Emphasis on Technology (Spray, Emulsion, Dripping, and Others); Coating Material (Gums, Carbohydrates, Proteins, Lipids, and Others); Application (Pharmaceuticals, Food and Beverages, Home and Personal Care, Agrochemicals, Others); and Region/Country
The microencapsulation market was valued at USD 12,624.52 million in 2023 and is expected to grow at a robust CAGR of around 11.84% during the forecast period (2024-2032) driven by the growing application in the pharmaceutical industry, rising demand in home and personal care products due the growing urbanization, rising working population and demand for sustainable and eco-friendly products.
Microencapsulation has been considered as an effective tool in developing new foods with multiple functionalities. This technology has been employed in commercial products such as juices, chocolates, meats, and poultry. For example, in January 2023, the German company BASF SE, which specializes in the microencapsulation of vitamins, implemented a new microencapsulation process for vitamin A and D powders used for flour and sugar fortification that provides the highest possible stability. BASF recently launched BHT-free vitamin A to enhance flour and sugar fortification. It is a vitamin A palmitate powder for direct application or through premixes. Technical comparison reveals that this BHT-free vitamin A powder has higher stability than other BHT-free vitamin A powders available in the market. In addition, due to the development of the pharmaceutical industry, microencapsulation has a significant function as a means of controlled and targeted administration of medicines, as well as concealing a bitter taste and smell and increasing the stability of drugs. Hence, this market has multiplied in the last couple of years and is expected to continue with the same trend.
Increasing Demand for Flavor Masking Microencapsulation
The rising need for flavor masking microencapsulation to enhance taste, safeguarding, and effective release of active ingredients. The most well-known practical application of microencapsulation is the flavor masking, which is a critical aspect of drug delivery since many drugs have nasty tastes or smells that can deter patients from taking them. Through the process of encapsulation, the bitter taste and/or offensive smell of the API can be well disguised within a coating material, thereby enhancing the palatability and acceptability of the medicine. This has prompted pharmaceutical companies to develop microencapsulated formulations that are targeted at children. For instance, Novartis released microencapsulated antibiotic suspension with better taste which means that children can take their medicine easily.
The North America microencapsulation market shall have the largest market size in the forecast period due to factors including the presence of well-developed pharmaceutical sector, growing food and beverage industry, high investments in the R&D and favorable regulations. This region, specifically North America, is home to large pharmaceutical and biotechnology companies that rely on microencapsulation tools and systems for drug delivery, taste improvement, and stability. For example, Pfizer, Merck, and Amgen have developed microencapsulated medicines for better dissolution rate, sustained release, and targeted supply to tissues or organs. However, one of the driving forces for advancing the complex microencapsulation technique is the sound regulatory regime of the region as well as the stringent approval of the US FDA and Health Canada. North America is also a dynamically developing region of the F&B industry, on which Nestle, PepsiCo, and Kraft Heinz spent millions to develop microencapsulation technologies to produce new types of functional foods, enhanced beverages, and nutraceuticals. For instance, Nestle has applied it in preparing better tasting and smelling coffee products while Pepsi Co has applied the technique to coat probiotics in juices for protection and timed release. The changing customer preferences towards improved quality and convenience foods continue to drive the food sector in the region towards the adoption of micro-encapsulation technologies.
The microencapsulation market is competitive and concentrated, with few global and international players. The key players are adopting different growth strategies to enhance their market presence, such as partnerships, agreements, collaborations, new product launches, geographical expansions, and mergers and acquisitions. Some major players operating in the market are BASF SE, Givaudan, Royal FrieslandCampina, Cargill, Incorporated, International Flavors & Fragrances Inc., Sensient Technologies Corporation, Ingredion, Balchem Corp, Firmenich SA, and Microtek Laboratories, Inc.
In March 2024, FrieslandCampina Ingredients launches Biotis DHA FlexP 15 and Biotis DHA FlexP 20, two new algae-based, microencapsulated DHA (docosahexaenoic acid) powders for brain health, suitable for vegan and vegetarian formulations designed for food, drinks and supplements. DHA is an omega-3 fatty acid linked to brain, eye and cardiovascular health.
In July 2022, Givaudan Active Beauty advances microencapsulation technology by unveiling Spherulite™ HA Ultimate, a sustainable well-ageing active ingredient able to deliver high molecular weight (HMW) hyaluronic acid (HA) to deeper skin layers thanks to vectorization technology. Dedicated to lip care, Spherulite™ HA Ultimate demonstrates significant instant and long-term plumping benefits. HA is widely used in well-ageing solutions as it plays a major role in keeping skin hydrated and plumped.
The global microencapsulation market can further be customized as per the requirement or any other market segment. Besides this, UMI understands that you may have your own business needs, hence feel free to contact us to get a report that completely suits your requirements.
1. Market Introduction
2. Research Methodology Or Assumption
3. Executive Summary
4. Market Dynamics
5. Pricing Analysis
6. Global Microencapsulation Market Revenue (usd Mn), 2022-2032f
7. Market Insights By Technology
8. Market Insights By Coating Material
9. Market Insights By Application
10. Market Insights By Region
11. Value Chain Analysis
12. Competitive Landscape
13. Company Profiled
14. Acronyms & Assumption
15. Annexure
Analyzing the historical market, estimating the current market, and forecasting the future market of the global microencapsulation market were the three major steps undertaken to create and analyze the adoption of microencapsulation in major regions globally. Exhaustive secondary research was conducted to collect the historical market numbers and estimate the current market size. Secondly, to validate these insights, numerous findings and assumptions were taken into consideration. Moreover, exhaustive primary interviews were also conducted, with industry experts across the value chain of the global microencapsulation market. Post assumption and validation of market numbers through primary interviews, we employed a top-down/bottom-up approach to forecasting the complete market size. Thereafter, market breakdown and data triangulation methods were adopted to estimate and analyze the market size of segments and sub-segments of the industry pertains to. Detailed methodology is explained below:
Step 1: In-Depth Study of Secondary Sources:
A detailed secondary study was conducted to obtain the historical market size of the microencapsulation market through company internal sources such as annual reports & financial statements, performance presentations, press releases, etc., and external sources including journals, news & articles, government publications, competitor publications, sector reports, third-party database, and other credible publications.
Step 2: Market Segmentation:
After obtaining the historical market size of the microencapsulation market, we conducted a detailed secondary analysis to gather historical market insights and share for different segments & sub-segments for major regions. Major segments are included in the report, including technology, coating material, and application. Further country-level analyses were conducted to evaluate the overall adoption of testing models in that region.
Step 3: Factor Analysis:
After acquiring the historical market size of different segments and sub-segments, we conducted a detailed factor analysis to estimate the current market size of the microencapsulation market. Further, we conducted factor analysis using dependent and independent variables such as technology, coating material and application of the microencapsulation market. A thorough analysis was conducted for demand and supply-side scenarios considering top partnerships, mergers and acquisitions, business expansion, and product launches in the microencapsulation market sector across the globe.
Current Market Sizing: Based on actionable insights from the above 3 steps, we arrived at the current market size, key players in the global microencapsulation market, and market shares of the segments. All the required percentage shares split, and market breakdowns were determined using the above-mentioned secondary approach and were verified through primary interviews.
Estimation & Forecasting: For market estimation and forecast, weights were assigned to different factors including drivers & trends, restraints, and opportunities available for the stakeholders. After analyzing these factors, relevant forecasting techniques i.e., the top-down/bottom-up approach were applied to arrive at the market forecast for 2032 for different segments and sub-segments across the major markets globally. The research methodology adopted to estimate the market size encompasses:
Primary Research: In-depth interviews were conducted with the Key Opinion Leaders (KOLs) including Top Level Executives (CXO/VPs, Sales Head, Marketing Head, Operational Head, Regional Head, Country Head, etc.) across major regions. Primary research findings were then summarized, and statistical analysis was performed to prove the stated hypothesis. Inputs from primary research were consolidated with secondary findings, hence turning information into actionable insights.
Market Engineering
The data triangulation technique was employed to complete the overall market estimation and to arrive at precise statistical numbers for each segment and sub-segment of the global microencapsulation market. Data was split into several segments & sub-segments post studying various parameters and trends in the areas of the technology, coating material, and application in the global microencapsulation market.
The current & future market trends of the global microencapsulation market were pinpointed in the study. Investors can gain strategic insights to base their discretion for investments on the qualitative and quantitative analysis performed in the study. Current and future market trends determined the overall attractiveness of the market at a regional level, providing a platform for the industrial participant to exploit the untapped market to benefit from a first-mover advantage. Other quantitative goals of the studies include:
Q1: What is the current market size and growth potential of the microencapsulation market?
Q2: What are the driving factors for the growth of the microencapsulation market?
Q3: Which segment has the largest microencapsulation market share by Technology?
Q4: What are the emerging technologies and trends in the microencapsulation market?
Q5: Which region will dominate the microencapsulation market?
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