Microencapsulation Market

Market Overview

The global microencapsulation market size was valued at USD 11 billion in 2021 and is expected to reach an expected value of USD 25 million at a CAGR of 10.4% during the forecast period (2022-2030).

The process of microencapsulation is intricate and entails the construction of natural or artificial shells that contain and shield particles of active substances from the outside world. Many goods have active ingredients that need encapsulation for more excellent stability. The protection and controlled release of numerous active compounds are made possible by microencapsulation, a crucial commercial technology. 

Microencapsulation improves the delivery of medications and is utilized in numerous cutting-edge methods for organizing medications. To guarantee the appropriate use of regulated medications, drug atoms are microencapsulated. This makes it possible for the body to receive medication supported and delayed.

The global microencapsulation market is primarily driven by factors like rising pharmaceutical and agrochemical product demand, increasing functional food product demand, robust cosmetic industry growth, rising demand for microencapsulated fragrances because of their numerous applications in the personal care and home care industries, and rising R&D spending to increase process efficiency.

Market Dynamics

Market Drivers:

• Rise in Demand for Fortified Food Products with Health Benefits

With the rise in demand for functional and fortified food and pharmaceutical goods, microencapsulation is becoming more and more popular. To prove the valuable qualities of products, microencapsulation enables the incorporation of minerals, vitamins, tastes, essential oils, and other additives in food products. Due to o the advantages realized by the manufacturers, microencapsulation technologies also have a significant impact on the pharmaceutical industry. To s satisfy consumer demand for value-added products, the pharmaceutical industry also encapsulates various active substances in addition to medications, including peptides, proteins, and DNA/RNA molecules.

• Surge in Demand for Technology

The development of the market is anticipated to be aided by the increased need for technology to create beauty supplements with natural ingredients. Market growth is expected to be helped by the soaring demand for the technology needed to produce cosmo-textiles. The demand for personal care products is likely to rise due to changing lifestyles and increasing consumer buying power, which is expected to be good news for the microencapsulation sector.

Market Restraint:

• Competition for Basic Raw Material

Even though many industry participants have embraced the microencapsulation technology, ongoing R&D is necessary to remain competitive. The processing technology and the high cost of R&D resources are impeding market expansion. The creation of microencapsulated material frequently requires customization and must occasionally be done on an industrial rather than a pilot scale. As a result, things now cost more to process, raising their price.

Market Opportunities:

• Advancement in Technologies to Tap Niche Markets

Numerous businesses are conducting significant R&D efforts in the market due to the rising demand for microencapsulated products, which has substantially aided the industry's expansion. New technologies in microencapsulation are needed to reach specialized markets like the usage of PCMs in energy applications and the delivery of drugs specifically for cancer and brain tumors. To enhance the performance of their products, PCM market participants are focusing on new product advancements, microencapsulation technologies, an increase in latent heat storage capacity, and an analysis of various phase change temperature alternatives. The energy industry requires the utilization of microencapsulated PCMs over 500°C (932°F), but no methods are currently available. The market is therefore anticipated to benefit from meeting this need.

Regional Analysis

By application, the global microencapsulation market share is segmented into North America, Europe, Asia-Pacific, and LAMEA. 

North America dominated the global microencapsulation market analysis during the forecast period.

North America constitutes a 36.1% market share of the microencapsulation market. The need for and awareness of value-added products for various industries, including nutrition, food, healthcare, and personal care, are driving the microencapsulation market in the North American region. Companies are concentrating on producing functional products using cutting-edge technology like microencapsulation due to this awareness and growing demand.

Due to the technique's widespread adoption in the pharmaceutical and healthcare sectors, the U.S. had most of the market share in North America in 2021, with over 82 percent. Major pharmaceutical corporations, including Johnson & Johnson, Pfizer, Bristol-Myers Squibb, and Eli Lilly and Company, are present in the nation, likely to spur growth.

Due to the region's rapidly growing pharmaceutical and food processing sectors, the Asia-Pacific market is anticipated to grow at a CAGR of 11.6 percent during the assessment period. Favo able government initiatives to encourage FDI in the pharmaceutical sector in China and India have been essential in advancing the Asia-Pacific healthcare sector.

Due to the early adoption of the technology in end-use applications, the United Kingdom, Germany, Italy, and France combined accounted for almost 70% of the total revenue in Europe. An emphasis on developing innovative drug delivery methods has resulted from significant pharmaceutical manufacturers in the area, including Roche, Novartis, GlaxoSmithKline, Sanofi, Novo Nordisk, and Bayer. This focus has a significant effect on market demand.

Segmental Analysis

The global microencapsulation market share is segmented by technology, application, coating material, and region. 

By coating material, the global microencapsulation market is segmented into carbohydrates, gums & resins, lipids, polymers, and proteins. 

Chitosan, starch, maltodextrin, cyclodextrin, and corn syrup are some of the significant coating substances used in the carbohydrates segment, which dominated the market. Thes products' excellent solubility and resilience in a volatile environment are anticipated to contribute to the segment's expansion.

Due to their superior features, polymers as coating materials are anticipated to experience the quickest CAGR of 11% during the anticipated period. 

Due to their widespread use in goods like surgical sutures and depot formulations that have received approval from the U.S. Food and Drug Administration, polylactic acid (PLA) and polylactic-co-glycolic acid (PLGA) have been the most popular polymers (FDA).

During the projection period, lipids as a coating material are anticipated to have a CAGR of ~9.7%. The primary lipids utilized for the microencapsulation coating of minerals, vitamins, food colorants, tastes, and scents are fatty acids, alcohols, waxes, paraffin, beeswax, diacylglycerols, oils, fats, phospholipids, and stearic acids.

By technology, the global microencapsulation market growth is segmented into coating, emulsion, spray technologies, dripping, and others. During the anticipated period, the spray technologies category had the most significant market share in the microencapsulation industry. This is because the microencapsulation process has many advantages, including high production capacity, high recovery efficiency, process simplicity, cost-effectiveness, and process safety. In the mass production of food- and pharmaceutical-grade microencapsulation, spray methods are frequently employed. A bigger market share results from this technique's intense penetration in encapsulating food ingredients, tastes, and perfumes. The practice offers high encapsulation efficiency, cheap cost, continuous and quick processing, and outstanding product stability.

During the projected period, the CAGR for coating technologies such as pan coating, fluidized bed coating, and air suspension coating is anticipated to be 9.9%. Since relatively big particles may be encapsulated by the pan coating method, their demand in pharmaceutical applications is expected to increase during the assessment period.

The leading dripping microencapsulation technologies are spinning disks, co-extrusion, and basic extrusion processes. The biocompatibility and low particle size distribution of the microcapsules produced by the dripping approach are anticipated to increase demand for them in pharmaceutical, cosmetic, and food and beverage applications.

Based on application, the global microencapsulation market forecast is segmented into pharmaceutical & healthcare products, home & personal care, food & beverages, agrochemicals, construction, textile, and others. The market's highest share is anticipated to go to the sector for pharmaceuticals and healthcare items. Microencapsulation is widely employed in the healthcare and pharmaceutical industries for regulated medication delivery. Pharmaceutical businesses frequently use microencapsulation technology to manage medication distribution, enable targeted delivery, and hide pharmaceuticals' unpleasant tastes or odors. Due to o features like tailored action, the need for microencapsulated biomolecules is rising in the pharmaceutical business. As a result, the demand for microencapsulation to deliver active components effectively and precisely is anticipated to increase as medications based on these biomolecules are developed.

Due to the increasing demand for building materials, the construction sector is predicted to grow at a CAGR of 9.9% over the projection year. The most often utilized microencapsulated goods for the construction industry are fire retardants, mineral oils, surfactants, heat retarding agents, polyurethane, antibacterial, and thermochromic compounds.

The food and beverage application category also had a substantial CAGR during the projection period. A significant market trend is the growing customer preference for healthy living to avoid illnesses brought on by nutrition. Manufacturers are improving the nutritional content of food products in the food and beverage sector, which significantly impacts the need for microencapsulation.

Colors, scents, and essential oils (EOs) are encapsulated in cosmetic goods thanks to the technology used in the home and personal care sectors. Demand for technology is anticipated to rise throughout the anticipated period due to increased demand for essential oils in the fragrance industry.

Recent Developments

• In December 2022, For battery producer PPES, BASF was chosen as a strategic supplier of high-performance cathode active materials.
• In January 2023, compared to December, the FrieslandCampina guaranteed price for organic farm milk lowered by 0.43 euros to 64.75 euros per 100 kilograms (2022). This decline is predicated on the assumption that reference firms will marginally lower the rates they pay for organic farm milk due to declining market demand and an increase in farm milk supply.
• In November 2022, Bovaer®, a revolutionary methane-reducing feed additive for ruminants, is being manufactured at a commercial scale by DSM in Dalry, Scotland.
• In December 2022, Givaudan opened its first integrated fragrance encapsulation center in Singapore.