The global microencapsulation market size is estimated to be worth USD 15.15 billion by 2025, as a consequence of its widening applicability in home & personal care as well as in food additives. Microencapsulation exhibits properties such as sustained release and protection of core ingredients in the encapsulating shell. This has majorly driven the growth of the global microencapsulation market. Furthermore, the rising demand for fresh and durable food, increasing acceptance of specialty detergents, and growth of the pharmaceuticals industry are the other factors that are expected to propel the global microencapsulation market growth.

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Based on application, home & personal care is projected to be the fastest growing application in the global microencapsulation market at a CAGR of 12.1% between 2018 and 2025. The high demand of microencapsulated essential oils in personal hygiene products including shampoos, soaps, body lotions, and hair care products can be attributed to this growth. FMCG companies, including Unilever and P&G, use microencapsulation technology in bleach activators, fragrances, and antibacterial compounds because of their ability to improve the product's core properties. Furthermore, the surge in the consumption level of premium soaps & detergents, personal care products, and cosmetics have been driven by rising consumable incomes in countries with a high population density. Therefore, the increasing trend in the adoption of microencapsulation technology in the home & personal care segment is projected to maintain its forward momentum during the forecast period. Microencapsulation is an important tool for the cosmetic industry that protects and controls the release of several active agents, such as essential and natural oils, fragrances, vitamins, and antioxidants. This will further act as a growth factor for the global microencapsulation technology market.

North America encapsulation market is expected to hold a market share of more than 35% by 2025. The U.S. is the leading country in the region accounting for the highest demand for microencapsulation technology. The high purchasing power of customers in developed countries and their increasing tendency to healthy dietary choices are driving the microencapsulation market in this region.

Microencapsulation technique is widely used in pharmaceutical industries to control the release of drugs. Therefore, the use of microencapsulation technology in pharmaceutical and food & beverage industry is expected to drive the demand for microencapsulation in this region. Biodegradable polymers like polyethylene glycol (PEG) is used as an encapsulation material. The encapsulation process in the food industry can be used for a number of reasons. Encapsulation is a useful tool for improving bioactive molecular delivery (e.g. minerals, antioxidants, vitamins, lutein, phytosterols, lycopene and fatty acids and living cells into foods).

The global microencapsulation market is fragmented with a large number of players with global and regional presence. The key players in the global microencapsulation report include Capsulae, Dow Corning Corporation, Reed Pacific Pty Limited, Microtek Laboratories, Inc., TasteTech Ltd., BASF SE, Lipo Technologies, Encapsys, LLC, Evonik Industries AG, and Balchem among others.

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Key segments of the global microencapsulation market

Application Overview, 2015-2025 (USD Million)

Pharmaceuticals
Home & Personal Care
Agrochemicals
Food additives
Others
Regional Overview, 2015-2025 (USD Million)

North America
Europe
Asia Pacific
Rest of the World
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