Microencapsulation Market Size, Share & Trends Report

Microencapsulation Market Size, Share & Trends Analysis Report By Technology (Emulsion, Spray), By Application (Pharmaceutical, Home & Personal Care), By Coating Material, And Segment Forecasts, 2019 - 2025

  • Published Date: Mar, 2019
  • Base Year for Estimate: 2018
  • Report ID: 978-1-68038-339-3
  • Format: Electronic (PDF)
  • Historical Data: 2014 - 2017
  • Number of Pages: 181

Industry Insights

The global microencapsulation market size was valued at USD 7.88 billion in 2018 and is expected to register a CAGR of 13.7% over the forecast period. Rising acceptance of microencapsulated materials in the food and beverage, pharmaceutical, and agrochemical industries is expected to have a positive impact on the growth.

The industry players are often engaged in strategic partnerships with the technology users from the end-user industries. High investment in R&D to improve technology efficiency is expected to be a key factor for the market expansion. Rising adoption of the technology by small and medium scale end users is expected to drive the market.

U.S. microencapsulation market

Microencapsulation technique is majorly used for masking taste, odor, and activity of the encapsulated structures, which act as functional ingredients for application industries such as pharmaceutical and healthcare. Spray technology is expected to witness significant growth in U.S. on account of presence of a large number of pharmaceutical industries.

Sodium alginate, PVA, ethyl cellulose, gelatin, and polysaccharides are few of the key raw materials used for microencapsulation technology. Uncertainty of raw material availability is expected to be a key concern for the players. Rapid expansion of end-use industries in Asia Pacific is expected to compel manufacturers to shift their focus to this region over the projected period.

Rising demand for the technology to manufacture beauty supplements containing natural ingredients is expected to benefit market expansion. In addition, increasing consumption of n-3 fatty acids on account of its benefits for health is expected to drive demand for microencapsulation for masking applications.

Surging demand for technology to manufacture cosmo-textiles is expected to benefit market expansion. Changing lifestyle, coupled with increased spending capacities of the consumers, is expected to propel demand for personal care products, which in turn, is expected to bode well for the microencapsulation market.

Coating Material Insights

Carbohydrates including chitosan, starch, maltodextrin, cyclodextrin, and corn syrup are the key coating materials. In 2018, the segment accounted for 19.9% share of the overall revenue. Superior solubility offered by these products, coupled with their ability to sustain in a volatile environment, is expected to have a positive impact on the growth.

Polymer as a coating material is expected to register a CAGR of 14.2% over the projected period on account of their 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).

Gum acacia is majorly used in encapsulation of fragrances and flavors and is mainly consumed in the food and beverage industry. Gum acacia produce and stabilize emulsions and is proved to be excellent for encapsulation of flavors as it emulsifies, has a bland flavor and low viscosity. Furthermore, they have the ability to prevent oxidation, thereby driving the demand in the flavors and fragrances industry.

Lipids as a coating material are expected to exhibit a CAGR of 13.2% over the forecast period. Fatty acids, alcohols, waxes, paraffin, beeswax, diacylglycerols, oils, fats, phospholipids, stearic acids, and glycerides are the key lipids that are used for microencapsulation coating of minerals, vitamins, food colorants, flavors, fragrances.

Technology Insights

Microencapsulation technology encapsulates active ingredient with a coating material and is categorized into coating, emulsion, spray, and dripping techniques. The shape and size of the active ingredients, chemical properties, permeability, degradability, and biocompatibility of the coating materials are the key factors considered while selecting appropriate microencapsulation techniques.

Coating technologies including pan coating, fluidized bed coating, and air suspension coating are expected to register a CAGR of 13.3% from 2019 to 2025. The pan coating process has the ability to encapsulate relatively large particles, which is expected to propel their demand in pharmaceutical application over the projected period.

Spray technology is the most widely used technique and accounted for 33.2% share of the overall revenue in 2018. High penetration of this technique in the encapsulation of food ingredients, flavors, and fragrances has resulted in higher market share. The technique offers continuous and rapid processing at low cost, high encapsulation efficiency, along with good stability of finished products.

Dripping technologies of microencapsulation primarily include spinning-disk, co-extrusion, and simple extrusion techniques. The microcapsules obtained from dripping technique are biocompatible and have a low particle size distribution, which is expected to drive their demand in pharmaceuticals, cosmetics, and food and beverages application.

Application Insights

The pharmaceutical and healthcare products application segment accounted for the highest market share in 2018. The technology is used to mask the bitter taste of the drugs and reduce the gastric and other G.I. track irritations caused by drugs. It is also used to reduce the hygroscopic properties, odor, and volatility of core materials.

The home and personal care industry utilizes the technology to encapsulate colors, fragrances, and essential oils (EOs) in cosmetic products. Increasing demand for essential oils in the fragrance industry is expected to drive technology demand over the projected period.

Global microencapsulation market

The construction industry is expected to register a CAGR of 14.6% over the projected period on account of rising demand for manufacturing of building materials. Microencapsulated active agents such as fire retardants, mineral oils and surfactants, heat retarding agents, polyurethane, antimicrobial agents, thermochromic materials are found to be the most widely used microencapsulated products for the construction industry.

The food and beverages application segment accounted for 7.8% share of the overall revenue in 2018. Growing consumer inclination towards healthy living in order to prevent illnesses caused by diet is a key trend in the market. Manufacturers in the food and beverage industry are improving the nutritional value of the food products, which has a major impact on driving the demand for microencapsulation.

Regional Insights

North America accounted for 37.8% share of the overall revenue in 2018 on account of high product demand for pharmaceutical and food and beverage applications. Innovations in the textile industry to incorporate the technology for improvement in products’ quality and strength is expected to complement the growth over the projected period.

The U.S. dominated the market in North America with a share of over 80% in 2018 owing to high penetration of the technique in the pharmaceuticals and healthcare industries. Presence of major pharmaceutical companies including Merck & Co, Johnson & Johnson, Pfizer, Bristol-Myers Squibb Company and Eli Lilly and Company in the country is expected to propel growth.

U.K., Germany, Italy, and France together accounted for 71.2% share of the overall revenue in Europe owing to early adoption of the technology in end-use applications. Presence of major pharmaceutical manufacturers in the region including Roche, Novartis, GlaxoSmithKline, Sanofi, Novo Nordisk, and Bayer have been focusing on the development of novel drug delivery systems, which is having a major impact on the market demand.

The market in Asia Pacific is expected to expand at a CAGR of 15.6% over the projected period on account of rapid expansion of the pharmaceutical and food processing industries across the region. 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 Asia Pacific.

Microencapsulation Market Share Insights

The market has several players, which are primarily located in North America and Europe. Major players such as Encapsys LLC, Balchem and Lipo Technologies compete on the basis of application industries served, use of different technologies for microencapsulation, core materials encapsulated, and quality and cost of encapsulation.

Raw material availability is also expected to remain a key concern for the market players. Manufacturers are expected to establish strategic partnerships with the buyers across application segments in order to tap the consumer base, thereby increasing the competitive rivalry across the industry participants.

Report Scope

Attribute

Details

Base year for estimation

2018

Actual estimates/Historical data

2014 - 2017

Forecast period

2019 - 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, and country levels and provides an analysis of the latest 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 material, technology, application, and region:

  • Coating Material 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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