Microencapsulation Market (Updated Version Available)

Key Market Overview:

Microencapsulation market size garnered over USD 11.7 Billion in 2022 and is projected to reach around USD 25.8 Billion by 2030, growing at a CAGR of 10.4% during the forecast period (2022-2030).

Microencapsulation is referred to the process where active substances are layered by extremely small capsules. This technology is significantly used in the cosmetics industry coupled with the agrochemical, pharmaceutical, and food industries. Thus, the microencapsulation process is largely adopted in creating flavors, oils, acids, vitamins, and others to capture the dietary supplements and nutrients within the edible enclosing additives.

Moreover, microencapsulation improves the functional characteristics of food products by integrating essential oils, flavors, minerals, vitamins, and other additives. Also, microencapsulation technologies have a major impact on the pharmaceutical sector due to the benefits gained by manufacturers. Furthermore, active constituents like biomolecules, proteins, and genetic molecules are encapsulated in the pharmaceutical sector to convey the market demand for value-added products.

Additionally, the dripping technologies of microencapsulation predominantly involve co-extrusion spinning disks and simple extrusion techniques. The microcapsules obtained from this method are low particle sized and biocompatible. This feature is projected to drive their demand in sectors like cosmetics, pharmaceuticals, and the food and beverage industry.

Report Attributes	Report Details
Study Timeline	2018-2030
Market Size in 2030 (USD Billion)	25.8 Billion
CAGR (2022-2030)	10.4%
By Technology	Coating, Emulsion, Spray Technologies, Dripping, and Others
By Coating Material	Carbohydrates, Gums & Resins, Lipids, Polymers, Polysaccharides, and Proteins
By Application	Pharmaceutical & Healthcare Products, Home & Personal Care, Food & Beverages, Construction, Agrochemicals, Textile, and Others
By Geography	Asia-Pacific [China, Southeast Asia, India, Japan, Korea, Western Asia] Europe [Germany, UK, France, Italy, Russia, Spain, Netherlands, Turkey, Switzerland] North America [United States, Canada, Mexico] Middle East & Africa [GCC, North Africa, South Africa] South America [Brazil, Argentina, Columbia, Chile, Peru]
Key Players	LycoRed Group, Balchem, Reed Pacific Pty Ltd., The 3M Company, Capsulae, BASF SE, Encapsys LLC (Milliken), AVEKA Group, Microtek Laboratories, Inc., TasteTech Ltd., GAT Microencapsulation GmbH, Ronald T. Dodge Co., Evonik Industries AG, Inno Bio Limited, Bayer AG, Dow Corning Corporation

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Market Dynamics:

Driver:

The increased recognition and approval of microencapsulated materials in end-use industries such as agrochemical, food, beverage, and pharmaceutical sector coupled with the high investment in R&D to advance technical effectiveness bolster the market growth. Further, encapsulation is essential for nutraceuticals, remedial foods, and meal-replacement food due to its properties like stability, bioavailability, distribution and delivery, and efficiency which propels the growth of the market.

Restraint:

The high cost of the materials used in the preparation process as compared to the standard preparations and the low reproducibility restricts the market growth during the forecast period. Furthermore, the effects of the polymer additives, polymer matrix, and their degradation products on the surroundings in response to heat, biological agents, or hydrolysis differ considerably which results in the restricted usage of microencapsulated products.

Opportunity:

The rising usage and demand of advanced technology for the production of beauty enhancement products and cosmo-textiles containing natural ingredients are anticipated to profit from market expansion. Also, the increased intake of n-3 fatty acids (encapsulated medicine) for health benefits is estimated to drive demand for microencapsulation in masking applications. Also, changing lifestyles combined with the augmented spending abilities of consumers are expected to create lucrative opportunities for the microencapsulation industry.

COVID-19 Impact:-

The COVID-19 pandemic had a moderate impact on the microencapsulation market. Positive impacts like consumers being required to sanitize themselves and their surroundings more frequently due to the epidemic fueled the high demand for microencapsulated medical products. Additionally, the shelter-in-place orders have augmented consumer exposure in terms of home cleaning goods and services. As a result, people are progressively demanding natural-ingredient products. However, the negative pandemic impact includes the suffering of global industries due to the pandemic in terms of raw material shortages, the infected labor force in industrial sectors, demand-supply instability, trade, and logistics disruptions, and ambiguous consumer demand for food-related products.
Furthermore, during the COVID-19 pandemic, diminishing demand and lesser profits in the personal care, agrochemicals, and other industrial sectors have had a vengeful outcome on demand for microencapsulation from these companies. Thus, the industrial manufacturers including personal care and agrochemicals faced major problems in sourcing raw materials and reduced imports-exports.

Microencapsulation Market Segmentation:



By Technology

The technology segment is divided into the coating, emulsion, spray technologies, dripping, and others. The spray technology segment registered the largest share contribution of over 33.5% to the growth of the microencapsulation market. Moreover, this technology is extensively used due to the high permeation in the encapsulation of food ingredients, fragrances, and flavors. Thus, the large demand for food active ingredients is anticipated to support the growth of the spray technology segment during the forecast period. Furthermore, the coating technologies are largely used for pan coating, air suspension coating, and fluidized bed coating. Moreover, the pan-coating method also encapsulates bulky particles due to the precise configuration of small capsules.

By Coating Material

The coating material segment is categorized into polymers, polysaccharides, carbohydrates, gums & resins, lipids, and proteins. Lipids, as a coating material exhibit a CAGR of 13.2% during the forecast period. Moreover, the major lipids used for microencapsulation offer applications such as covering or coating nutrients, nourishment, minerals, colorants, tastes, and aromas. Furthermore, based on the coating material, the polysaccharides are estimated to witness significant growth during the projected period. The major recognition of due to increasing use in the food sector as a gelling agent and growing numbers of approval by regulatory authorities. Also, the polysaccharides are acquired from plentiful renewable sources and are usually non-toxic, making them valuable for food and pharmaceutical preparations. Thus, coating material like starch is the most consumed polysaccharide because of its listing in the GRAS list of the U.S. Food and Drug Administration as a safe material.

By Application

The application segment is divided into pharmaceutical & healthcare products, home & personal care, food & beverages, construction, agrochemicals, textile, and others. The pharmaceutical & healthcare drugs segment is expected to contribute the largest proportion of revenue to the growth of the microencapsulation market in 2022. Further, the key factors contributing to this segments leading position include cost-effectiveness, reduction of particle size for increased solubility, and controlled and continuous drug release. In addition to this, microencapsulation helps in hiding the odor and taste of pungent drug ingredients. Moreover, the chief usage of microencapsulation in the pharmaceutical sector involves the protection of drugs against the harsh environment, stabilizing sensitive drug substances, eradicating incompatibilities, and masking the spiteful taste. Moreover, the food and beverage application segment is expected to contribute over 8.2% share of the overall market growth in 2021. Thus, the surged customer awareness in terms of healthy living to prevent sicknesses is anticipated to propel the consumption of nutritious diets and encapsulated drug products during the forecast period.

By Region

The regional segment is divided into North America, Latin America, Asia Pacific, Europe, the Middle East, and Africa. In the context of the region, North America is projected to contribute a significant share of over 37.1% to the market trends. The factors such as increased product demand for pharmaceutical, food, and beverage applications and revolutions in the textile industry in terms of technology integration for improvement in the quality of products and strength are estimated to supplement the market growth in the North American region.



Furthermore, Asia Pacific is anticipated to support the market growth in terms of value and volume. Favorable government policies towards FDI in the pharmaceutical industry through China have a critical role in encouraging the Asia Pacific healthcare industry. Thus, the large consumption of encapsulated products in terms of pharmaceuticals, consumer goods, and others is projected to support the market expansion in the Asia Pacific region.

Microencapsulation Market Competitive Landscape:

The research report published on the Microencapsulation market provides an analysis of thorough market trends and other crucial factors that affect the market position. The factors such as weaknesses and strengths, production capacities, product innovations, and application dominance. Thus, the market players gain a competitive edge over other competitors by emphasizing such growth aspects. The key market players that comprise the majority of the market share–

• LycoRed Group
• Balchem
• Reed Pacific Pty Ltd.
• The 3M Company
• Capsulae
• BASF SE
• Encapsys LLC (Milliken)
• AVEKA Group
• Microtek Laboratories, Inc.
• TasteTech Ltd.
• GAT Microencapsulation GmbH
• Ronald T. Dodge Co.
• Evonik Industries AG
• Inno Bio Limited
• Bayer AG
• Dow Corning Corporation