Global Microencapsulation Market Research Report with Outlook and Forecast by 2025

The global microencapsulation market is expected to reach USD 17.94 billion by 2025, according to a new report by Grand View Research, Inc. The ability of the technology to allow incorporation of minerals, vitamins, flavors and essential oils in food products to improve its nutritional value is likely to propel demand.

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Availability of raw materials such as sodium alginate, gelatin and PVA is a major concern for the industry players. Thus, key chemical manufacturers including BASF SE, Bayer AG, and Evonik Industries, which are integrated across raw material supply to distribution are likely to gain a competitive advantage over the forecast period.

Strong foothold of the existing players and high initial investments associated with the technology are likely to pose a threat for the new players. However, rapid development and increasing penetration of the technology in the end-use industries including pharmaceutical, food, household products and paints industry is expected to open new avenues for these players over the forecast period.

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FMCG companies have pursued their efforts towards microencapsulating fragrances, anti-bacterial compounds, and bleach activators to reduce material consumption for end-use, which is likely to propel industry growth. However, increasing demand for nano-encapsulation technology, especially in the pharmaceutical application coupled with low switching cost between substitute technology, is expected to hamper industry growth over the projected period.

Further key findings from the report suggest:

Pharmaceutical application dominated the industry accounted for over 70% of the overall demand, owing to early acceptance and wide application scope for the technology in drug manufacturing process.

The demand for microencapsulation in agrochemicals was valued over USD 300 million in 2015 and is likely to grow on account of widespread use of fertilizers and coupled with growing technological advancements in agriculture sector.

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Food additives is expected to be the grow at a CAGR of over 14% from 2016 to 2025, owing to increasing adoption of microencapsulation in the food and beverage industry to mask flavors and nutritional values active ingredients.

China is expected to be the major market in the Asia Pacific and is likely to grow at a significant rate owing to rapid development in the food & beverage, electronics, and pharmaceutical industry.

Europe is expected to grow at a CAGR of over 10% from 2016 to 2025, owing to the increasing popularity of dilatory supplement and nutraceuticals in the Germany, France, and UK.

The major players in the microencapsulation market include Encapsys, LLC, Bayer AG, BASF SE, GAT Microencapsulation GmbH, Dow Corning Corporation, Ronald T. Dodge Company, Balchem Corporation, Aveka, Inc., Taste Tech Ltd., Capsulae, Lipo Technologies, Microtek Laboratories, Inc., InnoBio. And GAT Microencapsulation GmbH.

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