Microencapsulation Market Report

Microencapsulation Market Analysis Report By Technology, By Coating Material, By Application (Pharmaceutical, Home & Personal Care, Food & Beverages, Textile, Agrochemicals), And Segment Forecasts, 2018 - 2025

  • Published Date: Aug, 2018
  • Base Year for Estimate: 2017
  • Report ID: 978-1-68038-339-3
  • Format: Electronic (PDF)
  • Historical Data: 2014 - 2016
  • Number of Pages: 181

Industry Insights

The global microencapsulation market size was estimated at USD 6.96 billion in 2017. Growing demand for microencapsulation for adequate protection of active drugs such as cisplatin, lidocaine, naltrexone, progesterone, insulin, proteins, peptides, and vaccines is expected to drive the market.

The technique offers several benefits such as controlled release of core, protection of core materials, and improved handling of ingredients. Rising awareness regarding these benefits is stimulating the growth of the market. In addition, increasing use of the technology in masking odor, taste, and activity of encapsulated materials is anticipated to work in favor of the market over the forecast period.

U.S. microencapsulation market

Microencapsulation technique offers value-added structures that act as functional ingredients for a wide range of industries, including pharmaceuticals, food & beverages, home & personal care, construction materials, and textiles. High penetration of the technology in the pharmaceutical industry in the U.S. is likely to propel the overall market during the forecast period.

There are several technologies used for microencapsulation, including spray, emulsion, coating, and dripping. Equipment, material, and operating costs have a significant impact on the overall cost of microencapsulation. Operating cost widely depends on production process as technologies used for batch and continuous production are different.

FMCG companies including Unilever and P&G use microencapsulation technology in bleach activators, fragrances, and anti-bacterial compounds owing to its ability to enhance core properties of the product. This, in turn, is projected to reduce the utilization of core ingredients in comparison to non-capsulated products.

With rapid development of novel sciences and technologies, textile materials are also finding applications in cosmetic fields. Surging demand for cosmetic textiles in developed economies owing rising consumer awareness and increasing disposable income is poised to open new avenues for microencapsulation technology.

Coating Materials Insights

Some of the primary coating materials used for the process are gums and resins, proteins, carbohydrates, polymers, and lipids. Carbohydrates including starch, cyclodextrin, maltodextrin, chitosan, and corn syrup accounted for 19.9% of the market in 2017, owing to their enhanced abilities to absorb volatilities in the environment. In addition, carbohydrates exhibit low viscosities at high solid contents, which in turn is stirring up their demand as a coating material.

The polymer-based coating materials market is estimated to register a CAGR of 14.1% over the forecast period, owing to improved characteristics offered by polymers and availability of wide varieties of polymers, including polyvinyl alcohol, polylactic acid, polyethylene glycol, polycaprolactone, polylactic-co-glycolic acid, and polyamide, at a lower cost.

Gums and resins used in microencapsulation such as gum acacia, sodium alginate, carrageenan, mesquite gum, and agar gum represented a sizeable share in the market. Gum acacia is extensively used in encapsulating flavors and fragrances, as it aids in stabilization of emulsions at low viscosity, bland, and protection against flavor oxidation.

Microencapsulation involves use of reactive and non-reactive raw materials owing to which manufacturers are required to comply with food laws as well as consumer preferences while selecting an encapsulating ingredient. Regulatory aspects such as material grade, daily uptake, and FDA and European legislation play a major role while selecting all materials.

Technology Insights

Microencapsulation is a process of encapsulating one ingredient within another to obtain shells ranging from less than one micron to several hundred microns. Size and shape of a microcapsule, chemical properties of coating materials, and their degradability, permeability, and biocompatibility have to be considered during selection of microencapsulation techniques.

Different microencapsulation techniques such as spray drying, coacervation, and polymerization are used for encapsulating active ingredients for different end-use applications. Easy scaling-up for commercial level production is an essential aspect of microencapsulation techniques for industry growth.

Spray technology accounted for approximately one third of the microencapsulation market in 2017 owing to high penetration of the technique in encapsulation of flavors, fragrances, and food ingredients. The demand for spray technique is expected to witness growth over the forecast period as it offers rapid and continuous processing at low cost with readily available, less complex equipment.

Emulsion technique for microencapsulation is anticipated to rise at a CAGR of 13.8% during the same period as encapsulation of high active content, up to 900 mg/g in a smaller size capsule, can be achieved from emulsion technique. Polymerization, coacervation, and solvent evaporation are among the latest emulsion techniques used in food and pharmaceutical encapsulation.

Application Insights

Demand for microencapsulation in the construction industry is likely to increase at a CAGR of 14.5% during the forecast period. The growth of the segment can be attributed to rising penetration in the production of cement, lime, concrete, mortar, sealants, biocide coatings, pigments, self-healing coatings, phase change materials, and antimicrobial coatings used in building & construction activities.

Global microencapsulation market

Rising demand for the technology to protect ingredients against environmental factors and controlled release of drugs, nutrients, antimicrobials, fertilizers is projected to fuel growth prospects. Microencapsulation aids in enzyme immobilization, taste masking, and biocompatibility, which is poised to escalate the demand for the technology in several applications.

The pharmaceutical industry commanded the leading share in the market in 2017 on account of several benefits offered by the technology including taste and odor masking, protection of drugs from atmospheric changes, particle size reduction for enhancing solubility of poorly soluble drugs, sustained drug delivery, and cell encapsulation.

Demand for the technology in the food & beverage industry is estimated to progress at a CAGR of 15.0% during the same period. Improved nutritional value provided by the technique to food products along with taste, color, texture, and aroma is the primary factor driving its demand in the sector. Microcapsules offer fragile and sensitive materials to survive processing & packaging conditions and stabilize shelf life of active ingredients.

Regional Insights

North America was the leading revenue contributor in the global market in 2017 owing to increasing penetration of microencapsulation technology in the pharmaceutical, food processing, and personal care industries. Flourishing textile industry is also expected to contribute to the growth of the regional market.

U.S. held over 82.0% of the North America market owing to growing penetration of the technique in the pharmaceuticals and healthcare industries. Some of the major players in these industries such as Johnson & Johnson, Merck & Co, Pfizer, Bristol-Myers Squibb Company, and Eli Lilly and Company use microencapsulation technology.

Europe accounted was the second largest regional market in 2017 in the global arena. The regional market was established and rapidly advancing in terms of availability of raw materials, coating technologies and application areas. Developed economies in the region including Germany, U.K., France, and Italy are at the forefront of the region owing to high penetration of the technology in the pharmaceutical industry.

The market in Asia Pacific is expected to post a CAGR of 15.6% over the forecast period on account of rapid growth of the pharmaceutical and food processing industries in China, Japan, and India. Booming detergents market in the region is also anticipated to augur well for the regional market.

Microencapsulation Market Share Insights

Majority of companies in the industry operate their businesses through tie-ups and strategic partnerships with companies in end-user industries such as pharmaceutical and food & beverages. Companies offer microencapsulation technique to these industries by internalization and subcontracting methods.

Manufacturers face challenges pertaining to development and implementation of new ideas owing to low equipment availability. As a result, microencapsulation companies work with contract manufacturers with expertise pertaining to a specific technique. Furthermore, availability of equipment and expertise aids in speeding up product launching process.

Report Scope

Attribute

Details

Base year for estimation

2017

Actual estimates/Historical data

2014 - 2016

Forecast period

2018 - 2025

Market representation

Revenue in USD million and CAGR from 2018 to 2025

Regional scope

North America, Europe, Asia Pacific, Rest of World

Country scope

U.S., Canada, Mexico, U.K., Germany, France, Spain, Italy, Russia, China, India, Japan, Australia, South Korea, Malaysia, Brazil, Argentina, South Africa, Chile

Report coverage

Revenue forecast, 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 global microencapsulation market report on the basis of coating materials, technology, application, and region:

  • Coating Materials Outlook (Revenue, USD Million, 2014 - 2025)

    • Carbohydrates

    • Gums & Resins

    • Lipids

    • Polymers

    • Proteins

  • Technology Outlook (Revenue, USD Million, 2014 - 2025)

    • Coating

    • Emulsion

    • Spray technologies

    • Dripping

    • Others

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

    • Pharmaceutical & health care products

    • Home & personal care

    • Food & beverages

    • Agrochemicals

    • Construction

    • Textile

    • Others

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

    • North America

      • U.S.

      • Canada

      • Mexico

    • Europe

      • U.K.

      • Germany

      • France

      • Italy

      • Spain

      • Russia

    • Asia Pacific

      • China

      • India

      • Japan

      • Australia

      • South Korea

      • Malaysia

    • Rest of World

      • Brazil

      • South Africa

      • Argentina

      • Chile

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