Analysis of the Global Encapsulation Shell Materials Market

  • October 2013
  • -
  • Frost & Sullivan
  • -
  • 16 pages

Technological Advancements in Encapsulation will Drive Market Growth

This market insight focuses on the global demand for different types of shell material used in the manufacture of encapsulated ingredients. The market segments are segmented by food and beverage applications and types of shell material. The price variations of various types of shell materials are provided and list of key industry participants. This market insight also focuses on macro trends that affect the market space. The base year is 2012, and forecasts are provided up to 2017.

Market Overview

• The revenue of the global encapsulation shell materials market was $ million in 2012, and is expected to reach $ million in 2017, at a compound annual growth rate (CAGR) of % from 2012 to 2017.
• Europe led the global market in 2012 (base year) with % of the total units shipped.
• Gums/hydrocolloids, such as agar, carrageenan, gum arabic, and sodium alginate enjoyed the maximum demand and contributed % of the total revenue. Carbohydrates such as carboxy methyl cellulose (CMC), cyclodextrin, methyl cellulose, starch, and sucrose lead in terms of volumes consumed ( %).
• The price of proteins such as gelatin is on the rise – it is expected to rise further following the shortage of bovine and porcine hides and bones, the primary raw materials in gelatin production.
• The food and beverage industry uses shell materials not only to encapsulate the flavor and color of its end products but the antioxidants present in these materials also help in the extension of shelf-life extension.
• The shell material used for encapsulation can be customized based on the ingredient. Therefore, the global encapsulation shell materials market is highly fragmented, with different tiers and distinct group participants that vary by ingredient.

Market Definition and Segmentation

• This study focuses on the global encapsulation shell materials market.
• Market size is calculated based on the total consumption of shell materials for encapsulation purposes.
• The total encapsulation shell materials market is based only on food and beverage applications.
• Segments are classified based on the type of shell materials used to encapsulate various food and beverage ingredients. These are gums (agar, carrageenan, gum arabic, sodium alginate), carbohydrates (CMC, cyclodextrin, methyl cellulose, starch, sucrose), and proteins (gelatin).
• The end-user products covered in this study are dairy, bakery, and powdered beverages.
• The regions included in this study are:
o North America—Canada and the United States
o Europe—The European Union, Scandinavia, and Eastern Europe
o Asia-Pacific (APAC)—Thailand, Malaysia, Japan, Singapore, Vietnam, South Korea, Indonesia, Australia, and New Zealand
o Rest of World (ROW) —The Middle East and Latin America
• Units are defined in kilograms (kg) and metric tons (MT).
• All prices and revenue are represented in the US dollar.

Key Industry Challenges

• Low level of awareness among consumers about the benefits of encapsulation, especially in the emerging markets
• Increasing price of gelatin due to the scarcity of raw materials

Key Success Factors

• Availability of raw materials
• Organoleptic properties
• Stability of encapsulated material that extends the storage time of the packaged food

Three Big Predictions

1. The key challenge in the food industry is twofold: to mask the bitter taste of some foods and to retain the original flavor and freshness of the packaged food. Encapsulation is expected to address the above-mentioned challenges. Hence, encapsulation shell materials are anticipated to witness greater adoption in the food industry in future.
2. The rapid growth of the functional food market, especially in probiotics and prebiotics functional foods, is likely to create a number of opportunities in the field of encapsulation.
3. Customers prefer food in which the organoleptic properties are retained. This, along with the increasing awareness regarding shell materials for encapsulation, will boost market growth.

Shelf-life of Food Products Increases on Encapsulation

• Ingredients formulated in functional foods to enhance taste, texture, and flavor are more prone to oxidation, which makes the food rancid.
• Moreover, food ingredients are also unstable and degrade on storage. Encapsulation increases the shelf life of the end product.
• Shell materials such as gelatin, sodium alginate, and agar are used to prevent the core ingredients from exposure to oxygen, thereby curbing oxidation.
• The above-mentioned challenges in the food industry have opened new opportunities for the encapsulation shell materials market.

Table Of Contents

Table of Contents

Market Introduction 3
Market Overview 3
Market Definition and Segmentation 3
Key Industry Challenges 4
Key Success Factors 4
Three Big Predictions 4
Market Drivers and Restraints 5
Market Drivers 5
Market Restraints 6
Market Forecast 7
Total Market Forecast 7
Regional Segmentation and Trends 9
Ingredient Segmentation and Trends 10
End-application Segmentation and Trends 11
Pricing Trends 12
Competitive Analysis 13
Company Market Share Analysis and Trends 13
Legal Disclaimer 15
The Frost and Sullivan Story 16

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