Encapsulated Flavors and Fragrances Global Market Report 2024

The encapsulated flavors and fragrances market size has grown strongly in recent years. It will grow from $4.36 billion in 2023 to $4.65 billion in 2024 at a compound annual growth rate (CAGR) of 6.7%. The growth observed in the historical period was propelled by several factors, including the increasing consumer inclination towards novel and innovative products, heightened emphasis on extending shelf life and maintaining stability, growing awareness surrounding health and wellness, the continuous expansion of the food and beverage industry, and innovations in product formulations. These collective drivers contributed significantly to the advancement and expansion of the encapsulated flavors and fragrances market during this period.

The encapsulated flavors and fragrances market size is expected to see strong growth in the next few years. It will grow to $5.87 billion in 2028 at a compound annual growth rate (CAGR) of 6.0%. The anticipated growth in the forecast period is expected due to several factors, notably the increasing emphasis on clean label products, the global expansion witnessed in the cosmetics industry, the evolving landscape of e-commerce and retail dynamics, and the growing trends in customization and personalization. Additionally, major trends in this period are expected to include a focus on customized and tailored sensory experiences, the extension of encapsulated flavors and fragrances into home and fabric care products, advancements in materials used for encapsulation, and the integration of artificial intelligence (AI) in the development of flavors. These trends collectively signify the expected trajectory and developments within the encapsulated flavors and fragrances market in the coming years.

The expanding food and beverage industry is poised to drive the growth of the encapsulated flavors and fragrances market. This sector, encompassing the production, processing, distribution, and sale of food and drink products, is a significant economic force. Encapsulated flavors and fragrances play a vital role in this industry, contributing to improved flavor stability, controlled release, enhanced sensory experiences, and the creation of unique flavor profiles in various products. As reported in April 2022 by Common Thread Collective, global food and beverage sales reached $506 billion in 2022 and are anticipated to rise to $857 billion by 2025. Additionally, data from May 2023 by YCharts indicates an increase in US food and beverage store sales from $81.25 billion in 2022 to $82.10 billion in 2023, underscoring the growth in the industry and the corresponding demand for encapsulated flavors and fragrances.

The rising popularity of personal care products is expected to contribute to the growth of the encapsulated flavors and fragrances market. Personal care products, encompassing items for hygiene, grooming, and beautification, incorporate encapsulated flavors and fragrances to provide prolonged scents and controlled release in products such as perfumes and lotions. Notably, in September 2023, the U.S. Bureau of Labor Statistics reported a 12.3% growth in spending on personal care products and services in 2022, following a substantial increase of 19.3% in 2021. Expenditures on personal care products specifically rose by 15.5% in 2022, accompanied by a 9.1% increase in spending on personal care services. This growth trend underscores the heightened use of personal care products, thereby contributing to the demand for encapsulated flavors and fragrances in this market.

Technological advancements are emerging as a significant trend in the encapsulated flavors and fragrances market, with major companies at the forefront of developing innovative solutions to maintain their market positions. An illustrative example is Givaudan, a Switzerland-based chemicals company, which introduced PlanetCaps in December 2021. This fragrance encapsulation technology utilizes a renewable carbon source material to create biodegradable fragrance capsules, ensuring a sustainable and long-lasting scent experience. PlanetCaps presents several advantages, including environmental friendliness, biodegradability, and versatility, showcasing a commitment to incorporating advanced technologies for more sustainable fragrance capsules.

Sustainability remains a focal point for major players in the encapsulated flavors and fragrances market, with a specific emphasis on developing biodegradable encapsulation technology. This approach involves using materials and techniques that facilitate the natural breakdown or decomposition of encapsulated products over time through biological processes. For instance, CPL Aromas PVT Ltd, a UK-based fragrances manufacturing company, launched 'AromaCore Bio' in November 2022. This patented biodegradable encapsulation technology is designed for delivering long-lasting fragrance in laundry and fabric applications. Through a mechanism where capsules open upon friction, AromaCore Bio ensures a prolonged and delightful scent experience, aligning with the industry's growing focus on sustainability and eco-friendly practices.

In March 2023, AptarGroup, Inc., a US-based packaging and containers manufacturing company, successfully acquired iDSCENT for an undisclosed amount. This strategic move is aimed at enhancing Aptar's product portfolio in the field of fragrance sampling solutions by incorporating the expertise of iDSCENT. Notably, iDSCENT brings 100% fragrance encapsulation paper-based products to the table. The acquisition positions both companies to respond more effectively to the rising global consumer demand for innovative fragrance sampling solutions. iDSCENT, based in France, specializes in the design and manufacturing of encapsulated fragrance sampling solutions.

Major companies operating in the encapsulated flavors and fragrances market report are Cargill Incorporated, International Flavors and Fragrances, Dutch Multinational Corporation (DSM), Kerry Group plc, Givaudan, Ingredion Incorporated, Firmenich SA, Symrise AG, Ashland Inc., Tate And Lyle Plc, Takasago, Balchem Inc., Robertet, Sensient Technologies Corporation, Glatt GmbH, Schubert International, Mane SA, Fona International Inc., Clextral, Buchi Labortechnik AG, Aveka Inc, Keva Fragrances Private Limited, Blue Pacific Flavors, TasteTech Ltd., MikroCaps doo.

Asia-Pacific was the largest region in the encapsulated flavors and fragrance market in 2023. The regions covered in the encapsulated flavors and fragrances market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the encapsulated flavors and fragrances market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Italy, Spain, Canada.

The main product classifications encompass flavor blends, fragrance blends, essential oils, natural extracts, and aroma chemicals. Flavor blends denote combinations of diverse flavors or ingredients curated to deliver a distinct taste encounter. These blends are available in multiple forms such as powder, paste, and granules, utilizing various encapsulation methods including micro-encapsulation, nano-encapsulation, hybrid-encapsulation, and macro-encapsulation. Employing a range of technologies including physical, physicochemical, and chemical processes, along with extrusion, fluid beds, among others, these products cater to applications in food and beverages, cleaners, toiletries, personal care products, cosmetics, and other industries.

The encapsulated flavors and fragrances market research report is one of a series of new reports that provides encapsulated flavors and fragrances market statistics, including encapsulated flavors and fragrances industry global market size, regional shares, competitors with a encapsulated flavors and fragrances market share, detailed encapsulated flavors and fragrances market segments, market trends and opportunities, and any further data you may need to thrive in the encapsulated flavors and fragrances industry. This encapsulated flavors and fragrances market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The encapsulated flavors and fragrances market consists of revenues earned by entities by providing fluid bed coating, spray drying, glass encapsulation, and spray chilling/congealing services. The market value includes the value of related goods sold by the service provider or included within the service offering. The encapsulated flavors and fragrances market also includes sales of encapsulated flavor powders, encapsulated fragrance beads, personal care products, and household cleaning products that are used in providing encapsulated flavors and fragrances services. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).


The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.