Global food encapsulation market to hit $5,464.6 Mn by 2020

THE worldwide food encapsulation market will grow at 9.4% CAGR from 2015 to 2020 to reach US$5,464.6 million by 2020. The Asia-Pacific region, excluding Japan, is forecast to post the highest CAGR at 10.2%.

 

A new report from Future Market Insights (FMI) titled “Food Encapsulation Market: Global Industry Analysis and Opportunity Assessment 2015–2020” said growing demand for natural flavours and clean label products, which has led to the development of novel products to cater to specific consumer needs, will spur the global market in the years ahead. 

 

Active R&D work aimed at developing clean label products with micro-encapsulation technology comprising no preservatives, added antioxidants, and gelatin will be a key demand driver globally. Demand for food products with additional benefits will increase at a rapid pace, particularly in emerging economies, due to growing consumer awareness and improved consumer spending on food and beverages.

 

New product launches, companies’ geographical expansion, and rising demand for functional and fortified food products among consumers will fuel growth in Asia Pacific.

 

Based on major applications, the global food encapsulation market may be segmented into dairy, beverages, bakery, confectionery, dietary supplements, functional food, animal nutrition, and others. It may classified into physical and chemical based on technology, and into flavouring agents, lipids, vitamins and minerals, antioxidants, acids, bases, and buffers, amino acids and peptides, and enzymes and microorganisms per  core material.

 

The physical segment is expected to account for 79% of the market by 2020. The dietary supplements category is forecast to represent 25.6% of the overall food encapsulation market. Growing demand for nutritional products will drive this growth. 

 

The chemical technology segment will grow at 10.1% CAGR during the forecast period. Amongst core materials, flavouring agents will experience a 10.5% CAGR on the back of increasing demand for enhanced taste and quality of food products.