Microencapsulation Market Report 2026

The microencapsulation market size has grown rapidly in recent years. It will grow from $12.98 billion in 2025 to $14.42 billion in 2026 at a compound annual growth rate (CAGR) of 11.1%. The growth in the historic period can be attributed to growth of pharmaceutical manufacturing, rising demand for functional foods, expansion of agrochemical formulations, increasing use of encapsulated fragrances, advancements in encapsulation techniques.

The microencapsulation market size is expected to see rapid growth in the next few years. It will grow to $21.91 billion in 2030 at a compound annual growth rate (CAGR) of 11%. The growth in the forecast period can be attributed to increasing adoption of precision drug delivery systems, rising focus on sustainable encapsulation materials, expansion of personalized nutrition products, growing use in thermal energy storage, increasing investments in advanced formulation technologies. Major trends in the forecast period include growing use of controlled release technologies, rising adoption in pharmaceutical and nutraceutical products, expansion of microencapsulation in food fortification, increasing demand for functional ingredient protection, enhanced stability of sensitive active compounds.

Rising consumer demand for functional foods is expected to drive the growth of the microencapsulation market going forward. Functional foods are processed products that provide health benefits and help reduce disease risks. Microencapsulation enhances these foods by coating functional ingredients with food-grade, biodegradable materials, protecting them from degradation while improving bioavailability and stability. It also addresses challenges associated with certain fortified ingredients, such as phytosterols. Shifts in consumer preferences toward health-focused products have further fueled this demand. For instance, in July 2025, according to Foodmanufacture.co.uk, a UK-based platform for the food and drink industry, functional beverages such as kombucha grew by 30% year-on-year, while health shots like ginger and turmeric surged by 92% year-on-year for the week ending 22 February 2025. Therefore, rising consumer interest in functional foods is propelling the microencapsulation market.

Major companies in the microencapsulation market are increasingly prioritizing the development of advanced technologies, such as diamine oxidase (DAO) microencapsulation, to enhance the stability and targeted delivery of active ingredients across various applications. These innovations improve the bioavailability of sensitive compounds, allowing them to safely traverse harsh environments like the stomach. For instance, in April 2024, AB Biotek, a UK-based biotechnology research firm, launched adiDAO Microencapsulated, an innovative ingredient aimed at improving the delivery of DAO, an enzyme crucial for breaking down dietary histamine. This new microencapsulated format addresses significant challenges associated with DAO, particularly its sensitivity to stomach pH and its potential negative interactions with other bioactive ingredients. adiDAO Microencapsulated represents a notable advancement in managing DAO deficiency. By optimizing the delivery of this essential enzyme and enabling its combination with other active ingredients, AB Biotek is paving the way for new treatments that could enhance health outcomes for individuals affected by histamine-related disorders.

In March 2023, Surtec, a U.S.-based company, acquired Omnitechnik Microencapsulation for an undisclosed amount. This acquisition is intended to enhance Surtec's position in specialized chemical surface technologies. Omnitechnik, a Germany-based firm, focuses on developing and producing advanced coatings for fasteners.

Major companies operating in the microencapsulation market are BASF SE, Givaudan SA, Firmenich SA, International Flavors & Fragrances Inc., Symrise AG, Sensient Technologies Corporation, Kerry Group plc, Evonik Industries AG, Dow Inc., DSM-Firmenich AG, Roquette Frères, Ingredion Incorporated, Capsugel Belgium NV, Lonza Group AG, Cargill, Incorporated, Lubrizol Corporation, Ashland Global Holdings Inc., Croda International Plc, Corbion N.V., Tate & Lyle PLC.

North America was the largest region in the encapsulation market in 2025. Asia-Pacific is expected to be the fastest-growing region in the global microencapsulation market during the forecast period. The regions covered in the microencapsulation market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the microencapsulation market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The microencapsulation market consists of revenues earned by entities by providing chemical, physicochemical, and coatings technologies. The market value includes the value of related goods sold by the service provider or included within the service offering. The microencapsulation market also includes sales of polymeric or nonpolymeric materials such as cellulose, ethylene glycol, gelatin, collagen, fibrin, and polyphosphazene which are used in microencapsulation. 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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