The global food encapsulation market is estimated to reach $35.4 billion by 2014, growing at a CAGR of 6.9 % from 2009 to 2014. The market is driven by the increasing demand for functional foods due to changes in lifestyles, spending habits and a need for tastes and flavors that mask the not so palatable taste and flavor of nutritious foods. The encapsulation technologies, ingredients and encapsulation packaging markets are expected to grow at a CAGR of 7.7%, 6.2% and 4.1% respectively. Increasing use of encapsulation in confectionary industry and functional foods is boosting the overall food encapsulation end-user applications market.

Major food encapsulation technologies include microencapsulation, macroencapsulation and nanoencapsulation. The high growth of food encapsulation market is also boosted by technology innovations in the area of controlled release and targeted delivery of ingredients. Newer encapsulation packages with nanoscale designs and multi component delivery systems have a potential to revolutionize the market. Applications of food encapsulation comprise nutrient retention, taste masking or retention, flavor stabilization, color masking/retention and oxidation stability. Market players are also now focusing on developing newer encapsulation designs for ingredients such as probiotics flavors, and colors to strengthen their product portfolio. Strategic collaborations among key industry players are also increasing in the field of microencapsulation for technology sharing.

This analyst briefing focuses on the global food encapsulation market over the period 2009-2014. The agenda for the briefing includes discussion on key high growth market, marking the growth trend in the technologies, ingredients and packaging market for food encapsulation. Furthermore, a briefing will also be conducted on the competitive scenario and geographic opportunities. It analyzes the major opportunities for the global food encapsulation market; and also evaluates major trends in the macro- and micro-markets with respect to different geographic regions. Encapsulation has its applications in bakery and confectionary industry.

These applications are increasing in confectionary industry due to greater scope of controlled release and delivery in product segments such as candies and chewing gums. U.S. presently holds the largest market share due to technology advancements and high level of awareness on emerging foods. Moreover, food markets that have just begun to develop in other countries already have found establishment in the U.S. Europe, is however, the highest growing market due to technology leadership and increasing number of food industries. Asian & ROW markets are still lagging behind due to low levels of adoption rates of emerging foods such as probiotics due to low health awareness.

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