Microencapsulation Market Estimates & Trend Report

Microencapsulation Market Estimates & Trend Analysis By Application (Pharmaceutical, Household Product, Agrochemical, Food Additive, Phase Change Material), By Region (North America, Europe, Asia Pacific, RoW), And Segment Forecasts, 2014 - 2025

Published: January 2017  |  80 Pages  |  Format: PDF  |  Report ID: 978-1-68038-339-3

Industry Insights

The global microencapsulation market size was USD 5.54 billion in 2015 and is expected to witness significant growth in food & beverage, detergents and pharmaceutical industry on account of its demand for active ingredient protection and controlled release in these applications.

The industry has several manufacturers, and these players are expected to establish strategic partnerships with the buyers across the key application segments. High investments in R&D coupled with new product development are likely to be the key strategies for the industry players to tap the rising demand for end-use industries.

U.S. microencapsulation market revenue, by application, 2014 - 2025 (USD million)

U.S. microencapsulation market

The U.S. accounted for a major share in the microencapsulation market owing to the robust manufacturing base of leading pharmaceutical companies including Pfizer, Johnson & Johnson and Merck & Co. In addition, growing demand for additives on account of adding nutritional content and imparting flavor and color features in food & beverage industry is likely to fuel growth.

Low labor cost coupled with the high growth of detergent & cleaners, food processing and pharmaceutical industry in Asia Pacific as compared to North America and Europe is expected to open new market opportunities in the region.

High manufacturing cost associated with the technology coupled with a strong foothold of the existing companies including BASF SE, Bayer AG, and Encapsys, LLC is expected to pose a threat for the new players.

The increasing popularity of functional foods and oral drug deliveries are other vital factors, which are expected to augment microencapsulation growth. However, the popularity of nanotechnology in the pharmaceutical industry is expected to have a negative impact on industry.

Application Insights

Household product was the fastest growing segment of the industry and is accounted for over 5% of the overall market. Benefits such as long lasting fragrance, antimicrobial treatment and smooth cleansing action offered by the technology are expected to propel demand.

Global microencapsulation market, by application, 2015 (%)

Global microencapsulation market

Pharmaceutical application dominated the industry and is expected to grow at a CAGR of 11% from 2016 to 2025. Advantages including sustained drug release, targeted delivery, taste masking and core ingredient protection offered by the technology is expected to propel growth in the pharmaceutical application

The demand for the technology in agrochemicals is expected to grow at a CAGR of over 10.5% from 2016 to 2025. Microencapsulation of the active ingredients in fertilizers or herbicides offered longer crop protection, controlled chemical release and increased effectiveness, which is likely to drive demand. In addition, incorporation of the technology in paints & coatings offers corrosion protection and good adhesive properties, which is likely to open new avenues for the industry growth over the next nine years.

Growing demand for microencapsulation in other applications including electronic inks, paints and coatings are expected have a positive impact on the industry growth. The increasing use of electronic display equipment including tablets, and mobile phones is expected to increase the application of electronic inks thus driving the market growth.

Regional Insights

North America was the largest market for microencapsulation and accounted for over 35% of the overall demand in 2015. The robust manufacturing base of red meat manufactures such as Tyson, JBF, National Beef and Cargill Foods in the U.S. is expected to augment demand for food additives, which in turn is expected to fuel the technology growth over the forecast period.

Europe has been a key market for the technology and is expected to grow at a CAGR of over 10.5% from 2016 to 2025. Gaining popularity of functional foods coupled with the positive market outlook of advanced PCM in Europe is expected to fuel microencapsulation demand.

The demand for microencapsulation in Asia Pacific is expected to grow at the fastest rate on account of the rapid growth of pharmaceutical and food processing industry in China, Japan and India. Growing detergents market in the region owing to application growth in household products such as detergents and cleaners is expected to fuel microencapsulation demand.

Competitive Insights

In August 2015, Appvion, Inc., sold its Encapsys microencapsulation segment to an affiliate of Sherman Capital Holdings LLC for USD 208 million. With this agreement, Encapsys will continue to manufacture and sell microcapsules to Appvion for its carbonless paper producing business.

The key players in the market include Dow Corning Corporation, Ronald T. Dodge Company, Balchem Corporation, Aveka, Inc., Taste Tech Ltd., Capsulae, Lipo Technologies, Microtek Laboratories, Inc., InnoBio. And GAT Microencapsulation GmbH.

Report Scope

Attribute

Details

Base year for estimation

2015

Actual estimates/Historical data

2014 - 2015

Forecast period

2016 - 2025

Market representation

Revenue in USD Million & CAGR from 2016 to 2025

Regional scope

North America, Europe, Asia Pacific, Central & South America, Middle East & Africa

Country scope

U.S., Canada, UK, Germany, China, India, Japan

Report coverage

Revenue forecast, company share, competitive landscape, growth factors and trends

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Segments covered in the report

This report forecasts revenue growth at global, regional & country levels and provides an analysis on the industry trends in each of the sub-segments from 2014 to 2025. For the purpose of this study, Grand View Research has segmented the microencapsulation market on the basis of application, and region:

  • Application Outlook (Revenue, USD Million; 2014 - 2025)

    • Pharmaceutical

    • Household product

    • Agrochemical

    • Food additive

    • Phase change material (PCM)

    • Others

  • Regional Outlook (Revenue, USD Million; 2014 - 2025)

    • North America

      • U.S.

      • Canada

    • Europe

      • Germany

      • UK

    • Asia Pacific

      • China

      • India

      • Japan

    • Rest of the World

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