Food Encapsulation Market will expand at a notable CAGR of 9.4% during the forecast period of 2015 to 2020
The report identifies Koninklijke DSM N.V. (ADR), TasteTech ltd., Balchem Corp., Givaudan SA ADR, Sensient Technologies Corp., Symrise AG, Appvion Inc., Aveka Group, International Flavours & Fragrances Inc., Firmenich International SA, and BASF SE S/ADR as some of the prominent players in the global food encapsulation market. These players are ahead of the curve via their persistent focus on research and development of new products and geographical expansion.
As per the projections of the FMI report, the demand in the global food encapsulation market will expand at a notable CAGR of 9.4% during the forecast period of 2015 to 2020. The analyst has estimated that the opportunities in this market will translate to a revenue of US$5,464.6 mn by the end of 2020, considerably up from its evaluated worth of US$3,252.2 mn in 2014.
Based on core material, the market for food encapsulation has been segmented into flavoring agents, vitamins & minerals, lipids, enzymes & microorganisms, acids, bases, and buffers, amino acids & peptides, antioxidants, and others including leavening agents and artificial sweeteners. By the end of 2020, the segment of flavoring agents is projected to reach a valuation of US$1,677.4 mn, incrementing at an above-average CAGR of 9.7% during the said forecast period. In terms of market share, this particular segment will account for 40.7% of the demand by 2020.
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On the basis of wall material, the global food encapsulation market has been bifurcated into proteins, carbohydrates, lipids and waxes. The protein category is currently most profitable and is estimated to be worth US$1,209.3 mn by 2020, staying ahead of the segment of carbohydrates, which is exhibiting a CAGR of 9.2% during 2014 to 2020. Technology-wise, the market has been broadly classified into physical and chemical technologies. Geographically, North America has been identified as the most lucrative region, followed by Asia Pacific and Western Europe. The North America food encapsulation market is estimated to be worth US$1,401.3 mn by 2020, expanding at a CAGR of 9.7% during 2015-2020.
Increasing Demand of Functional Foods Driving Demand
Some of the key factors augmenting the demand in the global food encapsulation market are: increasing consumption of functional foods across urban populations in the world, growing demand for convenience foods and increasing need for the preservation of core and active material, increasing product appeal among the consumers by improving features of taste, color, and flavor, and innovation in food encapsulation that facilitates controlled release of active ingredients. In addition to that, shifting consumer inclination towards fortified foods and adoption of niche applications are expected to fuel the market for food encapsulation in the near future.
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On the other hand, high cost of food encapsulation, limitation of the outreach of the new technology, and the need to maintain optimum physical stability of encapsulated ingredients that limits the choices in selecting raw materials are a few obstructing mitigating the prosperity of the global food encapsulation market. Nevertheless, the vendors operating in this market are expected to gain new revenue avenues from the development of advanced technologies to tap niche markets, ability to further reduce capsule size and thereby increase bioavailability, and government support in various emerging economies.
Future Market Insights (FMI) is a leading market intelligence and consulting firm. We deliver syndicated research reports, custom research reports and consulting services, which are personalized in nature. FMI delivers a complete packaged solution, which combines current market intelligence, statistical anecdotes, technology inputs, valuable growth insights, an aerial view of the competitive framework, and future market trends.
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