Global Food Color Encapsulation Market – Industry Trends and Forecast to 2029

Global Food Color Encapsulation Market, By Shell Material (Polysaccharides, Proteins, Lipids, Emulsifiers), Core Phase (Natural, Artificial), Technology (Microencapsulation, Nano Encapsulation, Food Color Encapsulation), Method (Physical Method, Chemical Method, Physico-Chemical Method), Application (Dietary Supplements, Functional Food Products, Bakery Products, Confectionery Products, Beverages, Frozen Products, Dairy Products) – Industry Trends and Forecast to 2029.

Food Color Encapsulation Market Analysis and Size

Several food ingredients are encapsulated to protect them from environmental conditions or to achieve controlled and targeted release of the active ingredient. Several ingredient manufacturers have developed encapsulated products as part of their product offerings. Several companies offer this technology to formulate customized products based on the client's needs.

Data Bridge Market Research analyses that the food color encapsulation market was valued at USD 5.46 billion in 2021 and is expected to reach the value of USD 10.49 billion by 2029, at a CAGR of 8.50% during the forecast period of 2022-2029. In addition to the insights on market scenarios such as market value, growth rate, segmentation, geographical coverage, and major players, the market reports curated by the Data Bridge Market Research also include in-depth expert analysis, geographically represented company-wise production and capacity, network layouts of distributors and partners, detailed and updated price trend analysis and deficit analysis of supply chain and demand.

Food Color Encapsulation Market Scope and Segmentation

Market Definition

Food encapsulation is a method of incorporating ingredients into food. It wraps the protective shell around the flavoring, bioactive, or other ingredients. This protective shell protects the end-products from harsh environmental conditions during production. It preserves the flavour of the food ingredients while removing the bad taste. It extends the life of food products. It keeps the food ingredients in their original form stable. It is effective in reducing flavour degradation or loss during the manufacturing and storage of food products.

Drivers

• Growing adoption of encapsulation technology due to its various advantages

The various benefits of encapsulation, such as controlled ingredient release, propel the market expansion of food color encapsulation. Improved heat and oxidative resistance, increased shelf-life consistency, and improved end product quality is driving food color encapsulation market growth. Furthermore, encapsulation aids in flavour and odour masking as well as the delivery of precise levels of nutrients, thus driving industry trends. Encapsulation of lively ingredients also provides improved stability in final products and during processing, which is driving the food color encapsulation market over the forecast period.

• Advancement and expansion of technologies in food and beverage industry

Furthermore, the market is heavily influenced by shifting consumer dietary preferences. People's changing lifestyles, adoption of advanced technologies such as microencapsulation and nano encapsulation, an increase in the demand for functional food, an increase in the number of health conscious consumers, an improved standard of living coupled with an increase in health consciousness, an increase in shelf life as well as product appeal, and rising occurrences of obesity and diabetes are driving the demand for food color encapsulation market.

Opportunities

Furthermore, the rapid growth in global processed and packaged food demand as a result of an increasing preference for convenient and healthy food products is expected to fuel market growth. Furthermore, the development of advanced technologies to tap niche markets, such as reducing capsule size and increasing bioavailability, as well as government support and improving economic conditions in developing countries, will create new opportunities for the food color encapsulation market from 2022 to 2029.

Restraints

However, the high cost of encapsulated ingredients, preventing mass commercialization, is expected to slow market growth. Lack of market commercialization due to stringent regulations will pose a market challenge for the food color encapsulation market during the forecast period.

This food color encapsulation market report provides details of new recent developments, trade regulations, import-export analysis, production analysis, value chain optimization, market share, impact of domestic and localized market players, analyses opportunities in terms of emerging revenue pockets, changes in market regulations, strategic market growth analysis, market size, category market growths, application niches and dominance, product approvals, product launches, geographic expansions, technological innovations in the market. To gain more info on the food color encapsulation market contact Data Bridge Market Research for an Analyst Brief, our team will help you take an informed market decision to achieve market growth.

Impact and Current Market Scenario of Raw Material Shortage and Shipping Delays

Data Bridge Market Research offers a high-level analysis of the market and delivers information by keeping in account the impact and current market environment of raw material shortage and shipping delays. This translates into assessing strategic possibilities, creating effective action plans, and assisting businesses in making important decisions.

Apart from the standard report, we also offer in-depth analysis of the procurement level from forecasted shipping delays, distributor mapping by region, commodity analysis, production analysis, price mapping trends, sourcing, category performance analysis, supply chain risk management solutions, advanced benchmarking, and other services for procurement and strategic support.

COVID-19 Impact on Food Color Encapsulation Market

The COVID-19 pandemic is expected to significantly impact the food encapsulation market due to supply chain disruptions. Polysaccharides, proteins, lipids, and emulsifiers are important raw materials and formulations in the food encapsulation market. Raw materials are imported in large quantities by European countries such as Germany and Poland from the Asia-Pacific. International border closures and trade barriers have halted all imports and exports, disrupting the manufacturing process. Various small-scale emerging companies for food encapsulation products are found in Asia Pacific countries such as India and China. These businesses source raw materials locally and export finished goods to domestic and international markets.

Expected Impact of Economic Slowdown on the Pricing and Availability of Products

When economic activity slows, industries begin to suffer. The forecasted effects of the economic downturn on the pricing and accessibility of the products are taken into account in the market insight reports and intelligence services provided by DBMR. With this, our clients can typically keep one step ahead of their competitors, project their sales and revenue, and estimate their profit and loss expenditures.

Recent Development

• BASF SE and Sandoz GmbH, a Novartis subsidiary, have agreed to invest at the Kundl/Schaftenau Campus in Austria in April 2021. This agreement allows BASF SE to expand its manufacturing footprint for enzymes and biotechnology products
• Kerry announced in May 2021 that it would build a purpose-built food technology and innovation centre of excellence in Queensland, Australia
• Cargill Incorporated will invest USD 100 million in its Indonesian sweetener plant in October 2019 to construct a wet corn mill with a starch dryer to increase starch and sweetener production
• In November 2021, the company invested Euro 50 million in a new natural food ingredient manufacturing site in Georgia, US, to improve production facilities in the US

Global Food Color Encapsulation Market Scope

The food color encapsulation market is segmented on the basis of shell material, core phase, technology, method and application. The growth amongst these segments will help you analyse meagre growth segments in the industries and provide the users with a valuable market overview and market insights to help them make strategic decisions for identifying core market applications.

Shell material

• Polysaccharides
• Proteins
• Lipids
• Emulsifiers
• Other Shell Materials

Core phase

• Natural
• Artificial

Technology

• Microencapsulation
• Nano encapsulation
• Food Color Encapsulation

Method

• Physical Method
• Atomization
• Spray drying
• Spray chilling
• Spinning disk
• Fluid bed coating
• Extrusion
• Other physical methods
• Chemical Method
• Polymerization
• Sol-gel method
• Physico-Chemical Method
• Co-acervation
• Evaporation-solvent diffusion
• Layer-by-layer encapsulation
• Cyclodextrins 
• Liposomes
• Other physico-chemical methods

Application

• Dietary Supplements
• Functional Food Products
• Bakery Products
• Confectionery Products
• Beverages
• Frozen Products
• Dairy Products

Food Color Encapsulation Market Regional Analysis/Insights

The food color encapsulation market is analysed and market size insights and trends are provided by country, hell material, core phase, technology, method and application as referenced above.

The countries covered in the Food Color Encapsulation market report are U.S., Canada, Mexico, Germany, Sweden, Poland, Denmark, Italy, U.K., France, Spain, Netherland, Belgium, Switzerland, Turkey, Russia, Rest of Europe, Japan, China, India, South Korea, New Zealand, Vietnam, Australia, Singapore, Malaysia, Thailand, Indonesia, Philippines, Rest of Asia-Pacific, Brazil, Argentina, Rest of South America, UAE, Saudi Arabia, Oman, Qatar, Kuwait, South Africa, Rest of Middle East and Africa.

North America leads the food color encapsulation market due to the expansion of this region's various end product markets.

 Asia-Pacific is expected to grow significantly from 2022 to 2029, owing to a thriving food industry, rising disposable income, and rising urbanization.

The country section of the report also provides individual market impacting factors and changes in market regulation that impact the current and future trends of the market. Data points like down-stream and upstream value chain analysis, technical trends and porter's five forces analysis, case studies are some of the pointers used to forecast the market scenario for individual countries. Also, the presence and availability of Global brands and their challenges faced due to large or scarce competition from local and domestic brands, impact of domestic tariffs and trade routes are considered while providing forecast analysis of the country data.   

Competitive Landscape and Food Color Encapsulation Market Share Analysis

The food color encapsulation market competitive landscape provides details by competitor. Details included are company overview, company financials, revenue generated, market potential, investment in research and development, new market initiatives, Global presence, production sites and facilities, production capacities, company strengths and weaknesses, product launch, product width and breadth, application dominance. The above data points provided are only related to the companies' focus related to Food Color Encapsulation market.

Some of the major players operating in the Food Color Encapsulation market are:

• DSM (Netherlands)
• Ingredion Incorporated (U.S.)
• Kerry Group plc (Ireland)
• Cargill, Incorporated (U.S.)
• Lycored (Israel)
• Balchem Inc. (U.S.)
• Firmenich SA (Switzerland)
• International Flavors & Fragrances Inc (India)
• Symrise (Germany)
• Sensient Technologies Corporation (U.S.)
• Sphera Encapsulation (Itlay)