Microencapsulation Market Trends

Growth Drivers

• Increased demand for targeted drug delivery: The pharmaceutical sector’s transition towards personalized therapies and medicine with lowered side effects is a primary driver for the microencapsulation market. This has fueled investments in sophisticated encapsulation methods for targeted and controlled drug release. According to an article published by NLM in June 2023, an estimated 30% of comprehensively marketed medicinal entities, along with almost 50% of advanced drug compounds accessible for product manufacture, are considered hydrophobic in nature. Besides, the use of a liquid-specific carrier system is suitable for boosting the bioavailability of low water-soluble medications, which has successfully gained popularity in recent years. Therefore, with the presence of such drug delivery systems, there is a huge growth opportunity for the microencapsulation market across different nations.
• Expansion in functional food: The rise in customer health awareness is readily propelling the need for fortified beverages and food, wherein the microencapsulation market is essential for protecting sensitive bioactive ingredients. This includes protection for probiotics and Omega-3s from masking off-tastes and degradation. Besides, as stated in the 2022 NITI Aayog article, fortified rice has the tendency to diminish the risk of iron deficiency by 35% and enhance the average concentration of hemoglobin by nearly 2 g/L. In addition, it has a positive impact on functional outcomes and ensures a 34% reduction in anemia from improved iron intake, 74% reduction from goiter, and 41% from neural tube defects. Meanwhile, the continuous supply chain of micro-organism culture preparations, particularly for probiotics, is also uplifting the microencapsulation market internationally.

2023 Micro-Organism Culture Preparation Export and Import

Source: OEC

• Customer need for enhanced product performance: In personal and household care, customers demand long-lasting fragrances, advanced product formats, and effective skincare actives, all of which are enabled by the microencapsulation market. According to an article published by NLM in February 2023, the encapsulation efficacy of polymers typically ranges from 27% to 45%. In addition, prepared capsules with hydrophobic vitamins ensure the suitable thermal stability of sensitive molecules for almost 170 degrees Celsius. This eventually enables the standard manufacturing process of functional products. Besides, as stated in the February 2024 NLM article, the chemical process technology for simple condensates constitutes 20 to 200 /µm particle size, along with more than 60% encapsulation rate. Likewise, for spray-drying, the particle size ranges between 1 to 50 /µm as well as over 40% encapsulation rate, all of which is positively impacting the overall microencapsulation market globally.

Challenges

• Increased production expenses and scalability issues: The manufacturing and development of microcapsules demonstrate technical barriers and substantial economic gaps, especially when scaling from laboratory proof-of-concept to industrial-volume production. Besides, progressive encapsulation technologies, such as microfluidics and coacervation, provide superior performance and control, but are extremely expensive and complicated in comparison to basic methods, including spray drying, which in turn is negatively impacting the microencapsulation market. Furthermore, the need for high-purity, frequently specialty, coating polymers is increasing material expenses. This particular cost structure has created an effective barrier for small-scale firms and has limited the adoption of innovative microencapsulation in price-sensitive markets.
• Environmental scrutiny and regulatory hurdles: The administrative landscape for the microencapsulation market, particularly for those utilizing notable materials for environmental release and human consumption, is increasingly strict and complex. In the food and pharmaceutical sectors, the latest encapsulation process or polymer needs extended approval and safety testing from bodies such as EFSA and FDA, which is usually a costly and lengthy process. Moreover, the environmental fate of microencapsulation is experiencing continuous scrutiny, and administrative agencies, including the Europe Chemicals Agency (ECHA), are severely examining the potential and persistence bioaccumulation of non-biodegradable synthetic polymer shells in the environment, which causes a limitation in the market’s growth.