Key Factors behind Microencapsulation Market’s Rapid Growth

The report “Microencapsulation Market by Technology (Spray, Emulsion, Dripping), Core Material (Pharma & Healthcare Drugs, PCM, Food Additives, Fragrances), Application (Pharma, Household, Agrochemicals, Textiles), Shell Material, and Region – Global Forecast to 2023″ The global microencapsulation market was valued at USD 6.3 billion in 2018 and is projected to reach USD 11.8 billion by 2023 at a CAGR of 11.4% from 2018 to 2023. The market is driven by factors such as the increasing demand for fortified food products with health benefits, the increasing demand for agrochemicals due to its controlled release property, growth in construction and construction materials, as well as the widespread application in household & personal care.

 Browse 87 market data Tables and 48 Figures spread through 202 Pages and in-depth TOC on “Microencapsulation Market – Global Forecast to 2023”

Market Dynamics

Increase in demand for fortified food products with health benefits

The demand for microencapsulation is increasing with the growth in demand for functional and fortified food & pharmaceutical products. It provides integration of minerals, vitamins, flavors, essential oils, and other additives in food products to enhance the functional properties of products. The pharmaceutical sector is also greatly influenced by microencapsulation technologies due to the benefits achieved by the manufacturers. Along with the encapsulation of drugs, other active ingredients such as peptides, proteins, and DNA/RNA molecules are also encapsulated in the pharmaceutical sector to meet the market demand for value-added products.

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High cost associated with the microencapsulation process

Although a large number of market players have adopted the microencapsulation technology in various industries, constant R&D is required to sustain in the market. The high cost of R&D resources, along with the processing technology, is hindering the market growth. The development of microencapsulated material is sometimes customized, and at times is required to be carried out at an industrial scale instead of a pilot scale. This increases the processing cost of products and ultimately leads to an increase in their cost.

Due to this increased product cost, the use of this technology gets limited for the following:

• Products that have a high value
• Products or processes that are not possible without microencapsulation
• Products where the economies of scale can be applied.

Hence, the adoption of microencapsulation in several industries is difficult, as its use makes high-value products, which are not easily preferred in the market. It is an additional cost, which has to be minimized to be economically acceptable. This applies not only to the materials used to make the microcapsules but also to the equipment or processing conditions. The number of food-grade materials suitable for microencapsulation is also limited.

Food & beverage manufacturers with small and medium-sized facilities prefer to opt for traditional preservation techniques, as microencapsulation technologies can be expensive. New markets are being established within the functional foods sector, and research to meet this demand is underway to reduce high production costs.

The cost of production of controlled release fertilizers is much higher than that of conventional soil-applied fertilizers due to the complex production process they require. According to the International Fertilizer Association, the cost of controlled release fertilizer about four to six times higher than that of the conventional NPK (nitrogen, phosphorus, and potash) fertilizer. This acts as one of the major restraints for the microencapsulation market.

North America accounted for the largest market share of the microencapsulation market in 2017. The market for microencapsulation in the North American region is driven by the growing demand and awareness for value-added products in various areas such as nutrition, food, healthcare, and personal care. Due to this awareness and increased demand, companies are focusing on manufacturing functional products, with novel technologies such as microencapsulation.

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This report includes a study on the marketing and development strategies, along with a study on the service portfolios of the leading companies. It includes the profiles of leading companies such as BASF (Germany), Royal FrieslandCampina (Netherlands), Syngenta Crop Protection (Switzerland), Koninklijke DSM (Netherlands), Givaudan (Switzerland), Firmenich (Switzerland), Symrise (Germany), International Flavors & Fragrances (US), Sensient Technologies (US), Lycored Corp. (UK), Balchem Corporation (US), Encapsys (US), Arcade Beauty (US), and Koehler Innovative Solutions (Germany).

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