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Microencapsulation Market size is projected to reach USD 10.76 Billion by 2022


(Entertainment-NewsWire.com, June 06, 2018 ) The global market for microencapsulation has grown exponentially in the last few years. The market size is projected to reach USD 10.76 Billion by 2022, growing at a CAGR of around 11.4% from 2017 to 2022. Emerging markets such as India, China, Japan, Brazil, and Argentina are the primary targets of the industry. Factors such as the growing awareness and demand for fortified food products, increasing demand from the pharmaceutical industry for various applications, and the emergence of new technologies are the major factors driving this market. Moreover, achieving enhanced product functionality by microencapsulation helped to drive the microencapsulation industry.

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The microencapsulation market, by application, is segmented into pharmaceutical & healthcare products, food & beverages, agrochemicals, construction materials, textiles, and others, which include energy, defense, and paper & printing. The pharmaceutical & healthcare products dominated the market in 2016 since microencapsulated ingredients such as drugs & nutrients are largely used for the development of these products. This is followed by household & personal care products where a large number of fragrances, foaming agents, vitamins, essential oils, skin moisturizing agents, skin cooling agents, and anti-aging agents are used.

The microencapsulation market, based on technology, is segmented into spray technologies, emulsion technologies, dripping, and others, which include coating, physico-chemical, and chemical technologies. The spray technologies segment dominated the market in 2016. The emulsion technologies segment is projected to grow at the highest CAGR from 2017 to 2022. Spray techniques for microencapsulation are largely applied across all industries. The spray drying technique is also required after the chemical-based microencapsulation process, thereby increasing its usage.

The microencapsulation market, by core material, is segmented into pharmaceutical & healthcare drugs, fragrances, agriculture inputs, food additives, phase change materials (PCM), and others which include construction chemicals, inks, energy molecules, and household & personal care products. The pharmaceutical & healthcare drugs segment accounted for the largest share of the microencapsulation market in 2016. The food additives segment is projected to grow at the highest CAGR from 2017 to 2022. This growth is attributed to the increasing usage of microencapsulation technology for a large number of ingredients in various food applications.

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The microencapsulation market, based on shell material, is segmented into polymers, gums & resins, lipids, carbohydrates, and proteins. Polymers, include PMMA, acrylic, and other natural & synthetic based shell materials, dominated the market in 2016. The carbohydrates segment is projected to grow at the highest CAGR from 2017 to 2022 due to its usage in the rapidly growing food & beverages industry.  Moreover, carbohydrate-based shell materials such as hydrocolloids, starch, cellulose, and other complex carbohydrates, are readily approved by regulatory authorities.

The microencapsulation market was dominated by the North American region in 2016. The Asia Pacific region is projected to be the fastest-growing market during the forecast period since the demand from the food & beverages industry is expected to increase in the coming years. The other factors responsible for the growth of the Asia Pacific market are emerging economies, technological advancements, and growth of industrialization in the region.

The development of microencapsulated materials is at times customized, and at times is required to be carried out at an industrial scale instead of a pilot scale. This increases the processing cost of the product and ultimately leads to an increase in the product cost, which restrains the market growth.

Expansions & investments, acquisitions, new product & technology launches, agreements, collaborations, joint ventures, and partnerships are the key strategies adopted by market players to ensure their growth in the market. The market is dominated by players such as BASF SE (Germany), Syngenta Crop Protection AG (Switzerland), Royal FrieslandCampina N.V. (Netherlands), Koninklijke DSM N.V. (Netherlands), Givaudan SA (Switzerland), Firmenich SA (Switzerland), and Symrise AG (Germany). Other major players in the market include International Flavors & Fragrances Inc. (US), Lycored Corp. (UK), Sensient Technologies Corporation (US), Koehler Innovative Solutions (Germany), Balchem Corporation (US), and Synthite Industries Ltd. (India).

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