The Encapsulated Flavours Market to reach $4.9 Billion by 2030; increasing demand for processed and convenience foods, health and wellness trends favoring natural products, advancements in encapsulation technologies and the expanding functional food

The Encapsulated Flavours Market size is estimated to reach $4.9 billion by 2030, growing at a CAGR of 5.7% during the forecast period 2024-2030, according to a recent report published by IndustryARC, titled, “Encapsulated Flavours Market – By Flavour Type (Citric Flavours, Berry Flavours, Spice Flavours, Nut Flavours, General Fruit Flavours, Exotic Fruit Flavours, Chocolate Flavour, Herbs and Botanicals, Others), By Flavour Source (Natural Flavours, Artificial Flavours), By Shell Material (Polysaccharides, Proteins, Lipids, Synthetic Polymers, Others), By Release Mechanism (Immediate Release, Controlled Release, Triggered Release), By Form (Powder, Liquid, Granules, Pastilles, Others), By Type (Spray Drying, Spray Chilling, Fluid Bed Coating, Emulsification, Coacervation, Liposome Encapsulation, Others), By Application (Food & Beverage, Pharmaceuticals, Cosmetics & Personal Care, Pet Food, Others), By Geography - Global Opportunity Analysis & Industry Forecast, 2024-2030”javascript:nicTemp();

The demand for processed and convenience foods is increasing. Health and wellness trends are favoring natural products. Advancements in encapsulation technologies are boosting the market. The expanding functional food sector is also fueling the growth of the Encapsulated Flavours industry during the forecast period.

North America accounted for the largest share of xx% of the Encapsulated Flavours Market in 2023. The Encapsulated Flavours Market in North America is led by the robust demand for the processed foods and beverages. The region’s focus on health and wellness also fuels the consumption of natural and functional ingredients. A survey by the International Food Information Council (IFIC) 2024 Food & Health Survey of 3,000 Americans found that taste is the top consideration for 85% of consumers, price for 76%, and healthfulness for 62% of food decisions. These preferences are addressed by encapsulated flavours based on taste, providing cost effectiveness and health trends. In addition, the demand for innovative flavour solutions to meet growing focus on convenience and sustainability further boosts the demand.

A major driver in the Encapsulated Flavours Market is the growing popularity of convenience foods. As per a Business Standard article dated October 2024, Indian households from urban elite backgrounds spent nearly 50% of their monthly food budget on packaged food, dining out and food delivery in FY23, up from 41.2% a decade ago. The rise in ready to eat and prepackaged meals is a prime example of a shift in consumer behavior. With more consumers choosing convenience, encapsulated flavors are important to retain those taste, freshness and quality to help their market grow. 

Encapsulated Flavours Market is driven by the growing health and wellness trend, in which consumers are increasingly focusing on their wellbeing despite being financially challenged. Mindbody’s 2024 annual Wellness Index, with over 8000 surveyed consumers, found that 76 % of consumers agree that wellness has never been more important than it is today, and nearly half report increased focus on wellbeing as a result of the pandemic. This shift is catered to by encapsulated flavours, in providing natural, functional ingredients that address consumers’ wellness goals. These evolving preferences are fuelling the growth of the encapsulated flavours market because of the increasing demand for health focused products. 

Key companies profiled in the Encapsulated Flavours Market are Cargill, Incorporated, Kerry Group, Givaudan, Symrise AG, dsm-firmenich, International Flavors & Fragrances (IFF), ScentSational Technologies, Ingredion Incorporated, Balchem Corporation, Tate & Lyle PLC and others.

Global Natural Food Colors & Flavors Market- Global Natural Food Colors & Flavors Market is projected to reach $7.3 billion by 2027 at a CAGR of 5.9% during the forecast period 2022-2027. This growth is driven by the increasing usage of natural colors and flavors in food and beverage applications such as bakery, confectionery, dairy, beverages, and more.

Beverage Flavoring Systems Market- Beverage Flavoring Systems Market is estimated at $4.3 billion in 2020 and is projected to grow at a CAGR of 6.1% during the forecast period 2021-2026. The increasing demand for diverse and innovative flavors in the food and beverages segment is a key factor driving the market growth.

Flavours and Fragrances Market - The global flavors and fragrances market valued $28.2 billion as of 2018 and expected to grow at a CAGR of 4.90% during the forecast period 2019-2025. The market growth is driven by increasing demand for natural and organic ingredients, rising consumer preferences for unique and exotic flavors, and the expanding use of fragrances in personal care, home care, and other consumer products.