Food Encapsulation Market: Dietary Supplements to Remain Largest Application Segment: Global Industry Analysis and Opportunity Assessment 2015 - 2020

  • Published: 2015-04-03
  • Report Code: REP-GB-380

An Incisive, In-depth Analysis on the Food Encapsulation Market

This study offers a comprehensive, 360 degree analysis on the Food Encapsulation market, bringing to fore insights that can help stakeholders identify the opportunities as well as challenges. It tracks the global Food Encapsulation market across key regions, and offers in-depth commentary and accurate quantitative insights. The study also includes incisive competitive landscape analysis, and provides key recommendations to market players on winning imperatives and successful strategies.

Global Food Encapsulation Market: From an estimated market size of US$ 3,493.9 Mn in 2015, food encapsulation value sales is expected to reach US$ 5,464.6 Mn by 2020, expanding at a CAGR of 9.4%

Food encapsulation is a process of covering individual ingredient particles with a coating for protection against a broad range of environmental factors. Food encapsulation is similar to wrapping a protective shell around a core or grouping of flavour materials. It is often used to provide uniform taste, time-release taste and smell and colouring, increase shelf-life, improve taste and protect against harsh conditions (e.g. heat) during production of the finished product. Food encapsulation technology can limit degradation or loss of flavour during various product processes and storage. Food encapsulation techniques can also provide functional properties such as a controlled release of aromatic molecules in a given environment such as water (if flavoured tea), mouth (solid food: candy, toothpaste) and spray.

Increasing demand for natural flavors and clean label products is a key concern for manufacturers. This has led to the development of novel products to cater to the specific needs of consumers such as high quality, safety, natural origin, long shelf life and pleasant appearance with an effective after-taste. Also, the increasing demand for fortified and convenience foods has compelled manufacturers to explore encapsulation techniques across these sectors, which is further expected to bolster the growth in demand for food encapsulation in the near future.

Global Food Encapsulation Market: Encapsulated core material market segment is primarily driven by the increasing consumption of dietary supplements & functional food

By core material, the global food encapsulation market has been segmented into flavoring agents, acids, bases & buffers, lipids, enzymes & microorganisms, amino acids & peptides, vitamins & minerals, antioxidants and others. Among all these core material segments, the vitamin & mineral segment is estimated to account for the highest value share in the global food encapsulation market. The segment is expected to remain dominant during the forecast period. The vitamin & mineral segment accounted for a 40.0% value share in 2014 and is expected to expand at a CAGR of 9.7% during the forecast period. Attributing to the increasing health concerns and awareness regarding the consumption of healthy products, consumers are preferring fortified foods. Thus, for effective results, manufacturers are using encapsulated functional food ingredients, which is supporting the segment growth in the global food encapsulation market during the forecast period.

Flavouring agents account for the second highest share in the global food encapsulation market. The segment accounted for a 28.8% value share in 2014. The segment is expected to register the highest CAGR of 10.5% during the forecast period. Encapsulated flavours offer improved heat and oxidative resistance along with increased shelf-life stability. They also enable the easy incorporation of liquid flavours in various food and beverage products without any alteration in the final taste or texture. These factors are collectively expected to support the segment growth in the food encapsulation market during the forecast period.

The global food encapsulation market, on the basis of application, has been segmented into dietary supplements, functional food, bakery products, confectionery beverages, frozen products, animal nutrition, dairy products and others. Among these segments, the dietary supplements segment accounted for the largest value share, followed by the functional food segment. In 2014, the dietary supplements segment registered a value share of 25.4% and is expected to expand at a CAGR of 9.5%. The functional food segment is expected to register the highest CAGR of 10.8% during the forecast period. In order to fulfil the growing demand, manufacturers are offering encapsulated functional food ingredients to food and beverage manufacturers.

For instance, Omega Protein Corporation offers specialty oils and Essential Fatty Acids (EFAs), nutraceuticals, omega-3 and dairy protein encapsulated products to its clients.

The global food encapsulation market can also be segmented on the basis of wall material and technology. By wall material, the food encapsulation market can be segmented into carbohydrates, proteins and lipids & waxes. On the basis of technology, the food encapsulation market can be segmented into physical & chemical.

Global Food Encapsulation Market Dynamics: Health associated food products with clean label tags are key influencing factors for the growth of food encapsulation market

Consumer buying behaviour has substantially transformed in the recent years. This can be primarily attributed to the increasing disposable income and rising consumption of healthy food. As a result, consumer demand across the globe for specialized food products has been growing substantially in the recent past, resulting in new product offerings. Also, the demand for food products that offer additional benefits is increasingly at a rapid pace, especially in emerging economies. This can be attributed to the increasing consumer awareness and rising consumer spending on foods and beverages, which is fuelling the demand of food encapsulation.

For instance, in the food encapsulation market, companies are developing encapsulation techniques for spices and flavoring agents for application in various food products.

Moreover, in order to increase the sales revenue in food encapsulation, international and local companies in their respective geographies are focusing on the development of encapsulated solutions, offering increased shelf-life and long-lasting flavors to products.

For instance, Bompas & Parr, a London-based firm, expanded its product offerings in food encapsulation by releasing an encapsulated chewing gum, which is offered in various flavors such as pineapple, strawberry and orange.

Furthermore, Ingredion Inc. developed an encapsulation matrix, which is non-cariogenic (does not promote tooth decay) in nature, enabling manufacturers to meet the consumer demand for beverages and oral care and sugar-free products.

On the other hand, the food encapsulation market is also influenced by clean label products. Companies are focused on developing clean label products and thus, are developing products with micro-encapsulation technology comprising no preservatives, added antioxidants and gelatin. This can be attributed to the demand for healthy and eco-friendly products by consumers across the globe, supporting the food encapsulation market growth in the near future.

For instance, AIDP Inc. uses enVantec micro-encapsulation, which involves the vegetarian, starch-based and non-GMO technique. The developed composition is free of antioxidants and preservatives and these properties make enVantec a clean label solution with increased stability and a two to three year stability period.

Global Food Encapsulation Market Regional Analysis: Asia Pacific is expected to gain traction in the global food encapsulation market during the forecast period

The global food encapsulation market has been segmented into North America, Latin America, Western Europe, Eastern Europe, Asia Pacific Excluding Japan, the Middle East & Africa and Japan. Sales revenue of the food encapsulation market in North America accounted for the largest value share of 25.1% in 2014, followed by APEJ. The North America market is expected to register a CAGR of 9.7% and contribute an incremental opportunity worth US$ 584.7 Mn to the global food encapsulation market between 2014 and 2020. Sales revenue of the food encapsulation market in Western Europe was valued at US$ 674.6 Mn in 2014 and is anticipated to increase 1.8X over the forecast period. Also, the Asia Pacific excluding Japan food encapsulation market is expected to register the fastest CAGR among all the regions during the forecast period. Factors such as new product launches, geographical expansion and increasing demand for specialized products among consumers are expected to drive the demand for food encapsulation across the various countries in the region.

Global Food Encapsulation Market Competitive Landscape: The global food encapsulation market is highly concentrated with multinational players, as compared to local & regional food encapsulation manufacturers

The global food encapsulation market is primarily characterized by the presence of a large number of regional and multinational companies. Multinational players account for an approximate share of more than 60%–65% and act as the price regulator of the global food encapsulation market. Some of the key players profiled in the global food encapsulation market study include TasteTech Ltd, Givaudan SA, Sensient Technologies Corporation, Balchem Corporation, International Flavors & Fragrances Inc., BASF SE, Symrise AG, Appvion, Inc., AVEKA Group, Firmenich International SA and Koninklijke DSM N.V.

Majority of the players in the food encapsulation market are focusing on acquisitions and launching new and effective product variants

  • For instance, in June 2017, Balchem Corporation acquired Innovative Food Processors, Inc. (IFP). IFP is a regional manufacturer of agglomerated microencapsulated flavor in North America. The objective of this was to integrate expertise solutions of IFP in the flavor encapsulation research with the company’s expertise.

  • Also in February 2017, BÜCHI Labortechnik AG introduced a new Nano Spray Dryer B-90 HP, high performance product. The objective was to add several new functionalities to the product, for better encapsulation application

This report provides a forecast and analysis of the global food encapsulation market. It provides an analysis on the basis of historical data and forecast from 2014 to 2020 in terms of revenue (US$ Mn). The report reveals market dynamics in seven geographic segments along with market analysis for the current and future scenario. In addition, it includes drivers, restraints and recent trends in the food encapsulation market. The report also comprises opportunities for food encapsulation manufacturers and highlights value chain analysis in detail. The study demonstrates market dynamics and trends across regions that are expected to influence current status and future prospects of the food encapsulation market.

The report studies the global food encapsulation market for the period 2014–2020. The prime objective of this report is to offer quantitative and qualitative insights and study key market trends pertaining to the global food encapsulation market that gradually help transform businesses.

The market numbers have been assessed by carefully scrutinizing the food encapsulation ingredient production of countries in all the seven key regions, for the current year, as well as the historical performance of the market. Market size and forecast for each segment in the food encapsulation market has been provided in the context of regional markets. All the segmentation for the food encapsulation market has been considered after appropriate secondary research and revalidation of the data obtained through interviews with key thought leaders and industry experts. The market has been forecast based on constant currency rates. The report includes the revenue generated from the sales of food encapsulation across all regional economies.

The report begins with an executive summary intended to give a clear perspective about the market to the reader. It is then followed by a food encapsulation market overview and provides food encapsulation market definition and analysis about drivers, restraints, opportunities and key trends in the market. The sections that follows include the global food encapsulation market analysis, analysis by product type, distribution channel and country level analysis.  

On the basis of core material, the global food encapsulation market has been segmented into flavoring agents, acids, bases, & buffers, lipids, enzymes & microorganisms, amino acids & peptides, vitamins & minerals, antioxidants and others. By application, the global food encapsulation market includes dietary supplements, functional food, bakery products, confectionery beverages, frozen products, animal nutrition, dairy products and others. The global food encapsulation market can also be segmented on the basis of wall material and technology. By wall material, the food encapsulation market can be segmented into carbohydrates, proteins and lipids & waxes. On the basis of technology, the food encapsulation market has been segmented into physical & chemical.

All the above sections evaluate the market on the basis of various factors affecting the market, covering the present scenario and future prospects. For market data analysis, the report considers 2013 as the base year, with market numbers estimated for 2014 and forecast made for 2015–2020. Segmentation for the food encapsulation market has been considered after appropriate secondary research and revalidation of the data obtained through interviews with key thought leaders in the industry. The market has been forecast based on constant currency rates.

The next section of the report highlights the market by region and provides the market outlook for 2014–2020. The study investigates the regional year-on-year (Y-o-Y) growth of the food encapsulation market. Key regions assessed in this report include North America, Latin America, Western Europe, Eastern Europe, Asia Pacific Excluding Japan, Middle East & Africa & Japan. The report evaluates the present scenario and growth prospects of the regional market for 2014–2020.

The food encapsulation market numbers have been assessed on the basis of sales and weighted average pricing of encapsulated food ingredients by core material, wall material, technology and application. Then aggregate revenue is derived through weighted average country pricing trends. The food encapsulation market size and forecast for each segment have been provided in the context of country level. The food encapsulation market has been analyzed on the basis of expected demand, application in the food & beverage industry and current production scenario. Pricing considered for the calculation of revenue includes average country prices obtained through primary quotes from numerous regional food encapsulation manufacturers, suppliers, and distributors. All key applications have been considered on the basis of secondary sources and feedback from primary respondents. Country-wise demand patterns have been considered while estimating the food encapsulation consumption across the various regions. Food encapsulation market numbers for all the regions by core material, wall material, technology and application have been derived using the bottom-up approach, which is cumulative of each country’s demand. Company-level food encapsulation market share has been derived on the basis of revenues reported by key manufacturers. The food encapsulation market has been forecast based on constant currency rates. Given the characteristics of the market, we have triangulated the outcome on the basis of three different types of analysis: based on supply side, demand side analysis for food encapsulation and the impact of macro-economic factors on the food encapsulation market. In addition, it is imperative to note that in a fluctuating global economy, we not only conduct market forecasts in terms of Compound Annual Growth Rate (CAGR), but also analyses the market based on key parameters, such as Y-o-Y growth rates, to understand the predictability of the food encapsulation market and identify the right opportunities for players.

The market segments for the global food encapsulation market have been analyzed in terms of Basis Point Share (BPS) to understand the relative contributions of each segment to market growth. This detailed level of information is important for identifying various key trends in the food encapsulation market. Another key feature of this report is the market analysis in terms of absolute dollar opportunity represented by food encapsulation sales. The absolute dollar opportunity is critical for evaluating the scope of opportunity that a provider can look to achieve as well as identify lucrative segments. The overall absolute dollar opportunity represented by the food encapsulation market is mentioned in the report. To understand key growth segments in terms of growth and adoption for food encapsulation in the global market, FMI developed the market ‘Attractiveness Index.’ The resulting index is expected to help providers identify real market opportunities. A number of primary and secondary sources were referred during the course of the study. Few of the secondary sources include IMF, World Bank, Hoover’s, Factiva, company’s annual reports, government associations and publications.  

In the final section of the report on the food encapsulation market, a ‘dashboard view’ of the companies is provided to compare the current industrial scenario and their contribution in the total food encapsulation market. Moreover, it is primarily designed to provide clients an objective and detailed comparative assessment of key providers specific to a segment in the food encapsulation market. Report audiences can gain segment-specific manufacturer insights to identify and evaluate key competitors in the food encapsulation market. Detailed profiles of companies are also included in the report to evaluate their strategies, key product offerings and recent developments. The key players of the global food encapsulation market include TasteTech Ltd, Givaudan SA, Sensient Technologies Corporation, Balchem Corporation, International Flavors & Fragrances Inc., BASF SE, Symrise AG, Appvion, Inc., AVEKA Group, Firmenich International SA and Koninklijke DSM N.V.

Food Encapsulation Market Reports - Table of Contents

Food Encapsulation Market Reports - List of Tables

  1. Global Food Encapsulation Market Size, By Core Material

  2. Global Food Encapsulation Market Size, By Technology

  3. Global Food Encapsulation Market Size, By Wall Material

  4. Global Food Encapsulation Market Size, By Application

  5. Global Food Encapsulation Market Size, By Geography

Food Encapsulation Market Reports - List of Figures

  1. Global Food Encapsulation Market Value & Y-o-Y Growth Forecast, 2014–2020

  2. Global Food Encapsulation Market Absolute $ Opportunity, 2015–2020

  3. Global Food Encapsulation Market Value Share & BPS Analysis, By Core Material, 2014 & 2020

  4. Global Food Encapsulation Market Attractiveness, By Core Material

  5. Global Flavoring Agents Sub-Segment Absolute $ Opportunity, 2015–2020

  6. Global Flavouring Agents Sub-Segment Y-o-Y Growth, 2014–2020

  7. lobal Acids, Bases, & Buffers Sub-Segment Absolute $ Opportunity, 2015–2020

  8. lobal Acids, Bases, & Buffers Sub-Segment Y-o-Y Growth, 2014–2020

  9. lobal Lipids Sub-Segment Absolute $ Opportunity, 2015–2020

  10. Global Lipids Sub-Segment Y-o-Y Growth, 2014–2020

  11. Global Enzymes & Microorganisms Sub-Segment Absolute $ Opportunity, 2015–2020

  12. Global Enzymes & Microorganisms Sub-Segment Y-o-Y Growth, 2014–2020

  13. Global Amino Acids & Peptides Sub-Segment Absolute $ Opportunity, 2015–2020

  14. Global Amino Acids & Peptides Sub-Segment Y-o-Y Growth, 2014–2020

  15. Global Vitamins & Minerals Sub-Segment Absolute $ Opportunity, 2015–2020

  16. Global Vitamins & Minerals Sub-Segment Y-o-Y Growth, 2014–2020

  17. Global Antioxidants Sub-Segment Absolute $ Opportunity, 2015–2020

  18. Global Antioxidants Sub-Segment Y-o-Y Growth, 2014–2020

  19. Global Others Sub-Segment Absolute $ Opportunity, 2015–2020

  20. Global Others Sub-Segment Y-o-Y Growth, 2014–2020

  21. Global Food Encapsulation Market Value Share & BPS Analysis, By Technology, 2014 & 2020

  22. Global Food Encapsulation Market Attractiveness, By Technology

  23. Global Emulsification Sub-Segment Absolute $ Opportunity, 2015–2020

  24. Global Emulsification Sub-Segment Y-o-Y Growth, 2014–2020

  25. Global Spray-Drying Sub-Segment Absolute $ Opportunity, 2015–2020

  26. Global Spray-Drying Sub-Segment Y-o-Y Growth, 2014–2020

  27. Global Spray Chilling/Cooling Sub-Segment Absolute $ Opportunity, 2015–2020

  28. Global Spray Chilling/Cooling Sub-Segment Y-o-Y Growth, 2014–2020

  29. Global Fluid-bed Coating Sub-Segment Absolute $ Opportunity, 2015–2020

  30. Global Fluid-bed Coating Sub-Segment Y-o-Y Growth, 2014–2020

  31. Global Centrifugal Extrusion Sub-Segment Absolute $ Opportunity, 2015–2020

  32. Global Centrifugal Extrusion Sub-Segment Y-o-Y Growth, 2014–2020

  33. Global Others Sub-Segment Absolute $ Opportunity, 2015–2020

  34. Global Others Sub-Segment Y-o-Y Growth, 2014–2020

  35. Global Coacervation Sub-Segment Absolute $ Opportunity, 2015–2020

  36. Global Coacervation Sub-Segment Y-o-Y Growth, 2014–2020

  37. Global Freeze Drying Sub-Segment Absolute $ Opportunity, 2015–2020

  38. Global Freeze Drying Sub-Segment Y-o-Y Growth, 2014–2020

  39. Global Supercritical Fluid Technique Sub-Segment Absolute $ Opportunity, 2015–2020

  40. Global Supercritical Fluid Technique Sub-Segment Y-o-Y Growth, 2014–2020

  41. Global Nanoprecipitation Sub-Segment Absolute $ Opportunity, 2015–2020

  42. Global Nanoprecipitation Sub-Segment Y-o-Y Growth, 2014–2020

  43. Global Liposomes Sub-Segment Absolute $ Opportunity, 2015–2020

  44. Global Liposomes Sub-Segment Y-o-Y Growth, 2014–2020

  45. Global Others Sub-Segment Absolute $ Opportunity, 2015–2020

  46. Global Others Sub-Segment Y-o-Y Growth, 2014–2020

  47. Global Food Encapsulation Market Value Share & BPS Analysis, By Wall Material, 2014 & 2020

  48. Global Food Encapsulation Market Attractiveness, By Wall Material, 2014

  49. Global Carbohydrates Sub-Segment Absolute $ Opportunity, 2015–2020 

  50. Global Carbohydrate Sub-Segment Y-o-Y Growth, 2014–2020 

  51. Global Proteins Sub-Segment Absolute $ Opportunity, 2015–2020 

  52. Global Proteins Sub-Segment Y-o-Y Growth, 2014–2020

  53. Global Lipids & Waxes Sub-Segment Absolute $ Opportunity, 2015–2020 

  54. Global Lipids & Waxes Sub-Segment Y-o-Y Growth, 2014–2020 

  55. Global Food Encapsulation Market Value Share & BPS Analysis, By Application, 2014 & 2020

  56. Global Food Encapsulation Market Attractiveness by Application, 2014

  57. Global Dietary Supplements Sub-Segment Absolute $ Opportunity, 2015–2020 

  58. Global Dietary Supplements Sub-Segment Y-o-Y Growth, 2014–2020  

  59. Global Functional Food Products Sub-Segment Absolute $ Opportunity, 2015–2020 

  60. Global Functional Food Products Sub-Segment Y-o-Y Growth, 2014–2020  

  61. Global Bakery Products Sub-Segment Absolute $ Opportunity, 2015–2020 

  62. Global Bakery Products Sub-Segment Y-o-Y Growth, 2014–2020  

  63. Global Confectionery Sub-Segment Absolute $ Opportunity, 2015–2020 

  64. Global Confectionery Sub-Segment Y-o-Y Growth, 2014–2020  

  65. Global Beverages Sub-Segment Absolute $ Opportunity, 2015–2020 

  66. Global Beverages Sub-Segment Y-o-Y Growth, 2014–2020  

  67. Global Frozen Products Sub-Segment Absolute $ Opportunity, 2015–2020 

  68. Global Frozen Products Sub-Segment Y-o-Y Growth, 2014–2020  

  69. Global Animal Nutrition Sub-Segment Absolute $ Opportunity, 2015–2020 

  70. Global Animal Nutrition Sub-Segment Y-o-Y Growth, 2014–2020  

  71. Global Dairy Products Sub-Segment Absolute $ Opportunity, 2015–2020 

  72. Global Dairy Products Sub-Segment Y-o-Y Growth, 2014–2020  

  73. Global Food Encapsulation Market Value Share & BPS Analysis By Geography, 2014 & 2020

  74. Global Food Encapsulation Market Attractiveness By Region, 2014

  75. North America Food Encapsulation Market Absolute $ Opportunity, 2014 – 2020 

  76. North America Food Encapsulation Market Y-o-Y Growth, 2014 – 2020  

  77. Latin America Food Encapsulation Market Absolute $ Opportunity, 2014 – 2020 

  78. Latin America Food Encapsulation Market Y-o-Y Growth, 2014 – 2020  

  79. Western Europe Food Encapsulation Market Absolute $ Opportunity, 2014 – 2020 

  80. Western Europe Food Encapsulation Market Y-o-Y Growth, 2014 – 2020  

  81. Eastern Europe Food Encapsulation Market Absolute $ Opportunity, 2014 – 2020 

  82. Eastern Europe Food Encapsulation Market Y-o-Y Growth, 2014 – 2020  

  83. APEJ Food Encapsulation Market Absolute $ Opportunity, 2014 – 2020 

  84. APEJ Food Encapsulation Market Y-o-Y Growth, 2014 – 2020  

  85. Japan Food Encapsulation Market Absolute $ Opportunity, 2014 – 2020 

  86. Japan Food Encapsulation Market Analysis Y-o-Y Growth, 2014 – 2020  

  87.  MEA Food Encapsulation Market Absolute $ Opportunity, 2014 – 2020 

  88. MEA Food Encapsulation Market Y-o-Y Growth, 2014 – 2020

  89.  

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