Food Encapsulation Market

Food Encapsulation Market Size

The global food encapsulation market was valued USD 11.5 billion in 2022 and is projected to reach USD 17.0 billion by 2027, growing at a CAGR of 8.2% during the study period. The market for encapsulation is growing globally at a significant pace due to its numerous applications and multiple advantages over other technologies. Some of the major advantages of encapsulation are that it helps provide enhanced stability and bioavailability to the bioactive ingredients and also helps increase the shelf life of food products and maintains the taste and flavor for a longer period. Encapsulation is increasingly used in various industrial areas such as nutraceuticals and food & beverages.

The high growth opportunities in emerging regions are attributed to the growing economies and technological advancements. North America accounts for the largest share of the food encapsulation market, with the US being the largest contributor. This is because of the presence of most of the major players in the market and the availability of advanced technologies. Asia Pacific is projected to grow at the highest rate due to the increase in industrial activities and health consciousness among consumers.

The development of advanced technologies to tap niche markets and the growth in demand for encapsulation in emerging economies are opportunities for this market.

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Food Encapsulation Market Dynamics

Drivers: Innovative food encapsulation technologies enhance market penetration.

Food encapsulation technology has evolved from being a fundamental preservation technology to a complex food processing technology. This technology enables many properties such as color and taste-masking and controlled release of bioactive ingredients. The evolution of encapsulation technology has happened through many stages. They have been further classified into microencapsulation, microencapsulation, and nanoencapsulation. Food manufacturers are developing newer encapsulation technologies. The aim to maximize and preserve product taste without environmental degradation. The preservation of potency along with health benefits value addition to the product is pushing manufacturers towards adopting food encapsulation.

One of the major applications of food encapsulation is the controlled release of bioactive agents in the food and nutraceutical industries. The increasing complex production of processed foods propels the demand for a controlled release of bioactive compounds. The hydrophobic spheres encapsulated in moisture-sensitive microspheres help improve the shelf-life of foods & beverages. Spheres are homogeneously dispersed in the microsphere matrix and dissolve after encountering saliva or water. This helps in releasing the encapsulated ingredients and prolonging the sensation of flavor and taste since a controlled release of bioactive compounds is a major application in frozen dough, baked foods, confectionery, health bars, processed meats, desserts, nutrition foods, dry beverage powder mixes, and other wellness products.

The introduction of new technologies in encapsulation, such as nanoencapsulation and bio-encapsulation, drives the demand for encapsulation in several food applications. Encapsulation helps in enhancing the taste of many food products. Initially, products containing omega-3 fatty acids had a very bad odor. With encapsulation technology, the fragrance and taste of omega-3 fatty acids have been enhanced. Recent advancements in liposome technology are used in manufacturing several products, such as probiotics, nutraceuticals, and nutrigenomics, offering numerous health benefits. Technological advancements have increased the adoption of encapsulation in niche applications such as gourmet and infant food. Another major reason for increasing the adoption of encapsulation in the food market could be the increasing innovations for offering reduced costs and technological advancements for providing additional benefits.

Restraints: More inclination toward traditional preservation methods over encapsulation techniques

The manufacturers of small and medium-sized companies in the food & beverage industry use the traditional method of preservation techniques over the encapsulation technique because food encapsulation can be expensive. New markets are being established within the functional foods sector, and researchers are in the process of meeting this demand to reduce high production costs. Encapsulation results in extra cost, which needs to be minimized to be economically acceptable by all manufacturers. This applies not only to the materials used to build capsules but also to the equipment or processing conditions. The number of core materials suitable for encapsulation is also limited. Currently, only a few bioactive ingredients and specialty ingredients, such as artificial sweeteners and encapsulated flours, which have been encapsulated, are showing desired results in terms of their sensorial properties in food applications. Further research is needed to successfully encapsulate ingredients that provide an edge over other techniques.

Opportunities: Reducing capsule size and increasing bioavailability

According to IUUPAC, nanocapsules size ranges from 1−100 nm range. These nanocapsules are the perfect size for enclosing highly potent bioactive while ensuring targeted delivery. For dietary supplements, the best-suited size is sizes 1, 0, through 00. These capsules can hold up to 290 and 850 mg of the core material. They are ideally suited for powdered and granulated substances. These small capsule sizes are best suited for minerals, water- and fat-soluble vitamins and antioxidants. Hence, it is necessary to focus on reducing the size of the capsule to increase its utility and bioavailability.

Challenges: Poor stability of microencapsulated ingredients in varying atmosphere

Optimizing the physical and chemical properties of microcapsules is necessary to achieve the stability of microencapsulated ingredients or products. Manufacturers find it challenging to maintain the stability of microencapsulated ingredients in varying environmental conditions. The parameters for the optimization of properties include microencapsulation process type, material type, or capacity of the microsphere. The properties of microcapsules, including permeability, mechanical stability, cell viability, controlled release, targeted delivery, drug stability, and shelf-life, need to be optimized. Achieving these parameters to achieve stability is challenging because of varying atmospheric conditions such as temperature, humidity, and pressure.

Even with the adoption of advanced technologies, some challenges persist, such as combining moisture-sensitive ingredients with liquid food. This is because of the failure to achieve the required stability of microcapsules in the humid atmosphere.

Maintaining the optimum physical stability of microencapsulated food during processing and packaging is a major challenge. There are no defined approaches that apply to the microencapsulation of food ingredients. A customized solution is required considering every stage of processing, packaging, storage, and delivery. This is due to the wide variation in the types of food, transportation modes, and the necessity of different release triggers and consumption requirements.

Vitamins and mineral is projected to grow in the food encapsulation market because of usage in superfoods for boosting brain and bone health

Consumers’ increasing attention to health and prevention, greater customized nutrition needs for different segments of the population, rising healthcare costs, search for alternatives to cure specific problems, and rising consumer awareness regarding the severity of chronic diseases drive the need for vitamins and minerals.

Vitamins are functional ingredients used in food products due to their specific nutritional properties. They are classified as fat-soluble and water-soluble vitamins. Fat-soluble vitamins contain Vitamins A, D, E and K. Vitamins B and C form a part of water-soluble vitamins. When added as a food ingredient, it is vital to target and control the release of these vitamins. This drives the need for their encapsulation. According to an article by Nutraingredients in 2019, over 40% of the vitamins consumed in the food industry are encapsulated. The encapsulation of vitamins is necessary to enclose vitamin molecules in a stable shell to prevent oxidation, preserve the nutrients, and avoid the products from deteriorating for a longer period.

On the other hand, minerals are formulated in the form of salts for food application. According to industry experts, encapsulation of these salts not only increases the cost but also becomes redundant. Thus, the adoption of this technology for minerals is minimal, estimated to be less than 5%.

Robotic Technology in Food Encapsulation is One of the Major Trends

Robots enhance the process of packaging nutraceutical supplements by being time-efficient and accurate. They increase the shelf life of nutraceutical ingredient products and help them to comply with regulatory guidelines by reducing the risk of contamination. Furthermore, the recent increase in the demand for nutritional supplements requires large-scale production, increasing the demand for robots to optimize production facilities.

Analyzing machine performance, gathering data, and troubleshooting in advance are the key robotics trends in the nutraceutical ingredients market projected to increase technology adoption in the industry. COBOTs are primarily used in the nutraceutical industry for such applications. According to TransAutomation Technologies, the labor expenditures of three people each day can be offset by a single robot that can perform one function for 24 hours per day. This helped several pharmaceutical and nutritional supplement manufacturers increase productivity, reducing their need for human labor and the challenges and costs that go along with it. Collaborative robots enable humans and robots to work together effectively in open or uncaged environments. Through collaborative robots, a human operator and robot can be engaged together in the same process, or the operator can simultaneously manage other tasks that a person might better solve.

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North America dominated the food encapsulation market; it is projected to grow at a CAGR of 7.8% during the forecast period.

The food encapsulation market in North America is influenced by factors like health awareness, promotion of nutraceuticals and functional foods and growing expenditure on prevention of chronic non communicable diseases. Food encapsulation adds value to foods and effectively delivers potent bioactives in isolation as supplements or as value addition in functional foods.  The US dominated the market in 2021 and is projected to be the fastest-growing market for food encapsulation in North America. The market in this region is driven by technological advancements in food encapsulation techniques such as liposome compression, inclusion complex and centrifugal extrusion and the growing demand for functional and fortified foods that use encapsulated nutrients and the growing consumption of convenience foods that use encapsulated flavors and colors. Most of the key market players have a presence in the region. These include International Flavors and Fragrances Inc (US), Sensient Technologies Corporation (US), Balchem Corporation (US), Encapsys LLC (US), Ingredion Incorporated (US), Cargill (US), DuPont (US), Aveka Group (US), and Advanced BioNutrition Corp. (US).

Food Encapsulation Market Share

The key players in this market include Cargill, Incorporated (US), Balchem (US), International Flavors & Fragrances Inc. (US), and Encapsys LLC (US).

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Scope of the Report

Food Encapsulation Market:

This research report categorizes the food encapsulation market, based on Core Phase, Shell Material, technology, Method, Application and Region.

By Core Phase

• Vitamins and Mineral
• Enzymes
• Organic Acids
• Probiotics
• Sweeteners
• Nutritional Lipids
• Prebiotics
• Preservatives
• Colors
• Amino Acids
• Flavours
• Proteins
• Other Core Phases

Market, By Application

• Functional Foods
• Dietary Supplements
• Bakery Products
• Confectionary Products
• Beverages
• Frozen products
• Dairy Products

By Method

• Physical Method
• Chemical Method
• Physicochemical Method

By Shell Material

• Polysaccharides
• Lipids
• Proteins
• Emulsifiers

Market, By Technology

• Nanoencapsulation
• Microencapsulation
• Hybrid Encapsulation

By Region:

• North America
• Europe
• Asia Pacific
• South America
• Rest of the World (RoW)

Target Audience:

• Raw material suppliers of core phase materials in the food encapsulation market
• Food encapsulation technology providers
• Intermediate stakeholders, including distributors, retailers, associations, and regulatory bodies.
• Manufacturers and traders of food products, including dairy products, bakery products, nutritional products, convenience foods, meat products, and other food applications.
• Trade associations and industry bodies
• Government organizations, research organizations, and consulting firms
• Importers and exporters of core phase materials in the food encapsulation market
• Commercial research & development (R&D) institutions and financial institutions
• Associations, regulatory bodies, food safety agencies, and other industry-related bodies:
  • Food and Drug Administration (FDA)
  • European Food Safety Authority (EFSA)
  • United States Department of Agriculture (USDA)
  • Food Standards Australia New Zealand (FSANZ)
  • Food and Agriculture Organization (FAO)
  • Food Standards Australia New Zealand
  • Organization for Economic Co-operation and Development (OECD)

Food Encapsulation Market Industry News

• In November 2021, Ingredion expanded its partnership with Verdient Foods to produce a variety of protein concentrates flour from lentils and fava beans and peas. This would help the company expand its protein production capacity and innovate with newer technologies.
• In September 2021, DSM acquired First Choice Ingredients; this acquisition gives DSM to allow a dairy-based savory flavoring portfolio of First Choice Ingredients.
• In March 2022, Kerry opened a-USD 137-million food technology and innovation center of excellence in Rome, Georgia. This would help the company innovate and enter new market with food technologies.
• In May 2021, Kerry announced it would develop a purpose-built food technology and innovation center of excellence in Queensland, Australia. This would help the company innovate and enter new market with food technologies.
• In November 2020, Cargill Incorporated invested USD 100 million in its Indonesian sweetener plant to build a corn wet mill with a starch dryer to increase the production of starches & sweeteners. This would help the company expand in the encapsulated sweeteners markets.

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