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Food Coating Ingredients Market Overview
The global food coating ingredients market is expected to reach $3,698.6 million in 2020, progressing at a CAGR of 5.8% during 2015–2020. The increasing sales of bakery and confectionery, rising demand for convenience foods, and growing consumer requirement for food protection agents are some of the key factors driving the market across the globe.
On the basis of type, the food coating ingredients market has been categorized into cocoa and chocolates, fats and oils, spices and seasonings, flours, batter and crumbs, starches, hydrocolloids, sugars and syrups, and others. Among these, the cocoa and chocolates category held the largest market share in 2014. This is attributed to the increasing demand for cocoa and chocolate coating for a variety of foodstuff, such as bakery products, confectionery products, and convenience foods.
Based on application, the food coating ingredients market has been classified into bakery, confectionery, ready-to-eat (RTE) cereals and snack bars, dairy, savory snacks, frozen foods, meat and poultry, and others, Among these, the confectionery category held the largest share in the market in 2014, owing to the increasing consumption of convenience foods. The rising per capita income and change in lifestyle are some of the prime factors for the growing popularity of confectionery products, globally.
Geographically, North America held the largest share in the market in 2014, owing to the increasing demand for meat & poultry products and confectioneries in the region. In addition, the increasing consumption of bakery products is further supporting the growth of the market in the region.
Food Coating Ingredients Market Dynamics
Market consolidation is one of the major trends in the food coating ingredients market, presently. The market is highly competitive with the presence of a large number of market players. However, during the recent years, the market has been observed to move toward consolidation, as several large companies are focusing on inorganic growth and increasingly acquiring smaller companies. For instance, in 2014, Archer Daniels Midland Company (ADM) acquired Specialty Commodities Inc., a U.S.-based specialty food ingredients company, for an undisclosed amount.
The growing demand for convenience foods is the major factor driving the growth of the food coating ingredients market worldwide. The busy lifestyles and increasing urbanization have helped raise the demand for several convenience and RTE food products, including cereals, nutrient bars, savory snacks, and bakery and confectionery products, over the last few years. As food coatings are heavily required in convenience foods to limit the contact of the food with the environment, the growing demand for convenience foods is supporting the growth of the market.
Food Coating Ingredients Market Competitive Landscape
The food coating ingredients market is quite competitive in nature. The key players are primarily focusing on mergers & acquisitions to expand their market foothold. For instance, in August 2015, Ingredion Incorporated completed the acquisition of Kerr Concentrates Inc., a producer of natural vegetable and fruit concentrates, purees, and essences, for approximately $100 million. Further, in May 2014, Cargill Incorporated announced the acquisition of Turyag, a Turkey-based oil and fats company, for an undisclosed amount. The acquisition was undertaken by the former to intensify its food ingredient penetration in Turkey.
Some of the key players operating in the global food coating ingredients market are Ingredion Incorporated, Archer Daniels Midland Company (ADM), E.I. du Pont de Nemours and Company, Agrana Beteiligungs AG, Ashland Inc., Cargill Inc., Kerry Group, Döhler GmbH, PGP International Inc., and Balchem Corporation.
Key Questions Addressed/Answered in the Report