Food Encapsulation Market

SKU: DM2270 | Last Updated On: Oct 28 2022 | Available Formats

> Food Encapsulation Market Expected to reach a high CAGR of 6.4% by 2029: DataM Intelligence

Food Encapsulation Market is segmented By Technique Type (Spray-Drying, Spray-bed-drying, Fluid-bed coating, Spray-chilling, Others), By Shell Material (Polysaccharides, Lipids, Emulsifiers, Others), By Application (Functional Foods, Dairy Products, Confectioneries, Dietary Supplements, Others), and By Region (North America, Latin America, Europe, Asia Pacific, Middle East, and Africa) – Share, Size, Outlook, and Opportunity Analysis, 2022-2029

Food Encapsulation Market Scope



Market CAGR


Segments Covered

 By Technique Type, By Shell Material, By Application, and By Region

Report Insights Covered

Competitive Landscape Analysis, Company Profile Analysis, Market Size, Share, Growth, Demand, Recent Developments, Mergers and acquisitions, New Product Launches, Growth Strategies, Revenue Analysis, and Other key insights.

Fastest Growing Region

Asia Pacific

Largest Market Share 

North America

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Food encapsulation market size was worth US$ XX billion in 2020 and is estimated to reach US$ XX billion by 2028, growing at a CAGR of 8% during the forecast period (2022-2029). Food encapsulation is used for the incorporation of ingredients into the food. It wraps the protective shell around the flavor ingredients, bioactive ingredients, or other ingredients. This protective shell protects against harsh conditions during the production of the end-products. It allows the food ingredients to retain their flavor and remove the bad taste. It improves the shelf life of food products. It stabilizes the food ingredients in their original form. It is effective in reducing the degradation or loss of flavor during the processes and storage of food products.

Food encapsulation provides various advantages such as controlled release based on time or temperature. It improves the heat & oxidative resistance of the food products. Various food encapsulation technologies such as microencapsulation, nanoencapsulation, and hybrid encapsulation are used for the production of food products. Different methods such as physical, chemical, and Physico-chemical methods are used. Food encapsulation is widely used for the production of dietary supplements, functional food products, bakery products, confectionery, beverages, frozen products, and dairy products.

Market Dynamics

Rising Consumption of Food and Dietary Supplements is Driving the Growth of the Market

The demand for food encapsulation is increasing with the growing consumption of food and dietary supplements. Various food and dietary supplements such as vitamins, minerals, Omega 3, enzymes, organic acids, probiotics, prebiotics, additives, and other supplements for the prevention of various lifestyle diseases such as diabetes, heart diseases, stroke, obesity, and other diseases. There is growing consumption of food and dietary supplements with the changing lifestyles and dietary habits across the globe. The increasing awareness regarding the health benefits shall boost the demand for food and dietary supplements.

Growing Funding & Investment is Expected to Boost the Market Growth over the Forecast Period

Several public & private companies are raising the funding & investment for food encapsulation. For instance, in February 2016, Imperial Innovations Group plc had raised the £5.0 million Series A funding round in Aqdot Limited, the Cambridge, the United Kingdom-based encapsulation specialist company. As per the investment, the Imperial Innovations Group plc holds the 46.5% interest in Aqdot Limited. In December 2013, Imperial Innovations Group plc had invested £350k and led a new seed funding round of almost £1 million ($1.6 million) into Aqdot Limited. The funding was used for the development of the Aqdot technology including the encapsulation technology and partnership with the other companies in the selected markets.

Several Companies are Focussing on Expanding their Capabilities for Food Encapsulation is Increasing the Market Growth

Several companies are focussing on expanding their capabilities for food encapsulation. For instance, in May 2019, Symrise had expanded its flavors encapsulation plant in Branchburg, New Jersey. The company has added a new 23,000 square-foot spray bed drying facility to the site. This new spray bed drying line would enhance the ability of the company to provide encapsulated flavours to food and beverage brands across the North American market. In April 2020, AnaBio Technologies Ltd., specialized in encapsulation using natural food proteins had opened a new facility in Carrigtwohill, near Cork, Ireland. AnaBio Technologies Ltd had patented the natural food-grade microencapsulation technology for stabilization, protection, and targeted release of sensitive ingredients. In October 2013, Firmenich had opened the new state-of-the-art encapsulation facility at the Karawang International Industrial City, near Jakarta, Indonesia. This facility would be used for the production of the company's proprietary flavor encapsulation technology. In December 2012, RFI had expanded the Loveland, Colorado manufacturing facility. This facility would provide encapsulation, powder filling, and bottling.

COVID-19 Impact Analysis

The global food encapsulation market has witnessed no impetus impact on the operations and supply chain of food encapsulated products across the globe. The manufacturing facilities of the companies with food encapsulation technologies are still operating in the COVID-19 pandemic. There is increasing development of food and dietary supplements due to their health benefits for the prevention of COVID-19 infection. Food encapsulation technologies are being used for the production of food and dietary supplements.

Segment Analysis

Polysaccharides Segment is Expected to Hold the Largest Share in the Food Encapsulation Market

The food encapsulation market is classified based on the shell material as polysaccharides, emulsifiers, lipids, and proteins. The polysaccharides segment is anticipated to hold the largest share of XX% in 2019 due to the rising adoption of the polysaccharides as the encapsulating matrices to protect sensitive oils and bioactive ingredients. Polysaccharides are widely preferred by food manufacturers due to their role in the microstructure of numerous food products. Polysaccharides are large molecules made up of the smaller monosaccharides connected by glycoside bonds. Polysaccharides are comprised of branched or linear structures. Polysaccharides can be easily chemically modifiable. Polysaccharides are comprised of more than one sugar or sugar derivatives. These compounds provide numerous textures and viscosities. Polysaccharides are the most suitable building blocks for delivery systems. There is a growing demand for chemically processed polysaccharides such as methylcellulose and hydroxypropyl methylcellulose with superior film, forming ability, improved chemical stability for better stabilization and protection.

By Application, Dietary Supplements Segment is Expected to Witness a High Growth Over the Forecast Period

The food encapsulation market is classified based on the application as the dietary supplements, functional food products, bakery products, confectionery, beverages, frozen products, and dairy products. The dietary supplements are expected to witness high growth over the forecasted period due to the higher adoption of the food encapsulation technology for the production of the dietary supplements. Food encapsulation technology is an effective technology for incorporating health-promoting ingredients into food without reducing their bioavailability or functionality. Food encapsulation technology protects health-promoting ingredients into dietary supplements. Several companies are using advanced food encapsulation technology for improving the quality of dietary supplements. The high demand for dietary supplements in the countries such as the United States and Western Europe shall stimulate market growth.

Geographical Analysis

North America Region Holds the Largest Market Share Global Food Encapsulation Market

North America region is dominating the global food encapsulation market accounted for the largest market share in 2019 owing to the higher adoption of the food encapsulation technology for preserving the food and maintaining their shelf-life. This technology is also effective in enhancing the taste, flavor, and color of the foods. There is high consumption of functional food products shall stimulate market growth. According to the Institute of Food Technologists (IFT), the United States is the leading consumer of functional foods. Food encapsulation is widely used to deliver the delivery of precise levels of nutrients. There is high availability of the shell materials such as hydrocolloids, emulsions, polysaccharides, emulsifiers, lipids, and proteins. The United States accounts for the highest market share due to the presence of a large number of market players providing food encapsulation technology. There is a growing demand for food products with improved heat & oxidative resistance, increased shelf-life stability, and improved end-product quality.

Asia-Pacific Region is Expected to Grow at the Fastest CAGR During the Forecast Period

Asia-Pacific region is estimated to be the fastest-growing region in the global food encapsulation market owing to the increasing demand for convenient and healthy food products. Food encapsulation is an effective technique to overcome the challenges associated with color, taste, nutrition, and food preservation. There is increasing usage of food encapsulation to make the easy coating of food ingredients such as acidulants, fats, flavors, and whole ingredients such as raisins or nuts. The drastic market is expected to be observed in Japan, China, and India due to the growing consumption of food ingredients including vitamins, minerals, enzymes, and probiotics with the changing dietary patterns along with increasing consumer awareness regarding their health benefits. The growing prevalence of several diseases such as obesity, diabetes, stress, and high blood pressure shall have a positive impact on the market. There is a presence of several market players using food encapsulation technology for the development of food products. The growing domestic income and purchasing power of the people shall stimulate market growth.

Competitive Landscape

The food encapsulation market studied is a fragmented market with the presence of a large number of market players. Aveka Group, ABCO Laboratories, Inc., Balchem Corporation, Cargill Inc., Advanced BioNutrition Corporation, Sphera Encapsulation, VitaSquare, Clextral, Encapsys Microencapsulation, Ingredion Incorporated, Symrise AG, International Flavor & Fragrances Inc., and DuPont de Nemours, Inc. are the major players with the significant market share. The major players are adopting several growth strategies such as product launches, mergers, licensing, acquisitions, and collaborations, which are contributing to the growth of the Food Encapsulation market globally. For instance,

Mergers & Collaborations:

  • In December 2019, DuPont’s Nutrition & Biosciences had merged with International Flavors & Fragrances. Under the terms of the agreement, DuPont shareholders would own 55.4% of the shares of the new company, and existing IFF shareholders would own 44.6%. DuPont would receive a one-time $7.3 billion special cash payment, subject to certain adjustments.
  • In December 2019, Blue Pacific Flavors had entered into the collaboration with McCormick & Company to market the non-GMO, natural flavors with FlavorCell encapsulation technology to powdered beverages, confectionery, and bakery products. This collaboration would provide Blue Pacific access to a proprietary, patented-technology platform to offer its customers encapsulated natural flavors that offer superior taste, solubility, and shelf life.
  • In July 2019, DSM had formed a joint venture with Evonik to produce encapsulated omega-3 fatty acids. The encapsulated omega-3 fatty acids would be effective for reducing the pressure on fish stocks and supporting the aquaculture industry.
  • In May 2017, Lycored had formed the joint venture with Algatechnologies, a biotechnology company, to distribute Algatech's AstaPure in the form of beadlets. This joint venture would increase the brand's commercial reach in the North American market.

Product Launch & Approvals:

  • In November 2019, Givaudan, the world’s leading flavour and fragrance company had launched the breakthrough fat encapsulation technology to reduce up to 75% of the fat content and 30% of the calories in meat substitutes.
  • In April 2019, Lipofoods SLU had launched the Curcushine microcapsules, a highly bioavailable microencapsulated curcumin for the beauty-from-within market. This innovative formulation is natural and vegan, with high solubility when dissolved in water. It has a neutral taste and can be readily incorporated into nutricosmetics and beauty drinks.
  • In January 2017, DSM had launched MEG-3, with new encapsulation technology.


  • In November 2020, Lesaffre Ingredients Services (LIS) had acquired the worldwide exclusive license from the Spanish start-up Ingeniatrics for the flow-focusing (micro-encapsulation of high-value product) and flow-blurring (spraying/drying of high viscous liquid and powder functionality improvement) technologies for food and animal feed ingredients, crops protection and fragrances.
  • In July 2012, Royal DSM, the global Life Sciences and Materials Sciences company had acquired Ocean Nutrition Canada, the leading global provider of fish-oil-derived nutritional products to the dietary supplement and food and beverage markets. This acquisition would strengthen and complement DSM’s newly established, global nutritional lipids growth platform. It would allow the company to leverage the forms, encapsulation, and emulsification technologies


  • In April 2019, Lipofoods had entered into a partnership with Sphera for turmeric extract encapsulation. This partnership would act through a licensing agreement to market the curcushine microcapsules, bioavailable microencapsulated curcumin.

Frequently Asked Questions

What is the Projected CAGR value of the Food Encapsulation Market?

Food Encapsulation Market is expected to grow at a CAGR of 8% during the forecasting period 2022-2029.

Which region controlled the global market during 2022-2029?

North America region Controls the Food Encapsulation Market during 2022-2029.

Which is the fastest growing region in the Food Encapsulation Market?

Among all regions, Asia Pacific is the fastest growing market share during the forecast period.

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