The encapsulation market is expected to grow from US$ 35,113.49 million in 2021 to US$ 80,071.65 million by 2028; it is estimated to grow at a CAGR of 12.5% from 2021 to 2028.
The demand for encapsulation is significantly increasing owing to the growing demand for encapsulated flavors and colors from the convenience food sector. The changing fast-paced lifecycle of individuals across the world along with the growing urban population worldwide drives the need for convenience food products. The demand for encapsulated pharmaceuticals is rising due to the increasing burden of diseases, improving healthcare systems, and rising disposable incomes, which is also boosting the market growth.
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Encapsulation Market: Strategic Insights
Market Size Value in US$ 35,113.49 million in 2021 Market Size Value by US$ 80,071.65 Million by 2028 Growth rate CAGR of 12.5% from 2021 to 2028 Forecast Period 2021-2028 Base Year 2021
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Encapsulation Market: Strategic Insights
| Market Size Value in | US$ 35,113.49 million in 2021 |
| Market Size Value by | US$ 80,071.65 Million by 2028 |
| Growth rate | CAGR of 12.5% from 2021 to 2028 |
| Forecast Period | 2021-2028 |
| Base Year | 2021 |
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The encapsulation market in Asia Pacific is expected to grow at the highest CAGR during the forecast period. Many Asia-Pacific countries, such as China and India, are among the world's fastest-growing populations. The food industry is expanding in the region because of its wide range of applications. The existence of various established sectors, such as food & beverages, in China, India, Japan, and South Korea has increased the demand for packaging solutions in the region. The high demand for dietary supplements among the youngster population is driving the encapsulation market. Major constituents of dietary supplements, such as vitamins and enzymes, require targeted delivery. A few trendy factors such as health consciousness, nutrition, and wellbeing are driving consumer behavior for food that supports longer and healthier lives. The demand for functional food and dietary supplements is increasing among the population. Thus, with the growing consumption of packaged food & beverages in the region, the encapsulation market in Asia Pacific is expected to witness a significant growth during the forecast period.
Impact of COVID-19 Pandemic on Encapsulation Market
With the COVID-19 outbreak across the world, most countries declared a health emergency and stopped inessential movements. The crisis heavily impacted the supply chain of goods. Amid the crisis, there is a surge in the demand for healthy food and beverage from the consumers to boost immunity. The COVID-19 pandemic has negatively impacted the global encapsulation market owing to the shutdown of manufacturing units, rise in prices of raw material, shortage of labor, disruption of supply chains, and financial instability. Furthermore, governments of various countries are planning to develop modern and technologically advanced infrastructure to mitigate the economic impacts of the COVID-19 pandemic. Thus, it helps to contribute to the growth of the construction industry, which would boost the demand for encapsulation in the coming years. This pandemic is projected to impact the market at a low level. However, with the relaxation of the norms, which were taken to control the spread of the virus, the market resumed with the necessary precautions.
Encapsulation Market
- Sample PDF showcases the content structure and the nature of the information with qualitative and quantitative analysis.
- Sample PDF showcases the content structure and the nature of the information with qualitative and quantitative analysis.
Market Insights
Growing Demand for Encapsulated Flavors and Colors from Convenience Food Sector
Encapsulation can provide functional properties such as controlled release in predetermined environments. Encapsulated flavors are being used extensively in the convenience food sector for the controlled release of flavors and colors in food products, including tea bags, confectionery, instant drinks, and desserts. The changing fast-paced lifecycle of individuals globally and the growing urban population worldwide drive the need for convenience food products. The convenience food sector consists of food products designed to reduce preparation time for the end user. The convenience food sector has witnessed a substantial increase in demand in the past decade globally, and it is expected to increase significantly during the forecast period.
Coating Material Insights
Based on coating material, the encapsulation market is segmented into polymers, gums and resins, lipids, carbohydrates, and proteins. The carbohydrates segment accounted for the largest market share in 2020, whereas the polymers segment is expected to register the highest CAGR in the market during the forecast period. Carbohydrates are the first polymers used for flavor encapsulation owing to their good physicochemical properties, good solubility in water, low viscosity, and excellent barrier properties with respect to volatile organic compounds. Coating material for carbohydrates consists of starch, maltodextrins, chitosan, corn syrup solids, dextran, modified starch, fructose, and cyclodextrins. Polymer encapsulation is used in the pharmaceutical industry for orally delivered drugs, and masking taste and odor to improve patient compliance and reduce gastrointestinal irritation and toxicity.
Encapsulation Market, by Coating Material – 2020 and 2028
- Sample PDF showcases the content structure and the nature of the information with qualitative and quantitative analysis.
- Sample PDF showcases the content structure and the nature of the information with qualitative and quantitative analysis.
Technology Insights
Based on technology, the Encapsulation market is segmented into spray technology, emulsion technology, dripping technology, and others. The spray technology segment accounted for the largest market share in 2020. Spray technology involves the spraying of an aqueous solution in hot air, which delivers higher efficiency. Most recommended carriers for the development of particles by spray technology in food industries are alcohols, fatty acids, triacylglycerols, and waxes. The emulsion technology entraps sensitive material, such as minerals and vitamins, in the carrier or coating material before being added to food. Thus, it allows nutrients to be quite stable and easily dispersed in the medium. Therefore, surging demand from the convenience food sector for encapsulated flavors and food is driving the growth of global encapsulation market.
Application Insights
Based on application, the Encapsulation market is segmented into pharmaceuticals and nutraceutical, food and beverages, personal care products, agrochemicals, and others. The market for the pharmaceuticals and nutraceutical segment is anticipated to grow in the coming years owing to the large number of companies using encapsulation to mask the bitter taste or smell of drugs and to provide their targeted and controlled delivery. The pharmaceutical sector is also greatly influenced by encapsulation technologies due to the benefits achieved by the manufacturers. Encapsulation for the food items allows flavor retention and removes bad taste. Increasing consumer preference for healthy and convenient food, growing demand for packaged food, and changing lifestyle coupled with preference for ready-made food are projected to fuel the global market growth during the forecast period.
A few players operating in the Encapsulation market are Encapsys, LLC; Lycored; Tastetech; Givadan; Balchem, INC; FrieslandCampina; DSM; Microtek Laborotories, INC; Legris Industries Group; and BASF SE. The key companies adopt strategies such as the mergers and acquisitions, and research and development to expand customer base and gain significant share in the global market, which also allows them to maintain their brand name globally.
Report Spotlights
- Progressive industry trends in the Encapsulation market to help players develop effective long-term strategies
- Business growth strategies adopted by developed and developing markets
- Quantitative analysis of the Encapsulation market from 2018 to 2028
- Estimation of global demand for Encapsulation
- PEST analysis to illustrate the efficacy of buyers and suppliers operating in the industry
- Recent developments to understand the competitive market scenario
- Market trends and outlook as well as factors driving and restraining the growth of the Encapsulation market
- Assistance in decision-making process by highlighting market strategies that underpin commercial interest, leading to the market growth
- The size of the Encapsulation market size at various nodes
- Detailed overview and segmentation of the market, as well as the Encapsulation industry dynamics
- Size of the Encapsulation market in various regions with promising growth opportunities
Encapsulation Market – by Coating Material
- Polymers
- Gums and Resins
- Lipids
- Carbohydrates
- Proteins
Encapsulation Market – by Technology
- Spray Technology
- Emulsion Technology
- Dripping Technology
- Others
Encapsulation Market – by Application
- Pharmaceuticals and Nutraceutical
- Food and Beverages
- Personal Care Products
- Agrochemicals
- Others
Company Profiles
- Encapsys, LLC
- Lycored
- TasteTech
- Givaudan
- Balchem Inc.
- FrieslandCampina
- BASF SE
- DSM
- Microtek Laboratories, Inc.
- Legris Industries Group
Report Coverage
Revenue forecast, Company Analysis, Industry landscape, Growth factors, and Trends
Segment Covered
Coating Material, Technology and Application
Regional Scope
North America, Europe, Asia Pacific, Middle East & Africa, South & Central America
Country Scope
Argentina, Australia, Brazil, Canada, China, France, Germany, India, Italy, Japan, Mexico, Russian Federation, Saudi Arabia, South Africa, South Korea, United Arab Emirates, United Kingdom, United States
Frequently Asked Questions
The major players operating in the global encapsulation market market are Encapsys,LLC; Lycored; Tastetech; Givadan; Balchem, INC; FrieslandCampina; DSM; Microtek Laborotories INC; Legris Industries Group; BASF SE; and many others.
In 2021, North America accounted for the largest share of the global encapsulation market. The growth of the encapsulation market in this region is primarily attributed to the rise of the pharmaceutical sector in the. U.S. is one of the largest hubs for pharma and food industries in the world. In addition, the country is also technologically advanced and has been a major market of encapsulation since a long time. The increasing demand for pharmaceutical drugs and nutraceutical products is likely to offer lucrative opportunities to manufacturers globally.
The carbohydrates segment held the largest share in 2021. Carbohydrates such as starch, agar, chitosan, and others are popular encapsulation materials in the F&B industry. Encapsulation is used in the food products to lock the flavors or encapsulating ingredients, enzymes, cells, or other things in tiny capsules. Applications for this process have grown in the food sector because encapsulated materials may be protected against moisture, heat, and other severe environments, increasing their stability and viability.
The spray technology segment led the global encapsulation market in 2021. This technology involves the spraying of an aqueous solution in hot air, which delivers higher efficiency. The technology is used in the food and pharmaceutical industries, which helps produce high-quality powders with low moisture content, resulting in a wide range of shelf-stable food and other biologically significant products. The spray drying method is primarily used in microencapsulation due to the rapid processing at a low cost, a wide choice of coating material, good encapsulation efficiency, stability of the finished product, and the possibility of large-scale production in the continuous mode.
The pharmaceuticals and nutraceutical segment led the global encapsulation market in 2021. Encapsulation technologies are extensively used by pharmaceutical and nutraceuticals companies to mask the bitter taste or smell of drugs and to provide their targeted and controlled delivery. The demand for encapsulated biomolecules is increasing in the pharmaceutical industry as they provide targeted action.
Asia Pacific is estimated to register the fastest CAGR in the global encapsulation market over the forecast period. In the region, the demand for encapsulated ingredients is fueled by increasing application in various industries such as food and beverages, pharmaceutical and nutraceuticals, personal care products, agrochemicals etc. Moreover, the consumer demand for longer lasting fragrances in their everyday products continues to grow in all categories, this is expected to offer more growth opportunities for the market.
The List of Companies - Encapsulation Market
- Encapsys,LLC
- Lycored
- Tastetech
- Givadan
- Balchem, INC
- FrieslandCampina
- DSM
- Microtek Laborotories, INC
- Legris Industries Group
- BASF SE
The Insight Partners performs research in 4 major stages: Data Collection & Secondary Research, Primary Research, Data Analysis and Data Triangulation & Final Review.
- Data Collection and Secondary Research:
As a market research and consulting firm operating from a decade, we have published many reports and advised several clients across the globe. First step for any study will start with an assessment of currently available data and insights from existing reports. Further, historical and current market information is collected from Investor Presentations, Annual Reports, SEC Filings, etc., and other information related to company’s performance and market positioning are gathered from Paid Databases (Factiva, Hoovers, and Reuters) and various other publications available in public domain.
Several associations trade associates, technical forums, institutes, societies and organizations are accessed to gain technical as well as market related insights through their publications such as research papers, blogs and press releases related to the studies are referred to get cues about the market. Further, white papers, journals, magazines, and other news articles published in the last 3 years are scrutinized and analyzed to understand the current market trends.
- Primary Research:
The primarily interview analysis comprise of data obtained from industry participants interview and answers to survey questions gathered by in-house primary team.
For primary research, interviews are conducted with industry experts/CEOs/Marketing Managers/Sales Managers/VPs/Subject Matter Experts from both demand and supply side to get a 360-degree view of the market. The primary team conducts several interviews based on the complexity of the markets to understand the various market trends and dynamics which makes research more credible and precise.
A typical research interview fulfils the following functions:
- Provides first-hand information on the market size, market trends, growth trends, competitive landscape, and outlook
- Validates and strengthens in-house secondary research findings
- Develops the analysis team’s expertise and market understanding
Primary research involves email interactions and telephone interviews for each market, category, segment, and sub-segment across geographies. The participants who typically take part in such a process include, but are not limited to:
- Industry participants: VPs, business development managers, market intelligence managers and national sales managers
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Below is the breakup of our primary respondents by company, designation, and region:
Once we receive the confirmation from primary research sources or primary respondents, we finalize the base year market estimation and forecast the data as per the macroeconomic and microeconomic factors assessed during data collection.
- Data Analysis:
Once data is validated through both secondary as well as primary respondents, we finalize the market estimations by hypothesis formulation and factor analysis at regional and country level.
- 3.1 Macro-Economic Factor Analysis:
We analyse macroeconomic indicators such the gross domestic product (GDP), increase in the demand for goods and services across industries, technological advancement, regional economic growth, governmental policies, the influence of COVID-19, PEST analysis, and other aspects. This analysis aids in setting benchmarks for various nations/regions and approximating market splits. Additionally, the general trend of the aforementioned components aid in determining the market's development possibilities.
- 3.2 Country Level Data:
Various factors that are especially aligned to the country are taken into account to determine the market size for a certain area and country, including the presence of vendors, such as headquarters and offices, the country's GDP, demand patterns, and industry growth. To comprehend the market dynamics for the nation, a number of growth variables, inhibitors, application areas, and current market trends are researched. The aforementioned elements aid in determining the country's overall market's growth potential.
- 3.3 Company Profile:
The “Table of Contents” is formulated by listing and analyzing more than 25 - 30 companies operating in the market ecosystem across geographies. However, we profile only 10 companies as a standard practice in our syndicate reports. These 10 companies comprise leading, emerging, and regional players. Nonetheless, our analysis is not restricted to the 10 listed companies, we also analyze other companies present in the market to develop a holistic view and understand the prevailing trends. The “Company Profiles” section in the report covers key facts, business description, products & services, financial information, SWOT analysis, and key developments. The financial information presented is extracted from the annual reports and official documents of the publicly listed companies. Upon collecting the information for the sections of respective companies, we verify them via various primary sources and then compile the data in respective company profiles. The company level information helps us in deriving the base number as well as in forecasting the market size.
- 3.4 Developing Base Number:
Aggregation of sales statistics (2020-2022) and macro-economic factor, and other secondary and primary research insights are utilized to arrive at base number and related market shares for 2022. The data gaps are identified in this step and relevant market data is analyzed, collected from paid primary interviews or databases. On finalizing the base year market size, forecasts are developed on the basis of macro-economic, industry and market growth factors and company level analysis.
- Data Triangulation and Final Review:
The market findings and base year market size calculations are validated from supply as well as demand side. Demand side validations are based on macro-economic factor analysis and benchmarks for respective regions and countries. In case of supply side validations, revenues of major companies are estimated (in case not available) based on industry benchmark, approximate number of employees, product portfolio, and primary interviews revenues are gathered. Further revenue from target product/service segment is assessed to avoid overshooting of market statistics. In case of heavy deviations between supply and demand side values, all thes steps are repeated to achieve synchronization.
We follow an iterative model, wherein we share our research findings with Subject Matter Experts (SME’s) and Key Opinion Leaders (KOLs) until consensus view of the market is not formulated – this model negates any drastic deviation in the opinions of experts. Only validated and universally acceptable research findings are quoted in our reports.
We have important check points that we use to validate our research findings – which we call – data triangulation, where we validate the information, we generate from secondary sources with primary interviews and then we re-validate with our internal data bases and Subject matter experts. This comprehensive model enables us to deliver high quality, reliable data in shortest possible time.
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