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3. New Revenue Pockets: Demand for Flavour Encapsulation in Food Production and Processing in Developing Countries is Driving the Food Encapsulation Market

The market for food encapsulation was valued at USD 11.5 billion in 2022; it is projected to grow at a CAGR of 8.2% to reach USD 17.0 billion by 2027. The market for encapsulation is growing globally at a significant pace due to its numerous applications and multiple advantages over other technologies. Some of the major advantages of encapsulation are that it helps provide enhanced stability and bioavailability to the bioactive ingredients and helps increase the shelf life of food products and maintains the taste and flavor for a longer period. Encapsulation is increasingly used in various industrial areas such as nutraceuticals and food & beverages. The high growth opportunities in emerging regions are attributed to innovations by key players, growing economies and technological advancements.

The global food encapsulation market is highly competitive, with many global and local market players who have adopted various strategies to expand their global footprint and increase their market share. Agreements & contracts, partnerships, product launches, expansions & investments, and mergers & acquisitions are some of the key strategies adopted by players to achieve growth in the food encapsulation market. According to the International Association of Color Manufacturers, artificial food colors enhance the intensity of natural colors, which results in the virtual colorlessness of natural colors. Thus, favorable government policies for the international trade of confectioneries that use ingredients, such as flavors, sweeteners, and colors, are projected to support the encapsulated artificial food colors market growth for key players. Consumer tastes and preferences are ever-changing with the increasing willingness to try new and appealing products, with flavor variety and other attributes. This will drive the demand for various artificial colors from different origins and sources, propelling the food encapsulation market.

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The global food encapsulation market is dominated by top players such as Cargill, Incorporated (US), BASF SE (Germany), Kerry (Ireland), DSM (Netherlands), Ingredion (US), Symrise (Germany), Sensient (Germany), Balchem (US), International Flavors & Fragrances Inc. (US), Firmenich SA (Switzerland), FrieslandCampina (Netherlands), TasteTech (UK), LycoRed Corp (Israel), Ronald T Dodge Company (US), Innov’io (France), Givaudan (Australia), AnaBio Technologies (Ireland), Sphera Encapsulation (Italy), Reed Pacific (Australia), Aveka (US), Advanced Bionutrition Corp (US), Clextral France (US), Vitablend (Netherlands), and Encapsys LLC (US).

BASF SE has a good global presence. The company generates 41% of its revenue from Europe while also targeting other regions. It has been employing effective strategies to gain a considerable market share on the supply front of the food encapsulation market. It has also launched various products specific to local markets in each country. BASF SE continuously invests in R&D; it invested USD 2.38 billion in 2019, enabling the company to provide high-value food-encapsulated products to the food & beverages industry. The company has a strong product portfolio offering products according to the local market demand. The company is expanding its product portfolio and expanding in emerging markets that will fulfil the demand from the food, beverage, and dietary supplement industries in the coming years. It continues to focus on maintaining its market position in the global food encapsulation market through new product launches and geographic expansions in high-growth markets. Owing to huge opportunities in the food encapsulation market, it has expanded its facilities to cater to the growing demand for food encapsulation, thereby enhancing its sales and profitability.

Kerry Group is focused on capitalizing on its nutritional growth platform and expanding its taste and nutrition business globally and regionally to meet customer requirements. It is also focusing on tapping the significant foodservice channel opportunities. Kerry continuously invests efforts into improving its integrated industry-leading technology framework with timely innovation. For premium products, the company has been developing encapsulated flavors in both sweet and savory food products. The company has been focusing on the encapsulation of its flavor ingredients as one of its core processes and plans to expand the application of this technology for other ingredients as well. The company has been investing in its Technology & Innovation centres across the globe, especially in the UAE, South Africa, and Ireland. It focuses on acquisitions and expansion strategies to support taste strategy, nutrition & wellness platforms, and geographic expansion, especially in developing markets. R&D investments, as it currently has announced to develop an innovation centre in Australia, which will help the company strengthen its presence in Australia. The company is focused on increasing its presence in the US through acquisitions and partnerships. Kerry acquired Niacet (US), which would help the growers gain access to Niacet’s high-quality products and make efficient use of the company’s knowledge in preservation.

Related Reports:

Food Encapsulation Market by Shell Material (Lipids, Polysaccharides, Emulsifiers, Proteins), Technology (Microencapsulation, Nanoencapsulation, Hybrid Encapsulation), Application, Method, Core Phase and Region - Global Forecast to 2027

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