Microencapsulation Global Market Report 2024

The microencapsulation market has grown rapidly in recent years. It will grow from $10.47 billion in 2023 to $11.74 billion in 2024 at a compound annual growth rate (CAGR) of 12.1%. The expansion observed in the historical period can be attributed to the demand from the pharmaceutical industry, application in the food and beverage industry, utilization in the agricultural sector for crop protection, growth in the fragrance industry, and increased usage in agrochemicals.

The microencapsulation market is expected to see rapid growth in the next few years. It will grow to $17.69 billion in 2028 at a compound annual growth rate (CAGR) of 10.8%. The anticipated growth in the forecast period can be ascribed to the expansion in the nutraceuticals industry, the broadening applications in functional foods, the increasing adoption in textile innovations, growing interest in controlled-release agrochemicals, and the application in self-healing materials. Notable trends expected in the forecast period include technological integration in personal care, customized encapsulation for cosmeceuticals, application in 3D printing, collaborations for cross-industry applications, and innovation in encapsulated agricultural inputs.

The microencapsulation market is expected to experience growth driven by the increasing consumer demand for functional food. Functional foods, defined as processed foods offering health advantages and illness risk reduction, are improved through the microencapsulation process. This method involves coating functional ingredients with food-grade and biodegradable materials, safeguarding them from degradation and enhancing their bioavailability and stability. It addresses challenges associated with certain ingredients in food fortification, such as phytosterols. Changing consumer preferences have further boosted the demand for functional foods, with the processed food and drink industry turnover growing from $130 billion in 2020 to $139 billion in 2021, as reported by the Food and Drink Federation. This industry represents 20% of the total UK manufacturing, emphasizing the impact of rising consumer demand on the microencapsulation market.

The growth of the microencapsulation market is also expected to be fueled by the cosmetics industry. This sector, encompassing the production and sale of beauty and personal care products, utilizes microencapsulation for controlled release of active ingredients, enhancing stability and effectiveness in skincare and personal care items. For example, the cosmetic market in Canada achieved revenue of around USD 1.24 billion in 2021, with an anticipated annual growth rate of 1.45%, reaching an estimated USD 1.8 billion by 2024. This growth in the cosmetics industry is a significant driver for the microencapsulation market.

Leading companies in the microencapsulation market are actively pursuing advanced technologies, such as Natural microencapsulation technology, to cater to the demand for sustainable fragrance in cosmetics. This technology involves encapsulating active ingredients, such as fragrances or nutrients, within natural matrices. Sozio, a fragrance creation firm based in France, introduced Cosmocaps in November 2021, employing natural microencapsulation technology to encapsulate perfume in a vegetable matrix composed of natural waxes. This certified 100% natural and COSMOS certified technology offers controlled release and continuous diffusion of fragrance on the skin, providing nourishing emollient properties to formulations. Cosmocaps are versatile and suitable for various cosmetic bases, including rinse-off or leave-on formats and natural bases.

Major companies in the microencapsulation market are also focusing on the development of cutting-edge platforms, such as nutrient technology platforms, to address diverse challenges and demands in the nutritional products market. A nutrient technology platform integrates advanced technologies and solutions to enhance the overall performance of nutritional products. Glanbia Nutritionals, a US-based ingredient and service solution provider, launched TechVantage in June 2022, offering stability enhancements, flavor/color masking, and solubility/flowability improvements. This platform addresses challenges in optimizing color, taste, stability, dispersibility, and bioavailability across various categories, including vitamins, minerals, botanicals, and amino acids. It provides significant improvements in manufacturing tablets, chewables, effervescents, gummies, powder drink mixes, and beverages.

In October 2021, Milliken & Company, a US-based industrial producer, acquired Encapsys LLC, a US-based chemical firm specializing in microencapsulation products and unique solutions. This acquisition adds creativity, science, and technology to Milliken's portfolio, expanding its range of specialty chemicals with global reach and accelerating sustainable solutions for various markets, including home care, personal care, agriculture, and textiles.

Major companies operating in the microencapsulation market report are BASF SE, Balchem Corp., Encapsys LLC, AVEKA Group, Givaudan SA, International Flavors & Fragrances Inc., Symrise AG, Capsulae Corp., Reed Pacific Pty Ltd., Microtek Laboratories Inc., TasteTech Ltd., GAT Microencapsulation GmbH, Bayer AG, Royal FrieslandCampina NV, Koninklijke DSM NV, Syngenta AG, Ronald T. Dodge Co., MikroCaps d.o.o, Firmenich Incorporated, Evonik Industries AG, Southern Research Co. Inc., Glatt Air Techniques Inc., Butler University, LycoRed Group, 3M company, Cargill Inc., Ingredion corporation, Watson Inc., CoreRx Inc., Aphios Corporation.

North America was the largest region in the encapsulation market in 2023. 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, 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, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The primary materials involved in microencapsulation include agricultural inputs, food additives, pharmaceutical and healthcare drugs, fragrances, phase change materials, and others. Agricultural inputs encompass the supplies and tools required in agricultural production, comprising energy, seeds, fertilizers, and pesticides. Various shell materials are employed, such as polymers, gums and resins, lipids, carbohydrates, and proteins, utilizing techniques such as spray technology, dripping technology, emulsion technology, among others. Microencapsulation is applied in pharmaceutical and healthcare products, food and beverages, household and personal care products, agrochemicals, construction materials, textiles, and other industries.

The microencapsulation market research report provides microencapsulation market statistics, including microencapsulation industry global market size, regional shares, competitors with an microencapsulation market share, detailed microencapsulation market segments, market trends and opportunities, and any further data you may need to thrive in the microencapsulation industry. This microencapsulation 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 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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