Market to enjoy 6.1% growth
Driven by increasing demand for healthy, nutritious, and convenience food products, the global food encapsulation market is set to be worth $39.5 billion by 2020, growing at a rate of 6.1%.
The global Food Encapsulation Market is driven by factors such as increased shelf life and enhanced bioavailability offered by food encapsulation technologies. The factors inhibiting the growth of the market are the higher cost of food encapsulation technologies and relatively lower technological advances. The market has growth opportunities with consumers increasing demand for fresh flavourful food products.
North America dominates the global Food Encapsulation Market, while emerging economies in Asia-pacific show lot of untapped potential for this market in near future. Asia-Pacific is growing at the highest CAGR from 2015 to 2020. Asian countries, especially China, have emerged as leading destinations, facilitating the market shift from developed economies to developing economies. In relatively saturated markets such as the U.S. and Germany, value-based pricing and focus for cost-effective technology has emerged as a major strategy for companies looking to establish a strong foothold in these markets.
The pattern for the shell material use for encapsulation around the world reflects the encapsulation market. The trend is seen evidently in the regional break-up of the raw material market. North America, due to the high availability of shell materials such as hydrocolloid polysaccharide and emulsions, dominates the Food Encapsulation Market. In Asia-Pacific countries such as Japan, where the functional foods have been initially developed, is growing at a rapid pace in the development of food encapsulation.