The encapsulated flavors market is expected to witness a steady growth of ~5% annually through 2029, driven by a notable rise in the use of encapsulated flavors in F&B products for their exceptional capabilities and functional properties. Global sales of encapsulated flavors are estimated to reach a value of ~US$ 3.7 Bn in 2019 and a sweeping ~US$ 6.2 Bn by the end of 2029. Improved functional properties such as stability and heat resistance are propelling the demand for encapsulated flavors in the food & beverage industry.
Increased stability of encapsulated flavors prevents the flavor from interacting with other elements in final products, which further prevents any change in food properties such as texture and color. In addition, improved oxidative and heat resistant properties help protect the flavor from heat during processing, reduce volatility/evaporation of molecules, and eliminate product degradation caused by air.
Key Takeaways from Encapsulated Flavors Market Study
- Consumption of encapsulated flavors in beverage and instant drinks industry will continue to account for relatively high sales.
- Growing application encapsulated flavors in the pharmaceutical industry for manufacturing of products such as syrups, ORS, and other medicines is likely to result in increased market share.
- Chocolate encapsulated flavors remains highly preferred product among the end users, with a revenue share of ~24%.
- Technical and procedural restrictions in the glass encapsulation process are forcing manufacturers to opt for other technologies such as spray drying and spray chilling.
- Despite holding relatively less revenue share, South and East Asia markets for encapsulated flavor are projected to show the significant growth of ~8% and ~7% respectively through 2029.
“In the dynamic cluster of various industries, the increasing demand for functional beverages and instant drinks with nutritional ingredients will benefit the encapsulated flavors market. In addition to focusing on extended portfolio through the innovative technologies, manufacturers are continuously targeting the developing economies to achieve stronger footprint,” says PMR analyst.
Penetrating Price-Sensitive Regions through Competitive Pricing Strategy
Considering the relatively high cost associated with encapsulated flavors as compared to free flavors, it is quite difficult for companies to penetrate into price-sensitive economies including various countries in Asia Pacific. However, the emergence of cost-efficient technologies to formulate encapsulated flavors has been prompting manufacturer to explore the untapped markets by offering products at affordable prices.
On the other hand, factors such as increasing production costs and erratic supply of raw materials in developing as well as established markets are leading to reduced production per unit. These attributes tend to increase strain on the market players to meet the demand. Thus, improper alignment between supply and demand is likely to hamper the encapsulated flavors market growth.
Persistence Market Research, in its new study, reveals an impartial analysis of the global encapsulated flavors market, presenting historical data (2014-2018) and estimation statistics for the period of 2019-2029. The study presents compelling insights on the encapsulated flavors market based on encapsulation process (spray drying, spray congealing/chilling, fluid bed coating, glass encapsulation, and others), flavor (citrus, berries, spices, nuts, general fruits, exotic fruits, chocolate, vanilla, and others), and application (bakery and confectionery, cereals and oatmeal, snack food, frozen food, dairy, beverages and instant drinks, pharmaceutical & personal care, and others) across seven regions.
To gain deeper understanding of various aspects and nuances of the encapsulated flavors market, consult an expert analyst.
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