The global food encapsulation market is projected to grow a CAGR of 7.01% to reach a market size of US$24.469 billion in 2025.Encapsulation is a method for covering an active compound through a protective wall material offering various benefits. These benefits include the protection of food active ingredient against chemical reactions or migration in food, and controlled delivery of bioactive compounds among others. The demand for the delivery of the right food components at the right time is fueling the market demand for encapsulation technology. It has been predicted that the encapsulated bioactive components will be capable of improving nutritional characteristics with the development of novel approaches, also, the huge application of encapsulation lies in increasing the efficiency of functional foods and beverages, this is further providing an opportunity for the market to grow at a fast pace in the forecast period and in the upcoming years. The market is currently at a nascent stage and holds potential growth opportunities for encapsulated food in various end-user food applications. The growing popularity of functional foods and beverages with the changing living standards and changing dietary patterns of the individuals worldwide is driving the market demand in the forecast period and in the upcoming years. This is due to urbanization and the increasing purchasing power of the consumers worldwide, with the growing disposable income. With continuous technological advancements in the food and beverage industry, the market is propelled to hold strong growth prospects in the forecast period.
Geographically, North America is projected to hold a significantly larger market share followed by the European region. The reason being the early adoption of technology and high standards of living which include the consumption of industrial food commodities rather than home-cooked meals. While the Asia Pacific region is estimated to be the fastest-growing with the increasing urbanization and rising purchasing power of the consumers leading to the consumption of industrial foods which include convenience food and beverages. Also, with the adoption of busy lifestyle consumers are preferring foods with high health benefits along with an enhanced shelf life. Furthermore, the shift from home-cooked traditional food consumption to the consumption of convenience-based industry prepared food products is further providing an opportunity for the market to grow in the upcoming years.
The shift from the traditional style of consuming food to the adoption of industrial food is propelling the market demand in the forecast period.
It has been observed, especially in the developing economies of the world that there is a shift from the adoption of convenient foods rather than traditional home-cooked meals. The fast-food consumption and the consumption of pre-cooked meals have become part of an individual’s day-to-day food habits. With the adoption of modern living conditions, a need for innovations has been realized in order to keep food fresh for longer hours of time. Hence, this is creating a high demand for technologies such as food encapsulation, further propagating the market growth in the forecast period. If noticed from an industrial point of view, it is quite easy and less-costlier for the transportation, storage, and handling of powders rather than hydrated food products. Hence, encapsulation reduces transportation costs providing convenience of handling as well. Encapsulation also provides protection of the food components at the time of storage or processing. Furthermore, encapsulation provides a controlled release of bioactive compounds at the time of cooking, thus, providing an exceptional approach for the maintenance of quality and nutritive status.
The presence of companies in food encapsulation is further augmenting the market growth in the forecast period with the growing consumer demand.
BASF, a leader in the supplying of microencapsulated polyunsaturated fatty acid (PUFA) powders for application in infant and maternal nutrition, fortification of food, and in dietary supplements is surging the market growth in the forecast period. The company’s Dry n-3® powders are offering an ultra-long shelf-life without the need for refrigeration. The uniqueness of the product is attributed to BASF encapsulation technology for the protection of the highly sensitive fatty acids form oxidation. Additionally, this provides an ideal handling characteristic for food industry and the consumer. The company makes use of a specific microencapsulation technology for protecting sensitive PUFA oil from oxidation, this can further limit the health benefits of the product. The encapsulated powder can be stored up to 3 years in their original packaging at ambient temperature, maximum 25 degrees Celsius. There is no degradation noticed of omega 3 fatty acids during longer period of time. This form of protection helps in safe blending and processing. Also, when compared with the conventional spray dried powders, these capsules do not break easily at the time of transportation, handling, and storage.
The product delivers guaranteed freshness, also, Dry n-3® are thoroughly monitored right from the beginning, form the raw materials and suppliers, processing and to the finished goods. The production is carried out under strict manufacturing standards. BASF’s production site in Denmark operates under GMP and FSSC 22000. The labs are certified and carefully control the quality of these ingredients on the basis of European food and infant food requirements.
On the other hand, Balchem microencapsulates are tailored according to the specific application. The company’s fluid bed technology develops a coating system where particles are repeatedly propelled through a mist of atomized coating droplets. The multiple coating layers lead into a thin, but strong shell overt the active ingredient. These micro-encapsulated ingredients are further utilized for controlling food ingredient interaction within its environment, the extension of the shelf-life via the controlled release of active ingredients, reduction of moisture pick-up by the hygroscopic ingredients, masking of undesirable taste and flavour, and extended release of ingredient interaction. The company’s ingredient solution’s extensive encapsulation application includes food acidulants like citric, malic acid, and tartaric acid; salts such as sodium and potassium chloride; leavening bases like sodium and potassium bicarbonate; leavening acids; bakery mold inhibitors, and nutrients and pro-oxidants. The following are the products listed under specialty encapsulation line namely BakeShure® for bakery applications, ConfecShure® for candies, and MeatShure® for meat applications.
| Report Metric | Details |
| Market size value in 2025 | US$24.469 billion |
| Growth Rate | CAGR of 7.01% from 2019 to 2025 |
| Base year | 2019 |
| Forecast period | 2020–2025 |
| Forecast Unit (Value) | USD Billion |
| Segments covered | Technology, Method, Coating Material, By Encapsulation Application, Food Application, And Geography |
| Regions covered | North America, South America, Europe, Middle East and Africa, Asia Pacific |
| Companies covered | DSM, FrieslandCampina Kievit, Ingredion Incorporated and its Affiliates, Cargill, Incorporated, Lycored Corp., Balchem Corporation, BASF SE, Symrise Group |
| Customization scope | Free report customization with purchase |
Segmentation:
Frequently Asked Questions (FAQs)
FrieslandCampina Kievit
Ingredion Incorporated and its Affiliates
Cargill, Incorporated
Lycored Corp.
Balchem Corporation
BASF SE
Symrise Group
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