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The global microencapsulation market was valued at USD 15.40 Billion in 2024, driven by expanding application of microencapsulation across various domains. The market is anticipated to grow at a CAGR of 9.40% during the forecast period of 2025-2034 to achieve a value of USD 37.82 Billion by 2034.
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Increasing demand for targeted drug delivery systems is driving the growth of the microencapsulation market, with advancements in technology allowing for more efficient, controlled release of pharmaceutical ingredients.
The rise in consumer demand for functional foods and nutraceuticals is contributing to the market expansion, as encapsulated ingredients help improve bioavailability, stability, and taste in food products.
Innovations in biodegradable and sustainable encapsulation materials are fostering market growth, as industries focus on eco-friendly solutions for encapsulating sensitive compounds without compromising on efficiency or safety.
The key features of the market report comprise patent analysis, grants analysis, funding and investment analysis, and strategic initiatives by the leading players. The major companies in the market are as follows:
BASF SE
Headquartered in Ludwigshafen, Germany, BASF SE was established in 1865 and is a global leader in chemicals and materials science. The company has a strong presence in the microencapsulation market, offering advanced solutions for industries such as pharmaceuticals, agriculture, food, and personal care. For instance, in January 2025, BASF launched VitaGuard® A, an innovative encapsulated retinol ingredient aimed at enhancing stability and bioavailability in cosmetic formulations. By encapsulating retinol in solid lipid particles, BASF addresses stability challenges and irritation, strengthening its position in the personal care industry. BASF continues to drive innovation in microencapsulation, improving product efficacy and sustainability across diverse sectors. BASF’s expertise in encapsulation technologies enhances the stability, bioavailability, and controlled release of active ingredients. Its products are widely used to improve crop protection, extend shelf life in food applications, and develop innovative drug delivery systems, reinforcing its commitment to sustainable and high-performance formulations.
Kraton Corporation
Kraton Corporation, founded in 2001 and headquartered in Houston, Texas, specialises in high-performance polymers and bio-based chemicals. In the microencapsulation market, Kraton focuses on advanced encapsulation technologies for adhesives, coatings, personal care, and industrial applications. Its encapsulation solutions improve the controlled release and stability of active ingredients, offering enhanced functionality in various end-use industries. With a strong emphasis on sustainability, Kraton integrates renewable and bio-based materials into its formulations, making it a key player in developing environmentally friendly microencapsulation solutions that cater to growing industry demands.
Lonza Group SA
Lonza Group SA, established in 1897 and headquartered in Basel, Switzerland, is a global leader in life sciences and specialty chemicals. The company plays a pivotal role in the microencapsulation market, particularly in pharmaceuticals, nutrition, and personal care. Lonza’s proprietary encapsulation technologies, such as lipid-based and polymer-based systems, enhance ingredient stability, targeted delivery, and controlled release. Its solutions are widely used in drug formulations, dietary supplements, and functional foods. With a focus on innovation and biotechnological advancements, Lonza continues to drive market growth through customised encapsulation solutions tailored to specific industry needs.
Coating Place, Inc.
Founded in 1976 and headquartered in Verona, Wisconsin, Coating Place, Inc. specialises in fluidised bed microencapsulation technologies, primarily serving the pharmaceutical, nutraceutical, and food industries. The company is recognised for its expertise in controlled-release and taste-masking applications, ensuring improved efficacy and patient compliance in drug formulations. Coating Place offers custom contract manufacturing services, supporting clients in developing high-quality microencapsulated products. With a strong focus on innovation and regulatory compliance, the company continues to expand its influence in the global microencapsulation market, delivering advanced encapsulation solutions that enhance product performance and stability.
Other key players in the market include Encapsys (a division of Aenova Group), Ginkgo Bioworks Holdings, Inc., Nouryon Chemicals Holding B.V., Innospec Inc., Wacker Chemie AG, and Syngenta AG.
Microencapsulation Market Size
Microencapsulation Market Growth
*While we strive to always give you current and accurate information, the numbers depicted on the website are indicative and may differ from the actual numbers in the main report. At Expert Market Research, we aim to bring you the latest insights and trends in the market. Using our analyses and forecasts, stakeholders can understand the market dynamics, navigate challenges, and capitalize on opportunities to make data-driven strategic decisions.*
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United States (Head Office)
30 North Gould Street, Sheridan, WY 82801
+1-415-325-5166
Australia
63 Fiona Drive, Tamworth, NSW
+61-448-061-727
India
C130 Sector 2 Noida, Uttar Pradesh 201301
+91-723-689-1189
Philippines
40th Floor, PBCom Tower, 6795 Ayala Avenue Cor V.A Rufino St. Makati City, 1226.
+63-287-899-028, +63-967-048-3306
United Kingdom
6 Gardner Place, Becketts Close, Feltham TW14 0BX, Greater London
+44-753-713-2163
Vietnam
193/26/4 St.no.6, Ward Binh Hung Hoa, Binh Tan District, Ho Chi Minh City
+84-865-399-124