The global food encapsulation market was valued at USD 11.5 billion in 2022 and is projected to reach USD 17.0 billion by 2027, growing at a CAGR of 8.2% during the study period. The market for encapsulation is growing globally at a significant pace due to its numerous applications and multiple advantages over other technologies. Some of the major advantages of encapsulation are that it helps provide enhanced stability and bioavailability to the bioactive ingredients, increases the shelf life of food products, and maintains the taste and flavor for a longer period of time. Encapsulation is increasingly used in various industrial areas, such as nutraceuticals and food & beverages.

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Restraints: More inclination toward traditional preservation methods over encapsulation techniques

Manufacturers of small and medium-sized companies in the food & beverage industry use the traditional method of preservation techniques over the encapsulation technique because food encapsulation can be expensive. New markets are being established within the functional foods sector, and researchers are in the process of meeting this demand to reduce high production costs. Encapsulation results in extra cost, which needs to be minimized to be economically acceptable by all manufacturers. This applies not only to the materials used to build capsules but also to the equipment or processing conditions. The number of core materials suitable for encapsulation is also limited. Currently, only a few bioactive ingredients and specialty ingredients, such as artificial sweeteners and encapsulated flours, which have been encapsulated, are showing desired results in terms of their sensorial properties in food applications. Further research is needed to successfully encapsulate ingredients that provide an edge over other techniques.

Energy-efficiency of spray chilling technique to drive its use in bakery products.

Spray chilling is also known as spray cooling, prilling, or spray congealing. Spray chilling is the process of solidifying an atomized liquid spray into particles. In this method, a mixture of core and wall is atomized into the cooled or chilled air, which causes the wall to solidify around the core. Unlike spray-drying, spray-chilling does not involve mass transfer (water evaporation). Therefore, it is more energy efficient. In the spray cooling method, the coating material is typically some kind of vegetable oil or its derivatives, including fat and stearin, with melting points of 45°C - 72°C.

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North America dominated the food encapsulation market; it is projected to grow at a CAGR of 7.8% during the forecast period.

The food encapsulation market in North America is influenced by factors like health awareness, the promotion of nutraceuticals and functional foods, and growing expenditure on prevention of chronic noncommunicable diseases. Food encapsulation adds value to foods and effectively delivers potent bioactives in isolation as supplements or as value addition in functional foods. The US dominated the market in 2021 and is projected to be the fastest-growing market for food encapsulation in North America. The market in this region is driven by technological advancements in food encapsulation techniques such as liposome compression, inclusion complexes, and centrifugal extrusion and the growing demand for functional and fortified foods that use encapsulated nutrients and the growing consumption of convenience foods that use encapsulated flavors and colors. Most of the key market players have a presence in the region.

The key players in this market include Cargill, Incorporated (US), Balchem (US), International Flavors & Fragrances Inc. (US), and Encapsys LLC (US).