Functional Foods have Boosted the Demand for Food Encapsulation Market with a Promising CAGR of 5.8%: Future Market Insights Study

The food encapsulation market is set to expand its space in the global market at a CAGR of 5.8%, holding a market revenue of USD 5,819 Million in 2022 while it is anticipated to reach at USD 9665.4 Million in 2032.

Global study on food encapsulation market explains that food encapsulation market is being driven by convenience food manufacturers’ increasing demand for encapsulated flavours, as well as rising demand for functional and fortified foods.

Consumers have been asking for food with a long-lasting flavour, so manufacturers have reacted by encapsulating flavours for a delayed and controlled release. Technological developments, including the use of nanotechnology for encapsulation, have also fuelled this sector.

Tablet coating companies and medical giants have started investing huge capital in food encapsulations. Let’s look at some of the major drivers that fuel the sales of food encapsulation procedures.

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Polysaccharides & Food-grade proteins are frequently used to encapsulate delicate and bioactive food ingredients, including highly unsaturated oils like fish oils, vitamins, enzymes, or even other flavours, to increase their shelf life and/or mask a disagreeable flavour or taste. People are getting more interested in functional foods as they become more health-conscious, which is fueling the growth of the food encapsulation industry.

Key Takeaways:

  • The worldwide food encapsulation industry is expected to be valued at USD 5189 million in 2022. It is predicted that by 2026, it would have expanded at a CAGR of 5.8%, which amounted to USD 9665.4 Mn.
  • Vitamins will top the global food encapsulation market in the year 2021, with a value of USD 5.9 billion. Fat-soluble vitamins such as A, D, E, and K account for a large percentage of the encapsulated vitamin industry.
  • The United States of America has the greatest market share for food encapsulation, accounting for nearly 65 per cent of the market with a total value of USD 1358 million.
  • Because of the growing need for convenient and nutritious food items, Japan is estimated to become the fastest industry in the Asia food encapsulation market segment.

“Growth in the global processed & packaged food demand due to the rising preference for convenient and healthy food products will drive the market growth. Food encapsulation has empowered food & beverage manufacturers to overcome the challenges associated with colour, taste, nutrition, and food preservation. Moreover, enhanced standard of living coupled with rising in health consciousness will drive the demand for products that are highly effective and offer improved nutrient uptake,” says a lead analyst at Future Market Insights explaining future possibilities for the market.

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Competitive Landscape:

With international food ingredient manufacturers as well as localized producers, the worldwide food encapsulation market is competitive. . The core product or active substance can be tailored to release at a certain temperature or time after consumption using encapsulation technology. For nutraceutical goods, time-controlled ingredient release is the preferable strategy. To achieve a competitive edge, food and beverage processors are also motivated to increase the use of encapsulation in a variety of goods.

  • US based startup, Santé Laboratories has introduced lipid-based encapsulations. This lipid bilayer closely resembles that of nature cells, storing the aqueous active ingredient within the core. This layer helps the food inside not run out of nutrients.
  • Swiss startup, Microcaps has introduced an encapsulation procedure with size-controlled microcapsules using a scalable production tool. This precision-based scalability ensures the production of targeted ingredient release.

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Market Segmentation for Food Encapsulation

By Raw Material:

  • Acids
  • Flavoring Agents
  • Lipids
  • Bases & Buffers
  • Amino Acids & Peptides
  • Enzymes & Microorganisms
  • Antioxidants
  • Vitamins & Minerals
  • Others

By Technology:

  • Chemical
  • Physical

By Application:

  • Dairy Products Animal Nutrition
  • Functional Food
  • Dietary Supplements
  • Confectionery Beverages
  • Bakery Products
  • Frozen Products and Others

By Wall Material:

  • Lipids & Waxes
  • Proteins
  • Carbohydrates

By Region:

  • North America
  • Latin America
  • Europe
  • East Asia
  • South Asia
  • Oceania
  • MEA

About FMI

Future Market Insights (ESOMAR certified market research organization and a member of Greater New York Chamber of Commerce) provides in-depth insights into governing factors elevating the demand in the market. It discloses opportunities that will favor the market growth in various segments on the basis of Source, Application, Sales Channel and End Use over the next 10-years.

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About the Author

Nikhil Kaitwade

Associate Vice President at Future Market Insights, Inc. has over a decade of experience in market research and business consulting. He has successfully delivered 1500+ client assignments, predominantly in Automotive, Chemicals, Industrial Equipment, Oil & Gas, and Service industries.
His core competency circles around developing research methodology, creating a unique analysis framework, statistical data models for pricing analysis, competition mapping, and market feasibility analysis. His expertise also extends wide and beyond analysis, advising clients on identifying growth potential in established and niche market segments, investment/divestment decisions, and market entry decision-making.
Nikhil holds an MBA degree in Marketing and IT and a Graduate in Mechanical Engineering. Nikhil has authored several publications and quoted in journals like EMS Now, EPR Magazine, and EE Times.

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