The mushrooming consumption of convenience foods is one of the major factors driving the demand for food coating ingredients. Due to the rising urbanization rate and busy lifestyles of people, the demand for ready-to-eat and convenience foods, such as nutrient bars, bakery and confectionary products, savory snacks, and cereals is rising. As food coatings are extensively used in these foods for mitigating the contact of the food item with the environment, the rising demand for convenience and ready-to-eat foods is fueling their sales across the world.

In addition, the rising requirement for food protection agents is also propelling the worldwide demand for food coating ingredients. Poultry products and meat usually need food coatings in order to prevent adhesion, disintegration, or agglomeration. Moreover, coatings are also required in vegetables and fruits for mitigating the loss of moisture in them. Owing to these factors, these coatings are being increasingly used in large amounts in food items all over the world, thereby causing the expansion of the global food coating ingredients market.

According to the observations of the market research company, P&S Intelligence, the market generated a revenue of $3,698.6 million in 2020 and it is predicted to progress at a CAGR of 5.8% from 2015 to 2020 (forecast period). Fats and oils, cocoa and chocolates, spices and seasonings, starches, batter and crumbs, sugars and syrups, and hydrocolloids are the most widely used types of food coating ingredients. Out of these, the demand for cocoa and chocolate ingredients was observed to be the highest in 2014.

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This was because of the huge requirement for cocoa and chocolate coatings in various food items, such as convenience, confectionary, and bakery products. Ready-to-eat snack bars and cereals, bakery, confectionary, dairy, frozen foods, savory snacks, and meat and poultry are the major application areas of food coating ingredients. Out of these, the use of these ingredients was found to be the highest in confectionary products in 2014. This was due to the large-scale consumption of various convenience foods, owing to the surging per capita income of people and their changing lifestyles.

Geographically, the sales of food coating ingredients are predicted to rise at the fastest pace in the Asia-Pacific (APAC) region over the next few years. This is ascribed to the soaring requirement for processed food items, mushrooming population, and the surging disposable income and changing lifestyles of people in the region. The food coating ingredients market is expected to exhibit rapid expansion in the emerging economies of APAC, such as Australia, China, and India, in the coming years.