GVR Report cover Microencapsulation Market Size, Share & Trends Report

Microencapsulation Market Size, Share & Trends Analysis Report By Application (Pharmaceutical & Healthcare products), By Technology (Coating), By Coating Material (Carbohydrates), By Region And Segment Forecasts, 2023 - 2030

  • Report ID: 978-1-68038-339-3
  • Number of Pages: 152
  • Format: Electronic (PDF)

Report Overview

The global microencapsulation market size is estimated at USD 11,896.2 million in 2022 and is anticipated to expand at a compounded annual growth rate (CAGR) of 10.3 % from 2023 to 2030. Increasing interest in microencapsulation technology for adequate protection of active drugs such as cisplatin, lidocaine, naltrexone, progesterone, insulin, proteins, peptides, and vaccines is expected to drive market growth. The microencapsulation market is expected to witness growth on account of the benefits associated with the technology including controlled release of the encapsulated core materials, protection of encapsulated core materials, and improved handling of the ingredients. In addition, the use of technology in masking the odor, taste, and activity of encapsulated materials is expected to have a positive impact on market growth.

U.S. Microencapsulation Market Size, By Technology, 2020 - 2030 (USD Billion)

The industry players are often engaged in strategic partnerships with microencapsulation technology users from the end-user industries. High investment in R&D to improve technical efficiency and the rising adoption of the technology by small and medium-scale end-users are expected to further drive the market growth. For instance, in March 2022, Reed Pacific introduced a new “Potenza Argan Oil” microcapsule for cosmetic usage.

Potenza Argan Oil can be used to water-based recipes without affecting the stability of the finished product, even at high quantities. Encapsulation significantly improves the effectiveness and shelf life of argan oil and prevents fatty acids from oxidizing by limiting exposure to light and air.

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

The main purpose of the microencapsulation technology is to conceal the taste, odor, and activity of the encapsulated structures, which serve as functional ingredients for the application sectors including the pharmaceutical and healthcare. Due to the existence of numerous pharmaceutical firms, spray technology is predicted to experience significant expansion in the U.S. thereby fueling the market demand during the forecast period.

The growing trend of employing natural substances to improve face attractiveness has increased the market for oral supplements made with microencapsulation technology. Additionally, the need for microencapsulation for masking applications, is anticipated to increase as n-3 fatty acid consumption rises because of its advantageous health qualities.

Owing to the quick advancement of novel sciences and technologies, textile materials are now being used in the cosmetic industry. Because of the expanding consumer awareness and rising disposable income, industrialized economies growing demand for cosmetic textiles is predicted to expand prospective markets and new target audiences for microencapsulation technology.

Application Insights

Pharmaceutical & healthcare products application segment led the market and accounted for 65.7% of the global revenue share in 2022. Owing to the technique’s several advantages, which include taste and odor masking, environmental protection for the pharmaceuticals, particle size reduction to improve the solubility of the less soluble drugs, prolonged drug administration, and cell encapsulation.

Home & personal care application segment accounted for 9.8% of the global revenue share in 2022. Microencapsulation is majorly used in the home and personal care industry to handle harmful chemicals, offer colors and fragrances, as well as for encapsulating essential oils for use in cosmetic components.

The food & beverage application segment is likely to expand at a CAGR of 11.6% during the forecast period. The growing trend towards a healthier way of living, preventing illness by diet also known as functional foods, and improving the nutritional value of food products along with taste, color, texture, and aroma has a major impact on driving the demand for microencapsulation from the food & beverage industry.

The construction application segment accounted for 3.62% of the global revenue share in 2022. The technique provides a larger heat transfer area per unit volume of the heat storage vessel and is used in solar energy storage, waste heat utilization, along with space heating and cooling which has a major impact on driving the demand for PCM from the construction industry.

Technology Insights

Spray technology segment led the market and accounted for 33.7% of the global revenue share in 2022. The spray technologies offer high encapsulation efficiency along with good stability of finished products. The process used in the large-scale commercial production of microcapsules is due to low process cost, simple equipment, reduced storage, and transportation cost.

Emulsion segment accounted for 28.3% of the global revenue share in 2022. Microcapsules are produced from the emulsion of two or more immiscible liquids, known as the emulsion solidification technique of microencapsulation. The increasing penetration of technology in food and pharmaceutical industries is expected to drive the market for emulsion technology during the forecast period.

The dripping technology segment is likely to expand at a CAGR of 10.1% during the forecast period. The main advantages of the microcapsules obtained from the dripping technique is the biocompatibility and low particle size distribution which is expected to have a major impact on driving the market growth for their application in pharmaceuticals, cosmetics, and food industry

Coating technology segment accounted for 15.95% of the global revenue share in 2022. Microencapsulation by coating technology includes different processes such as fluid bed coating, pan coating and air suspension coating. The microencapsulation of relatively large particles is encapsulated using the pan coating technique. Coating technologies are extensively used to encapsulate pharmaceuticals and food products.

Coating Material Insights

Polymers coating material segment led the market and accounted for 28.0% of the global revenue share in 2022 due to its premium qualities. Polylactic acid (PLA) and polylactic-co-glycolic acid (PLGA) have been the most preferred polymers owing to their extensive use in products, such as surgical sutures and depot formulations, approved by the U.S. Food and Drug Administration (FDA).

Global Microencapsulation Market Share, By Coating Material, 2022 (%)

Carbohydrates segment accounted for 20.0% of the global revenue share in 2022. Due to their low viscosities at high solids contents and strong solubility, carbohydrates are considered good encapsulating agents, which are likely to drive their demand throughout the course of the forecast period.

The proteins segment is likely to expand at a CAGR of 10.0% during the forecast period. Proteins such as gluten, isolates, caseins, gelatin, whey proteins, albumin, peptides, and several others are used in the microencapsulation of different food and pharma, cosmetics, and textiles along with several other products. Protein-based materials form stable emulsions with volatile flavor components however, their solubility in cold water, the potential to react with carbonyls, and high-cost limit their application.

Gums & Resins used in microencapsulation include gum acacia, sodium alginate, carrageenan, gum karaya, mesquite gum, agar gum and many others. The material is used as a wall material for the encapsulation of several nutritional products due to its solubility in aqueous solution, low viscosity, bland taste, neutral odor, fiber source, and low calorific value.

Regional Insights

North America dominated the market and accounted for a 36.9% share of global revenue in 2022. The region is the largest producer of pharmaceutical products with the presence of major players including Johnson & Johnson, Pfizer and Merck &Co. and is involved in the development of novel drug delivery systems, which has a major impact on driving demand for microencapsulation. The demand for the microencapsulation technique in the country is driven by its increasing use in the food & beverage industry for flavors, fragrances, colorants, and manufacturing of functional foods. The major players are actively involved in research & development to develop new coating materials in compliance with North American regulations, which is likely to complement the demand for microencapsulation during the forecast period.

Microencapsulation Market Trends by Region

Increasing commercial applications of microencapsulation in the textile industry particularly in Western Europe owing to the new properties and benefits, including fragrance release fabric, climate-controlled materials, cosmetics, and therapeutic and medical textiles have a major impact on driving the market growth during the forecast period.

Asia Pacific microencapsulation market is anticipated to expand at a CAGR of 11.6% during the forecast period. Favorable government policies to promote FDI in the pharmaceutical industry in China and India have played a crucial role in promoting the healthcare industry in the Asia Pacific during the past few years. In addition, the increasing R&D expenditure for new drug development and increasing innovation in novel drug delivery systems in Japan and South Korea are expected to play an important role in driving the pharmaceutical industry growth thereby driving the market for microencapsulation.

Rapid urbanization and rising incomes in developing countries from Central & South America Africa are expected to increase demand for soaps and detergents. Newer products such as liquid soaps and detergent tablets are commonplace in developed markets from the region hold significant potential for rising penetration of microencapsulation techniques. Polymers, proteins and carbohydrates are the majorly used coating materials in application industries across the region, however, polymers accounted for the largest share in the market.

Key Companies & Market Share Insights

The manufacturers adopt several strategies, including acquisitions geographical expansions, new joint ventures, product developments, and mergers to enhance market penetration and cater to the changing technological requirements from various applications such as home & personal care, food & beverages, agrochemicals, construction, textile, and others.

For instance, Balchem Company acquired Innovative Food Processors (IFP), Inc., a producer of microencapsulated and agglomerated nutrition and food additives. The headquarters of IFP are in Minnesota, USA. The business produces high-performance powders and encapsulates to help its customers improve the flavor and functionality of their food and beverage offerings. IFP is a part of Balchem’s Health business and Human Nutrition division, which also includes the Pharma and Nutrition business unit, which offers value-added nutrition items like Albion minerals and VitaCholine. Some of the prominent players in the global microencapsulation market include:

  • Capsulae

  • LycoRed Group


  • Balchem

  • Encapsys LLC

  • AVEKA Group

  • Reed Pacific Pty Ltd.

  • Microtek Laboratories, Inc.

  • TasteTech Ltd.

  • GAT Microencapsulation GmbH

  • Ronald T. Dodge Co.

  • Evonik Industries AG

  • Inno Bio Limited

  • Bayer AG

  • Dow

  • 3M

Microencapsulation Market Report Scope

Report Attribute


Market size value in 2023

USD 13,047.4 million

Revenue forecast in 2030

USD 25,974.0 million

Growth rate

CAGR of 10.3% from 2023 to 2030

Base year for estimation


Historical data

2018 - 2021

Forecast period

2023 - 2030

Quantitative units

Revenue in USD million, CAGR from 2023 to 2030

Report coverage

Revenue forecast, company market position analysis, competitive landscape, growth factors, trends

Segments covered

Application, technology, coating material, region

Regional scope

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

Country Scope

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

Key companies profiled

Capsulae; LycoRed Group; BASF SE; Balchem; Encapsys LLC; AVEKA Group; Reed Pacific Pty Ltd.; Microtek Laboratories, Inc.; TasteTech Ltd.; GAT Microencapsulation GmbH; Ronald T. Dodge Co.

Customization scope

Free report customization (equivalent up to 8 analyst’s working days) with purchase. Addition or alteration to country, regional & segment scope.

Pricing and purchase options

Avail customized purchase options to meet your exact research needs. Explore purchase options


Global Microencapsulation Market Segmentation

This report forecasts revenue growth at global, regional & country levels and provides an analysis of the industry trends in each of the sub-segments from 2018 to 2030. For this study, Grand View Research has segmented the global microencapsulation market based on the application, technology, coating material, and region:

Global Microencapsulation Market Segmentation

  • Application Outlook (Revenue, USD Million, 2018 - 2030)

    • Pharmaceutical & Healthcare products

    • Home & Personal Care

    • Food & Beverages

    • Agrochemicals

    • Construction

    • Textile

    • Others

  • Technology Outlook (Revenue, USD Million, 2018 - 2030)

    • Coating

    • Emulsion

    • Spray technologies

    • Dripping

    • Others

  • Coating Material Outlook (Revenue, USD Million, 2018 - 2030)

    • Carbohydrates

    • Gums & Resins

    • Lipids

    • Polymers

    • Proteins

  • Regional Outlook (Revenue, USD Million; 2018 - 2030)

    • North America

      • U.S.

      • Canada

      • Mexico

    • Europe

      • Germany

      • U.K.

      • France

      • Italy

      • Spain

      • Russia

    • Asia Pacific

      • China

      • India

      • Japan

      • Australia

      • South Korea

      • Malaysia

    • Central & South America

      • Brazil

      • Argentina

      • Chile

    • Middle East & Africa

      • South Africa

Frequently Asked Questions About This Report

gvr icn


gvr icn

This FREE sample includes market data points, ranging from trend analyses to market estimates & forecasts. See for yourself.

gvr icn


We can customize every report - free of charge - including purchasing stand-alone sections or country-level reports, as well as offer affordable discounts for start-ups & universities.

Contact us now to get our best pricing.

esomar icon

ESOMAR certified & member


ISO Certified

We are GDPR and CCPA compliant! Your transaction & personal information is safe and secure. For more details, please read our privacy policy.

great place to work icon