Encapsulated Flavors Market

Encapsulated Flavors Market Outlook (2023-2033)

The market for encapsulated flavors can be expected to expand at a value based CAGR of 5.9% and show an increase in revenue from US$ 4,398.2 Mn to around US$ 7,005.0 Mn by 2033.

Encapsulated Flavors Consumption Analysis (2017-2022) Vs. Market Estimations (2023-2033)

The global encapsulated flavors market has witnessed significant growth in the historical period registering a CAGR of 4.8% in the historical period and was valued at US$ 7,005.0 Mn in 2023. The market is expected to grow steadily with increasing consumption and awareness about variety of flavors available in the market.

Consumer awareness about latent adversative effects of artificially-produced food additives is growing in various developed countries worldwide. Rising health awareness has led to rising preference for natural products among consumers globally. In addition, customers are more aware of the various nutritional values of vegetables and fruits, and the associated health benefits such as growing antioxidant levels, reduced risks of metabolic diseases including diabetes and obesity, related with consumption.

Flavors encapsulation enables conversion of fruits and vegetable ingredients into flavorss without hampering the nutritional content, and thus can be considered relatively more natural than chemically synthesized alternatives. Encapsulated flavors manufacturers are facing tighter profit margins owing to demand of processors and retailers and their private label brands. While the trend towards premium ingredients is currently driving growth of encapsulated flavorss industry, there is a market for low cost flavorss in the food and drink market. Retailers in particular are keen to minimize costs for their economy private label ranges, which caters to a significant segment of price-conscious consumers. With raw material prices rising and the price of basic foods increasing rapidly, low-cost of encapsulated flavorss for basic food items such as yogurt, will continue to be in demand. Encapsulated flavorss are also important to manufacturers in emerging markets, where products need to be sold at lower prices to attract consumers.

The global market for encapsulated flavors is estimated to reach an approximate valuation of US$ 7,005.0 Mn in the forecast period i.e. 2033.

What are the Key Trends in the Market for Encapsulated Flavors?

“Increasing Urge in Consumers for Fizzy And Flavored Drinks”

In the current scenario, consumers have started preferring fizzy and flavored drinks, which is expected to upsurge the growth of encapsulated flavorss market globally. Due to the known poor health effects of artificial flavorss, individuals have opted to switch for drinks that contain artificial flavors. Health-conscious individuals are preferring plant-based drinks over other beverages. Also, people do not rely on milk owing to various reasons such as lesser shelf life, presence of lactose, adulteration etc. This is also a major factor owing expected to drive growth of encapsulated flavorsed drinks segment. Youth population is also a major factor for increasing sales of flavorsed drinks, which in turn is effecting sales of encapsulated flavorss. Consumers in Asia Pacific consumes more milk-based drinks as compared to others, hence influence of flavorsed dairy drinks cannot be overlooked in growth of the encapsulated flavorss market.

“Preservative-free Encapsulated Flavors to Capitalize on the Clean Label Trend”

In order to reap benefit from on-going “Clean-Label” trend, companies are focusing on developing clean label products and thus, are developing products with microencapsulation technology comprising no added antioxidants, gelatin, and preservatives. This is attributed to the demand for eco-friendly and healthy products by consumers all over the world.

• For instance, AIDP Inc. (a food and beverage manufacturing company) uses enVantec microencapsulation. This technology involves non-GMO and vegetarian starch-based technique. The developed composition is free of preservatives and antioxidants, and such properties make enVantec a clean label solution with excellent stability for a 2-3 year period.

“Adoption of Encapsulation Techniques across Various End-Use Industries”

To deliver high-quality products, companies operating in various end-use industries such as bakery, confectionery, cosmetics, chemicals, and pharmaceuticals are developing processes to ensure improved stability and controlled release of ingredients during the product formulation process. Thus many of these end-use industries tend to opt-in for encapsulated flavors. Also, technological advancements have led to increased use of encapsulation in various sectors.

• For instance, TasteTech Company is providing encapsulation solutions to sugar confectionery manufacturers. The company is providing encapsulation flavorings for chewing gum by using matrix particle technology and spray dry technology. The company uses a multi-platform technology for burst release and sustained release of flavors. The range of encapsulated flavors offered by the company includes spearmint, peppermint, lemon, menthol, and others.

“Diverse Application Areas for Encapsulated Flavors through Technological Developments”

Flavor encapsulation technology has witnessed numerous advancements in terms of microencapsulation technologies, as well as diverse applications such as dairy products, functional food, and animal nutrition across the food industry.

• For instance, Progel Pty Ltd., which is a manufacturer of microencapsulation technology, developed a micro-gel encapsulation technology, which enables flavor, omega-3, and probiotics to be delivered collectively in dry and wet food and beverages such as smoothies, dairy desserts, sports drinks, and milk, while ensuring enhanced taste.

Moreover, companies are focusing on developing technologies to suit varied needs of end-use industries. This is attributed to the increasing demand for enhanced technologies, thus ensuring that the flavor, taste, and smell of the product is preserved.

• For instance, the Twin Screw Extrusion Technology developed by Clextral is used for mixing various liquid flavors into carbohydrate matrix. This advantages of this technology are more consistency, greater flexibility, increased productivity, easy of use, and no hassles in maintenance.

Country-wise Insights

What is the value share held by U.S. for the encapsulated flavors market?

The U.S. holds about 28.1% of the global encapsulated flavors valued at US$ 1,264.7 Mn in 2023. The manufacturer is efficiently blending ingredients, while ensuring the flavors, taste, and shelf-life stability of finished products is of vital importance. Also, companies need to focus on enhancing encapsulation technology for enhanced product life in applications such as beverages, dairy products, and animal nutrition products.

How is the European Encapsulated Flavors Market Faring?

The European region holds 30.4% of the current market share and is valued at US$ 1,390.4 Mn in 2023. The trend towards natural, wholesome and healthy products is increasing, but poor properties of these ingredients are major challenges in the food industry, presently. To avoid such issues, companies focusing on trapping the original flavors of the products by encapsulating it by different techniques. Addition of flavorss in different types of food products such as biscuits, cookies, ice-creams etc. are preferred by the consumers, nowadays, which is also expected to upsurge demand for encapsulated flavors.

Category-wise Insights

Which Encapsulation Process of European Encapsulated Flavors Accounts for High Revenue Generation?

The spray-drying nature of encapsulated flavors holds the maximum value of US$ 12,187.9 Mn in 2023 and 67.0% of the total Encapsulation Process value share. Spray drying is the most common encapsulated flavors system. It involves spraying an emulsified flavors system into a heated chamber with any combination of ingredients including fibers, gums, lipids (fats and waxes), proteins or sugars. Encapsulation technologies has many benefits to the product development process

Which Application of Encapsulation Process is seen more across the Globe?

The Beverages & Instant Drinks application is among the prominent application of the encapsulated flavors where Beverages & Instant Drinks type holds an approximate share of 35.7% in the application segment and expected to grow at a CAGR of 4.9%. The growing demand of beverages to the overall food market is increasing continuously. This is attributed to new product offerings to cater to specialized products such as energy drinks, sports nutrition, naturally sweetened water and juice drinks.

Competitive Dashboard

The major key players in the global market of encapsulation process are inclined towards research & development (R&D), and innovation to come up with new food flavors with added functionalities. The manufacturers are engaged in the business of offering natural and safe flavors for the nutraceutical products

• In March 2020, International Flavors & Fragrances, has entered a new collaboration agreement with Evolva, the Swiss biotech company for consumer products, to further develop and expand commercialization of vanillin. This is investment is for capability to develop and optimize its ingredients and shorten time to commercial-scale production.
• In May 2020, Symrise opened its biggest individual investment and invested US$ 23.64 Mn in the construction of the new production site for flavorings and fragrances in Nantong, china. With this investment Symrise is sending a clear signal for future growth in the region.

Encapsulated Flavors Industry Report Scope

Encapsulated Flavors Industry Research by Category

By Encapsulation Process:

• Spray Drying
• Spray Congealing/Chilling
• Fluid Bed Coating
• Glass Encapsulation
• Others

By Flavor:

• Citric Flavors
• Berry Flavors
• Spice Flavors
• Nut Flavors
• General Fruit Flavors
  • Apple
  • Banana
  • Mango
• Exotic Fruit Flavors
• Chocolate flavors
• Vanilla Flavors

By Application:

• Bakery & Confectionery
• Cereal & Oatmeal
• Snack Food
• Frozen Food
• Dairy Products
• Beverages & Instant Drinks
• Pharmaceutical & Personal Care
• Others

By Region:

• North America
• Latin America
• Europe
• South Asia & Pacific
• East Asia
• Middle East & Africa

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