Microencapsulation Market Forecasts to 2030 - Global Analysis By Technology, Coating Material, Shell Material, Application and By Geography

According to Stratistics MRC, the Global Microencapsulation Market is accounted for $9.71 billion in 2023 and is expected to reach $15.31 billion by 2030 growing at a CAGR of 6.7% during the forecast period. The complex process of microencapsulation involves creating organic or inorganic shells that hold and protect active substance particles from the environment. Many products need to have their active ingredients encapsulated for better stability. Microencapsulation is an essential commercial technology that enables the protection and controlled release of numerous active compounds. Additionally, microencapsulation enhances drug delivery and is used in a variety of cutting-edge medication organization techniques.

According to the United Nations Department of Economic and Social Affairs, nearly 56% of the world's population lives in cities as of 2019. This proportion is expected to rise to 68% by 2050.

Market Dynamics:

Driver:

• Increasing consumer demand for functional foods.

• In the health and wellness community, functional foods have become more popular in recent years. They are rich in nutrients and offer a variety of health advantages. The demand for functional food is primarily driven by factors like growing consumer awareness of micronutrient deficiencies, a growing need to combat malnutrition, and rising health concerns accompanied by an increase in disease occurrences. Furthermore, increasing consumer disposable income is anticipated to fuel demand for functional foods, boosting the microencapsulation market.

Restraint:

• Rivalry for essential raw materials.

• Despite the widespread adoption of microencapsulation technology by industry players, ongoing R&D is necessary to remain competitive. The slow growth of the market is being hampered by the high cost of R&D resources and processing technology. It is occasionally necessary to carry out the development of microencapsulated material on an industrial scale rather than a pilot scale. This raises the cost of processing products, which ultimately raises the price of those products.

Opportunity:

• Growing demand for technology.

• Due to the growing demand for microencapsulated products, many businesses are investing heavily in R&D, which has significantly aided the industry's growth. To reach niche markets like the use of PCMs in energy applications and the delivery of medicines specifically for cancer and brain tumors, new microencapsulation technologies are required. Therefore, it is anticipated that the market will benefit from these developments.

Threat:

• Regulatory challenges & limited scalability.

• Microencapsulation may require different regulatory approvals and requirements depending on the application and materials used. These legal requirements may require a lot of time and money. In order to increase production to meet broader market demands, microencapsulation techniques may also encounter difficulties. Additionally, it can be challenging to maintain consistent quality and performance at larger production scales, which could limit the market.

COVID-19 Impact:

• The COVID-19 pandemic has resulted in declining sales and demand for microencapsulation in the agrochemicals, personal care, and other industrial sectors. As a result, manufacturers in sectors like agrochemicals and home and personal care are having trouble obtaining raw materials. Since the outbreak, many nations have also banned or delayed imports and exports, posing difficulties for producers and merchants.

• The pharmaceutical and healthcare segment is expected to be the largest during the forecast period

• The pharmaceutical and healthcare segment is anticipated to hold the largest market share during the forecast period. For controlled medication delivery, microencapsulation is frequently used in the pharmaceutical and healthcare sectors. Pharmaceutical companies frequently employ microencapsulation technology to control the distribution of medications, enable targeted delivery, and mask the unpleasant tastes or odors of pharmaceuticals. Furthermore, the pharmaceutical industry is increasingly in need of microencapsulated biomolecules because of attributes like tailored action.

• The spray technology segment is expected to have the highest CAGR during the forecast period

• The spray technology segment is predicted to grow at a profitable rate during the forecast period. Due to its high throughput, the segment is driven by its suitability for extensive industrial processes. Another factor influencing the uptake of spray technology is its adaptability to produce a wide range of particle sizes. Additionally, it is favored in many industries because it provides advantages like controlled drying and effective encapsulation.

Region with largest share:

North America is predicted to maintain its market dominance throughout the forecast period after dominating the market in 2021. This is a result of the high item interest for pharmaceutical, nutritive, and revitalizing applications. Due to the procedure's extensive penetration of the pharmaceutical and human services industries in this region, the U.S. dominated the market in North America. To supplement the growth over the anticipated period, advancements in the material business that integrate innovation for improvement in product quality are further fueling the market.

Region with highest CAGR:

Due to anticipated growth in demand from the food and beverage industry, the Asia Pacific region is anticipated to have the highest growth rate during the forecast period. The development of the Asia-Pacific healthcare industry has depended heavily on supportive government initiatives to promote FDI in the pharmaceutical sector in China and India. Technology advancements, emerging economies, and the region's quick industrialization are additional factors responsible for the product growth in the Asia Pacific region.

Key players in the market:

Some of the key players profiled in the Microencapsulation Market include: 3M, AVEKA Group, Balchem Corp., BASF SE, Bayer AG, Capsulae, Cargill Incorporated, DuPont de Nemours Inc., Encapsys LLC, Evonik Industries AG, GAT Microencapsulation GmbH, Givaudan SA, Inno Bio Limited, International Flavors & Fragrances Inc., Koehler Innovative Solutions, Koninklijke DSM N.V., LycoRed Ltd., Microtek Laboratories, Inc., Reed Pacific Pty Ltd., Ronald T. Dodge Co., Royal Friesland Campina N.V., Symrise AG, Syngenta AG, Syngenta Group and TasteTech Ltd.

Key Developments:

• In May 2023, 3M is expanding its ongoing commitment to materials science-based climate tech solutions by working with Svante Technologies, Inc. (Svante) to develop material that can trap carbon dioxide (CO2) found in the atmosphere and permanently remove it.

• In August 2022, Balchem Corporation is excited to announce the acquisition of Cardinal Associates Inc., operating as "Bergstrom Nutrition," a leading science-based manufacturer of methylsulfonylmethane (MSM), based in Vancouver, Washington.

• In June 2022, Balchem Corporation announced that it completed its acquisition of Kappa Bioscience AS, a leading science-based manufacturer of specialty vitamin K2 for the human nutrition industry, headquartered in Oslo, Norway.

Technologies Covered:

• Chemical Technologies
• Coating
• Dripping
• Emulsion
• Physico-Chemical
• Spray Technology
• Other Technologies

Coating Materials Covered:

• Gelatin
• Cellulose Acetate Phthalate
• Ethyl Cellulose
• Polyvinyl alcohol
• Other Coating Materials

Shell Materials Covered:

• Polymers
• Carbohydrates
• Gums and Resins
• Lipids
• Proteins

Applications Covered:

• Agrochemicals
• Construction
• Cosmetics
• Food and Beverages
• Household and Personal Care
• Paper and Printing
• Pharmaceutical and Healthcare
• Textiles
• Other applications

Regions Covered:

• North America
  • US
  • Canada
  • Mexico
• Europe
  • Germany
  • UK
  • Italy
  • France
  • Spain
  • Rest of Europe
• Asia Pacific
  • Japan
  • China
  • India
  • Australia
  • New Zealand
  • South Korea
  • Rest of Asia Pacific
• South America
  • Argentina
  • Brazil
  • Chile
  • Rest of South America
• Middle East & Africa
  • Saudi Arabia
  • UAE
  • Qatar
  • South Africa
  • Rest of Middle East & Africa

What our report offers:

• Market share assessments for the regional and country-level segments
• Strategic recommendations for the new entrants
• Covers Market data for the years 2021, 2022, 2023, 2026 and 2030
• Market Trends (Drivers, Constraints, Opportunities, Threats, Challenges, Investment Opportunities, and recommendations)
• Strategic recommendations in key business segments based on the market estimations
• Competitive landscaping mapping the key common trends
• Company profiling with detailed strategies, financials, and recent developments
• Supply chain trends mapping the latest technological advancements

Free Customization Offerings:

All the customers of this report will be entitled to receive one of the following free customization options:

• Company Profiling
  • Comprehensive profiling of additional market players (up to 3)
  • SWOT Analysis of key players (up to 3)
• Regional Segmentation
  • Market estimations, Forecasts and CAGR of any prominent country as per the client's interest (Note: Depends on feasibility check)
• Competitive Benchmarking
  • Benchmarking of key players based on product portfolio, geographical presence, and strategic alliances