Food Encapsulation Market Outlook, 2028

Encapsulation is the process of covering a substance with a coating, frequently to shield it from the elements or regulate its release. The market for technology and procedures that are used to encapsulate food ingredients or additives including vitamins, tastes, colours, enzymes, and other functional substances is referred to as the food encapsulation market. The growing demand for convenience foods, functional foods, and nutraceuticals, as well as the necessity to maintain and safeguard the nutritional content of food ingredients, are the main factors driving the market for food encapsulation. Food products' shelf life is increased via encapsulation, which also improves flavour and texture. Encapsulants serve as a protective layer, insulating the sensitive bioactive agent-containing core from water, air, and light to stop any reactions in the core phase. The design of encapsulated protective shells strictly uses food-grade, biodegradable materials since they must be capable of effectively forming a barrier between the interior phase and its surroundings. Due to its many applications and various benefits over competing technologies, the market for encapsulation is expanding significantly on a global scale. Encapsulation has many benefits, including improving the stability and bioavailability of the bioactive substances, extending the shelf life of food products, and preserving taste and flavour for a longer time. In numerous industrial sectors, including nutraceuticals and food and beverage, encapsulation is becoming more prevalent. Technological innovations, including the use of nanotechnology for encapsulating, have also fuelled the business. In order to increase shelf life and/or mask an unappealing flavour or taste, food-grade proteins and polysaccharides are frequently employed to encapsulate delicate and bioactive food constituents, such as vitamins, highly unsaturated oils like fish oils, enzymes, or other tastes. People are getting more interested in functional foods as they become more health conscious, which is causing the food encapsulation industry to grow.

According to the research report, Global Food Encapsulation Market Outlook, 2028, the market is anticipated to reach a size of over USD 16 Billion by 2028, up from USD 11.04 Billion in 2022. The market is expected to grow at 7.46% CAGR by 2023-28. Due to busy schedules, ease of preparation, and accessibility via a variety of distribution channels, convenience food items are becoming increasingly popular; this is one of the important trends in the food encapsulation industry. People with limited time frequently choose convenience foods since they reduce the amount of food preparation, shopping, and clean-up. The food encapsulation market is expanding as a result of rising use of the technology since the encapsulated substance is protected from harsh weather, heat, and moisture, among other things. Utilising food encapsulation helps disguise off-putting tastes and odours while boosting the flavour and flavour of different food items. In addition to that, consumer purchase patterns have drastically changed in recent years. Higher discretionary income and increasing consumption of nutrient-dense foods are mostly to blame for this. As a result, the market for food encapsulation firms has expanded globally in recent years due to a considerable rise in consumer preferences for specialty food items that are suited to particular alternatives. Additionally, in order to increase sales of food encapsulation techniques, local and global businesses in their individual regions are developing encapsulated solutions that offer products an extended shelf-life and long-lasting flavours. The market for food encapsulation is impacted by clean-label products as well. Businesses are concentrating on offering clean-label products. As a result, gelatin, extra antioxidants, and microencapsulation technology without preservatives are being developed. This can be attributed to consumer desires for sustainable and green products all around the world, which will aid in the growth of the food encapsulation business in the near future.

The use of encapsulation technology to extend the shelf life, stability, and effectiveness of food products is referred to as the worldwide food encapsulation market. Encapsulation is the process of encasing active compounds, such as flavours, colours, and nutrients, in a barrier constructed of a range of substances, such as lipids, carbohydrates, and proteins. A wide variety of food products, including beverages, bread goods, dairy goods, confections, and processed foods, can use encapsulation technology. Encapsulants function as a shielding material, protecting the core, which contains a delicate bioactive chemical, from light, oxygen, and water in order to stop any reaction in the core phase. Food-grade, biodegradable materials are only employed in the creation of encapsulated protective shells because they must be efficient at separating the interior phase from its surroundings. In the upcoming years, it is anticipated that the global market for food encapsulation would expand significantly as customers continue to want convenient, wholesome, and high-quality food items. To address the changing needs of customers and the food business, it is anticipated that the food encapsulation sector will continue to innovate and develop new and superior encapsulating technologies. More effective and efficient encapsulating techniques have been created as a result of improvements in encapsulation technology. As a result, there are now more encapsulated food additives and ingredients available on the market, which is driving demand for the worldwide food encapsulation market. However, the high cost of encapsulation technology is a major impediment to the global food encapsulation market's growth.

The use of food encapsulation in confectionery products like chewing gum and sweets as encapsulated sweeteners is predicted to boost the growth of the global industry. The introduction of preservation methods including microencapsulation and nanoencapsulation technologies is anticipated to positively affect market growth on a global scale. The market for food encapsulation is anticipated to rise alongside the heavy investment flow in the food preservation industry and the rising demand for food with benefits for disease prevention. Participants in the business anticipate that maintaining the stability of encapsulated food will be difficult and impede the expansion of the worldwide market. It is anticipated that technological developments in controlled delivery and release systems would offer industry participants attractive prospects. Also, it has been noted that there is a shift away from the acceptance of traditional home-cooked meals in favour of convenient foods, particularly in the developing economies of the world. Fast food consumption and eating prepared meals have ingrained themselves into people's daily eating routines. The adoption of modern living practises has made it clear that improvements are required to preserve food for longer periods of time. As a result, there is a strong demand for technologies like food encapsulation, which is fuelling market expansion over the course of the projection period. When seen from an industrial perspective, transporting, storing, and managing powders is far simpler and less expensive than doing same with moistened food products. As a result, encapsulation lowers the cost of transportation while also making handling easier. The components of the food are also protected by encapsulation during preparation or storage. Additionally, encapsulation offers a regulated release of bioactive substances during cooking, offering an ideal method for maintaining quality and nutritional status.

Based on the regions, the North American dominated the world market for food encapsulation in 2022. There are many factors that contribute to the large market, including the rising demand for encapsulation due to its use in the creation of numerous food products, the wide availability of shell supplies like hydrocolloid and emulsions, a number of well-established competitors in the area, the rising customer demand and awareness for functional food products in the region, and the region's expanding product development and innovation. The global food encapsulation market, on the other hand, is anticipated to increase at the maximum rate during the projected period in the Asia-Pacific region. The rise in demand for processed foods and drinks in nations like China, India, and Japan is responsible for the growth. The region's food encapsulation market is anticipated to expand as a result of rising demand for functional foods and dietary supplements as well as rising health and wellness consciousness. Due to the rising demand for processed food goods in the nation, China is the largest market for food encapsulation in the Asia-Pacific region. China's expanding urbanisation and shifting consumer lifestyles have increased demand for convenience foods, which in turn is propelling the country's food encapsulation market's expansion.
Technology for food encapsulation can reduce flavour loss or deterioration during various product processes and storage. Techniques for encapsulating food can also offer useful qualities like a regulated release of aromatic molecules in a specific environment like water (if flavoured tea), the mouth (solid food like candies or toothpaste), or spray. Manufacturers' top issue is the rising demand for products with natural flavours and clean labels. As a result, new products that meet the specific needs of consumers - such as those for high quality, safety, natural origin, long shelf life, and a pleasing look with a useful aftertaste - have been created. Additionally, significant regions of the world are using encapsulation technology more and more as a tool for innovation. An American business called Salvona, for instance, created encapsulation technologies that allow the sequential release of flavours and other sensory elements in functional foods. Similar to this, a Canadian firm named Orbitz produces a beverage that includes a suspension of coloured capsules providing various flavours and/or vitamins, making the ingestion of functional food enjoyable. For the approaching years, this is offering enormous potential opportunities for the food encapsulation industry.

According to the core phase segmentations, the global market is categorised into vitamins, minerals, enzymes, pro-biotic, sweeteners, organic acids, flavours & essence, colors, preservatives, essential, oils, pre-biotic and others (amino acids, nutritional lipids, fats, salts, proteins, and phytochemicals). The demand for vitamins and minerals is driven by consumer attention to health and prevention, increased nutrition needs for different population segments, rising healthcare costs, the search for alternatives to treat specific issues, and growing consumer awareness of the severity of chronic diseases. In 2022, vitamins will dominate the global market for food encapsulation, generating USD 2.5 Billion in sales. Due to their unique nutritional characteristics, they serve as useful components in food items. They fall under the categories of water-soluble and fat-soluble vitamins. The vitamins A, D, E, and K are fat-soluble. The importance of vitamin A in maintaining bone density and protecting the eyes from night blindness and visual impairment will increase demand for the nutrient. The company will advance as a result of vitamin A's notable effectiveness in enhancing the immune system. The control of cardiovascular diseases and cancer, as well as advancements in tissue repair and blood circulation, will increase demand for vitamin E. In the category of water-soluble vitamins are vitamins B and C. It is crucial to target and regulate the release of these vitamins when they are included as food ingredients. Thus, their encapsulation is required. Vitamins must be encapsulated in order to protect vitamin molecules from oxidation, preserve nutrients, and stop products from degrading for an extended period of time. However, the formulation of minerals for use in food, on the other hand, takes the form of salts. The expanding consumption of food products with additional vitamins and nutrients has been facilitated by consumers' growing interest in health and wellness. Minerals have gained prominence in recent years due to their advantages in ensuring that the immune system operates at its best.

The global market for food encapsulation is divided into polysaccharides, proteins, lipids, emulsifiers and others (silicon, calcium carbonate, synthetic polymers, biopolymers) depending on the type of shell material used. During the forecast period, the polysaccharides category is anticipated to account for the highest proportion of the worldwide food encapsulation market. The large variety of polysaccharides on the market, their inexpensive cost, and their adaptability in encapsulating applications can all be credited for the increase. Alginate, pectin, and chitosan are a few polysaccharides that are frequently employed in encapsulation because of their capacity to produce gels and enhance the stability of active components. Starches and gums are examples of polysaccharides that are utilised in encapsulation to provide a protective covering around the active components and improve functionality. Chemically treated polysaccharides, such as methylcellulose and hydroxypropyl methylcellulose, offer improved stabilisation and insulation due to their improved chemical resistance and film-forming ability. Numerous varieties of polysaccharides, such as methylcellulose and hydroxypropyl methylcellulose, are readily accessible on the market and offer greater film-forming capabilities as well as improved chemical stability for increased stabilisation and protection.

Based on technology, the global market for food encapsulation is segmented into three sub-categories including hybrid, micro, and nano-encapsulation. The microencapsulation market is anticipated to make up the bulk of the global food encapsulation market over the course of the study. The main reason for the segment's big share is the rising demand for and preference for microencapsulation due to its simplicity in production and superior functional advantages. This is because microencapsulation helps designers incorporate new functional qualities into planned food products and protects unstable bioactive components. The food and pharmaceutical industries are seeing an increase in demand for microencapsulation as a means of safeguarding delicate components and ensuring their safe delivery. The global market for food encapsulation is expected to expand in the next years as a result of technological developments, as well as the variety of functions and benefits of microencapsulation technology. Utilising a variety of methods, including spray-drying, coacervation, and extrusion, microencapsulation technology encapsulates active substances in particles with a size range of 1 to 1000 micrometres. The stability, bioavailability, and controlled release of active substances are all improved with this method. It is a cutting-edge method that has been applied to tastes, acids, oils, vitamins, and microbes, among other things, in the personal care product, pharmaceutical, agrochemical, and food industries.

Furthermore, the market for food encapsulation is anticipated to increase as a result of the rising demand for fortified and functional foods based on the application. Diet that has been fortified has extra nutrients that are not present naturally in the diet. Beyond just providing basic nutrients, functional food lowers the risk of illness and fosters optimum health. Given that they provide extra nutrients or healthful ingredients, fortified and functional foods are frequently used in the food encapsulation industry. For instance, in 2020 the well-known brands Bear Brand, Cerevita, and Maggi were used by the food and beverage processing business Nestle, based in Switzerland, to offer 196.6 billion fortified servings of food and beverages. The market for food encapsulation is predicted to increase as a result of factors such as the rising use of functional ingredients that are microencapsulated and consumer preference for convenient and healthful foods. Encapsulation procedures in the food and beverage industry can preserve the colour, flavour, and nutritional value of food goods while also increasing their shelf life. Healthy foods have an undesirable flavour or colour due to the bioactive compounds, which has increased the demand for food that is covered in colour and flavour masking. The market for flavour stabilisation is also being driven by the rising popularity of flavoured food products. Flavour stabilisation is a flourishing sector as a result of the rising demand for flavoured food items. Encapsulation, commonly referred to as microencapsulation, is the technique of putting a flavouring ingredient, or rather, a collection of compounds, inside of a unique container. Because microencapsulation technology helps protect functional food ingredients to ensure long-term performance, it also helps increase or decrease specific constituents in milk and dairy products, which accounts for a significant portion of the market share held by the dietary supplements category. Almost everywhere in the globe accepts and consumes dairy products. The production of dairy products containing bioactive substances thereby boosts productivity margins and creates new opportunities for this industry.

The global market for food encapsulation is further segmented into physical method, chemical method and physicochemical method. Atomization, which includes spray drying, spray chilling, spinning disc, and extrusion, is a subset of the physical process. Fluid bed, which includes electrospraying, freeze-drying, and pan coating, is another subset. Polymerization, the sol-gel method, physicochemical co-acervation, evaporation-solvent diffusion, layer-by-layer encapsulation, liposomes, cyclodextrins, and other physicochemical approaches (co-crystallization and micelles) are all components of the chemical process. Encapsulating food ingredients using the atomization process is a practise that is commonly used. The ability to use a variety of encapsulating agents, availability of large equipment with large-scale manufacturing, enhanced efficiency, and lower transport, storage, and process costs are some of the advantages connected with it.

Food encapsulation helps in extending the shelf life of perishable food products by protecting them from degradation caused by environmental factors such as moisture, oxidation, and light. Encapsulation techniques create a barrier around the active ingredients, preventing their exposure to unfavourable conditions and preserving their quality over a longer period. This trend is particularly relevant in the context of convenience foods and ready-to-eat meals. Encapsulation can be employed to encapsulate volatile flavour compounds and aromatic substances, helping to maintain their integrity and release them at the desired moment, such as during consumption. This technology allows for the development of food products with long-lasting and intense flavours, providing a better sensory experience to consumers. Encapsulation enables the controlled release of active ingredients, such as flavours, colors, nutrients, and functional compounds, during food consumption or processing. Controlled release systems can improve the effectiveness and efficiency of these ingredients, ensuring their targeted delivery and utilization in the body. This trend is especially relevant for nutraceuticals and dietary supplements. The food encapsulation market is witnessing continuous advancements in encapsulation techniques and materials. Newer encapsulation methods, such as spray drying, extrusion, coacervation, and nanoencapsulation, are being developed to improve encapsulation efficiency, reduce costs, and enhance the stability and bioavailability of encapsulated ingredients. Innovations in encapsulation materials, such as biodegradable and edible polymers, are also gaining attention due to their sustainability and consumer-friendly characteristics.

Recent Developments:

• BASF, in March 2023, introduced the first next-generation solid encapsulation technology-deployed corn herbicide. The new ground-breaking resistance management tool helps farmers to employ pre- and early post-emergence in maize.
• In January 2023, compared to December, the FrieslandCampina guaranteed price for organic farm milk lowered by 0.43 euros to 64.75 euros per 100 kilograms (2022). This decline is predicated on the assumption that reference firms will marginally lower the rates they pay for organic farm milk due to declining market demand and an increase in farm milk supply.
• In April 2022, TasteTech Ltd., a food encapsulation company worked with the University of Nottingham to investigate how the encapsulation technology could help people who have lost their smell or taste
• In June 2022, Balchem Corporation, food encapsulation company announced that it completed its acquisition of Kappa Bioscience AS, a leading science-based manufacturer of specialty vitamin K2 for the human nutrition industry, headquartered in Oslo, Norway.
• In March 2022, Kerry opened a-USD 137-million food technology and innovation center of excellence in Rome, Georgia. This would help the company innovate and enter new market with food technologies.

Covid-19 Impacts:

Due to supply chain interruptions, the COVID-19 pandemic had a substantial effect on the microencapsulation business. In the market for food microencapsulation, polysaccharides, proteins, lipids, and emulsifiers are crucial raw materials and formulations. Asia Pacific is a major source of raw material imports for Europe. All imports and exports have been blocked due to trade restrictions and international border closures, which has affected the production process. Many small-scale emergent microencapsulation enterprises are based in Asia Pacific nations, such as China and India. These companies import raw materials from the neighbourhood and export finished products to both domestic and foreign markets. Transportation of completed goods to markets had experienced brief difficulties as a result of government rules pertaining to transportation limitations.

Major Companies present in the market:

Cargill, Incorporated, Royal DSM N.V., Kerry Group plc, Ingredion Incorporated, Symrise AG, International Flavors & Fragrances (IFF), Sensient Technologies Corporation, Givaudan S.A., Royal FrieslandCampina N.V, Stepan Company, Balchem Corporation, TasteTech, Innophos Holdings, Inc., Evonik Industries AG, Lonza Group, LycoRed Ltd., Vitablend Nederland BV, Encapsys LLC, Advanced Bionutrition Corporation, Innov'ia.

Considered in this report

• Geography: Global
• Historic year: 2017
• Base year: 2022
• Estimated year: 2023
• Forecast year: 2028

Aspects covered in this report

• Global Food Encapsulation with its value and forecast along with its segments
• Region-wise Food Encapsulation market analysis
• Various drivers and challenges
• On-going trends and developments
• Top profiled companies
• Strategic recommendation

Regions & Countries covered in the report:

• North America (United States, Canada, Mexico)
• Europe (Germany, United Kingdom, France, Spain, Italy, Russia)
• Asia-Pacific (China, Japan, India, Australia, South Korea)
• South America (Brazil, Argentina, Colombia)
• Middle-East & Africa (UAE, Saudi Arabia, South Africa)

By Core Phase

• Vitamins
• Minerals
• Enzymes
• Pro-biotic
• Sweeteners
• Organic Acids
• Flavours & Essence
• Colors
• Preservatives
• Essential Oils
• Pre-biotic
• Others

By Shell Material

• Polysaccharides
• Proteins
• Lipids
• Emulsifiers
• Others

By Technology

• Micro-encapsulation
• Nano-encapsulation
• Hybrid technology

By Application

• Functional Foods
• Dietary Supplements
• Bakery Products
• Confectionary Products
• Beverages
• Frozen products
• Dairy Products

By Method

• Physical Method
• Chemical Method
• Physicochemical Method

The approach of the report:

This report consists of a combined approach of primary as well as secondary research. Initially, secondary research was used to get an understanding of the market and listing out the companies that are present in the market. The secondary research consists of third-party sources such as press releases, annual report of companies, analysing the government generated reports and databases. After gathering the data from secondary sources primary research was conducted by making telephonic interviews with the leading players about how the market is functioning and then conducted trade calls with dealers and distributors of the market. Post this we have started doing primary calls to consumers by equally segmenting consumers in regional aspects, tier aspects, age group, and gender. Once we have primary data with us we have started verifying the details obtained from secondary sources.

Intended audience

This report can be useful to industry consultants, manufacturers, suppliers, associations & organizations related to Food Encapsulation industry, government bodies and other stakeholders to align their market-centric strategies. In addition to marketing & presentations, it will also increase competitive knowledge about the industry.