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North America Microencapsulation Market Outlook to 2028

Region:North America

Author(s):Sanjna Verma

Product Code:KROD458

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Published On

December 2024

Total pages

96

About the Report

North America Microencapsulation Market Overview

  • North America Microencapsulation Market was valued at USD 5.05 billion in 2023, driven by increasing demand for controlled release and targeted delivery in various industries. The market's growth is propelled by advancements in pharmaceuticals, food and beverages, and agrochemicals sectors, which benefit from microencapsulation technologies for improved product stability and efficacy.

North America Microencapsulation Market Size

  • Key players in the North America microencapsulation market include companies like BASF SE, Syngenta Crop Protection, Royal DSM, Encapsys LLC, and Capsulae. These companies lead the market through extensive R&D investments, innovative product offerings, and strategic partnerships, ensuring a competitive edge in various application sectors.
  • In 2023, BASF SE announced the launch of a new microencapsulation technology aimed at enhancing the stability and release profiles of active ingredients, specifically targeting applications in agricultural products. This development is anticipated to improve crop protection and yield, thus strengthening BASF's position in the market
  • Dominant cities in the North America microencapsulation market include New York, San Francisco, and Toronto. These cities host major biotechnology and pharmaceutical companies, driving innovation and market demand through significant R&D activities and advanced manufacturing capabilities.

North America Microencapsulation Market Segmentation

The North America Microencapsulation Market can be segmented based on several factors:

By Product Type: North America Microencapsulation Market is segmented by Product Type into Polymers, Lipids & Carbohydrates. In 2023, polymers held a dominant market share due to their versatility and wide application in pharmaceuticals, food, and cosmetics. The stability and controlled release properties of polymer-based microcapsules make them highly preferred for encapsulating active ingredients.

North America Microencapsulation Market Segmentation by Product Type

By Application: North America Microencapsulation Market is segmented by Application into Pharmaceuticals, Food & Beverages and Agrochemicals. In 2023, pharmaceuticals dominated the market, driven by the increasing need for targeted drug delivery systems. Microencapsulation enhances the bioavailability and controlled release of drugs, ensuring better therapeutic outcomes and patient compliance.

North America Microencapsulation Market Segmentation by Application

By Region: North America Microencapsulation Market is segmented into USA and Canada. In 2023, the USA accounted for a significant market share due to the presence of major industry players, robust R&D infrastructure, and high demand for advanced microencapsulation technologies across various sectors. Additionally, the growing pharmaceutical and food industries in the region are further driving the adoption of microencapsulation solutions.

North America Microencapsulation Market Competitive Landscape

Company

Establishment Year

Headquarters

BASF SE

1865

Ludwigshafen, Germany

Syngenta

2000

Basel, Switzerland

Royal DSM

1902

Heerlen, Netherlands

Encapsys LLC

1955

Appleton, USA

Capsulae

2014

Rennes, France

  • Lubrizol Corporation introduces LIPOFER: In 2024, Lubrizol Corporation, launched LIPOFER microcapsules that deliver iron with optimum performance at Vitafoods Europe. LIPOFER microcapsules are designed with a combination of cutting-edge technologies that deliver iron in an optimized way, overcoming issues such as irons off-taste, reactivity, interaction with other ingredients, and color change.
  • Gummicino by TopGum: In 2023, TopGum introduced Gummiccino, a new line of high-dosage caffeine gummies that utilize proprietary microencapsulation technology. This innovative product aims to enhance flavor and absorption, addressing previous challenges in the gummy supplement market, particularly the bitterness often associated with coffee-flavored products.

North America Microencapsulation Industry Analysis

Growth Drivers

  • Increased Demand in Pharmaceuticals: The pharmaceutical industry in North America is experiencing significant growth, leading to increased demand for microencapsulation technologies. This demand is driven by the need for advanced drug delivery systems that enhance bioavailability and control the release of active ingredients. AbbVie made a big impression around the world, with the pharmaceutical segment of its operations generating a record USD 55 billion in 2021.
  • Rising Functional Food Market: The functional food market is expanding, driven by consumer interest in foods that provide additional health benefits. Microencapsulation technology is crucial in this sector, allowing for the incorporation of probiotics, vitamins, and minerals without affecting taste or stability. This trend reflects a broader consumer shift towards health-conscious eating habits.
  • Advancements in Agricultural Practices: In agriculture, the adoption of advanced technologies, including precision agriculture and genetically modified organisms, is indeed enhancing crop yield and sustainability. Microencapsulation plays a significant role by protecting and controlling the release of agrochemicals, which improves their efficiency and minimizes environmental impact. The integration of these technologies is consistent with the industry's movement towards more sustainable practices.

Challenges

  • Regulatory Hurdles: The regulatory landscape for microencapsulation technologies is complex and varies across different applications and regions. Compliance with stringent regulations set by bodies like the FDA and Environmental Protection Agency (EPA) can be challenging and time-consuming. This regulatory burden can delay product launches and increase development costs.
  • Technical Limitations: Despite advancements, there are still technical limitations in microencapsulation processes that affect the efficiency and scalability of production. Issues such as the stability of encapsulated materials, controlled release rates, and the compatibility of encapsulation materials with active ingredients need ongoing research and development.

North America Microencapsulation Market Trends and Developments

  • USDA Research Funding (2024): USDA's in-house research budget, primarily through the Agricultural Research Service (ARS), received a 2.5% increase to $1.8 billion in FY24. Eligible projects can be located in urban, rural or suburban areas and must be 36 months in duration. The funding will also be allocated to land-grant universities and research institutions working on innovative microencapsulation solutions.
  • Canadian Agricultural Partnership (2021): The Canadian Agricultural Partnership (CAP) was a 5-year, $3 billion investment by federal, provincial and territorial governments that commenced on April 1, 2018 and ended on March 31, 2023.It provided a framework for agri-food industry funding and was the primary mechanism used to disburse government grants and repayable funding contributions to SMEs, non-profits, and other key industry stakeholders

North America Microencapsulation Future Market Outlook

North America microencapsulation market is poised for substantial growth over the next five years, driven by advancements in pharmaceuticals, functional foods, and agricultural applications. The increasing adoption of microencapsulation technologies across these sectors is expected to enhance product efficacy, stability, and consumer acceptance.

Future Trends

  • Pharmaceutical Innovations: Over the next five years, the pharmaceutical sector will continue to drive demand for microencapsulation technologies. Companies are expected to develop more sophisticated drug delivery systems that improve therapeutic outcomes and patient compliance. This trend will be supported by ongoing research in nanotechnology and biomaterials, leading to more effective and targeted treatments.
  • Expansion of Functional Foods: The functional food market is set to expand further, with microencapsulation playing a crucial role in fortifying products with essential nutrients. Companies will focus on developing innovative encapsulated ingredients that can be easily incorporated into a wide range of food and beverage products. Consumer demand for health-enhancing foods will fuel this trend, leading to new product launches and increased market penetration.

Scope of the Report

By Product Type

Polymers

Lipids

Carbohydrates

By Application

Pharmaceuticals

Food & Beverages

Agrochemicals

By Region

USA
Canada

Products

Key Target Audience Organizations and Entities Who Can Benefit by Subscribing This Report:

 

  • Pharmaceutical Companies
  • Food & Beverage Manufacturers
  • Agrochemical Companies
  • Biotechnology Firms
  • Nutraceutical Companies
  • Investment & Venture Capitalist Firms
  • Government & Regulatory Bodies (e.g., USDA, FDA)

 

Time Period Captured in the Report:

 

  • Historical Period: 2018-2023
  • Base Year: 2023
  • Forecast Period: 2023-2028

Companies

Major Players Mentioned in the Report:

  • BASF SE
  • Syngenta Crop Protection
  • Royal DSM
  • Encapsys LLC
  • Capsulae
  • Givaudan
  • Lipo Technologies
  • Balchem Corporation
  • Aveka Group
  • Ronald T. Dodge Company
  • Sphera Encapsulation
  • Watson Inc.
  • Lycored
  • TasteTech Ltd.
  • Reed Pacific

Table of Contents

1. North America Microencapsulation Market Overview

1.1. Definition and Scope

1.2. Market Taxonomy

1.3. Market Growth Rate

1.4. Market Segmentation Overview

2. North America Microencapsulation Market Size (in USD Bn), 2018-2023

2.1. Historical Market Size

2.2. Year-on-Year Growth Analysis

2.3. Key Market Developments and Milestones

3. North America Microencapsulation Market Analysis

3.1. Growth Drivers

3.1.1. Increased Demand in Pharmaceuticals

3.1.2. Rising Functional Food Market

3.1.3. Advancements in Agricultural Practices

3.2. Restraints

3.2.1. High Production Costs

3.2.2. Technical Challenges in Scalability

3.2.3. Regulatory Hurdles

3.3. Opportunities

3.3.1. Innovations in Release Mechanisms

3.3.2. Growth in Functional Food and Beverage Segment

3.3.3. Collaborations and Partnerships in R&D

3.4. Trends

3.4.1. Use of Natural and Sustainable Coating Materials

3.4.2. Integration with Nanotechnology

3.4.3. Customized and Targeted Delivery Systems

3.5. Government Regulation

3.5.1. Food and Drug Administration (FDA) Guidelines

3.5.2. Environmental Protection Agency (EPA) Standards

3.5.3. Compliance with North American Free Trade Agreement (NAFTA) Regulations

3.6. SWOT Analysis

3.7. Stakeholder Ecosystem

3.8. Competition Ecosystem

4. North America Microencapsulation Market Segmentation, 2023

4.1. By Product Type (in Value %)

4.1.1. Polymer

4.1.2. Lipids

4.1.3 Carbohydrates

4.2. By Application (in Value %)

4.2.1. Pharmaceuticals

4.2.2. Food & Beverages

4.2.3. Agrochemicals

4.3. By Technology (in Value %)

4.3.1. Spray Drying

4.3.2. Emulsion

4.3.3. Coextrusion

4.3.4. Others (Fluid Bed Coating, Sol-Gel, etc.)

4.4. By Region (in Value %)

4.4.1. United States

4.4.2. Canada

5. North America Microencapsulation Market Cross Comparison

5.1 Detailed Profiles of Major Companies

5.1.1 BASF SE

5.1.2 Syngenta Crop Protection

5.1.3 Royal DSM

5.1.4 Encapsys LLC

5.1.5 Capsulae

5.1.6 Givaudan

5.1.7 Lipo Technologies

5.1.8 Balchem Corporation

5.1.9 Aveka Group

5.1.10 Ronald T. Dodge Company

5.1.11 Sphera Encapsulation

5.1.12 Watson Inc.

5.1.13 Lycored

5.1.14 TasteTech Ltd.

5.1.15 Reed Pacific

5.2 Cross Comparison Parameters (No. of Employees, Headquarters, Inception Year, Revenue)

6. North America Microencapsulation Market Competitive Landscape

6.1. Market Share Analysis

6.2. Strategic Initiatives

6.3. Mergers and Acquisitions

6.4. Investment Analysis

6.4.1. Venture Capital Funding

6.4.2. Government Grants

6.4.3. Private Equity Investments

7. North America Microencapsulation Market Regulatory Framework

7.1. Industry Standards and Certifications

7.2. Compliance Requirements

7.3. Environmental Regulations

8. North America Microencapsulation Future Market Size (in USD Bn), 2023-2028

8.1. Future Market Size Projections

8.2. Key Factors Driving Future Market Growth

9. North America Microencapsulation Future Market Segmentation, 2028

9.1. By Product Type (in Value %)

9.2. By Application (in Value %)

9.3. By Technology (in Value %)

9.4. By Region (in Value %)

10. North America Microencapsulation Market Analysts Recommendations

10.1. TAM/SAM/SOM Analysis

10.2. Customer Cohort Analysis

10.3. Marketing Initiatives

10.4. White Space Opportunity Analysis

11. Disclaimer

12. Contact Us

Research Methodology

Step 1: Identifying Key Variables

Ecosystem creation for all the major entities and referring to multiple secondary and proprietary databases to perform desk research around market to collate industry level information.

Step 2: Market Building

Collating statistics on North America Microencapsulation Market over the years, penetration of marketplaces and service providers ratio to compute revenue generated for North America Microencapsulation Market. We will also review service quality statistics to understand revenue generated which can ensure accuracy behind the data points shared.

Step 3:Validating and Finalizing

Building market hypothesis and conducting CATIs with industry exerts belonging to different companies to validate statistics and seek operational and financial information from company representatives.

Step 4: Research output

Our team will approach multiple microencapsulation suppliers and distributors companies and understand nature of product segments and sales, consumer preference and other parameters, which will support us validate statistics derived through bottom to top approach from microencapsulation suppliers and distributors companies.

 

Frequently Asked Questions

01 How big is North America Microencapsulation Market?

North America Microencapsulation Market was valued at USD 5.05 billion in 2023, driven by increasing demand for controlled release and targeted delivery in various industries.

02 What are the challenges in the North America microencapsulation market?

Challenges in the North America microencapsulation market include high production costs, regulatory hurdles, and technical limitations in the encapsulation processes that affect efficiency and scalability.

03 What are the growth drivers of North America Microencapsulation Market?

Growth drivers include increased demand in pharmaceuticals for advanced drug delivery systems, the rising functional food market with fortified ingredients, and advancements in agricultural practices enhancing crop yield and sustainability.

04 Who are the major players in the North America Microencapsulation Market?

Key players in the North America microencapsulation market include companies like BASF SE, Syngenta Crop Protection, Royal DSM, Encapsys LLC, and Capsulae. These companies lead the market through extensive R&D investments, innovative product offerings, and strategic partnerships.

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