Recovery under Threat

The recovery of the coated foods market in the post-pandemic world has been threatened by the situation in Ukraine and the escalating cost of key ingredients, reports Jonathan Thomas.

Coated foods continue to represent a popular meal option for both in-home and out-of-home eating occasions. Although the market is still dominated by products based around proteins such as poultry and fish, it also encompasses other forms of coated foods – notable examples include potato croquettes, breaded vegetables (which often represent a popular form of appetiser in foodservice channels), breaded cheese bites and more specialist foods, such as falafel. The trend towards vegetarianism and veganism has also led to the emergence of coated foods made with meat and fish substitutes.

Across most of Europe, coated foods are sold via retail and foodservice channels. The retail market is dominated by a handful of large multinational suppliers and their brands, of which Nomad Foods (owner of brands such as Birds Eye and Iglo) is the largest. Within the foodservice industry, sales of coated poultry products such as chicken nuggets and goujons are well-represented in channels such as quick service restaurants (QSRs), pubs and bars and represent a staple offering for KFC and its many imitators. In contrast, coated fish and seafood have a far more modest presence within the QSRs sector across much of Europe. The exceptions to this rule are fish and chip shops, which are widely found within the UK and Ireland and are strongly associated with battered fish (usually cod or haddock).

Some of Europe’s largest markets for coated foods include the UK, Germany and the Benelux and Scandinavian countries, due to the widespread popularity of convenience meal centres. Sizeable non-European markets for coated foods include the US, Canada and Australia, as well as Asian countries such as China and Japan which are associated with certain types of coatings.

Coatings – Technologies & Trends

The global market for food coatings (of which batters and breadings represent a significant sector) is worth an estimated USD3bn at present and growing. Much of this growth is being driven by the desire of manufacturers of coated foods to offer new taste profiles and flavours, as well as improved textures. In some instances, the popularity of ethnic cuisine has influenced coatings – for example, tastes from the Deep South in the US remain a perennial favourite, as evidenced by the proliferation of products promoted as ‘Southern Fried.’ Coatings derived from Indian, Chinese, Mexican and Japanese cooking have also come to market as the sector has developed.

Coatings such as batters and breadings are typically used to improve the sensory appeal of foods by enhancing taste, appearance and texture. These types of coatings also help to retain the moisture of foods during the deep-frying process. Additionally, both batters and breadings can protect meat and seafood during the freezing and frying processes, assisting in holding in moisture which results in a juicier finished product. Batters have traditionally been made by mixing flour and liquids (usually milk or eggs), with other ingredients sometimes used as leavening agents. Breadings are drier coatings, consisting of particles that stick to the surface of the fish or meat.

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