Food Encapsulation Market is Projected to Reach $17.0 billion by 2027

The market for food encapsulation was valued at USD 11.5 billion in 2022; it is projected to grow at a CAGR of 8.2% to reach USD 17.0 billion by 2027. Food encapsulation is the process of capturing the core phase (bioactive ingredient) using a wall material.

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According to industry experts, the impact of this technology would not be equally impacting all types of food ingredients. The rate of adoption and growth potential depends on the type of core phase. The adoption rate of this technology has been the highest for vitamins and enzymes since manufacturers intend the targeted release of these active agents in dietary supplements and functional food, followed by flavors and colors.

Drivers for food encapsulation are increasing the consumption of functional foods and growing demand for convenience foods for the increase of novel goods with natural flavors and clean labels. Hence, the trade is increasing for food encapsulation raw materials.

Increase in consumption of nutritional convenience and functional foods.

In recent years, functional foods have been one of the fastest-growing health and wellness food & beverage categories worldwide, followed by naturally healthy and organic food products. According to the International Food Information Council (IFIC), milk formula, energy drinks, probiotic yogurt, juice drinks, sports drinks, cereal, and biscuits were among the top-performing functional global health and wellness food categories in 2020.

According to a CRN report in 2019, 77% of adults in the US utilized dietary supplements, an all-time high. According to Data Essential, in 2018, almost 25% of consumers wanted more functional products (e.g., DHA and choline) for children's brain development.

The ease at which information is available, coupled with the rising costs of healthcare, has caused many consumers to take healthcare management into their own hands. A list of health benefits that consumers looked for in 2019 were food and beverages that help maintain good eyesight, boost metabolism, detox the body, and improve mental energy, according to HealthFocus, a market research company focused on understanding health and nutrition trends. Pill fatigue also motivates consumers to eat and drink vitamins, minerals, and other potentially healing agents.

Energy-efficiency of spray chilling technique to drive its use in bakery products.

Spray chilling is also known as spray cooling, prilling, or spray congealing. Spray chilling is the process of solidifying an atomized liquid spray into particles. In this method, a mixture of core and wall is atomized into the cooled or chilled air, which causes the wall to solidify around the core. Unlike spray-drying, spray-chilling does not involve mass transfer (water evaporation). Therefore, it is more energy efficient. In the spray cooling method, the coating material is typically some kind of vegetable oil or its derivatives, including fat and stearin, with melting points of 45°C - 72°C.

Spray chilling technology is gaining popularity in the food industry because functional food formulations can be easily created. Spray chilling is a fat-based system in which the component of interest is mixed with a molten lipid carrier, and the resulting mixture is fed through an atomizer nozzle. When the nebulized material comes into contact with an environment cooled below the melting point of the matrix material, the vehicle and solid lipid microparticles form simultaneously. This technology is based on fat and lipids. This method can change the functionality, reduce the hygroscopicity of ingredients, mask taste or odor, change the solubility, and provide physical protection in addition to allowing the controlled release of these ingredients.

Microcapsules prepared by spray chilling are insoluble in water due to lipid coating. Consequently, these techniques encapsulate water-soluble core materials, such as pharmaceutical ingredients, water-soluble vitamins, baking enzymes, acidulants, and some flavors. However, it has the disadvantage of low encapsulation capacity.

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Asia Pacific is to grow by 9.0% CAGR during the forecast period.

The Asia Pacific region has grown in the food encapsulation market recently. The Asia Pacific market is projected to be the fastest-growing market for food encapsulation over the next five years. Encapsulation helps in taste and flavor masking and enhancing the shelf life of these products. Product manufacturers in this region face challenges due to the high atmospheric temperature, which affects the stability of bioactive ingredients. This challenge can also be overcome by using encapsulation technology.

The economic progress of countries such as India, Japan, and China offer huge market potential in this region. Malnutrition is a major issue in the Asia Pacific countries, due to an increase in demand for functional food, nutritional items, and healthcare products. The demand for nutritional ingredients has been increasing due to the enforcement of government policies to supply more functional food. Industry leaders are investing in the Asia Pacific region due to the growing demand for encapsulated products in various applications. Technological advancements in Asia Pacific countries, along with the developing infrastructure, have presented a potential scope for the automation of encapsulation, thereby improving its cost-effectiveness and output.

Key players in the food encapsulation markets

The key market players in food encapsulation market are Cargill, Incorporated (US), BASF SE (Germany), Kerry (Ireland), DSM (Netherlands), Symrise (Germany), Sensient (Germany), Balchem (US), International Flavors & Fragrances Inc, (US), Firmenich SA (Switzerland) and TasteTech (UK).

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