According to a Global Market Insights report, the global encapsulated flavors and fragrances market is expected to exceed $8 billion by 2024.
Among the key factors driving the encapsulated flavors and fragrances growth are accurate and efficient release of flavoring agents paired with the protection of the core phase from chemical reactions.
Demand for encapsulated ingredients in confectionery applications including candies, chewing gums, chocolates and bakery products are driving growth. Effective distribution channels and interest in encapsulated products with health benefits will also strengthen encapsulation development within the confectionery segment.
Per segments, the personal care and cosmetic businesses will see increased product demand that will lead to increased overall market share, while dairy and frozen products will supplement the business growth.
In addition to providing overall insight into the market, the report highlighted key metrics of the growth, which include:
- Fragrance blends market accounted for 18% of the market demand, led by growth in retail sectors and the introduction of innovative cosmetic, toiletries and home care releases.
- The physical process segment was valued at over $5.5 billion in 2017. Atomization, extrusion, emulsification and fluid bed coating will continue to grow due to its cost-effectiveness and high production capacity.
- Led by health-conscious consumer demands, micro-encapsulation processes held over 41% of the overall market share in 2017.
- The food and beverages segment is expected to be valued over $5.2 billion by 2024 with strong growth in the ready-to-eat food category.
- Per regions, Europe is anticipated to see strong growth as lifestyle changes propel its market share to over 26% by 2024.
Regulation and Raw Material Obstacles
Though the market is expected to expand, several factors can hinder its growth, including volatility in raw material prices, high cost of encapsulation technologies and government restrictions surrounding consumer safety.
Source: Global Market Insights