Encapsulated flavors are made using an encapsulation technique that creates powdered or granulated flavors with various transport agents. There are a variety of products available in the form of encapsulated flavors, such as flavor blends, fragrance blends, essential oils, natural extracts, and aroma chemicals. These products come in different flavors, including fruit flavors, nut flavors, chocolate flavors, spice flavors, vanilla flavors, citric flavors, berry flavors, and others.
Market Drivers and Forecast
According to OMR Research, the global encapsulated flavors market is projected to grow at a CAGR of 5.9% during the forecast period (2023–2029). The key factor in the market’s growth is the benefits provided by encapsulated flavors. Encapsulation improves consistency, flavor, shelf life, coloration, and protection of food items from severe circumstances. Flavor encapsulation produces a barrier wall between the tastes and the environment, preventing evaporation, oxidation, and moisture intake. It also aids in the separation of incompatible taste elements, which helps to avoid a variety of negative consequences.
The global encapsulated flavors market is also being driven by rapid industrialization and rising demand for encapsulated flavors in various industries such as textiles, personal care, pharmaceuticals, dairy products, cereal and oatmeal, and other foods and drinks. In the textile industry, encapsulated flavors are utilized in the finishing processes. For instance, it is utilized in fabric conditioners to provide odor control and freshness. Encapsulation prolongs aroma retention and controls release. Furthermore, the fragrance impression is retained even after multiple wash and dry cycles, making it more appealing to customers. Aromatherapy is achieved by adding encapsulated fragrances and EOs to lingerie, ties, scarves, and other apparel, as well as household textiles such as cushions, curtains, and couch covers. Hence, the growth of the textile industry will lead to an increased demand for encapsulated flavors in other markets as well.
Similarly, the growth of the food industry will further aid in market growth. According to the USDA's Economic Research Service, food service and retail businesses supplied over $2.12 trillion in food in 2021. Food service facilities supplied around $1.17 trillion of this total. These figures present a good picture for the encapsulated flavor mix industry, allowing market leaders to look for new prospects. Furthermore, the rise in health consciousness and the popularity of ethnic foods and beverages, which include the demand for hotter, spicier, and more distinctive tastes, contribute to the expansion of the global encapsulated flavor market.
Recent Developments
The key companies in the encapsulated flavors market include Symrise AG, Nexira SAS, AVEKA Group, International Flavors & Fragrances Inc., Archer Daniels Midland Company, Synthite Industries Ltd., AVEKA, Inc., Symrise AG, Carmi Flavor & Fragrance Co. Inc., Cargill Inc., Nexira, Naturex S.A., and Ingredion Inc., among others. These companies are contributing to the market’s growth through various mergers and acquisitions, new product launches, investments, and collaboration activities. Some of the recent activities in the market include-
• In January 2023, Acreage Holdings, Inc., a vertically integrated, multi-state operator of cannabis production and retailing facilities in the US, announced the debut of "TiME Gummies" under its flagship brand The Botanist. The Botanist Fast-Acting Gummies are available in Illinois, Maine, Massachusetts, and Ohio. The Botanist Fast-Acting Gummies are designed to provide potential effects in 5-15 minutes. The Botanist Fast-Acting Gummies make use of AZUCA TiME INFUSION, a novel, individual molecule encapsulation technology that intends to offer potentially fast-acting THC in pleasant fruit tastes. This innovative infusion technology increases Delta-9 THC absorption while avoiding an unpleasant flavor or texture.
• In August 2022, Givaudan, one of the most well-known companies in the encapsulated tastes and fragrances sector, developed the "PrimeLock+" technology, which mimics animal fat cells using encapsulated coconut oil. This vegan-friendly solution offers encapsulated tastes to lower high-fat content while boosting the juiciness of plant-based items to help customers achieve the feel and flavor of meat.
• In December 2021, Blue California, a natural ingredient provider, introduced microencapsulation systems that distribute active compounds. The FineCap platform encompasses around 20 microencapsulation technologies that can be incorporated into food and medicinal products. This addresses the increased need for improved performance in functional components and nutritional supplements. FineCap preserves chemicals from deterioration and prevents unwanted tastes or odors from entering the product. It also aids in effectiveness because the capsule releases the active substance once ingested.