Encapsulated Flavours Market is expected to be valued at more than US$ 1,300 Mn by the end of 2027
APEJ to Remain the Most Lucrative Market for Encapsulated Flavours
In terms of volume, Asia Pacific excluding Japan (APEJ) is expected to remain the most lucrative market for encapsulated flavours, with sales estimated to expand at a high single-digit CAGR through 2027. North America will continue to be the second largest market for encapsulated flavours, in terms of volume.
Based on encapsulation process, spray drying is estimated to remain dominant in the global encapsulated flavours market. In terms of volume, expansion of spray drying segment is anticipated to exhibit the highest CAGR through 2027. Adoption of glass encapsulation process for encapsulated flavours will remain sluggish in the market over the forecast period.
Chocolate Flavours will Continue to be the Preferred Encapsulated Flavours in the Market
Chocolate flavour will continue to be preferred among encapsulated flavours in the global market, followed by general fruit flavours, spice flavours, and citric flavours. In terms of volume, sales of spice flavours are estimated to register the highest CAGR through 2027, followed by exotic fruit flavours, citric flavours, and berry flavours. In contrast, sales of general fruit flavours are anticipated to register the lowest CAGR through 2027.
In terms of volume, encapsulated flavours will continue to witness largest adoption for application in beverages & instant drinks, with sales expected to register the fastest expansion through 2027. Bakery & confectionary is expected to remain the second largest application of encapsulated flavours in the global market.
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Demand for Encapsulated Flavours in Convenience Food will Witness a Rise in North America
Demand for encapsulated flavours in convenience food will continue to rise in North America. Consumer preferences in this region is shifting towards readymade meals, savoury soups, and snacks, resulting into demand for exotic, ethnic, and spicy flavourings. Consumer are now becoming aware of the potential adverse effects of artificially produced food additives, inclining more towards natural products. Flavour encapsulation is considered to be more natural than chemically synthesized equivalents, as it retains the nutritional value of vegetable & fruit ingredients during their conversion into flavours. These factors will continue to sustain demand for encapsulated flavours in North America.
High cost of encapsulated flavours production is the major concern for manufacturers, and this factor may act as a retraining factor for growth of the market in North America. Leading manufacturers in the region are focusing on the development of advanced processing and formulation technologies for production of encapsulated flavours.
Increasing Installation of of R&D Facilities by Leading Market Players to Drive the Market Growth in APEJ
With increasing spending on research & development activities, global manufacturers are now facing competition from regional players in APEJ. APEJ has become the preferred destination for leading market players to set up R&D facilities. Consumer in this region have started opting for fizzy, flavoured and plant-based drinks over other beverages. Consumption of milk-based drinks is expected to gain an uptick in APEJ, resulting into demand for flavoured dairy drinks. These factors will augment growth of the encapsulated flavours market in APEJ.
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For encapsulation of flavours, high tech machines are required, coupled with skilled labours for operation. APEJ lacks skilled professionals, who are capable of understanding the technology behind flavour encapsulation. This might be a major hindering factor for growth of the encapsulated flavours market in APEJ.
Key market players identified in FMI’s report include Symrise AG, Cargill Incorporated, Nexira SAS, AVEKA Group, Naturex S.A., Archer Daniels Midland Company, International Flavours & Fragrances Inc., Sensient Technologies Corporation, Balchem Corporation, FONA International, Inc., Ingredion Incorporated, FrieslandCampina Kievit GmbH, BUCHI Labortechnik AG, Etosha Pan (India) Pvt. Ltd., Groupe Legris Industries (Central), Tate & Lyle PLC, LycoRed Limited, and Synthite Industries Ltd.
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. technology inputs, valuable growth insights, an aerial view of the competitive framework, and future market trends.
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