The food encapsulation market is estimated to be worth USD 9.9 billion in 2020 and is projected to grow at a CAGR of 7.5%, recording a value of USD14.1 billion in 2025.
This market is mainly driven by increased demand for encapsulated flavors from delicious food producers and increased demand for enriched food products. However, high costs are the only bearing factor for this market. According to industry experts, the price of any material rises more than 50% when undergoing encapsulation procedures. Also, capital investment involved in the cost of machinery and materials adds to the final product.
Probiotics help maintain strong levels of friendly microorganisms in the human intestine. Probiotics help prevent infection, slow the growth of harmful bacteria, prevent imbalances in the digestive system, avoid immune reduction and ineffective absorption of nutrients. Because of the many health benefits offered by prebiotics, they are widely used in the food industry in the functional food segment. This probiotic is encapsulated to maintain the character of their tics and to protect it from external environmental conditions.
Ingredients such as vitamins, minerals, and probiotics are mostly applied in functional foods. Also, the adoption of encapsulation for vitamins is the highest, according to industry experts, worldwide. According to industry experts, the rate of adoption of food encapsulation has reached 40% in the functional food segment for its ingredients. Therefore, this segment is expected to dominate the market in 2020 for food encapsulation, based on application, and followed by food supplements, which are the next main application of these ingredients.
The North America region dominates the market in 2018, and the Asia Pacific region is projected to be the fastest growing market during the forecast period in the food encapsulation market. Factors driving the growth of the Asia Pacific market include increasing adoption of technological advances in the region, increasing disposable incomes, and increasing demand for functional foods and food supplements among urban populations.