Food encapsulation market to hit $5,464.6 million by 2020

IN food encapsulation, active ingredients, enzymes and other materials are incorporated in small capsules to protect them from conditions that could compromise their quality or to contain these materials in order to mask certain characteristics like odors.  This industry is poised to experience up to 9.4% CAGR through 2020, according to a report released by Research and Markets.

Encapsulated ingredients such as acids used in bakery products help extend shelf life

The market will reach US$5,464.6 million by 2020, a significant jump from $3,252.2 million in 2014, as sates in "Food Encapsulation Market: Global Industry Analysis and Opportunity Assessment 2015 - 2020".

The key factors to growth in this market lie in efficient blending of ingredients and ensuring taste, flavor, and shelf-life stability of finished products. In applications such as dairy products, beverages, and animal nutrition products, companies need put a premium on combining encapsulation technology and wall material to boost product life.

In the wall material segment, which comprises flavoring agents, acids, bases, and buffers, lipids, enzymes and  microorganisms, amino acids and peptides, vitamins and minerals, antioxidants, and others (artificial sweeteners and leavening agents), flavoring agents is projected to post a 10.5% CAGR to hit $1,677.4 million by 2020. Vitamins and minerals will follow with a forecast CAGR of 9.7% during the same period. The category is expected to account for 40.7% of the total food encapsulation market by 2020 in terms of market share contribution.

In terms of core material, with the market analysis covering carbohydrates, proteins, lipids, and waxes, proteins are expected to experience the biggest CAGR of 10% or US$1,209.3 million by 2020. Carbohydrates will register a 9.2% CAGR.

Protein-based encapsulation, which promises advantages in terms of sensory impact of microcapsules in the finished product, is forecast to generate stronger demand among manufacturers in the near future. Increased storage and processing, and extended applications for vegetable, biscuits, and juice products resulting from the encapsulation of probiotics in whey protein gel particles will also spur interest in protein-based matrix during the forecast period.