Encapsulated Flavors and Fragrances Market Size, Share, Forecast 2028

Encapsulated Flavors and Fragrances Market: Industry Prospective

The global encapsulated flavors and fragrances market size was worth around USD 7.8 billion in 2021 and is estimated to grow to about USD 10.5 billion by 2028, with a compound annual growth rate (CAGR) of approximately 5.3 percent over the forecast period. The report analyzes the encapsulated flavors and fragrances market’s drivers, restraints/challenges, and the effect they have on the demands during the projection period. In addition, the report explores emerging opportunities in the encapsulated flavors and fragrances market.

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Encapsulated Flavors and Fragrances Market: Overview

Flavor and fragrance encapsulation are quite popular in the food & beverage industries and consumer products. The approach helps in the reduction of flavors and fragrance deterioration or loss during the manufacturing and storage processes. The envelope facilitates the provision of functional qualities in a specific environment, such as aromatic compounds. Flavors and fragrances are volatile substances with a strong tendency to evaporate. Due to the loss of flavors and fragrances due to poor chemical stability, encapsulation of flavors in foodstuffs has become critical in industrial handling and processing. Flavors and fragrances are a type of substance that is widely used as an addition in a variety of technological industries, including food, cosmetics, textiles, and others, to improve the product's taste and aromatic impressions.

Encapsulation protects the coated material from the outside environment. A technique to entrap flavors and fragrances within a coating material is known as encapsulation. The coated material is called as core or active material wherein coating material is called encapsulated material or shells. Microencapsulation is another process to encapsulate the flavors and fragrances on a micrometric scale. It is a process wherein droplets or tiny particles are coated in order to make small capsules. Microencapsulation or encapsulation of flavors and fragrances is used to provide uniform and improved fragrance, taste, colorings, increased shelf life, and protection from harsh conditions.

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Encapsulated Flavors and Fragrances Market: COVID-19 Impact

The COVID-19 pandemic has had a minor impact on the global encapsulated flavors and fragrances market. During the first half of 2020, global food & beverage sales remained slow, with consumers' attention focused on storage. Manufacturing plants all around the world had production challenges at the end of April, affecting demand in the encapsulated flavors and fragrances sector as well. Demand remained weak for the next two months, but when production commenced, it recovered faster than projected. A procurement shift was recorded during the recovery phase and the market is expected to grow substantially during the forecast period.

Encapsulated Flavors and Fragrances Market: Growth Drivers

Increasing demand for instant drinks and beverages to foster the market growth

Due to changing consumer lifestyles, the beverage sector is thriving in every part of the world. The growth of the global encapsulated flavors and fragrances market will be boosted by a shift in customer preferences toward handy products, as well as rising disposable income in most developing countries. Customers today prefer well-balanced foods and beverages with a natural flavor and high nutritional value. Encapsulation allows fruit and vegetable nutrients to be converted into natural flavors while maintaining their nutritional value. Companies in the encapsulated flavors and fragrances market will create partnerships with various food and beverage manufacturers across geographies as the demand for natural ingredients grows. Moreover, the need for packaged and energy & sports drinks will drive up sales of beverage flavorings, which in turn is estimated to drive the market for encapsulated flavors and fragrances.

Encapsulated Flavors and Fragrances Market: Restraints

High cost associated with the encapsulation techniques

For enhancing the effectiveness of aroma compounds in fragranced consumer items, a variety of encapsulation techniques are accessible. In terms of fragrance performance, scalability, and prices, encapsulation techniques are continuously being refined. Also, volatile prices of raw materials add up to the overall cost. All these factors coupled with strict rules & regulations regarding the safety of its use may hamper the market growth.

Encapsulated Flavors and Fragrances Market: Opportunities

Growing preference for non-conventional and unique flavors to propel the market growth during the forecast period

The rising preference for nutty and spicy flavors in different food products is prompting manufacturers to come up with new flavors to fulfill consumer needs. Combination flavors are growing in popularity. These products combine two or more flavors into a single item. To protect organic and natural flavors from quality degradation, flavor and fragrance manufacturers are currently applying improved and updated technological versions. Over the projection period, technological advancements in the process of encapsulation will aid in the growth of encapsulated flavor and fragrance sales. In addition to this, factors such as increased investments in R&D activities and mergers & acquisitions to stay competitive in the global encapsulated flavors and fragrances market are estimated to generate numerous opportunities during the forecast period.

Encapsulated Flavors and Fragrances Market: Challenges

Flavoring qualities influencing the encapsulation process's ability to retain volatile components to act as a challenge for market growth

Flavorings are extensively used in a variety of food and beverage compositions and have a significant impact on food sensory qualities and, as a result, consumer satisfaction. Many aromatic chemicals are volatile, low-molecular-mass molecules that are vulnerable to evaporation and degrading reactions in manufacturing processes or under environmental circumstances such as high temperatures, oxygen, light, and pH changes. Encapsulation develops emulsification in a carbohydrate solution and produces a protective habitat for flavoring compounds that minimizes mobility and volatility while also protecting them from oxidative reactions by boosting mass transfer resistance. However, because flavorings are made up of a mixture of aromatic chemicals with varying solubility, sensory thresholds, and relative volatility, and are carried by solvents of varying natures, losses are noted all through preparation, storage, or manufacture are dependent on the classes of flavorings used. These factors alter the kinetic and thermodynamic properties of the entrapped flavoring, such as partitioning and mass transit rate, making it difficult to develop a unique and efficient formulation that yields the required flavor blend upon encapsulation. This poses a major challenge for market growth.

Encapsulated Flavors and Fragrances Market: Segmentation

The global encapsulated flavors and fragrances market is classified based on product, technology, encapsulation process, end-use, and region. Based on the product, the global market is divided into aroma chemicals, natural extracts & essential oils, fragrance blends, and flavor blends. The technology segment is split into chemical & physicochemical processes and physical processes. By encapsulation process, the market is categorized into macro encapsulation, hybrid technology, nano-encapsulation, and micro-encapsulation. The end-user segment comprises food & beverages and toiletries & cleaners.

Encapsulated Flavors and Fragrances Market Report Scope:

Recent Developments

• In March 2022, with AI techniques at the forefront, Symrise lifts the curtain on flavor development. Symrise offers proprietary digital techniques like predictive modeling to help flavor designers use Artificial Intelligence. They assist in the screening of the current Symrise inventory and the identification of suitable ingredients for the specialists to employ in the creation of a flavor.
• In December 2021, Givaudan introduced PlanetCaps™, a fragrance encapsulation invention. It is the first of its kind to hit the market and is for fabric softeners that provide a long-lasting fragrance sensation in a biodegradable and bio-sourced delivery method.

Encapsulated Flavors and Fragrances Market: Regional Landscape

North America to hold maximum share in the global market

Geographically, North America is projected to hold the maximum share in the global encapsulated flavors and fragrances market during the forecast period. Key factors driving demand for encapsulated flavors and fragrances in North America include the introduction of various encapsulation processes & technologies to improve product quality, demands for ready-to-eat & ready-to-cook food products, and rising consumer health & diet-related trends. Increased consumption of functional foods, along with an increase in health-conscious customers, will boost regional market statistics. Furthermore, rising consumer awareness about hygiene is boosting the regional market outlook by increasing the use of aromatic goods in cosmetic and cleaning applications. On the other hand, the market in Europe and the Asia Pacific is expected to grow at a healthy rate during the forecast period.

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Encapsulated Flavors and Fragrances Market: Competitive Landscape

Some of the predominant players that are operating in the global encapsulated flavors and fragrances market include

• International Flavors and Fragrances (IFF)
• Ingredion Incorporated
• Givaudan
• Firmenich Incorporated
• Cargill Inc
• Tate & Lyle PLC
• Symrise AG
• Sensient Technologies
• Royal DSM
• Kerry Group
• and others.

The Global encapsulated flavors and fragrances market is segmented as follows:

By Product

• Flavor Blends
• Fragrance Blends
• Essential Oils & Natural Extracts
• Aroma Chemicals

By Technology

• Physical Process
• Chemical & Physicochemical Process

By Encapsulation Process

• Micro Encapsulation
• Nano Encapsulation
• Hybrid Technology
• Macro Encapsulation

By End User

• Food & Beverages
• Toiletries & Cleaners

By Region

• North America
  • The U.S.
  • Canada
• Europe
  • France 
  • The UK
  • Spain
  • Germany
  • Italy
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Southeast Asia
  • Rest of Asia Pacific
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• Middle East & Africa
  • GCC
  • South Africa
  • Rest of Middle East & Africa