The global microencapsulation market size is expected to reach USD 19.75 billion by 2027, exhibiting a CAGR of 13.7% over the forecast period 2020 to 2027.
Rising acceptance of microencapsulated materials in the food and beverage, pharmaceutical, and agrochemical industries is expected to have a positive impact on the growth.
The industry players are often engaged in strategic partnerships with the technology users from the end-user industries. High investment in R&D to improve technology efficiency is expected to be a key factor for the market expansion. Rising adoption of the technology by small and medium scale end users is expected to drive the market.
Microencapsulation technique is majorly used for masking taste, odor, and activity of the encapsulated structures, which act as functional ingredients for application industries such as pharmaceutical and healthcare. Spray technology is expected to witness significant growth in U.S. on account of presence of a large number of pharmaceutical industries.
Sodium alginate, PVA, ethyl cellulose, gelatin, and polysaccharides are few of the key raw materials used for microencapsulation technology. Uncertainty of raw material availability is expected to be a key concern for the players. Rapid expansion of end-use industries in Asia Pacific is expected to compel manufacturers to shift their focus to this region over the projected period.
Rising demand for the technology to manufacture beauty supplements containing natural ingredients is expected to benefit market expansion. In addition, increasing consumption of n-3 fatty acids on account of its benefits for health is expected to drive demand for microencapsulation for masking applications.
Surging demand for technology to manufacture cosmo-textiles is expected to benefit market expansion. Changing lifestyle, coupled with increased spending capacities of the consumers, is expected to propel demand for personal care products, which in turn, is expected to bode well for the microencapsulation market.
Coating Material Insights
Carbohydrates including chitosan, starch, maltodextrin, cyclodextrin, and corn syrup are the key coating materials. In 2018, the segment accounted for 19.9% share of the overall revenue. Superior solubility offered by these products, coupled with their ability to sustain in a volatile environment, is expected to have a positive impact on the growth.
Polymer as a coating material is expected to register a CAGR of 14.2% over the projected period on account of their premium qualities. Polylactic acid (PLA) and polylactic-co-glycolic acid (PLGA) have been the most preferred polymers owing to their extensive use in products, such as surgical sutures and depot formulations, approved by the U.S. Food and Drug Administration (FDA).
Gum acacia is majorly used in encapsulation of fragrances and flavors and is mainly consumed in the food and beverage industry. Gum acacia produce and stabilize emulsions and is proved to be excellent for encapsulation of flavors as it emulsifies, has a bland flavor and low viscosity. Furthermore, they have the ability to prevent oxidation, thereby driving the demand in the flavors and fragrances industry.
Lipids as a coating material are expected to exhibit a CAGR of 13.2% over the forecast period. Fatty acids, alcohols, waxes, paraffin, beeswax, diacylglycerols, oils, fats, phospholipids, stearic acids, and glycerides are the key lipids that are used for microencapsulation coating of minerals, vitamins, food colorants, flavors, fragrances.
Microencapsulation technology encapsulates active ingredient with a coating material and is categorized into coating, emulsion, spray, and dripping techniques. The shape and size of the active ingredients, chemical properties, permeability, degradability, and biocompatibility of the coating materials are the key factors considered while selecting appropriate microencapsulation techniques.
Coating technologies including pan coating, fluidized bed coating, and air suspension coating are expected to register a CAGR of 13.3% from 2019 to 2025. The pan coating process has the ability to encapsulate relatively large particles, which is expected to propel their demand in pharmaceutical application over the projected period.
Spray technology is the most widely used technique and accounted for 33.2% share of the overall revenue in 2018. High penetration of this technique in the encapsulation of food ingredients, flavors, and fragrances has resulted in higher market share. The technique offers continuous and rapid processing at low cost, high encapsulation efficiency, along with good stability of finished products.
Dripping technologies of microencapsulation primarily include spinning-disk, co-extrusion, and simple extrusion techniques. The microcapsules obtained from dripping technique are biocompatible and have a low particle size distribution, which is expected to drive their demand in pharmaceuticals, cosmetics, and food and beverages application.
The pharmaceutical and healthcare products application segment accounted for the highest market share in 2018. The technology is used to mask the bitter taste of the drugs and reduce the gastric and other G.I. track irritations caused by drugs. It is also used to reduce the hygroscopic properties, odor, and volatility of core materials.
The home and personal care industry utilizes the technology to encapsulate colors, fragrances, and essential oils (EOs) in cosmetic products. Increasing demand for essential oils in the fragrance industry is expected to drive technology demand over the projected period.
The construction industry is expected to register a CAGR of 14.6% over the projected period on account of rising demand for manufacturing of building materials. Microencapsulated active agents such as fire retardants, mineral oils and surfactants, heat retarding agents, polyurethane, antimicrobial agents, thermochromic materials are found to be the most widely used microencapsulated products for the construction industry.
The food and beverages application segment accounted for 7.8% share of the overall revenue in 2018. Growing consumer inclination towards healthy living in order to prevent illnesses caused by diet is a key trend in the market. Manufacturers in the food and beverage industry are improving the nutritional value of the food products, which has a major impact on driving the demand for microencapsulation.
North America accounted for 37.8% share of the overall revenue in 2018 on account of high product demand for pharmaceutical and food and beverage applications. Innovations in the textile industry to incorporate the technology for improvement in products’ quality and strength is expected to complement the growth over the projected period.
The U.S. dominated the market in North America with a share of over 80% in 2018 owing to high penetration of the technique in the pharmaceuticals and healthcare industries. Presence of major pharmaceutical companies including Merck & Co, Johnson & Johnson, Pfizer, Bristol-Myers Squibb Company and Eli Lilly and Company in the country is expected to propel growth.
U.K., Germany, Italy, and France together accounted for 71.2% share of the overall revenue in Europe owing to early adoption of the technology in end-use applications. Presence of major pharmaceutical manufacturers in the region including Roche, Novartis, GlaxoSmithKline, Sanofi, Novo Nordisk, and Bayer have been focusing on the development of novel drug delivery systems, which is having a major impact on the market demand.
The market in Asia Pacific is expected to expand at a CAGR of 15.6% over the projected period on account of rapid expansion of the pharmaceutical and food processing industries across the region. Favorable government policies to promote FDI in the pharmaceutical industry in China and India have played a crucial role in promoting the healthcare industry in Asia Pacific.
Microencapsulation Market Share Insights
The market has several players, which are primarily located in North America and Europe. Major players such as Encapsys LLC, Balchem and Lipo Technologies compete on the basis of application industries served, use of different technologies for microencapsulation, core materials encapsulated, and quality and cost of encapsulation.
Raw material availability is also expected to remain a key concern for the market players. Manufacturers are expected to establish strategic partnerships with the buyers across application segments in order to tap the consumer base, thereby increasing the competitive rivalry across the industry participants.
Coating Material Outlook
Gums & Resins
Pharmaceutical & health care products
Home & personal care
Food & beverages
Rest of World
The Microencapsulation market research report covers definition, classification, product classification, product application, development trend, product technology, competitive landscape, industrial chain structure, industry overview, national policy and planning analysis of the industry, the latest dynamic analysis, etc., and also includes major. The study includes drivers and restraints of the global market. It covers the impact of these drivers and restraints on the demand during the forecast period. The report also highlights opportunities in the market at the global level.
The report provides size (in terms of volume and value) of Microencapsulation market for the base year 2019 and the forecast between 2020 and 2027. Market numbers have been estimated based on form and application. Market size and forecast for each application segment have been provided for the global and regional market.
This report focuses on the global Microencapsulation market status, future forecast, growth opportunity, key market and key players. The study objectives are to present the Microencapsulation market development in United States, Europe and China.
It is pertinent to consider that in a volatile global economy, we haven’t just conducted Microencapsulation market forecasts in terms of CAGR, but also studied the market based on key parameters, including Year-on-Year (Y-o-Y) growth, to comprehend the certainty of the market and to find and present the lucrative opportunities in market.
In terms of production side, this report researches the Microencapsulation capacity, production, value, ex-factory price, growth rate, market share for major manufacturers, regions (or countries) and type.
In terms of consumption side, this report focuses on the consumption of Microencapsulation by regions (countries) and application.
Buyers of the report will have access to verified market figures, including global market size in terms of revenue and volume. As part of production analysis, the authors of the report have provided reliable estimations and calculations for global revenue and volume by Type segment of the global Microencapsulation market. These figures have been provided in terms of both revenue and volume for the period 2016 to 2027. Additionally, the report provides accurate figures for production by region in terms of revenue as well as volume for the same period. The report also includes production capacity statistics for the same period.
With regard to production bases and technologies, the research in this report covers the production time, base distribution, technical parameters, research and development trends, technology sources, and sources of raw materials of major Microencapsulation market companies.
Regarding the analysis of the industry chain, the research of this report covers the raw materials and equipment of Microencapsulation market upstream, downstream customers, marketing channels, industry development trends and investment strategy recommendations. The more specific analysis also includes the main application areas of market and consumption, major regions and Consumption, major Chinese producers, distributors, raw material suppliers, equipment providers and their contact information, industry chain relationship analysis.
The research in this report also includes product parameters, production process, cost structure, and data information classified by region, technology and application. Finally, the paper model new project SWOT analysis and investment feasibility study of the case model.
Overall, this is an in-depth research report specifically for the Microencapsulation industry. The research center uses an objective and fair way to conduct an in-depth analysis of the development trend of the industry, providing support and evidence for customer competition analysis, development planning, and investment decision-making. In the course of operation, the project has received support and assistance from technicians and marketing personnel in various links of the industry chain.
Microencapsulation market competitive landscape provides details by competitor. Details included are company overview, company financials, revenue generated, market potential, investment in research and development, new market initiatives, global presence, production sites and facilities, production capacities, company strengths and weaknesses, product launch, product width and breadth, application dominance. The above data points provided are only related to the companies’ focus related to Microencapsulation market.
Prominent players in the market are predicted to face tough competition from the new entrants. However, some of the key players are targeting to acquire the startup companies in order to maintain their dominance in the global market. For a detailed analysis of key companies, their strengths, weaknesses, threats, and opportunities are measured in the report by using industry-standard tools such as the SWOT analysis. Regional coverage of key companies is covered in the report to measure their dominance. Key manufacturers of Microencapsulation market are focusing on introducing new products to meet the needs of the patrons. The feasibility of new products is also measured by using industry-standard tools.
Key companies are increasing their investments in research and development activities for the discovery of new products. There has also been a rise in the government funding for the introduction of new Microencapsulation market. These factors have benefited the growth of the global market for Microencapsulation. Going forward, key companies are predicted to benefit from the new product launches and the adoption of technological advancements. Technical advancements have benefited many industries and the global industry is not an exception.
New product launches and the expansion of already existing business are predicted to benefit the key players in maintaining their dominance in the global market for Microencapsulation. The global market is segmented on the basis of region, application, en-users and product type. Based on region, the market is divided into North America, Europe, Asia-Pacific, Latin America and Middle East and Africa (MEA).
In this study, the years considered to estimate the market size of Microencapsulation are as follows:
Reasons to Purchase this Report:
- Market segmentation analysis including qualitative and quantitative research incorporating the impact of economic and policy aspects
- Regional and country level analysis integrating the demand and supply forces that are influencing the growth of the market.
- Market value USD Million and volume Units Million data for each segment and sub-segment
- Competitive landscape involving the market share of major players, along with the new projects and strategies adopted by players in the past five years
- Comprehensive company profiles covering the product offerings, key financial information, recent developments, SWOT analysis, and strategies employed by the major market players
In-depth interviews and discussions were conducted with several key market participants and opinion leaders to compile the research report.
This research study involved the extensive usage of both primary and secondary data sources. The research process involved the study of various factors affecting the industry, including the government policy, market environment, competitive landscape, historical data, present trends in the market, technological innovation, upcoming technologies and the technical progress in related industry, and market risks, opportunities, market barriers and challenges. The following illustrative figure shows the market research methodology applied in this report.
Market Size Estimation
Top-down and bottom-up approaches are used to estimate and validate the global market size for company, regional division, product type and application (end users).
The market estimations in this report are based on the selling price (excluding any discounts provided by the manufacturer, distributor, wholesaler or traders). Market share analysis, assigned to each of the segments and regions are achieved through product utilization rate and average selling price.
Major manufacturers & their revenues, percentage splits, market shares, growth rates and breakdowns of the product markets are determined through secondary sources and verified through the primary sources.
All possible factors that influence the markets included in this research study have been accounted for, viewed in extensive detail, verified through primary research, and analyzed to get the final quantitative and qualitative data. The market size for top-level markets and sub-segments is normalized, and the effect of inflation, economic downturns, and regulatory & policy changes or others factors are accounted for in the market forecast. This data is combined and added with detailed inputs and analysis from Vision Research Reports and presented in this report.
Market Breakdown and Data Triangulation
After complete market engineering with calculations for market statistics; market size estimations; market forecasting; market breakdown; and data triangulation. Extensive primary research was conducted to gather information and verify and validate the critical numbers arrived at. In the complete market engineering process, both top-down and bottom-up approaches were extensively used, along with several data triangulation methods, to perform market estimation and market forecasting for the overall market segments and sub-segments listed in this report.
Secondary Sources occupies approximately 25% of data sources, such as press releases, annual reports, Non-Profit organizations, industry associations, governmental agencies and customs data, and so on. This research study includes secondary sources; directories; databases such as Bloomberg Business, Wind Info, Hoovers, Factiva (Dow Jones & Company), TRADING ECONOMICS, and avention; Investing News Network; statista; Federal Reserve Economic Data; annual reports; investor presentations; and SEC filings of companies.
In the primary research process, various sources from both the supply and demand sides were interviewed to obtain qualitative and quantitative information for this report. The primary sources from the supply side include product manufacturers (and their competitors), opinion leaders, industry experts, research institutions, distributors, dealer and traders, as well as the raw materials suppliers and producers, etc.
The primary sources from the demand side include industry experts such as business leaders, marketing and sales directors, technology and innovation directors, supply chain executive, end users (product buyers), and related key executives from various key companies and organizations operating in the global market.
The study objectives of this report are:
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