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USD 80 Bn, Encapsulation Market to Grow at a CAGR of 12.5% by 2028

09-20-2022 03:41 PM CET | Science & Education

Press release from: The Insight Partners

/ PR Agency: The Insight Partners
The Insight Partners

The Insight Partners

Encapsulation of food products helps retain the color and flavor, thereby extending the shelf-life. Encapsulated products in the convenience food sector include teabags, confectionaries, instant drinks, and desserts. Active ingredients in food products are encapsulated to prevent oxidation and evaporation. Encapsulation also enables the controlled release of material in medicines and pesticides. The convenience food sector generally manufactures food items to reduce preparation time.

According to The Insight Partners' research, the global encapsulation market accounted for US$ 31,494.66 million in 2020 and is anticipated to hit US$ 80,071.65 million by 2028 to rise at an annual growth rate of 12.5% during 2021-2028. The growing demand for encapsulated flavors and colors from convenience food sector and the need for encapsulated pharmaceuticals are the key factors aiding the market expansion.

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Despite the driving elements, the high cost of production and low-profit margins impede the growth of global encapsulation market.

On the basis of coating material, the market is split into polymers, gums & resins, lipids, carbohydrates, and proteins. The carbohydrates segment led the market in 2020 with 44.22% share of the business with a revenue total of US$ 13,926.47 million. It is forecasted to be worth US$ 35,053.00 million by 2028 to grow at 12.8% CAGR from 2021 to 2028.

According to technology, the encapsulation market sphere is categorized into spray technology, emulsion technology, dripping technology, and others. The spray technology segment held 42.99% market share in 2020, accounting for US$ 13,539.10 million. It is speculated to garner US$ 36,176.95 million by 2028 to expand at 13.2% CAGR over the forecast period.

As per the application, the global encapsulation market is fragmented into pharmaceuticals & nutraceuticals, food & beverages, personal care products, agrochemicals, and others. With 50.07% market share, the pharmaceuticals and nutraceuticals segment dominated the business in 2020. It amassed US$ 15,769.43 million in 2020 and is estimated to generate US$ 38,693.92 million by 2028 to exhibit a CAGR of 12.0% during the forecast period.

Our regional analysis states that North America led the domain in 2020 with 35.34% share of the market. It was evaluated at US$ 11,131.68 million in 2020 and is likely to reach US$ 24,037.56 million by 2028, surging at 10.2% CAGR along the forecast period. The Asia Pacific market was assessed at US$ 10,296.66 million in 2020 and is predicted to be worth US$ 30,765.74 million by 2028.

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Strategic insights:
The leading players listed in the global encapsulation market report are Encapsys, LLC; Lycored; TasteTech; Givaudan; Balchem Inc; FrieslandCampina; BASF SE; DSM; Microtek Laboratories, Inc; and Legris Industries Group.

• In November 2018, Lycored launched ingestible skincare solutions to expand the business in Australia, India, Thailand, and other Asian countries. In July 2020, the company doubled its lycopene production to meet the unprecedented demand of the market. Lycopene is used in skincare products to protect from pollution. It also features anti-aging properties.

• In October 2018, TasteTech launched a gum kit, especially for chewing gum manufacturers. The company demonstrated that incorporating encapsulated flavoring ingredients can deliver an improved chewing experience and long-lasting taste.

• In August 2020, Givaudan acquired Alderys, a biotech company. This acquisition will expand the portfolio of environment-friendly cosmetics and perfumery ingredients. In October 2020, the company commenced its fragrance production facility in China to enhance the manufacturing output of oral care flavors, encapsulated fragrances, and prestige perfumes.

Pharmaceutical encapsulation protects active ingredients of drugs inside the shell until they reach the target site in the body post administering. The global pharmaceutical industry has been growing at a stable rate over the recent years. Production of new medicines is increasing in Asian economies such as India and China. India is one of the major pharmaceutical exporters in the world. Extensive R&D processes and technological advancement in pharmaceutical industry demands the encapsulation of major drugs, thus accelerating the global encapsulation market.

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About Us:
The Insight Partners is a one stop industry research provider of actionable intelligence. We help our clients in getting solutions to their research requirements through our syndicated and consulting research services. We specialize in industries such as Semiconductor and Electronics, Aerospace and Defense, Automotive and Transportation, Biotechnology, Healthcare IT, Manufacturing and Construction, Medical Device, Technology, Media and Telecommunications, Chemicals and Materials.

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