of food ingredients, animal feed and feed ingredients, biofuels, and natural alternatives to industrial chemicals. The company operates through three primary segments: agricultural services and oilseeds, carbohydrate solutions, and nutrition. Within its nutrition segment, ADM offers food emulsifiers and provides a diverse range of high-quality food coating products for various applications.
ADM has a global presence, with processing and manufacturing facilities located across the United States and other parts of the world. It serves the baking industry with a wide selection of over 400 essential baking ingredients on a global scale. The company has a strong market presence in North America, South America, and Europe. Furthermore, ADM has established a robust distribution network that covers more than 170 countries, ensuring widespread availability of its products.
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