Page 40 - FoodFocusThailand No.181 April 2021

STRATEGIC R &
STRATEGIC R & DD

Food Coating Market

The food coating ingredients and equipment markets were valued at USD 2.60 billion and USD 1.87 billion,
respectively, in 2017 and are projected to reach a value of USD 3.62 billion and USD 2.21 billion by 2023, at
a CAGR of 5.8% and 3.7%, respectively, from 2018 to 2023, according to Markets and Markets.

Reportlinker has revealed that amid the COVID-19 crisis, the global coatings, granola bars, and confectioneries such as candy bars.
market for food coating estimated at USD 4.7 billion in the year 2020, is Coatings include fat-based formulations that are melted and applied
projected to reach a revised size of USD 6 billion by 2027, growing at a to solid food products such as nuts, cakes, doughnuts, cookies, sugar
CAGR of 3.5% over the period 2020-2027. Food coating ingredients is wafers, ice cream bars, and fruit pieces by manufacturers for the
projected to record 4.3% CAGR and reach USD 3.7 billion by the end addition of flavors. For instance, liquid food coating ingredients such
of the analysis period. After an early analysis of the business implications as batter are used in products such as chicken nuggets and wings.
of the pandemic and its induced economic crisis, growth in the food Batter coatings add color, flavor, texture, and extend the shelf life of
coating equipment segment is readjusted to a revised 2.2% CAGR for these products, thus boosting the demand for liquid food coating
the next 7-year period. ingredients in the region.
Some of the major factors driving market growth includes rising The North American region is expected to dominate the food
demand for meat, seafood, poultry, bakery products, snacks, and coating market during 2018-2023. The region is backed by superior
confectionery products, growing demand for processed and convenience food coating technologies and utilizes automatic equipment for coating
food, and increased focus on production efficiency, processing time, and food ingredients. Consumers in the US and Canada majorly consume
quality of food products. salty snacks such as potato chips, which need dry coating. Apart from
On the basis of application, the meat and seafood segment is this, these countries consume frozen food that requires a coating for
expected to account for the largest share. The market is mainly driven extended shelf life. Consumers in this region opt for cereal as breakfast
by the large-scale usage in North America. Coating for meat and seafood options which also require coating.
products to protect them from spoilage. This allows the addition of savory
flavors and crispy texture of
meat and seafood products. Need to Know
The semi-automatic
segment is projected to grow at Asia Pacific is also projected to be the fastest-
the highest growth rate in the
next five years. Developing growing market for food coating equipment.
countries in the Asia Pacific and India is projected to be the fastest-growing market in
South American regions that
have a large number of small the region as there are many investments being
and medium manufacturers of made by several multinational corporations
food processing products utilize due to the favorable support of the government and
semi-automated equipment.
Liquid coating is used in low labor cost.
formulations of bakery products, Source: www.marketsandmarkets.com
flavored nuts, ice cream

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