Encapsulated Flavors and Fragrances Market Will Generate New Growth Opportunities in the next 10 year

The encapsulated flavors and fragrances market worth will total US$ 6.3 billion in 2021, according to Future Market Insights (FMI). Growing at a healthy CAGR of 5.9% for 2021-31, the market is expected to reach US$ 11.2 billion by 2031. Encapsulation processes create functional qualities including the controlled release of aromatic molecules in specific environments. Encapsulated flavors and fragrances are used as excipients in the food and beverage, cosmetics, and personal care sectors for preserving products for long-term use.

Purity, granulation, average molecular weight, colour, and solubility determine the grade of encapsulated products. The wide multi-functional benefits of encapsulated flavours and fragrances are aiding the growth of the global market.

High levels of investments in research and development by key players, particularly in the developed countries, are expected to boost consumption. Another factor driving the market’s growth is the rising demand for functional foods.

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Additionally, manufacturers are using technologies such as spray-drying, which is the most commonly used method in the industry. The emphasis on health and wellness has risen by leaps and bounds.

Healthy drinks with vitamins and natural flavors are becoming popular among consumers. Flavour encapsulation is preferred to chemically synthesized equivalents. Consequently, it is used on fruit and vegetable ingredients without compromising nutritional content. As a result, encapsulated flavour manufacturers have great opportunities to partner with beverage manufacturers and supply encapsulated flavors for health drinks and more.

Key Takeaways from the Encapsulated Flavours and Fragrances Market Study:

  • Micro-encapsulation accounted for a market share of 72.9% in 2021 driven by superior functional efficacy and diverse applications.
  • Cyclodextrin is anticipated to witness a lucrative growth rate at a CAGR of 9.1%, supported by the growing popularity of prebiotics.
  • Germany holds the lead and will account for 24% share in the Europe market in 2021, however, it is registering sluggish growth owing to saturation in the country.
  • The U.S. will hold over 88% of the North America market by the end of 2031, driven by demand from matured food and chemical processing sectors.
  • South Korea registers the highest growth rate in East Asia at 8% CAGR, supported by demand from the cosmetic, personal care, and pharmaceutical sectors in the country.

Who is Winning?

Encapsulated flavors and fragrances manufacturers are working on delivering unique items to the market to reach a larger customer base. Manufacturers are also working on research and development to meet rising consumer expectations in both existing and emerging markets. Additionally, manufacturers are also focusing on online retailing in the pandemic through various E-commerce websites.

Some of the leading companies offering encapsulated flavours and fragrances are ADM, Cargill Inc, Firmenich Incorporated, Givaudan, Ingredion Incorporated, International Flavours and Fragrances (IFF), Kerry Group, Royal DSM, Sensient Technologies, Symrise AG, Tate & Lyle PLC and others.

Encapsulated Flavors and Fragrances Market by Category

By Product Type:

  • Flavour Blends
  • Fragrance Blends
  • Essential Oils & Natural Extracts
  • Aroma Chemicals

By Technology:

  • Mechanical
    • Emulsification
    • Spray Drying
    • Spray-Chilling/Cooling
    • Fluidised-Bed Coating
    • Centrifugal Extrusion
  • Others
    • Chemical
    • Coacervation
    • Freeze Drying
    • Supercritical Fluid Technique
    • Nano Precipitation
    • Liposomes
  • Others

By Wall Material

  • Maltodextrin (DE<20)
  • Corn syrup solid (DE>20)
  • Modified cellulose
  • Gum Arabic
  • Modified starch
  • Gelatin
  • Cyclodextrin
  • Lecithin
  • Whey protein
  • Hydrogenated fat
  • Others

By End-use:

  • Consumer Goods
    • Laundry detergents
    • Fabric softeners and scent boosters
    • Household Care
    • Deodorants
    • Oral Care
    • Skin Cleansing & Care
    • Hair Care (shampoo & conditioner)
  • Food and Beverage
    • Chewing gum
    • Baked Foods
    • Confectionery
    • Dairy Products
    • Instant Desserts (Frozen Food)
    • Food Flavors (Snack Food, Cereal, Oatmeal, etc.)
    • Beverage & Instant Drinks & Tea
    • Others (Prepared Dishes, etc.)

By Encapsulated Form:

  • Powder
  • Paste
  • Granules

By Process:

  • Micro-encapsulation
  • Nano-encapsulation
  • Hybrid-encapsulation
  • Macro-encapsulation

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Key Questions Answered in the Report

  • What is encapsulated flavors and fragrances market size?

The overall encapsulated flavors and fragrances market is projected to surpass US$ 6.3 Bn in 2021.

  • At what rate did the encapsulated flavors and fragrances market grow in the last five years?

Demand in the encapsulated flavors and fragrances market increased at 4.5% CAGR between 2016 and 2020.

  • What are the key trends shaping the encapsulated flavors and fragrances market?

Market players are likely to focus on nano-encapsulation technologies. Cost-effective mechanical encapsulation solutions will remain important in the market.

  • Which countries are key producers of encapsulated flavors and fragrances?

The U.S., Germany, U.K., France, and Switzerland are the leading producers of encapsulated flavors and fragrances products.

  • What are the key statistics for encapsulated flavors and fragrances market in Japan and South Korea?

Encapsulated flavors and fragrances solutions in Japan and South Korea are expected to hold a 5.2% and 8% CAGR through 2031, respectively.