Micro-Encapsulation Market Size was valued at USD 9.1 billion in 2022. The Micro-Encapsulation market industry is projected to grow from USD 10.1 Billion in 2023 to USD 19.1 billion by 2030, exhibiting a compound annual growth rate (CAGR) of 4.72% during the forecast period (2023 - 2030). Increasing interest in microencapsulation technology for adequate protection of the active drugs such as cisplatin, lidocaine, naltrexone, progesterone, insulin, proteins, peptides and vaccine and the benefits associated with the technology including controlled release of the encapsulated core materials, protection of encapsulated core materials, and improved handling of the ingredients are the key market drivers enhancing the market growth.
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
Functional food has grown in popularity in the health and wellness community in recent years. They are high in nutrients and have a number of health benefits. The demand for functional food is being driven primarily by factors such as rising consumer awareness of micronutrient deficiencies, a growing need to combat malnutrition/undernutrition, and rising health concerns accompanied by an increase in disease occurrences. Furthermore, rising consumer disposable income is expected to fuel demand for functional foods which driving the growth of the Micro-Encapsulation market revenue.
The undernourished population was 796.5 million in 2016, with a projected increase to 841.4 million by 2030. (From the World Report on Food Security and Nutrition). There were 144 million stunted children in 2019, 47 million wasted children, and 38 million overweight children in 2019. (Source: UNICEF). Undernutrition and malnutrition are caused by a lack of nutrition in the diet, and the demand for fortified foods is increasing to address this.
Furthermore, urbanization is playing an important role in increasing demand for fortified food products thereby rising market CAGR for Micro-Encapsulation Market. As people gain economic strength and more disposable income, the affordability of fortified foods improves. This, combined with rising health and wellness awareness, is driving increased consumption of fortified foods. According to the United Nations Department of Economic and Social Affairs, nearly 56% of the world's population lives in cities as of 2019. This proportion is expected to rise to 68% by 2050. Populations' busy lives are exacerbated by urbanization, resulting in a decreased emphasis on diet plans. As a result, people are not consuming basic required nutrients through their meals, contributing to an increase in the number of nutritional deficiencies. This will result in a significant increase in demand for fortified foods to compensate for essential nutrient deficiencies.
The Micro-Encapsulation market segmentation, based on Technology, includes Spray, Emulsion, Dripping, and Others. The Spray segment held the majority share in 2022 in respect to the Micro-Encapsulation market revenue. Spray technologies provide a favorable combination of high encapsulation efficiency and excellent stability for final products. As a result, these technologies are widely used for large-scale commercial production of microcapsules, due to their low process cost, straightforward equipment requirements, and reduced costs for storage and transportation.
The Micro-Encapsulation market segmentation, based on Coating Material, includes Lipids, Proteins, Polymers, Gums & Resins, Carbohydrates, and Others. The Polymers segment dominated the market in 2022 and is projected to be the faster-growing segment during the forecast period, 2022-2030. The most popular polymers are polylactic acid (PLA) and polylactic-co-glycolic acid (PLGA), which are widely used in items like surgical sutures and depot formulations that have received approval from the U.S. Food and Drug Administration (FDA).
In 2022, the segment for carbohydrates accounted for a sizeable portion of revenue. Carbohydrates are thought of as good encapsulating agents because of their strong solubility and low viscosities at high solid contents. This is likely to drive market growth over the course of the forecast period.
The Micro-Encapsulation market data has been bifurcated by Application into Pharmaceuticals & Healthcare, Food & Beverages, Household Items, Personal Care, Agrochemicals, and Others. In 2022, the application segment for pharmaceutical and healthcare products held the market's top spot and accounted for 65.7% of revenue. Due to the method's many benefits, which include cell encapsulation, prolonged drug administration, taste and odour masking, environmental protection for the pharmaceuticals, and particle size reduction to improve the solubility of the less soluble drugs.
In 2022, the home and personal care application segment accounted for 9.8% of revenue. The home and personal care industries heavily rely on microencapsulation to manage dangerous chemicals, provide colours and fragrances, and encapsulate essential oils for use in cosmetic components.
During the forecast period, the food and beverage application segment is anticipated to grow at a CAGR of 11.6%. The demand for microencapsulation in the food and beverage industry is significantly impacted by the growing trend towards healthier lifestyles, disease prevention through diet, also known as functional foods, and improving nutritional value of food products along with taste, colour, texture, and aroma.
FIGURE 1: MICRO-ENCAPSULATION MARKET, BY APPLICATION, 2022 & 2030 (USD BILLION)
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
By Region, the study provides the market insights into North America, Europe, Asia-Pacific and Rest of the World. North America Micro-Encapsulation market accounted for USD 4.16 billion in 2022 and is expected to exhibit a significant CAGR growth during the study period. With the presence of major players like Johnson & Johnson, Pfizer, and Merck & Co., the region produces the most pharmaceutical products and is actively involved in the development of novel drug delivery systems, which significantly influences the demand for microencapsulation. The growing use of the microencapsulation technique in the food and beverage industry for flavorings, fragrances, colourants, and the production of functional foods has increased demand for the technique in the nation. The major players are actively engaged in R&D to create new coating materials that are compliant with North American regulations, which is likely to supplement the demand for microencapsulation during the forecast period.
Further, the major countries studied in the market report are: The U.S, Canada, Germany, France, UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.
FIGURE 2: MICRO-ENCAPSULATION MARKET SHARE BY REGION 2022 (%)
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
Europe Micro-Encapsulation market accounts for the second-largest market share due to to the rising commercial applications of microencapsulation in the textile industry, particularly in Western Europe. These applications include fragrance release fabrics, climate controlled materials, cosmetics, therapeutic, and medical textiles. Further, the Germany Micro-Encapsulation market held the largest market share, and the UK Micro-Encapsulation market was the fastest growing market in the European region.
The Asia-Pacific Micro-Encapsulation Market is expected to grow at the significant CAGR from 2022 to 2030. The past few years have seen significant growth for the healthcare sector in Asia Pacific thanks to favourable government policies in China and India to encourage FDI in the pharmaceutical sector. Additionally, it is anticipated that rising R&D spending for the creation of new drugs and rising innovation in novel drug delivery systems in Japan and South Korea will significantly contribute to the growth of the pharmaceutical industry and the microencapsulation market. Moreover, China Micro-Encapsulation market held the largest market share, and the India Micro-Encapsulation market was the fastest growing market in the Asia-Pacific region
To increase market penetration and meet the shifting technological demands from various applications, including home & personal care, food & beverages, agrochemicals, construction, textile, and others, the Major market players employ a variety of market developments, such as acquisitions, geographical expansions, new joint ventures, product developments, and mergers. Competitors in the Micro-Encapsulation industry must offer cost-effective items to expand and survive in an increasingly competitive and rising market environment.
The Micro-Encapsulation market major player such as Givaudan SA, International Flavors & Fragrances Inc., Symrise AG, Balchem Corp., Syngenta AG, and others are working to expand the market demand by investing in research and development activities.
Givaudan SA is a Swiss multinational company that specializes in the creation of flavors, fragrances, and active cosmetic ingredients. The company was founded in 1895 and is headquartered in Vernier, Switzerland. Givaudan operates in over 100 countries and has a workforce of approximately 16,000 employees. The company's core business is the development and production of flavors and fragrances, which are used in a wide range of consumer products such as beverages, snacks, perfumes, and household cleaning products. Givaudan also provides active cosmetic ingredients. In September 2021, Givaudan announced the acquisition of Myrissi, a French company specializing in natural cosmetic ingredients and botanicals. The acquisition is expected to strengthen.
International Flavors & Fragrances Inc, also known as IFF, is a company that specializes in the creation and production of flavors, fragrances, and ingredients for use in a variety of consumer goods. The company was founded in 1958 and is headquartered in New York, United States. IFF operates in over 30 countries and has a diverse customer base that includes manufacturers of food and beverages, personal care products, household and cleaning products, and fine fragrances. The company's products are used in a wide range of applications, including adding flavor to foods, enhancing the aroma of personal care products, and creating scents for household cleaning products. IFF completed its merger with DuPont's Nutrition & Biosciences business on February 1, 2021. The merger was announced in December 2019 and was subject to regulatory approvals and other customary closing conditions. The combined company is now known as "IFF" and is listed on the New York Stock Exchange under the ticker symbol "IFF". With the merger, IFF expanded its portfolio of products and capabilities, including natural and organic ingredients, enzymes, cultures, probiotics, and specialty plant-based proteins.
Micro-Encapsulation Industry Developments
January 2021: Givaudan announced the acquisition of Myrissi, a French company specializing in micro-encapsulation technology for active cosmetic ingredients.
December 2020: BASF announced the expansion of its production capacity for micro-encapsulated omega-3 powders in Norway, in response to increasing demand for functional food and dietary supplement applications.
| Report Attribute/Metric | Details |
| Market Size 2022 | USD 9.1 billion |
| Market Size 2023 | USD 10.1 billion |
| Market Size 2030 | USD 19.1 billion |
| Compound Annual Growth Rate (CAGR) | 4.72% (2023-2030) |
| Base Year | 2022 |
| Market Forecast Period | 2023-2030 |
| Historical Data | 2019 - 2021 |
| Market Forecast Units | Value (USD Billion) |
| Report Coverage | Revenue Forecast, Market Competitive Landscape, Growth Factors, and Trends |
| Segments Covered | Technology, Coating Material, Application, and Region |
| Geographies Covered | North America, Europe, Asia Pacific, and Rest of the World |
| Countries Covered | The U.S, Canada, Germany, France, UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil |
| Key Companies Profiled | Givaudan SA, International Flavors & Fragrances Inc., Symrise AG, Balchem Corp., Syngenta AG, BASF SE, Bayer AG, Royal Friesland Campina N.V., LycoRed Ltd., Encapsys LLC, and Others |
| Key Market Opportunities | Acceptance Of Micro-Encapsulation by Various Industries |
| Key Market Dynamics | Increasing Demand for Functional Foods Increased Demand from The Agricultural Industry Growing Awareness Towards Micro-Encapsulated Fortified Food |
Micro Encapsulation Market Highlights:
Frequently Asked Questions (FAQ) :
The Micro-Encapsulation market size was valued at USD 9.1 Billion in 2022.
The market is projected to grow at a CAGR of 11.1% during the forecast period, 2023-2030.
North America had the largest share in the market.
The key players in the market are Givaudan SA, International Flavors & Fragrances Inc., Symrise AG, and Balchem Corp.
The Spray category dominated the market in 2022.
The Pharmaceuticals & Healthcare Application had the largest share in the market.
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