Encapsulated Flavors and Fragrances Market Size

Encapsulated Flavors and Fragrances Market Size

Encapsulated Flavors and Fragrances Market size worth USD 8 billion in 2022 and is projected to record over 4.5% CAGR from 2023 to 2032.

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The increasing retail sales across developed and developing economies driven by a robust surge in population, rising disposable incomes, and living standards will complement the industry. Over the last decade, the retail sector has registered sizeable growth helped by higher spending on consumer goods, food, and other essentials. For instance, the Retailers Association of India (RAI) reported a 15% rise in retail sales in October 2022 from 2021. The worldwide expansion of the retail sector will have a positive influence on the industry.

High cost of encapsulation technologies to restrain industry growth

The escalating costs associated with encapsulation processes and technologies may impede the encapsulated flavors and fragrances market outlook to some extent. Encapsulation procedures, from developing the microcapsules to the equipment used for optimum processing conditions are expensive and need to be adjusted for economic convenience. Moreover, the availability of affordable alternatives to coating and membrane formulation for specific characteristics may limit the demand for encapsulated flavors and fragrances. However, the increasing consumption of functional foods for improving the overall health will offer lucrative business prospects for the application of innovative, microencapsulated flavors, vitamins, and nutraceuticals.