The global food coating agents market size is slated to expand substantially as the pace of urbanization across the globe gathers momentum. World economy is developing at a healthy rate and the growing intensity of urbanization is representative of that fact. The Department of Economic and Social Affairs (DESA) under the United Nations states that currently 55% of the global population lives in urban areas. By 2050, this figure is expected to shoot up to 68%, the DESA predicts. More importantly, majority of this shift will be witnessed in the developing nations of Asia and Africa. Urban areas are typically characterized by hectic lifestyles, pollution, and congestion. Cooking food at home after office becomes tiresome. As a result, the working populace in large cities is increasingly demanding and consuming processed and packaged foodstuffs, which is further fueled by the ease of ordering food online. Therefore, maintaining the quality and nutrition of food has become a top priority, a requirement that food coating agents can effectively fulfill.
Hidden Health-related Disadvantages to Slow Down Growth
One of the leading food coating agents market trends is the efficacy of these substances in retaining the texture, quality, and flavour of the packaged food item. However, the rise of this trend is likely to get stymied owing to the unseen cons of processed food products. For example, processed foods are loaded with high fructose corn syrup which is used to enhance the sweetness of a food item. The National Institutes of Health reports that excessive consumption of such artificial sugars can adversely affect the metabolic system. Since these foods contain empty calories, burning them through exercise is crucial. However, the hectic and sedentary lifestyles in urban areas leaves little time for exercise, making the body a breeding ground chronic diseases. Moreover, food coating agents are basically synthetic chemicals and processed foods are covered in plastic most of the times. The deadly combination of the two substances can create lifelong problems in the human body. Therefore, as awareness regarding these drawbacks becomes more widespread, the food coating agents market growth may get hampered in the coming decade.
North America and Europe to Hold Lion’s Share in the Market
North America and Europe are anticipated to dominate the food coating agents market share during the forecast period owing to the rising demand for frozen food in these continents. As countries in these regions are not agriculture-intensive, availability of fresh food is low. Thus, the demand for packaged and frozen food items is consistently high in these regions. Asia-Pacific is expected to experience considerable growth as the region houses two economic powerhouses, China and India, that are undergoing a period of intense urbanization and industrialization. Economic development has led to increase in disposable income in the region, owing to which the demand for bakery and confectionary items is skyrocketing.
Launch of Sustainable Products to Stimulate Heated Competition
Major competitors in this market are directing their attention towards developing eco-friendly processes, aligning their strategies with the Sustainable Development Goals. Other companies are involved in acquiring players outside their home countries to expand their global footprint.
April 2019: Cargill Inc. became the first company to use Rainforest Alliance Certified coconut oil for coatings and fillings in its cocoa and chocolate products. The oil was sourced using sustainable processes by the company, thereby responding to the rising consumer demand for sustainability in the food processing industry.
December 2018: The Irish food company Kerry Group plc acquired the coatings and seasonings business units of Southeastern Mills and Ariake USA. Ariake is well-known for its clean-label offerings for meat and vegetables, while Southeastern is renowned for its seasonings and coatings. Through this acquisition, Kerry Group would be able to enhance its clean-label image globally.
Key Players Profiled in the Food Coating Agents Market Report:
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