Food Encapsulation Market Report 2025

The food encapsulation market size has grown strongly in recent years. It will grow from $41.76 billion in 2024 to $44.67 billion in 2025 at a compound annual growth rate (CAGR) of 7%. The growth in the historic period can be attributed to growing consumer awareness, rising demand for convenience foods, health and wellness trends, increasing consumer demand for functional foods, growing food and beverage industry.

The food encapsulation market size is expected to see strong growth in the next few years. It will grow to $58.07 billion in 2029 at a compound annual growth rate (CAGR) of 6.8%. The growth in the forecast period can be attributed to innovations in ingredients and materials, global population growth, expanding applications in various industries, continued growth in the functional foods market, emphasis on sustainable and natural ingredients. Major trends in the forecast period include advancements in encapsulation technologies, technological advancements in encapsulation techniques, rising preference for convenience foods, sustainability concerns, customization and personalization.

The growing demand for fortified and functional foods is anticipated to drive the expansion of the food encapsulation market. Fortified foods contain additional nutrients not naturally present in the food, while functional foods aim to reduce the risk of disease and enhance overall health beyond basic nutrition. The food encapsulation market benefits from the widespread use of fortified and functional foods, offering added nutrients or beneficial ingredients. For instance, in February 2023, Nestle, a Switzerland-based food and beverage processing company, reported delivering 124.6 billion fortified servings of food and beverages through popular brands such as Bear Brand, Cerevita, and Maggi.

The rising prevalence of obesity is anticipated to drive the growth of the food encapsulation market in the future. Obesity is a medical condition defined by an excessive accumulation of body fat that can adversely impact an individual's health. Food encapsulation addresses concerns related to obesity by offering healthier food options, promoting portion control, and improving overall nutritional quality. For example, in March 2024, the World Health Organization, a Switzerland-based intergovernmental body, reported that in 2022, one in eight individuals worldwide was affected by obesity. Consequently, the increasing prevalence of obesity is fueling the growth of the food encapsulation market.

Technological advancement stands out as a significant and popular trend in the food encapsulation market. Technological advancement involves the discovery of knowledge that drives progress in technology. For example, in February 2022, Givaudan, a Switzerland-based manufacturer of food and flavors, introduced PrimeLock+, a groundbreaking fat encapsulation technology. This innovative technology is designed to reduce 30% of the calories and 75% of the fat content in meat substitutes. The advancements in fat encapsulation not only contribute to calorie and fat reduction but also enhance authenticity and flavor stabilization. This allows companies to create tastier, lower-fat, plant-based products such as burgers, sausages, and meatballs, ultimately improving the overall eating experience.

Major players in the food encapsulation market are concentrating on introducing next-generation solutions, including smart nanocarriers. Smart nanocarriers are transforming the field by providing a more intelligent and targeted approach to delivering drugs and other therapeutic agents. For instance, in November 2022, Nulixir Inc., a US-based business-to-business (B2B) nanobiotechnology company, launched nanovesicles. These smart nanocarriers, known as nanovesicles, are designed to enhance the bioavailability of functional ingredients, mask their flavors, and control their release kinetics in the body. Nanovesicles are revolutionizing the food and beverage industry by optimizing the functionality of ingredients and addressing consumer demands for cleaner, greener, and healthier products. The technology behind nanovesicles aims to tackle challenges such as taste, solubility, stability, and bioavailability of functional ingredients.

In August 2024, Mars Inc., a US-based food company specializing in confectionery, pet food, and various other food products, along with animal care services, acquired Kellanova for $36 billion. This acquisition enhances Mars Inc.'s standing in the global food market by broadening its product portfolio and reinforcing its presence in the breakfast and snack categories. Additionally, it promotes increased innovation and operational synergies, allowing Mars to better meet the evolving demands of consumers. Kellanova is a US-based food manufacturing company engaged in food encapsulation.

Major companies operating in the food encapsulation market include Cargill Incorporated, BASF SE, Mitsubishi Chemical Corporation, Blue California Company, Sumitomo Chemical Co. Ltd., Fuji Chemical Industry Co. Ltd., E. I. du Pont de Nemours and Company, International Flavors & Fragrances Inc., Kerry Group plc, Koninklijke DSM N.V., Givaudan SA, Roquette Frères SA, Symrise AG, Firmenich International SA, JRS Japan Resins Industry Co. Ltd., Vitablend Nederland B.V., CP Kelco, Balchem Corporation, Lycored Corp., T. Hasegawa Co. Ltd., Encapsys LLC, Coating Place Inc., Aveka Inc., Tastetech Ltd., GAT Food Essentials, Advanced BioNutrition Corp.

North America was the largest region in the food encapsulation market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the food encapsulation market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the food encapsulation market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

Food encapsulation is a technique that incorporates food ingredients, cells, enzymes, or other materials into small capsules. This process protects encapsulated materials from extreme conditions and is used to mask taste, color, flavor, and odor, enhancing the viability and stability of food products.

Food encapsulation involves several key technologies, including microencapsulation, nanoencapsulation, hybrid technology, and macroencapsulation. Microencapsulation is a process designed to reduce volatility, adverse aroma, and reactivity of food products, providing increased stability when exposed to challenging conditions such as heat, light, or moisture. Various shell materials used in food encapsulation include polysaccharides, proteins, lipids, emulsifiers, and other substances. The core phases in food encapsulation encompass minerals, organic acids, vitamins, enzymes, probiotics, additives, essential oils, prebiotics, and other substances. These technologies find applications in diverse sectors such as dietary supplements, functional food products, bakery items, confectionery, beverages, dairy products, and other areas.

The food encapsulation market research report is one of a series of new reports that provides food encapsulation market statistics, including food encapsulation industry global market size, regional shares, competitors with food encapsulation market share, detailed food encapsulation market segments, market trends and opportunities, and any further data you may need to thrive in the food encapsulation industry. This food encapsulation market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The food encapsulation market consists of sales of microencapsulation, nanoencapsulation, hybrid technology, and macro encapsulation. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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