GVR Report cover 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, 2022 - 2030

  • Report ID: 978-1-68038-339-3
  • Number of Pages: 181
  • Format: Electronic (PDF)

Report Overview

The global microencapsulation market size was valued at USD 10.9 billion in 2021 and is expected to expand at a compound annual growth rate (CAGR) of 10.3% during the forecast period. The rising acceptance of microencapsulated materials in the food and beverage, pharmaceutical, and agrochemical industries is expected to have a positive impact on industry growth.

U.S. microencapsulation market size, by technology, 2020 - 2030 (USD Million)

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

The COVID-19 pandemic had a positive impact on the microencapsulation space. Consumers have been forced to sanitize their surroundings more regularly as a result of the outbreak, while shelter-in-place orders have increased consumer exposure to home cleaning goods. As a result, people are increasingly demanding natural-ingredient products.

Every year, millions of microcapsules are produced for use in-home care, laundry, skincare, and cosmetic goods. These concealed microplastics, suspended in liquids and lotions and hardly visible to the naked eye, store and release active chemicals such as scent droplets in fabric softeners and detergents.

The microencapsulation technique is majorly used for masking the 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 the U.S. on account of the presence of a large number of pharmaceutical industries.

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

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

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

Coating Material Insights

The carbohydrates segment, which includes chitosan, starch, maltodextrin, cyclodextrin, and corn syrup as the key coating materials, accounted for a 19.9% share of the overall revenue in 2021. The superior solubility offered by these products, coupled with their ability to sustain in a volatile environment, is expected to have a positive impact on segment growth.

A polymer as a coating material is expected to register a CAGR of 10.8% during the projected period on account of 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).

Gum acacia is majorly used in the encapsulation of fragrances and flavors and is mainly consumed in the food and beverage industry. Gum acacia produces and stabilizes emulsions and is proven to be excellent for encapsulation of flavors, as it emulsifies, has a bland flavor, and has a low viscosity. Furthermore, it can prevent oxidation, thereby driving the demand in the flavors and fragrances industry.

Lipids as a coating material are expected to exhibit a CAGR of 9.8% during 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 the microencapsulation coating of minerals, vitamins, food colorants, flavors, fragrances.

Technology Insights

Spray technology is the most widely used technique and accounted for a 33.5% revenue share of the microencapsulation market in 2021. High penetration of this technique in the encapsulation of food ingredients, flavors, and fragrances has resulted in a higher market share. The technique offers continuous and rapid processing at low cost, high encapsulation efficiency, along with good stability of finished products.

Microencapsulation technology encapsulates active ingredients 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 9.7% from 2022 to 2030. The pan coating process can encapsulate relatively large particles, which is expected to propel their demand in pharmaceutical applications during the assessment period.

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

Application Insights

The pharmaceutical and healthcare products application segment accounted for the highest market share of around 66% in 2021. The technology is used to mask the bitter taste of drugs and reduce gastric and other G.I. tract irritations caused by drugs. It is also used to reduce the hygroscopic properties, odor, and volatility of core materials.

Global microencapsulation market share, by application, 2021 (%)

The home and personal care industry utilize 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 during the projected period.

The construction industry is expected to register a CAGR of 9.7% during the forecast period on account of the rising demand in the manufacturing of building materials. Microencapsulated active agents such as fire retardants, mineral oils, surfactants, heat retarding agents, polyurethane, antimicrobial agents, and thermochromic materials are found to be the most widely used microencapsulated products for the construction industry.

The food and beverage application segment accounted for an 8.0% share of the overall revenue in 2021. Growing consumer inclination towards healthy living 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 a 37.1% share of the overall revenue in 2021 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 product quality and strength are expected to complement the growth during the projected period.

The U.S. dominated the market in North America with a share of over 82% in 2021 owing to the high penetration of the technique in the pharmaceuticals and healthcare industries. The 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 over 70% share of the overall revenue in Europe owing to the early adoption of the technology in end-use applications. The presence of major pharmaceutical manufacturers in the region including Roche, Novartis, GlaxoSmithKline, Sanofi, Novo Nordisk, and Bayer has led to a focus on the development of novel drug delivery systems, which is having a major impact on the market demand.

The Asia Pacific market is expected to expand at a CAGR of 11.6% during the assessment period, on account of the 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 the Asia Pacific.

Key Companies & Market Share Insights

The market has several notable players primarily located in North America and Europe. Major players such as Encapsys LLC, Balchem, and Lipo Technologies compete based on application industries served, use of different technologies for microencapsulation, core materials encapsulated, and quality and cost of encapsulation. There are several innovations taking place in the market, such as AVEKA’s program for the creation of an encapsulated flavor prototype.

Several players in the market are collaborating with different companies and startups to develop new products and solutions. For instance, in May 2022, Capsulae and 100.000 Vies announced a collaboration to develop new-age solutions against malaria, which is an innovative project using microencapsulation.

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

  • Capsulae

  • LycoRed Group

  • BASF SE

  • Balchem

  • Encapsys LLC (Milliken)

  • 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 Corning Corporation

  • The 3M Company

Microencapsulation Market Report Scope

Report Attribute

Details

Market size value in 2022

USD 11.9 billion

Revenue forecast in 2030

USD 25.9 billion

Growth Rate

CAGR of 10.3% from 2022 to 2030

Base year for estimation

2021

Historical data

2018 - 2020

Forecast period

2022 - 2030

Quantitative units

Revenue in USD million and CAGR from 2022 to 2030

Report coverage

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

Segments covered

Coating material, technology, application, region

Regional Scope

North America; Europe; Asia Pacific; Rest of the 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

Key companies profiled

Capsulae; LycoRed Group; BASF SE; Balchem; Encapsys LLC (Milliken); 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 Corning Corporation; The 3M Company

Customization scope

Free report customization (equivalent to up to 8 analysts' working days) with purchase. Addition or alteration to country, regional, and segment scope.

Pricing and purchase options

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

 

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 2018 to 2030. For this study, Grand View Research has segmented the global microencapsulation market report based on coating material, technology, application, and region:

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

    • Carbohydrates

    • Gums & Resins

    • Lipids

    • Polymers

    • Proteins

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

    • Coating

    • Emulsion

    • Spray Technologies

    • Dripping

    • Others

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

    • Pharmaceutical & Healthcare Products

    • Home & Personal Care

    • Food & Beverages

    • Agrochemicals

    • Construction

    • Textile

    • Others

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

    • 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 the World

      • Brazil

      • South Africa

      • Argentina

      • Chile

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