Global Microencapsulation Market By Coating Material (Gums & Resins, Polymers, and Other Coating Material), By Technology (Dripping, Spray, and Other Technologies), By Application(Pharmaceutical, Agrochemical, Personal Care, Food & Beverages), By Region and Companies – Industry Segment Outlook, Market Assessment, Competition Scenario, Trends, and Forecast 2023-2032

Report Overview

In 2022, the Global Microencapsulation Market was valued at USD 11.6 Billion. This market is estimated to reach USD 31.8 Billion at the highest CAGR of 10.9% between 2023 and 2032.

Microencapsulation is a technique that is used to cover the active ingredients in small capsules. Microencapsulation protects the active ingredient or substance on which the coat is applied.

It protects the active ingredient by isolating it from the external environment. The coat that is used to cover the active ingredient is known as an encapsulating agent. This technology of microencapsulation is used in many industries like pharmaceutical, agrochemical, personal care & cosmetics, food & beverages, construction, and many such industries to cover the active ingredient with special properties.

Microencapsulation has wide uses in the food & beverages industry for shadowing the volatility, reactivity, and aroma of food products. It also protects food products in adverse conditions. Therefore, it is widely used in the food industry.

Similarly, in the pharmaceutical industry, microencapsulation is used to cover the active pharmaceutical ingredient to reduce its reactivity with other sites than the targeted sites. In some cases, it also masks the odor and taste of the pharmaceutical ingredient.

Key Takeaways

• Market Expansion: In 2022, the global Microencapsulation Market was valued at USD 11.6 billion and is projected to experience a compound annual growth rate of 10.9% from now until 2032.
• Microencapsulation Technology: Microencapsulation is a technique for protecting active ingredients within small capsules against environmental degradation. This application has applications across industries like pharmaceuticals, agrochemicals, personal care products, food & beverages and more.
• Food and Pharmaceutical Industries: Microencapsulation’s increased adoption within both industries has proven an influential driver for market growth. By keeping vitamins, essential oils, minerals, additives, and flavors encased within food products and disguising the odor and taste of pharmaceutical ingredients from being released during microencapsulation processes.
• Research and Development Costs: Research and development expenses represent one of the greatest obstacles in the microencapsulation market. While major corporations invest heavily in R&D efforts, making adoption by smaller enterprises challenging.
• Coating Materials: Polymers dominate this sector with a 27.6% market revenue share; proteins are expected to experience compound annual compound annual growth at 9.6% compounding over time for pharmaceutical and food applications.
• Technology: Spray technology leads the market with a 32.88% revenue share and projected compound annual growth rates of 9.6% due to low particle size distribution and biocompatibility issues. Dripping technology will follow at 9.6% CAGR due to similar considerations.
• Applications: The pharmaceutical industry accounts for 64.8% of revenue share in the microencapsulation market; it offers various benefits including masking of odor and taste, protection from environmental factors, improved solubility, and cell encapsulation. The food and beverages industries are expected to experience compound annual growth at 10.8% compound annually.
• Recent Trends: Growing awareness around nutrient consumption and the increasing popularity of functional foods is driving microencapsulation adoption within the food industry.
• Development Opportunities: Research and development activities related to microencapsulation for immunity protection as well as increased demand for personal care products offer growth prospects within the market.
• Regional Analysis: North America holds the largest revenue share at 36.4% due to pharmaceutical and healthcare companies’ demand for microencapsulation services, while Asia Pacific is projected to experience the highest compound annual compound annual compound growth at 11.4% due to increased funding for research and development of drugs with new delivery mechanisms.
• Key Players in Microencapsulation Market: Major players in the microencapsulation market seek mergers, acquisitions, and strategic partnerships in order to expand their footprint in terms of mergers or partnerships such as BASF SE, Microtek Laboratories Inc, Evonik Industries AG 3M Dow and others are just some of them who operate effectively within this space.

Driving Factors

The wide use of Microencapsulation in the Food and Pharmaceutical Industry is Driving the Growth of the Global Microencapsulation Market.

The rising demand for the microencapsulation technique in the food industry and pharmaceutical industries is mainly driving the growth of the global microencapsulation market. Microencapsulation is a technique that allows vitamins, essential oils, minerals, additives, and flavors to stay integrated into food products. This helps the food products to maintain their core functional characteristics. Therefore, major companies and businesses in the food & beverages industry are highly adopting the microencapsulation technique.

Also, the use of microencapsulation in the pharmaceutical industry for masking the odor and taste of active pharmaceutical ingredients (API) is positively affecting the pharmaceutical industry. Microencapsulation also helps to protect the (API) until it reaches the target site. These uses of microencapsulation techniques in the food and pharmaceutical industry are propelling the growth of the microencapsulation market.

Restraining Factors

The high cost of Research and Development in Microencapsulation is Hampering the growth of the Market.

Microencapsulation is used by many industries to coat the active ingredient. However this technique of microencapsulation requires extensive research for the proper material to coat the active ingredient. Major companies in the microencapsulation market spend a lot of money on the research and development of suitable coating materials. Therefore, the cost of microencapsulation increases with the complex research in companies.

Due to this, many small and medium enterprises are not able to adopt the microencapsulation technique in their operations. This is hindering the growth of the microencapsulation market. In some cases, the microencapsulation does not provide the needed protection to the active ingredient it due to factors like the stability of the active ingredient and changing environmental conditions. This is expected to obstruct the growth of the microencapsulation market in the upcoming period.

By Coating Material Analysis

Polymers Dominate the Coating Material Segment by Holding Major Revenue Share in Global Microencapsulation Market.

Based on coating material, the global microencapsulation market is classified into gums & resins, polymers, carbohydrates, lipids, protein, and other coating materials. Out of these coating materials, the polymers lead the global microencapsulation market by covering a major revenue share of 27.6%. This growth of polymers is due to the quality of polymer-based coatings for microencapsulation.

Polymers like polylactic-glycolic (PLGA) acid and polylactic acid(PLA) are mainly used for microencapsulation in industries like food & beverages. The US Food and Drugs Administration has approved polymer-based microencapsulation for products like depot formulation and surgical sutures. These key factors are boosting the growth of polymers as a coating material in the global microencapsulation market.

However, Proteins are expected to grow at the highest CAGR of 9.6% over the forecast period. Many proteins like gelatin, gluten, and peptides are used in the microencapsulation of various pharmaceutical products, food products, and many such products. This is anticipated to drive the growth of proteins in the microencapsulation market over the forecast period.

By Technology Analysis

Spray Technology Leads the Technology Segment with Major Share in Account.

The Microencapsulation market is classified into dripping, spray, coating, emulsion, and other technologies on the basis of technology. Among these technologies, spray technology dominates the segment by covering a major revenue share of 32.8% in the global microencapsulation market.

This massive growth of spray technology is owing to the advantage of spray technology over other technologies. The spray technology provides good stability with high encapsulation efficiency for products. Moreover, the low cost and high production ability are also boosting the growth of spray technology in the global microencapsulation market.

Also, dripping technology is anticipated to grow significantly at a CAGR of 9.6% over the forecast period. Low particle size distribution and biocompatibility are expected to have a major impact on the growth of dripping technology in the microencapsulation market over the forecast period.

By Application Analysis

Wide Usage of Microencapsulation in the Pharmaceutical Industry is Driving the Growth of the Pharmaceutical Industry in the Global Microencapsulation Market.

Based on application, the global microencapsulation market is classified into pharmaceutical, agrochemical, food & beverages, personal care, and other applications. From these applications, the pharmaceutical industry holds a major revenue share of 64.8% in the global microencapsulation market.

This massive growth of the pharmaceutical industry is due to the high usage of microencapsulation in the industry for its various advantages. Some of the advantages of microencapsulation in the pharmaceutical industry are odor and taste masking, protection from environmental factors, improved solubility, and cell capsulation. All these factors help the pharmaceutical industry to hold a major share in the global microencapsulation market.

After the pharmaceutical industry, the food and beverages industry is expected to expand at a decent CAGR of 10.8%. Increasing demand for functional foods is expected to drive the growth of the food & beverages industry in the microencapsulation market over the forecast period.

Key Market Segments

By Coating Material

• Gums & Resins
• Polymers
• Lipids
• Carbohydrates
• Protein
• Other Coating Material

By Technology

• Dripping
• Spray
• Emulsion
• Coating
• Other Technologies

By Application

• Pharmaceutical
• Agrochemical
• Personal Care
• Food & Beverages
• Other Applications

Growth Opportunity

Research and Development Activities in Microencapsulation Technique are Expected to Create Many Opportunities During the Forecast Period.

Many companies across the world are looking towards microencapsulation as an immunity protection process. Therefore, they are investing heavily in the research of microencapsulation in the immunity protection process. This is expected to create many opportunities in the microencapsulation market over the forecast period. Also with changing lifestyles, the rising demand for microencapsulation from the personal care and cosmetics market is also expected to create many lucrative opportunities in the global microencapsulation market.

Latest Trends

Increasing Awareness About Nutrient Intake is Forcing Individuals to Adopt Function Foods in Diet.

The rising popularity of functional foods among individuals in the last few years has significantly boosted the microencapsulation market. The high nutrient content and better health benefits attract individuals to adopt functional foods in their food habits. Individuals have become more aware of micronutrients.

Therefore, they are highly adopting functional foods in their diet to avoid deficiencies leading to malnutrition and maintain a healthy lifestyle. Microencapsulation is helping functional foods for fulfilling the consumer demand for nutrition. These key factors are positively affecting the growth of the global microencapsulation market.

Regional Analysis

North America Region Holds Major Share of 36.4% in Global Microencapsulation Market.

The North American region dominates the global microencapsulation market by holding a major revenue share of 36.4%. This massive growth of the North American region is attributed to the presence of many pharmaceutical and healthcare companies like Pfizer and Johnson & Johnson. These companies are focusing on the development of novel drug delivery systems which is directly raising the demand for microencapsulation in the region.

Also, the an increasing demand for microencapsulation techniques in the food & beverages industry for fragrances, flavors, and colorants that are used in the manufacturing of many food products. All these key factors are driving the growth of the microencapsulation market in the North American region.

After North America, the Asia Pacific region is anticipated to grow at the highest CAGR of 11.4% over the forecast period. Increasing funding for the research and development of drugs and novel drug delivery systems is expected to drive the growth of the microencapsulation market in the Asia Pacific region over the forecast period.

Key Regions and Countries

• North America
  • The US
  • Canada
  • Mexico
• Western Europe
  • Germany
  • France
  • The UK
  • Spain
  • Italy
  • Portugal
  • Ireland
  • Austria
  • Switzerland
  • Benelux
  • Nordic
  • Rest of Western Europe
• Eastern Europe
  • Russia
  • Poland
  • The Czech Republic
  • Greece
  • Rest of Eastern Europe
• APAC
  • China
  • Japan
  • South Korea
  • India
  • Australia & New Zealand
  • Indonesia
  • Malaysia
  • Philippines
  • Singapore
  • Thailand
  • Vietnam
  • Rest of APAC
• Latin America
  • Brazil
  • Colombia
  • Chile
  • Argentina
  • Costa Rica
  • Rest of Latin America
• Middle East & Africa
  • Algeria
  • Egypt
  • Israel
  • Kuwait
  • Nigeria
  • Saudi Arabia
  • South Africa
  • Turkey
  • United Arab Emirates
  • Rest of MEA

Key Player Analysis

Major players seek mergers and acquisitions and strategic partnerships to expand their corporate footprint and thrive in a competitive business environment. There are many players in the industry offering a wide range of products, which leads to fierce competition.

Top Key Players

• BASF SE
• Microtek Laboratories Inc.
• Evonik Industries AG
• 3M
• Dow
• Bayer AG
• Balchem
• LycoRed Group
• Encapsys LLC
• Inno Bio Limited
• Other Key Players

Recent Developments

• In January 2021, Givaudan acquired the French company Myrissi. It is specialized in providing microencapsulation for active cosmetic ingredients.
• In December 2020, BASF SE expanded its manufacturing facility in Norway for the microencapsulation of omega-3 powders. This expansion was done to fulfill the rising demand for dietary supplements and functional foods.

Report Scope