Encapsulated Flavors and Fragrances Market Report 2025

The encapsulated flavors and fragrances market size has grown strongly in recent years. It will grow from $4.62 billion in 2024 to $4.9 billion in 2025 at a compound annual growth rate (CAGR) of 6%. The growth in the historic period can be attributed to consumer demand for novelty and innovation, extended shelf life and stability, rising awareness of health and wellness, expanding food and beverage industry, and innovations in product formulations.

The encapsulated flavors and fragrances market size is expected to see strong growth in the next few years. It will grow to $6.4 billion in 2029 at a compound annual growth rate (CAGR) of 6.9%. The growth in the forecast period can be attributed to a focus on clean-label products, global expansion of the cosmetics industry, e-commerce and changing retail dynamics, customization, and personalization trends. Major trends in the forecast period include customization and tailored sensory experiences, expansion into home and fabric care products, advancements in encapsulation materials, and integration of artificial intelligence (AI) in flavor development.

The expanding food and beverage industry is poised to drive the growth of the encapsulated flavors and fragrances market. This sector, encompassing the production, processing, distribution, and sale of food and drink products, is a significant economic force. Encapsulated flavors and fragrances play a vital role in this industry, contributing to improved flavor stability, controlled release, enhanced sensory experiences, and the creation of unique flavor profiles in various products. As reported in April 2022 by Common Thread Collective, global food and beverage sales reached $506 billion in 2022 and are anticipated to rise to $857 billion by 2025. Additionally, data from May 2023 by YCharts indicates an increase in US food and beverage store sales from $81.25 billion in 2022 to $82.1 billion in 2023, underscoring the growth in the industry and the corresponding demand for encapsulated flavors and fragrances.

The rising popularity of personal care products is expected to contribute to the growth of the encapsulated flavors and fragrances market. Personal care products, encompassing items for hygiene, grooming, and beautification, incorporate encapsulated flavors and fragrances to provide prolonged scents and controlled release in products such as perfumes and lotions. Notably, in September 2023, the U.S. Bureau of Labor Statistics reported a 12.3% growth in spending on personal care products and services in 2022, following a substantial increase of 19.3% in 2021. Expenditures on personal care products specifically rose by 15.5% in 2022, accompanied by a 9.1% increase in spending on personal care services. This growth trend underscores the heightened use of personal care products, thereby contributing to the demand for encapsulated flavors and fragrances in this market.

Leading companies in the encapsulated flavors and fragrances market are prioritizing investments in advanced technologies and innovative formulations to improve product stability and flavor delivery, responding to the rising consumer demand for a variety of high-quality food and beverage choices. Givaudan has introduced PrimeLock+, a cutting-edge technology that encapsulates coconut oil to mimic animal fat cells, offering a vegan-friendly alternative that enhances the flavor and texture of plant-based products while lowering fat content. For example, in August 2022, Givaudan, a Switzerland-based manufacturer of flavors, fragrances, and active cosmetic ingredients, launched "PrimeLock+" technology, which replicates animal fat cells using encapsulated coconut oil. This vegan-friendly solution helps consumers achieve the taste and texture of meat while reducing high-fat content and enhancing the juiciness of plant-based items.

Major companies in the encapsulated flavors and fragrances market are concentrating on developing sustainable technologies, such as biodegradable encapsulation technology. This approach utilizes materials and techniques that allow for the creation of encapsulated products made from components that naturally decompose over time through biological processes. For instance, in November 2022, CPL Aromas PVT Ltd., a UK-based fragrance manufacturing company, announced the launch of ‘AromaCore Bio.’ This patented biodegradable encapsulation technology delivers long-lasting fragrance for laundry and fabric applications. When washed and dried garments are worn, the friction experienced causes the capsules to open, releasing the fragrance and ensuring a delightful and lasting scent over time.

In March 2023, AptarGroup, Inc., a US-based company specializing in packaging and containers, acquired iDSCENT for an undisclosed amount. This acquisition aims to bolster Aptar’s product portfolio of fragrance sampling solutions by incorporating 100% fragrance encapsulation paper-based products provided by iDSCENT. Both companies expect to meet the growing global consumer demand more efficiently through this collaboration. iDSCENT is a France-based manufacturer known for designing encapsulated fragrance sampling solutions.

Major companies operating in the encapsulated flavors and fragrances market include Cargill Incorporated, International Flavors and Fragrances, Dutch Multinational Corporation (DSM), Kerry Group plc, Givaudan, Ingredion Incorporated, Firmenich SA, Symrise AG, Ashland Inc., Tate And Lyle Plc, Takasago, Balchem Inc., Robertet, Sensient Technologies Corporation, Glatt GmbH, Schubert International, Mane SA, Fona International Inc., Clextral, Buchi Labortechnik AG, Aveka Inc, Keva Fragrances Private Limited, Blue Pacific Flavors, TasteTech Ltd., MikroCaps doo.

Asia-Pacific was the largest region in the encapsulated flavors and fragrance market in 2024. The regions covered in the encapsulated flavors and fragrances market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the encapsulated flavors and fragrances market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Italy, Spain, Canada.

The encapsulated flavors and fragrances segment pertains to the process of enclosing fragrance and flavor compounds within a protective shell, ensuring consistent product quality and masking other odors or flavors. This encapsulation technique enhances stability, regulates release, and safeguards these volatile compounds from deterioration or external influences until they are released under specific conditions.

The main product classifications encompass flavor blends, fragrance blends, essential oils, natural extracts, and aroma chemicals. Flavor blends denote combinations of diverse flavors or ingredients curated to deliver a distinct taste encounter. These blends are available in multiple forms such as powder, paste, and granules, utilizing various encapsulation methods including micro-encapsulation, nano-encapsulation, hybrid-encapsulation, and macro-encapsulation. Employing a range of technologies including physical, physicochemical, and chemical processes, along with extrusion, fluid beds, among others, these products cater to applications in food and beverages, cleaners, toiletries, personal care products, cosmetics, and other industries.

The encapsulated flavors and fragrances market research report is one of a series of new reports that provides encapsulated flavors and fragrances market statistics, including encapsulated flavors and fragrances industry global market size, regional shares, competitors with a encapsulated flavors and fragrances market share, detailed encapsulated flavors and fragrances market segments, market trends and opportunities, and any further data you may need to thrive in the encapsulated flavors and fragrances industry. This encapsulated flavors and fragrances 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 encapsulated flavors and fragrances market consists of revenues earned by entities by providing fluid bed coating, spray drying, glass encapsulation, and spray chilling/congealing services. The market value includes the value of related goods sold by the service provider or included within the service offering. The encapsulated flavors and fragrances market also includes sales of encapsulated flavor powders, encapsulated fragrance beads, personal care products, and household cleaning products that are used in providing encapsulated flavors and fragrances services. 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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