Food Encapsulation Market Size By Type (Micro Encapsulation, Nano Encapsulation, Hybrid Technology, Macro Encapsulation), By Core Phase (Vitamins [Fat Soluble Vitamins {Vitamin A, Vitamin D, Vitamin E, Vitamin K}, Water Soluble {Vitamin B Complex, Vitamin C}], Organic Acids [Citric Acid, Lactic Acid, Fumaric Acid, Malic Acid], Minerals, Enzymes, Flavors & Essences, Preservatives, Sweeteners, Colours, Probiotics, Prebiotics, Essential Oil), By Technology (Physical Process [Atomization {Spray Drying, Spray Chilling, Spray disk}, Extrusion, Fluid bed technique], Chemical & Physicochemical Process), By Shell Material (Polysaccharides, Proteins, Lipids, Emulsifiers), Regional Outlook (U.S., Canada, Germany, UK, France, Italy, Russia, China, India, Japan, South Korea, Australia, Brazil, Mexico, Saudi Arabia, UAE, South Africa), Growth Potential, Price Trend, Competitive Market Share & Forecast, 2017 – 2024

Industry Trends

Global Food Encapsulation Market size was worth over USD 27 Billion in 2016 and will witness CAGR over 6% up to 2024.
 

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Hectic and busy work schedules coupled with need to maintain healthy lifestyle have enhanced preference for packaged and functional dietary products, thus stimulating food encapsulation demand. Potential application scope in beverages, meat, snacks, coupled with various dairy products will drive the industry growth. Factors such as improving product appeal by enhancing colour, taste and flavour may support market growth. Increase in demand for encapsulated sweeteners in confectionary products including chewing gums, candies, chocolates and bakery products will fuel product penetration.
 

Increasing investments in R&D for food preservation through encapsulation of colour, enzymes and preservatives will positively influence industry growth. Necessity to preserve and protect volatile & reactive ingredients has supported the food encapsulation market. Adoption of preservation techniques including microencapsulation, hybrid technologies, and nanoencapsulation has positively impacted market growth for vitamins, minerals, enzymes and probiotics.
 

Increasing consumer preference towards healthy lifestyle to curb rising instances of obesity among young and adults will influence encapsulated products demand.  According to the FAO estimates, over 40 million children under five years of age were overweight in 2016. Increasing consumer consciousness regarding healthy diet will provide significant business opportunities for companies offering encapsulated functional food.
 

Increasing heart-related diseases will drive the demand for low cholesterol and healthy dietary products stimulating market growth. Globally annual loss of lives due to cardiovascular diseases reached 17.5 million in 2016, an estimated 31% of overall deaths. Thus, producers are likely to emphasize more on the production of functional dietary products.
 

Strict regulatory guidelines pertaining to materials usage for encapsulation may limit the utilization of a wide range of available sources. Currently, nanoparticles use in food production is not specifically covered under any international regulation and legislation, therefore require a safety assessment prior to marketing which may limit industry growth.  
 

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Food Encapsulation Market, By Type

Micro encapsulation was valued over USD 10 billion in 2016. Improving nutrient stability, odour masking, and prevention of ingredients from degradation are key factors driving demand in this segment. Techniques to incorporate ingredients including enzymes and cells in small capsules will propel the demand of microencapsulation.
 

Nano encapsulation are estimated to witness growth over 7% up to 2024. Extensive technology adoption in food additions & enhancements, fragrances, and surging shelf life will drive market penetration in this segment. Nanoencapsulation technology and development of renewable materials is considered as a potential development that will positively impact the industry.
 

Food Encapsulation Market, By Core Phase

Vitamins was valued over USD 4.5 billion in 2016. Ability to cure and prevent various diseases including high cholesterol levels, heart problems, and skin and eye disorders is the key factor driving encapsulated vitamins demand. Necessity for fat-soluble vitamins in small amounts in the daily diet for proper functioning, growth, and maintenance of body tissues will propel demand.
 

Organic acids are estimated to witness growth over 6% up to 2024. Increasing product penetration in food, pharmaceutical, and chemical industries is a major factor driving organic acids demand. Major organic acids used as core phase are citric acid, lactic acid, fumaric acid, and sorbic acid. Growing focus toward skin health owing to the lessening of wrinkles is a key factor driving the market growth.
 

Food Encapsulation Market, By Technology

Physical process was valued over USD 20 billion in 2016. Economically flexible operations create a positive outlook for its usage in food encapsulation. Rising demand for the atomization process in the encapsulation of nutrients, flavours, or colours used in several end-use industries is the key driving factor for industry growth. Growing demand for spray drying for classical powders, such as milk powder, will fuel demand.
 

Chemical process is estimated to witness growth over 6.5% up to 2024. Technological advancement to meet the rising demand for functional food & beverage is the key factor driving segment growth. Increased use of coacervation as a microencapsulation technique owing to its completely entrapped core material by the specified matrix has fuelled the demand. Additional benefits including use of co-crystallization process due to the use of sucrose as a matrix to avoid crystallization will offer lucrative opportunities.
 

Food Encapsulation Market, By Shell Material

Polysaccharides was valued over USD 8.5 billion in 2016. Increasing polysaccharides demand as delivery agents owing to their abundance, structural stability, and reasonable properties will support industry growth. Presence of reactive functional groups makes them a preferable choice as carrier matrices. Stability offered by polysaccharides as carriers during the processing and production of encapsulated products will propel the market growth.
 

Proteins are estimated to witness growth over 6% up to 2024. Growing focus toward the usage of protein-based shell material for the distribution of bioactive compounds will drive the segment demand. Functional properties exhibited by the protein such as gel and film forming ability, solubility, and emulsification are among the key properties enhancing proteins demand.
 

Food Encapsulation Market, By Region

Europe food encapsulation market was valued over USD 8 billion in 2016 owing to increasing technological development in the European processed food industry. Rising demand for healthy diets including fortified and other health-based products in Germany and the UK will support industry growth. Moreover, increasing R&D investments and the adoption of advanced technologies by manufacturers are expected to boost the market size.
 

Asia Pacific food encapsulation market is estimated to witness growth over 7.5% up to 2024 due to its thriving food industry. Increasing disease occurrences among young and adults such as diabetes and obesity will enhance regional industry growth. China and India are expected to drive regional growth owing to rising living standard and emerging processed food industry.
 

Competitive Market Share

Global food encapsulation market is consolidated, as the key multinational players occupy majority of the industry share. FrieslandCampina Kievit, International Flavors & Fragrances, Symrise AG and Sensient Technologies Corporation are the major industry players. Companies are involved in the expansion strategies through merger and acquisition with technology providers and raw material suppliers to reduce their overhead costs. For instance, Balchem Corporation acquired Innovative Processors, manufacturer of agglomerated and microencapsulated products and nutrition ingredients in 2017. Shifting focus on novel technologies for product formulations and efficient nutrient supply is another key trending factor observed in the industry. In 2017, Firmenich opened a production facility for encapsulated technologies in Latin America to speed up flavour technologies.
 

Industry Background  

Food encapsulation is the process of incorporating enzymes, ingredients and other materials into capsules. The demand for convenience food, awareness of health and busy schedules, among people are the significant factors propelling the market growth. Increased innovations have led to various technologies used for encapsulation utilised in different industries. Nanoencapsulation technology involves entrapping of active ingredients such as drugs, biocides, vitamins, and perfumes in a nanometer-sized particle. It involves packaging nanoparticles of liquid, solid, and gas within a shell or matrix. Hybrid technologies involve aqueous starch solution preparation, an oil phase containing the active core, followed by oil phase emulsification with aqueous starch solution to obtain an encapsulated emulsion.