As per the Global Market Insights, Inc. report, “Worldwide encapsulated flavours and fragrances market was valued USD eight billion in 2022 and will surpass a revenue collection of USD 12 billion by 2032 with an annual growth rate of 4.5% over 2023–2032.”
The encapsulated flavours and fragrances market is set to witness substantial growth between 2023 and 2032, primarily owing to the rapid expansion of the food and beverage industry. As per reports, in 2021, the food and beverages sector featured as one of the top three industries in the US, and nearly half the states reported the launch of new production facilities.
Key market providers are also seeking a better position in the marketplace by expanding their portfolios and entering valuable mergers and acquisitions. Citing an instance, in December 2021, Givaudan launched PlanetCaps, a new type of fragrance encapsulation technique. As per the firm, PlanetCaps adheres to the ECHA’s proposed level of microplastics and is sustainable.
The encapsulated flavours and fragrances market has been segmented into the product, technology, encapsulation process, end-use, and region.
The fragrance blends segment will grow at 4% CAGR between 2023–2032. The increasing consumer expenditure for products such as toiletries and cleaners will characterise the segmental growth. For instance, in India, the consumption of toilet cleaners has substantially increased in the last couple of years, primarily driven by the recent Covid pandemic.
The atomisation segment is set to witness massive growth through 2032. This segmental share will expand due to the atomisation technique’s cost-effectiveness, feedstock variability, and scalability.
The beverage mixes segment will experience sturdy growth within the next decade due to constant taste, flavour, and colour improvement in the tea and coffee manufacturing sections. For example, in January 2023, “The Coffee Bean & Tea Leaf”, a leading roaster and speciality coffee and tea retailer, launched the new sea-salted caramel macchiato and caramel Latte.
The market is likely to be characterised by the hybrid encapsulation segment. This expansion will result from the rising usage of biologically active compounds in fragrances and flavours and controlled release and targeted delivery offered by the product.
The Europe-encapsulated flavours and fragrances market will grow by 4% CAGR during the next ten years. The regional market growth can be accredited to the increasing health concerns about nutrient-rich diets among the general populace. According to the World Health Organisation, in Europe, there is a rising recognition of the importance of maternal nutrition, both before and during pregnancy, for probable chances of NCDS and obesity among children.
Some of the leading companies involved in the encapsulated flavours and fragrances market include Buchi Labortechnik AG, Aveka Inc, Cargill, Etosha Pan (India), Frieslandcampina Kievit Gmbh, Firmenich SA, Clextral, Flavarom International Limited, Fona International Inc, Glatt GmbH, Ingredion, Lycored, and Insta Foods.