food encapsulation market analysis

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2. FOOD ENCAPSULATION MARKET ANALYSIS(2017-2019) Food Encapsulation Market, By Application (Dietary Supplements, Functional Food, Bakery Products, Confectionery, Beverages, Frozen Products, Animal Nutrition, Dairy Products, Others), By Technology (Physical (Emulsification, Spray Drying, Spray Chilling/Cooling, Fluidised-bed Coating, Centrifugal Extrusion, Others), Chemical (Coacervation, Freeze Drying, Supercritical Fluid Technique, Nanoprecipitation, Liposomes, Others)), By Core Material (Flavoring Agents, Acids, Bases, and Buffers, Lipids, Enzymes & Microorganisms, Amino Acids & Peptides, Vitamins & Minerals, Antioxidants, Others (Artificial Sweeteners, and Leavening Agents)), By Wall Material (Carbohydrates, Proteins, Lipids & Waxes), and By Region (North America, Latin America, Europem Asia Pacificm Middle East & Africa) - Size, Share, Outlook, and Opportunity Analysis, 2019 - 2027

3. Food Encapsulation Market 2017–2027 • Food encapsulation is used to sustain the release of flavors of ingredient and is widely used across pharmaceuticals, food, textile personal care, chemical, and other industries. Food encapsulation enhances the taste of the food products, increases shelf-life, and quality of the food. Its prime function is to mask and protect the quality of the food product. In the chemical industry, it is used to develop the solvents and in the pharmaceutical industry, it is used to increase the flexibility of drug delivery while maintaining regulatory demands. Across the textile industry, it is used to improvise the release of fragrances, repel the insects and microbial formation. • The global food encapsulation market is projected to surpass US$ 10 billion by the end of 2027, in terms of revenue, growing at CAGR of 9.5% during the forecast period (2019 to 2027).

4. Drivers • Increasing research and development for the development of new processing technologies is propelling the market growth of encapsulation technologies across various end-use industries. Moreover, companies are also investing in the field of nanotechnology, and food chemistry & formulation to cater to the rising demand for nutritional, infant nutrition products, and sports beverages products in the food industry. This is projected to propel the market growth. • Growing demand for natural flavors and clean label products is expected to propel the market growth of food encapsulation. Rising focus of manufacturer over safety, natural origin, high quality, and long shelf life coupled with the increasing demand for fortified and convenience food due to the hectic lifestyle of the population is further projected to foster the growth of food encapsulation market over the forecast timeframe.  • Regionally, Asia-pacific dominated the global food encapsulation market in 2018, reporting 32% market share in terms of revenue, followed by Europe and North America, respectively.

5. Figure 1. Global Food Encapsulation Market, Revenue Share (%), By Regions, 2018

6. Market Restraints • Additional costs incurred during production are projected to hamper the market growth of food encapsulation. The high cost of production due to the high cost is a major concern among manufacturer and this is expected to restrict the adoption of food encapsulation. This, in turn, is projected to restrict the market growth of food encapsulation • Issues associated with the stability of encapsulates due to fluctuation in the supply of ingredients across the food industry is expected to propel the market growth of food encapsulation. Moreover, strict regulations regarding food processors and thus, compliance with these regulations is another major concern. This is expected to hinder the market growth of food encapsulates over the forecast period. • Market Opportunities • Increasing adoption of encapsulation technology in the pharmaceutical industry in the drug formulation is expected to offer lucrative growth opportunity to the market of food encapsulation. This technology supports the proper formulation of oral dosage and reduces the risk of dose dumping and other environmental factors. This is increasing demand for encapsulation technology across the pharmaceutical industry which in turn augmenting the market growth of food encapsulation. • Growing demand for functional and fortified products is projected to foster the market growth of food encapsulation. According to the Institute of Food Technologists, the worldwide sales of naturally healthy foods reached US$ 253 billion in 2017; functional/fortified foods totaled US$ 247 billion. Hence, the growing demand for fortified food is expected to accelerate the market growth of food encapsulation. 

7. Figure 2. Global Food Encapsulation Market – Opportunity Analysis

8. Market Trends Rising investment by major players in the encapsulation technology in order to expand their presence is expected to accelerate the market growth of food encapsulation. For instance, in March 2019, Kapsera Raises US$ 0.7 million for microbe encapsulation technology in Agrinnovation Fund’s 1st Investment. The investment round will allow Kapsera to scale up its process and complete its product development in microbe-based biofertilizer and biopesticide markets. The rising trend of carbohydrate-based matrix encapsulation is due to their wide usage across applications such as confectionery and functional food products that are expected to foster market growth. Pectin and starch are commonly used carbohydrates in the food industry. Hence, carbohydrate-based matrix capsulation is gaining popularity and this will favor the market growth over the forecast period.

9. Figure 3. Global Food Encapsulation Market, Revenue Share (%), By Wall Material, in 2018

10. On the basis of wall material, carbohydrates dominated the global food encapsulation market in 2018 with around 66% of market share in terms of revenue, followed by proteins and lipids & waxes, respectively. Figure 4. Global Food Encapsulation Market – Opportunity Analysis

11. Competitive Section: • Key players operating in the global food encapsulation market are TasteTech Ltd., Givaudan SA ADR, Sensient Technologies Corporation, Balchem Corporation, International Flavors & Fragrances Inc., BASF SE (ADR), Symrise AG, Appvion, Inc., AVEKA Group, Firmenich International SA, and Koninklijke DSM N.V.

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