North America Microencapsulation Market Size, Share & Trends Analysis Report By Application (Pharmaceutical & Healthcare Products), By Technology (Coating, Emulsion, Spray Technologies, Dripping, Others), By Region, And Segment Forecasts, 2023 - 2030

Market Size & Trends

The North America microencapsulation market size was estimated at USD 4.38 billion in 2022 and is anticipated to grow at a compound annual growth rate (CAGR) of 9.4% from 2023 to 2030. The growth of the market is anticipated to be driven by the rising demand for fragrances, flavors, essential oils, vitamins, enzymes, minerals, and bioactive compounds in food and beverage products. North America is the largest market for microencapsulation globally, owing to the high development of the pharmaceutical, food processing, and home & personal care industries, along with increasing investments in R&D to identify new areas for market growth.

Microencapsulation can be used to improve the stability, shelf-life, and bioavailability of functional food and nutraceutical products, thereby increasing their demand across the food and beverages industry. In addition, the use of microencapsulation to encapsulate flavors and fragrances, which can be released over time, is also expected to boost the growth of the market in the home care and personal care industries. The regional industry players are often engaged in strategic partnerships with microencapsulation technology users from the target industries.

High investments in R&D to improve technological efficiency and the rising adoption of the technology by small and medium-scale end-users are factors expected to drive market growth. For instance, in October 2022, Aenova Group, a contract manufacturer for the healthcare and pharmaceutical industries, announced a partnership with Microcaps AG, a provider of high-precision and innovative microencapsulation technology.

The goal of the partnership is to improve and accelerate the production and development of food supplements, pharmaceuticals, and a variety of other products. Microcaps AG will contribute its expertise in innovative and high-precision microencapsulation. The process employs a patented technology platform that allows for customized formulations in areas such as texture, protective coating, and release.

Microencapsulation technology provides value-added structures that serve as essential components in a variety of industries, including textiles, building materials, personal and home care, food and beverages, pharmaceuticals, and many others. For instance, Cognis, a textile chemical company, has a microencapsulation-based cosmetic treatment for textiles called Skintex, marketed with cooling, energizing, moisturizing, relaxing, anti-heavy-legs, and mosquito repellent properties. The rising demand for cosmetotextiles from consumers for their cosmetic & healing effects is poised to drive market growth over the forecast period.

The demand for microencapsulation in North America is expected to continue growing in the coming years, driven by the increasing demand for functional food and nutraceutical products, encapsulated fragrances and flavors, and drug delivery systems. Additionally, continued advancements in microencapsulation technology are likely to further advance the market. The high penetration of the technology in the U.S. pharmaceutical industry is also likely to drive the microencapsulation industry growth over the forecast period.

Technology Insights

The spray technology segment led the market and accounted for 33.5% of the revenue share in 2022. Spray technologies are significantly used in the large-scale commercial production of microcapsules, owing to the low process cost, simple equipment, and reduced storage and transportation cost, resulting in the growing demand for the segment.

The emulsion segment accounted for the second-highest revenue share of 28.2% of the market in 2022. The technique used to produce microcapsules from the emulsion of two or more immiscible liquids is known as the emulsion solidification technique of microencapsulation. The increasing penetration of this technique in the rapidly-advancing food and pharmaceutical industries is expected to drive the regional market for emulsion technology over the forecast period.

On the other hand, the coating segment is expected to expand at a CAGR of 8.8% from 2023 to 2030. Microencapsulation by coating technology includes different processes such as fluid bed coating, pan bed coating, and air suspension coating. Certain advantages of the microencapsulation coating technology, such as maximum protection of active materials, flavor, odor masking, and continued & controlled release, are anticipated to boost the segment growth.

Dripping technologies of microencapsulation primarily includes spinning disk, co-extrusion, and simple extrusion techniques. Certain advantages of the microcapsules obtained from the dripping technique are biocompatibility & low particle size distribution, which are expected to have a major impact on driving the segment growth in terms of their application in the pharmaceuticals, cosmetics, and food industries.

Application Insights

The pharmaceutical & healthcare products application segment dominated the market with 64.7% of the revenue share in 2022. Microencapsulation has a high potential for application in the pharmaceutical industry, as it allows for the sustained and controlled release of drugs for various medical applications. Specific drug delivery systems, including oral, transdermal, stomach, colon, and small intestine, are expected to have a major impact on the demand for microencapsulation in the pharmaceutical industry.

The home & personal care application segment accounted for 10.4% of revenue share in 2022. The rapidly expanding home & personal care industry in North America, along with the utilization of microencapsulation technology to alter the quality of products such as fragrances & flavors used in perfumes, soaps, lotions, creams, and shampoos, is anticipated to propel the regional market growth over the projection period.

The food & beverage application segment is likely to expand at a substantial CAGR of 11.0% over the forecast period. The growing trend among consumers towards preventing illnesses by adopting a functional food diet, healthier way of living, and improving the nutritional value of food products along with aroma, texture, color, and taste, has a significant impact on driving the demand for microencapsulation from the food & beverage industry.

In the construction sector, microencapsulated active ingredients have several benefits when used in construction materials such as cement, lime, concrete, mortar, sealants, artificial marbles, and functionalized textiles. The technique is used in the production of biocide coatings, pigments, self-healing coatings, phase change materials, and antimicrobial coatings used extensively in the building & construction industry.

Regional Insights

The U.S. dominated the North American microencapsulation market and accounted for 82.6% of the revenue share in 2022. The country is the largest producer of pharmaceutical products, aided by the presence of major players including Johnson & Johnson, Pfizer, and Merck & Co. Furthermore, it is involved in the development of novel drug delivery systems, which has a major impact on driving microencapsulation demand. The high penetration of spray technologies, emulsion, and dripping techniques of microencapsulation in applications like pharmaceuticals, home & personal care, and food & beverages is a major growth driver.

Pharmaceutical companies in the country are heavily invested in R&D for the advancement of controlled drug delivery systems, odor & taste masking, cell encapsulation, protection of drugs from the environment, cell encapsulation, and particle size reduction for enhancing the solubility of poorly soluble drugs. Such concrete efforts are expected to drive the demand for microencapsulation in pharmaceutical applications over the forecast period.

Mexico is estimated to expand at the fastest CAGR of 10.2% over the forecast period. Mexico has emerged as one of the most preferred locations for manufacturers due to the ease of doing business, the country’s access to major regional markets of the Americas, the presence of Reciprocal Investment Promotion and Protection Agreements (RIPPAs), and lower operation costs, geographical proximity, and availability of supply sources for distributors and retailers. Various pharmaceutical companies such as Pfizer, Sanofi, Bayer, Johnson & Johnson, GlaxoSmithKline, and Siegfried Rhein SA de CV, have established their presence in Mexico.

Key Companies & Market Share Insights

North America is home to some of the largest pharma companies such as Pfizer, AbbVie, Johnson & Johnson, and Novartis. The presence of major pharmaceutical industries in North America, along with increased investments in the research & development of controlled drug delivery systems, odor & taste masking, cell encapsulation, protection of drugs from the environment, and reduction of particle size for enhancing solubility of the poorly soluble drugs is expected to aid the regional demand for microencapsulation over the forecast period.

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

For instance, in March 2023, AnaBio Technologies patented a new micro-encapsulation technology that promises to protect and stabilize the bacteria in functional beverages from high temperatures and moisture. The technology also has potential for application in confectioneries and cosmetic products. Some of the prominent players in the North America microencapsulation market include:

• Capsulae

• LycoRed Group

• BASF SE

• Balchem

• Encapsys LLC

• AVEKA Group

• Reed Pacific Pty Ltd.

• Microtek Laboratories, Inc.

• TasteTech Ltd.

• GAT Microencapsulation GmbH

North America Microencapsulation Market Report Scope

North America Microencapsulation Market Report Segmentation

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

• 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

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

  • North America

    • U.S.

    • Canada

    • Mexico