Food Encapsulation Market Growth Opportunities by 2025

The global food encapsulation market is estimated to account for USD 9.9 billion in 2020 and is projected to reach USD 14.1 billion by 2025, recording a CAGR of 7.5% during the forecast period. The market is primarily driven by the increasing use of encapsulated flavors in the food and beverage industry and the rising adoption of microencapsulation for functional ingredients.

Vitamins and minerals are the most common ingredients encapsulated for functional food and dietary supplements.

Vitamins are functional ingredients that are used in food owing to their specific nutritional properties for varied human body parts. Thus, a targeted and controlled release of vitamins often becomes important, when added as a food ingredient. Thus, encapsulation is majorly adopted for vitamins for its targeted effect. Following vitamins, there has been a growing trend in the encapsulation of flavors to achieve controlled and prolonged release of taste and fragrance of the ingredient.

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The market for dietary supplements is projected to record the highest CAGR during the forecast period.

The demand for dietary supplements is on the rise in developed and developing countries among the millennial population. Vitamins, enzymes, and minerals are some of the major constituents of dietary supplements, which require targeted delivery. Also, industry experts foresee the adoption rate for dietary supplements to rise the highest in the coming five years.

Polysaccharides are the most preferred shell phase for food encapsulation.

The polysaccharides segment accounted for the largest market for shell material in 2018 and is projected to follow the same trend through 2025. Polysaccharides are a composition of repeating monosaccharide units connected by glycoside bonds. Polysaccharides are easily chemically modifiable and provide numerous textures and viscosities. Owing to their enormous molecular structure and ability to entrap bio-actives, polysaccharides are considered the most-suitable building blocks for delivery systems.

In terms of method of encapsulation, ingredients encapsulated through a physical method accounted for the major market share.

Food encapsulation demand is targeted by a few ingredient manufacturing companies, such as functional food ingredients, flavors, and colors. With the use of advanced technology, the price of the ingredient rises, and hence, the manufacturers prefer low cost-efficient encapsulation methods. Thus, the physical methods are the most demanded method used for encapsulation of food ingredients.

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With the increasing demand for functional food, North America is estimated to dominate the global food encapsulation market in 2020.

The demand for functional food and dietary supplements has been high in the US and Western European countries. Consumers have been willing to bear the premium pricing of products in case of nutrient addition to the final product. Thus, ingredient manufacturers have been adopting technological ways to improve the quality of functional food and dietary supplement products. Thus, encapsulated food has been highly consumed in these regions. Also, the presence of key ingredient manufacturers has been high in North America, which is either providing encapsulated food as a part of their offering or in companies, which have been providing encapsulation as a service.

Key Players:

Key players operating in this market include FrieslandCampina (Netherlands), DSM (Netherlands), Ingredion Incorporated (US), Kerry Group (Ireland), Cargill (US), Lycored Group (Israel), Balchem Corporation (US), Firmenich Incorporated (Switzerland), BASF SE (Germany), International Flavors and Fragrances Inc. (US), DuPont (US), Symrise AG (Germany), Sensient Technologies Corporation (US), Aveka Group (US), Advanced Bionutrition Corp (US), Encapsys (US), Tastetech Encapsulation Solutions (UK), Sphera Encapsulation (Italy), Clextral (France), and Vitasquare (Netherlands).

Key questions addressed by the report:

  • Which region will account for the largest share in the food encapsulation market?

  • What are the trends and factors responsible for influencing the adoption rate of food encapsulation in key emerging countries?

  • What is the level of support offered by governments across these countries to the ingredient manufacturers for food encapsulation?

  • Which are the key players in the market, and how intense is the competition?

  • What are the major restraints in the adoption of food encapsulation among ingredient manufacturers?