(EMAILWIRE.COM, November 25, 2020 ) The global food encapsulation market is estimated to account for USD 9.9 billion in 2020 and is projected to reach USD 14.1 billion by 2025, recording a CAGR of 7.5% during the forecast period. The market is primarily driven by the increasing demand for premium value-added products and the changing lifestyle among the millennials.

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Key players operating in this market include FrieslandCampina (Netherlands), DSM (Netherlands), Ingredion Incorporated (US), Kerry Group (Ireland), Cargill (US), Lycored Group (Israel), Balchem Corporation (US), Firmenich Incorporated (Switzerland), BASF SE (Germany), International Flavors and Fragrances Inc. (US), DuPont (US), Symrise AG (Germany), Sensient Technologies Corporation (US), Aveka Group (US), Advanced Bionutrition Corp (US), Encapsys (US), Tastetech Encapsulation Solutions (UK), Sphera Encapsulation (Italy), Clextral (France), and Vitasquare (Netherlands).

FrieslandCampina (Netherlands) is one of the largest dairy cooperatives in the world. It provides a wide range of encapsulated products such as encapsulated oils, fat powders, and emulsifiers. FrieslandCampina specializes in technologies, such as emulsification, micro-encapsulation, spray drying, and agglomeration. The company uses encapsulation technology for the protection of the functional values and benefits of oils and turning liquid into a powder without altering characteristics. Vana and Keivit are two brands under which the company has been distributing its encapsulated products.

Restructuring of existing business segments into dedicated subsidiaries presents opportunities for the growth of individual segments, such as FrieslandCampina Kievit and Nutrifeed, which has helped the company to grow extensively in functional and healthy ingredients and solutions. The company’s expenditure on advertising and product promotion will strengthening its brands’ position and market share in the food encapsulation market. For instance, in 2017, the company strengthened its partnership with Facebook (US), a social media platform, so as to expand its consumer base through efficient marketing strategies.

DSM (Netherlands) is a manufacturer of health, nutrition products, and materials, using various technologies. Life science and Material sciences are the two most revenue-generating business segments of DSM, among others. DSM offers encapsulated products and technology to the nutraceutical industry . It provides a wide range of encapsulated products, including encapsulated lipids, oils, and yeast extracts. The presence of the company is seen globally across different countries, including North America, Netherlands, the UK, France, Switzerland, Germany, China, Japan, India, Latin America, and other European and Asian countries. DSM has the broadest portfolio of nutritional ingredients in diversified end-markets and benefits across the value chain. Recently, in June 2019, the company entered into a joint venture with Evonik (Germany) for the production of encapsulated Omega 3 fatty acids.

Cargill (US) is engaged in the business of manufacturing and marketing food, agricultural, financial, and industrial products & services. Cargill is a conglomerate that offers products supporting 75 industries, but all its businesses are structured under four main business segments, namely, Animal Nutrition & Protein, Food Ingredients & Applications, Origination & Processing, and Industrial & Financial Services. Cargill not only provides encapsulated products such as flavors, powders, and starches but also provides technologies for the encapsulation and emulsion of food and beverages. It operates in various regions, including North America, Europe, the Middle East, Africa, Asia Pacific, and Latin America. Cargill functions in 70 countries through its numerous subsidiaries and affiliates.

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With the increasing demand for functional food, North America is estimated to dominate the global food encapsulation market in 2020.

The demand for functional food and dietary supplements has been high in the US and Western European countries. Consumers have been willing to bear the premium pricing of products in case of nutrient addition to the final product. Thus, ingredient manufacturers have been adopting technological ways to improve the quality of functional food and dietary supplement products. Thus, encapsulated food has been highly consumed in these regions. Also, the presence of key ingredient manufacturers has been high in North America, which is either providing encapsulated food as a part of their offering or in companies, which have been providing encapsulation as a service.

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