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Food encapsulation is an advanced technology used to cover individual food ingredients with a coating in order to provide against a broad range of environmental factors. In this process, the ingredient is wrapped with a protective shell around a core of flavor products. It is basically done to provide uniform taste, coloring, improve taste, protect against harsh conditions and increase shelf-life of the product. Food encapsulation technology reduces the chance of degradation or loss of flavor &taste during production processes and storage. This technology is widely used in the chewing gums, candies, chocolates and bakery products for encapsulating sweeteners. Personal Care, chemical, food, pharmaceuticals, and textile are some of major end-user of food encapsulation.

The global food encapsulation market was estimated to be valued around US$ 4.5 billion in terms of revenue in 2018 and is predicted to grow at a CAGR of 9.5% during the forecast period (2019 to 2027)


Increasing government initiatives coupled with increasing support from research institutes, and private as well as public sectors to bring innovative launch in food processing equipment is expected to augment the market growth food encapsulation. According to the Coherent Market Insights, by 202 the Irish government hopes to enhance competitiveness in the food industry globally and offer sustainable food supply providing benefits to the population, by setting certain objectives for players in this industry to follow.

Market Opportunities

The market of encapsulation technology is experiencing various initiatives by companies in order to new and advanced technology and this is expected to augment the market growth. For instance, in May 2017, Givaudan plans to open a new fragrance encapsulation center in Singapore. The production is set to start in 2018 and will help the company’s leadership enhance in encapsulation technology and production capabilities, while also collaborating closely with customers within the region.

Market Restraints

Lack of food-grade materials to avoid losses during production processes as they help in protecting ingredients from harsh temperature and humidity and provide stable release of components. Moreover, these materials also enhance efficiencies in food processing machinery and are very important for manufacturers. Hence, the lack of food-grade materials is expected to hinder the market growth to some extent.

Key Takeaways

On the basis of core material, vitamins & minerals dominated the global food encapsulation market in 2018 with around 40% of market share in terms of revenue, followed flavoring agents and acids, bases & buffers, respectively.

Market Trends

Increasing focus of manufacturers to introduce innovation in encapsulation technology is expected to augment market growth. For instance, in November 2019, Tanatex Chemicals, a company into textile processing solutions ranging from pre-treatment to finishing, has launched a bio-based and biodegradable micro-encapsulating technology in the Tana Care Bio range. The product Tana Care Bio-Slim is the first in the brand new range of cosmeto finishes, delivering improved skin conditions and a proven slimming effect.

The growing popularity of protein-based encapsulation which provides numerous benefits regarding the sensory impact of microcapsules in the finished product. This trend is expected to accelerate market growth. Moreover, rising encapsulation of probiotics in whey protein gel products is increasing storage and processing. This is projected to propel the demand for the protein-based matrix which in turn boosting the market growth.

Competitive Section

Key players operating in the global food encapsulation market are TasteTech Ltd., Givaudan SA ADR, Sensient Technologies Corporation, Balchem Corporation, International Flavors & Fragrances Inc., BASF SE (ADR), Symrise AG, Appvion, Inc., AVEKA Group, Firmenich International SA, and Koninklijke DSM N.V.

Market Taxonomy

By Application

  • Dietary Supplements
  • Functional Food
  • Bakery Products
  • Confectionery
  • Beverages
  • Frozen Products
  • Animal Nutrition
  • Dairy Products
  • Others

By Technology

  • Physical
    • Emulsification
    • Spray Drying
    • Spray Chilling/Cooling
    • Fluidised-bed Coating
    • Centrifugal Extrusion
    • Others
  • Chemical
    • Coacervation
    • Freeze Drying
    • Supercritical Fluid Technique
    • Nanoprecipitation
    • Liposomes
    • Others

By Core Material

  • Flavoring Agents
  • Acids, Bases, and Buffers
  • Lipids
  • Enzymes & Microorganisms
  • Amino Acids & Peptides
  • Vitamins & Minerals
  • Antioxidants
  • Others (Artificial Sweeteners, and Leavening Agents)

By Wall Material

  • Carbohydrates
  • Proteins
  • Lipids & Waxes

By Geography

  • North America
  • Latin America
  • Europe
  • Asia Pacific 
  • Middle East & Africa
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