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Food Encapsulation Market Is Poised To Reach $14.1 billion by 2025

The global food encapsulation market size is projected to reach USD 14.1 billion by 2025, from USD 9.9 billion in 2020, recording a CAGR of 7.5% during the forecast period. This market is majorly driven by the rising demand for encapsulated flavors from convenience food manufacturers, and increasing demand for fortified food products.

Browse 120 market data Tables and 50 Figures spread through 180 Pages and in-depth TOC on "Food Encapsulation Market - Global Forecast to 2025"

The polysaccharides segment accounted for the largest market for shell material in 2018 and is projected to follow the same trend through 2025. Owing to their enormous molecular structure and ability to entrap bioactive, polysaccharides are considered the most-suitable building blocks for delivery systems. On the other hand, the market for the emulsifiers is projected to be the fastest-growing, owing to its ability to provide improved solubility and bioavailability.


Vitamins are functional ingredients that are used in food, owing to their specific nutritional properties for varied human body parts. Thus, 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. Also, flavor manufacturers have been adopting this technology at a rapid speed, and hence, the vitamin segment was closely followed by flavors in terms of dominance in the global market.


The physical method of encapsulation is estimated to dominate the market globally for the food industry in 2020.
Food encapsulation demand is targeted by a few ingredient manufacturing companies. With the use of advanced technology, the price of the ingredient rises, and hence, manufacturers prefer low cost-efficient encapsulation methods. Thus, the physical methods are the most in-demand for the encapsulation of food ingredients. In terms of technology, the microencapsulation technology is projected to account for the major market share during the forecast period.

Microencapsulation is a process of packaging or covering small solid, liquid, or gaseous particles in a secondary material to produce a microcapsule, with a diameter of 1 to 1,000 micrometers in size. The increasing trend of healthy eating, rising demand for natural & organic food, and the development of food for fulfilling the need of consumers are driving the market for microencapsulation. The development of functional foods and beverages, which contain lipophilic bioactive agents that provide health benefits such as nutraceuticals and oil-soluble vitamins, have affected the microencapsulation market in recent times. Microencapsulation technology helps in a controlled release and the fortification of functional food and beverage components such as flavors, vitamins, antioxidants, fatty acids, and minerals.

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 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).


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