Food Encapsulation Market 2022 - Market Size & Forecast, Industry Trends, Manufacturers Analysis, & Opportunities 2030

The global food encapsulation market is predicted to expand at a compounded annual growth rate (CAGR) of 6.8% during the forecast period of 2022-2030.

Food encapsulation involves the process of assimilating food ingredients, enzymes, and other materials into capsules. It is an essential tool for enhancing the delivery of living cells and bioactive molecules into foods.  

Encapsulants behave as the shield material and protect the core consisting of a sensitive bioactive agent from light, oxygen, and water to elude any reaction on the core phase. Food-grade, biodegradable materials are strictly used for designing the protective shell of encapsulates as they must be efficient in building a barrier between the internal phase and its surroundings.

Growth Drivers:

Factors primarily driving the growth of this market include: the surging demand for food encapsulation due to its various benefits, including enhanced shelf life, reduced nutrient loss, and enhanced heat & oxidative resistance of end-product; the increasing demand for encapsulated sweeteners in confectionery products; the rising demand of dietary supplement owing to increasing health awareness among consumers; the escalating advancements in the food science and technologies; the soaring investments in food products that aid in preventing health problems; and the increasing inclination of food & beverage processors on the application of encapsulation in various products to achieve competitive advantage.

Additionally, the preference for time-controlled release of ingredients for nutraceutical products is witnessing a steep surge all across the globe.  With the help of food encapsulation technology, active materials or core products can be made to release at a particular temperature and/or time after consumption. This advantage of controlled release of ingredients offered by encapsulation is aiding in the significant growth of the global food encapsulation market.

Moreover, the utilization of the encapsulation technology as an innovation tool is also increasing in major parts of the world. For instance, Salvona, a company based in the United States, developed encapsulation technologies enabling the sequential release of aromas and sensory ingredients in functional foods. Similarly, Orbitz, a company based in Canada, sells a drink containing a suspension of colored capsules of different aromas and/or some vitamins, thus making consumption of functional food a ‘fun experience. This is creating tremendous growth opportunities for the global food encapsulation market for the upcoming years.

Furthermore, other factors such as the rapidly expanding global processed & packaged food demand owing to the rising inclination toward convenient and healthy food products; the improving standards of living of people; the rapidly surging global geriatric population base; and the evolving food regulations across the globe are expected to further augment the growth of the global food encapsulation market during the forecast period.

However, factors such as the high cost associated with food encapsulation technologies, the low maintenance of the stability of the encapsulated food, especially during packaging and processing, and the size of the capsule are expected to hinder the growth of the global food encapsulation market to some extent during the forecast period.

Food Encapsulation Market Segmentation:

By Shell Material:

·         Polysaccharides

·         Proteins

·         Lipids

·         Emulsifiers

By Application:

·         Dietary Supplements

·         Function Food Products

·         Bakery Products

·         Confectionery

·         Beverages

·         Frozen Products

·         Dairy Products

By Technology:

·         Microencapsulation

·         Nanoencapsulation

·         Hybrid Encapsulation

By Method:

·         Physical

o   Atomization

§  Spray Drying

§  Spray Chilling

§  Spinning Disk

o   Fluid Bed

§  Extrusion

§  Other Physical Methods (Freeze-Drying, Pan Coating, And Electro-Spraying

·         Chemical

o   Polymerization

o   Sol-Gel Method

o   Physico-Chemical

o   Co-Acervation

o   Evaporation-Solvent Diffusion

o   Layer-By-Layer Encapsulation

o   Cyclodextrins

o   Liposomes

o   Other Physico-Chemical Methods (Co-Crystallization and Micelles)

By Core Phase:

·         Vitamins & Minerals

o   Vitamins

§  Fat-soluble

§  Vitamin A

§  Vitamin D

§  Vitamin E

§  Vitamin K

·         Water-soluble

o   Vitamin B complex

o   Vitamin C

o   Minerals

o   Enzymes

o   Carbohydrase

o   Protease

o   Lipase

o   Other Enzymes (Isomerase and Transferase)

·         Organic Acids

o   Citric Acid

o   Acetic Acid

o   Malic Acid

o   Fumaric Acid

o   Lactic Acid

o   Propionic Acid

o   Ascorbic Acid

o   Other Organic Acids (Gluconic Acid, Succinic Acid, and Butyric Acid)

·         Probiotics

o   Bacteria

o   Yeast

·         Sweeteners

·         Nutritional Lipids

·         Preservatives

o   Antimicrobials

o   Antioxidants

o   Other Preservatives (Chelating Agents and Enzyme Inhibitors)

·         Prebiotics

o   Oligosaccharides

o   Inulin

o   Polydextrose

o   Other Prebiotics (Lactitol, Lactulose, Lactosucrose, Fructans, Soy Oligosaccharides, and Xylooligosaccharides.)

·         Colors

o   Natural

o   Artificial

·         Amino Acids

·         Proteins

·         Flavors

o   Chocolate & Browns

o   Vanilla

o   Fruits & Nuts

o   Dairy

o   Spices

o   Other Flavors (Tea, Meat Flavors, And Fish Oil)

·         Other Core Phases (Salts, Fats, And Phytochemicals)

By Region:

·         North America

·         Europe

·         Asia Pacific

·         Latin America

·         Middle East and Africa

Based on technology, the microencapsulation segment captured the largest share of the global food encapsulation market in 2021. The segment is anticipated to continue with its dominance in the market during the forecast period of 2022-2030.  The growing demand and preference for microencapsulation due to its ease in manufacturing and superior functional advantages is the primary factor ascribed to the large share of the segment. However, the hybrid encapsulation segment is expected to register the highest growth in the market during the forecast period.

Based on core phase, the probiotics segment is estimated to attain the highest growth in the market during the forecast period. This is primarily due to the increasing usage of probiotics in the food industry in the functional food segment due to their health benefits, including enhanced immunity levels, prevention of certain cancers & diarrhea among children, and improved nutrient bioavailability & lactose intolerance.

Based on shell material, the polysaccharides segment held the largest share of the global food encapsulation market in 2021. The segment is poised to retain its position further in the market during the forecast period of 2022-2030. The high demand and usage of polysaccharides as inexpensive and safe shell materials for encapsulation and their high effectiveness in adverse environmental conditions is the major factor attributable to the growth of this segment.

Based on method, the physical segment dominated the global food encapsulation market in 2021. The segment’s position is very likely to remain unchanged over the forecast period of 2022-2030. Among the physical segment, the atomization sub-segment captured the largest share in 2020 owing to its high preference over other physical methods because of its numerous advantages and large-scale production ability.

Regional Outlook:

The North American region commanded the global food encapsulation market in 2021. This trend is expected to continue throughout the forecast period of 2022-2030. Factors such as the proliferating demand for encapsulation owing to its usage in the development of various food products; the high availability of shell materials such as hydrocolloid, emulsions; the presence of well-established market players in the region; the burgeoning consumer awareness and demand for functional food products in the region; and the increasing product development & innovation in the region are among the predominant factors contributing to the large share and the growth of the market in the region. The U.S. and Canada stand as the major contributors to the growth of the market in the region.

The Asia Pacific region is poised to emerge as the fastest growing regional market for food encapsulation in the forecast period. The rising demand for functional, processed and healthy food products; the increasing consumption of meat; the expanding food and retail industry; the growing number of innovations to support animal health; and the escalating technological advancements in processing equipment are the major factors expected to drive the growth of the market in the region. Furthermore, the surging disposable incomes coupled with the enhancing living standards of people and rapid urbanization in the developing countries of the Asia Pacific region will further augment the growth of the market in the region during the forecast period. India and China are the major contributors to the growth of the market in the region.

Key Companies in Food Encapsulation Market:

·         ABCO Laboratories Inc.

·         Balchem Corporation

·         Capsulae

·         Lycored Ltd.

·         Sensient Technologies Corporation

·         Advanced Bionutrition Corp

·         Cargill Incorporated

·         BASF SE

·         DuPont

·         DSM

·         FrieslandCampina

·         Kerry

·         Ingredion

·         International Flavors & Fragrances Inc. IFF

·         Symrise

·         Encpasys LLC

·         Sphera Encapsulation

·         Tastetech

·         National Enzyme Company

·         Other Players