Food Encapsulation Market to Showcase Continued Growth in the Coming Years

The global food encapsulation market was valued at USD 11.5 billion in 2022 and is projected to reach USD 17.0 billion by 2027, growing at a CAGR of 8.2% during the study period. The market for encapsulation is growing globally at a significant pace due to its numerous applications and multiple advantages over other technologies. Some of the major advantages of encapsulation are that it helps provide enhanced stability and bioavailability to the bioactive ingredients, increases the shelf life of food products, and maintains the taste and flavor for a longer period of time. Encapsulation is increasingly used in various industrial areas, such as nutraceuticals and food and beverages.

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Vitamins and minerals is projected to grow in the food encapsulation market because of usage in superfoods for boosting brain and bone health

Consumers’ increasing attention to health and prevention, greater customized nutrition needs for different segments of the population, rising healthcare costs, search for alternatives to cure specific problems, and rising consumer awareness regarding the severity of chronic diseases drive the need for vitamins and minerals.

Vitamins are functional ingredients used in food products due to their specific nutritional properties. They are classified as fat-soluble and water-soluble vitamins. Fat-soluble vitamins contain vitamins A, D, E, and K. Vitamins B and C form a part of water-soluble vitamins. When added as a food ingredient, it is vital to target and control the release of these vitamins. This drives the need for their encapsulation. According to an article by Nutraingredients in 2019, over 40% of the vitamins consumed in the food industry are encapsulated. The encapsulation of vitamins is necessary to enclose vitamin molecules in a stable shell to prevent oxidation, preserve the nutrients, and prevent the products from deteriorating for a longer period of time.

Robotic Technology in Food Encapsulation is One of the Major Trends

Robots enhance the process of packaging nutraceutical supplements by being time-efficient and accurate. They increase the shelf life of nutraceutical ingredient products and help them comply with regulatory guidelines by reducing the risk of contamination. Furthermore, the recent increase in demand for nutritional supplements requires large-scale production, increasing the demand for robots to optimize production facilities.

Analyzing machine performance, gathering data, and troubleshooting in advance are the key robotics trends in the nutraceutical ingredients market projected to increase technology adoption in the industry. COBOTs are primarily used in the nutraceutical industry for such applications. According to TransAutomation Technologies, the labor expenditures of three people each day can be offset by a single robot that can perform one function for 24 hours per day. This helped several pharmaceutical and nutritional supplement manufacturers increase productivity, reducing their need for human labor and the challenges and costs that go along with it. Collaborative robots enable humans and robots to work together effectively in open or uncaged environments. Through collaborative robots, a human operator and robot can be engaged together in the same process, or the operator can simultaneously manage other tasks that a person might better solve.

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Asia Pacific is to grow by 9.0% CAGR during the forecast period.

The Asia-Pacific region has grown in the food encapsulation market recently. The Asia Pacific market is projected to be the fastest-growing market for food encapsulation over the next five years. Encapsulation helps in taste and flavor masking and enhances the shelf life of these products. Product manufacturers in this region face challenges due to the high atmospheric temperature, which affects the stability of bioactive ingredients. This challenge can also be overcome by using encapsulation technology.

Upcoming Growth Trends in the Aquafeed Market

The global aquafeed market is projected to reach USD 88.0 billion by 2028, at a CAGR of 7.3% over the forecast period. It is estimated to be valued USD 61.8 billion in 2023. Several important factors are driving up demand for aquafeed products on a global scale. First, a growing worldwide population has an increased need for seafood, and aquaculture offers a sustainable way to meet this demand. Fish and prawn farming has become more popular because of the depletion of wild fish stocks. Aquafeed is crucial for the healthy growth and development of aquaculture aquatic species, increasing their output and decreasing their reliance on foraging wild fish. Aquafeed products are in high demand to support the expansion of the business since advances in aquaculture technology and practises have made it more effective and financially viable.

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By form, dry segment is projected to have fastest growing rate during the forecast period.

Dry form of feed is preferred due to a few factors, such as ease of transportation, storage, and convenience associated with it, as opposed to the liquid form, which requires specialized facilities for storage and transportation. It can be purchased in bulk and is available with multiple ingredient options. Cost-effectiveness is another aspect that drives the growth of this market.

By species, fish segment is projected to have fastest growing rate during the forecast period.

In the aquafeed market, the fish segment is expanding for a variety of reasons. The need for high-quality and nutritionally balanced aquafeed is being driven by the increasing demand for fish protein on a global scale, the depletion of wild fish supplies, and the growth of aquaculture. To ensure optimum development, health, and sustainability in the sector, fish farming, with its well-established practises and different species, needs specialised feeds.

By additives, the amino acids segment is projected to have the fastest growth rate during the forecast period.

Due to their vital function in fostering the growth, development, and general health of aquatic species, amino acids are witnessing expansion in the aquafeed market. As the building blocks of proteins, amino acids help to improve nutrient absorption, feed effectiveness, and disease resistance. Additionally, customised amino acid formulations suited to match the needs of particular species are now possible because to advances in research and technology, which are fuelling the segment's expansion.

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Asia Pacific is expected to have the fastest growing rate during the forecast period.

The aquafeed market is expanding in the Asia Pacific region because of reasons like a growing population, rising seafood demand, favourable environmental conditions for aquaculture, technical improvements, and government backing. The expansion of the aquaculture sector is being fuelled by economic growth, shifting dietary tastes, and the need for sustainable protein sources, which is causing a commensurate rise in demand for aquafeed products.

The key players in this include ADM (US), Cargill, Incorporated (US), Ridley Corporation Limited (Australia), Nutreco (Netherlands), Alltech (US), Purina Animal Nutrition (US), Adisseo (Belgium), Aller Aqua A/S (Denmark), Biomin (Austria), Biomar (Denmark), Norel Animal Nutrition (Spain), Avanti Feeds Limited (India), De Heus Animal Nutrition B.V. (Netherlands), Novus International (US), and Biostadt India Limited (India).

Biological Seed Treatment Market to See Major Growth by 2025

The biological seed treatment market is projected to reach USD 1.7 billion by 2025, from USD 0.9 billion in 2020, at a CAGR of 11.9% during the forecast period. The market has been growing at a significant rate due to the increasing need for a sustainable approach in agricultural operations in developed countries. Strong research funding by key manufacturers on product development, such as compatible combinations of biological and chemical components, is expected to drive the growth of the market over the next five years.

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Companies such as BASF SE (Germany), Bayer AG (Germany), Syngenta Group (Switzerland), Corteva Agriscience (US) have been focusing on technological innovations in seed inoculation and patent registrations for new product launches to strengthen their market base in the concerned market. Apart from these companies, other biological seed treatment companies include Valent BioSciences (US), Verdesian Life Sciences (US), Plant Health Care (US), Precision Laboratories (US), Koppert Biological Systems (Netherlands), Italpollina (Italy), and Incotec (Netherlands), which have been strengthening their market position through product launches and distribution & technology agreements.

Bayer AG (Germany) is one of the active players in the biological seed treatment market. A considerable amount of Bayer revenue goes into research & development activities to offer innovative products and practices to the farming community across the world. Bayer has successfully pushed products into the market through its farmer engagement programs. Bayer has made significant investments in the acquisition of seed treatment technology providers and established research collaborations for the development of microbial seed treatment products through its SeedGrowth business unit. The acquisition of Monsanto (US) in 2018 has been a big milestone in Bayer’s history of developments, which has allowed the company to enhance its research on new technologies for improving the available solutions for crop protection. In 2018, the company received marketing authorization in many countries for new mixtures and formulations, which will further strengthen its global presence. It has also expanded its global presence with high levels of investments in R&D activities to serve its customers with innovative products in the biological seed treatment market.

Syngenta Group (Switzerland) has been a leading player in the agricultural industry by offering diverse innovative solutions to the market. Through its product investment and partnership approach, the company focuses on delivering sustainable solutions through its seed treatment technology in order to capitalize on a growing market demand for biological solutions and progress to a formidable position at the preliminary stage of the market. It has a strong brand image and early mover advantage due to the introduction of Clariva, the first biological nematicide for seed treatment. In October 2020, Syngenta Group announced the acquisition of Valagro (Italy), a leading biologicals company, through its business unit, Syngenta Crop Protection. Through this strategy, Syngenta Crop Protection positions itself as one of the key global companies to shape the rapidly growing biologicals market, which is set to nearly double in size over the next five years.

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The increasing agricultural practices and requirement of high-quality agricultural produce are factors that are projected to drive the growth of the biological seed treatment market in this region. The government policies adopted by developed countries for the ban on key active ingredients are the major factors encouraging the growth of this market in the North America region. Hence, North America is projected to be the fastest-growing region in the global market. R&D investments for the development of biological seed treatment and the installation of new production capacities by key players are projected to drive the market growth in the next five years.

Sustainable Growth Opportunities in the Biofertilizers Market

The global biofertilizers market was valued 2.8 billion in 2022 and is projected to reach USD 5.2 billion by 2028, growing at a CAGR of 10.9% during the study period. The market Size is estimated to be valued at USD 3.1 billion in 2023. Through natural processes such as nitrogen fixation; phosphate solubilization; and the production of compounds that stimulate growth, biofertilizers provide nutrients to plants. They boost soil organic matter and aid in restoring the soil's natural nutrition cycle. By using biofertilizers, growers can increase the sustainability and health of the soil and cultivate healthy crops. Only bacteria and other biological elements that are not damaging to the environment are present in biofertilizers. As a result, they contribute to reducing pollution brought on by agricultural activities, particularly soil pollution.

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By type, nitrogen-fixing biofertilizers is projected to gain largest share in the biofertilizers market during the study period

Increased biological nitrogen fixation, improved nutrient availability or uptake, greater absorption and stimulation of plant growth by hormonal action or antibiosis, or through breakdown of organic wastes are all ways that nitrogen-fixing biofertilizers aid in enhancing crop output. Also, the use of nitrogen fixing biofertilizers as a partial replacement for chemical fertilizers reduces their quantity and cost and shields the environment from contamination caused by their heavy usage. thus driving the growth of segments in the market.

By crop type, fruits & vegetables is forecasted to account for the largest share in the market during the research period

Biofertilizers are known to increase the crop productivity of various fruits & vegetables. Fruits such as bananas have a substantial nitrogen requirement; hence, the use of biofertilizer, in particular inoculation with Azotobacter, is used as an alternative and results in a higher yield than full doses of nitrogen administration. In correlation with the VAM fungus, there is a rise in the absorption of nutrients that are mobile, such as nitrogen. Organic farming produces high-quality vegetables; thus, more farmers are expected to adopt and use microbial biofertilizers in order for modern agriculture to grow sustainably.

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North America is projected to gain the largest market share in the global biofertilizers market.

North America is projected to gain the largest market share in the global biofertilizers market. The presence of large number of farmers and growers in the region allows them access to a wide range of products at competitive prices. The governments in the region are promoting the use of agricultural inputs, which cause less environmental degradation, and hence are encouraging the use of biofertilizers. In countries such as the US and Canada, farmers are focused on producing cash crops on a larger scale, which is also driving the market in the region.

Key players in this market include Novozymes (Denmark), UPL (India), Chr. Hansen Holding A/S (Denmark), Syngenta (Switzerland), T.Stanes and Company Limited (India), Lallemand Inc (Canada), Rizobacter Argentina S.A. (Argentina), Vegalab SA (Switzerland), IPL Biologicals Limited (India), and Kiwa Bio-tech Product Group Cooperation (China).

Factors Driving the Pea Processed Ingredients Market

The Pea Processed Ingredients Market is projected to reach USD 5.0 billion by 2026 with a compound annual growth rate (CAGR) of 10.1%. The market value was estimated to be USD 3.1 billion in 2021. Growth in the demand for pea processed ingredients in the end-user application industries is driving the market growth of pea processed ingredients. Further, increase in the demand for gluten free products is also a major factor resulting to the rise in the demand for pea processed ingredients.

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Key Features of the Pea Processed Ingredients Market:

• High Protein Content: Pea processed ingredients are a rich source of protein and can be used as an alternative to animal-based protein sources.
• Gluten-free: Pea processed ingredients are gluten-free, making them suitable for individuals with celiac disease or gluten intolerance.
• Versatile: Pea processed ingredients can be used in a wide range of applications, including baked goods, snacks, soups, sauces, and meat alternatives.
• Sustainable: The pea plant is highly adaptable to different climatic conditions, making it a sustainable crop for processing into ingredients.
• Allergen-free: Pea processed ingredients are free from common allergens such as soy, dairy, and nuts, making them suitable for individuals with food allergies.
• Low Carb: Pea processed ingredients have a low glycemic index, making them a suitable ingredient for low-carb diets.
• High Fiber: Pea processed ingredients are a good source of dietary fiber, which helps to improve digestion and maintain healthy gut bacteria.
• Environmentally Friendly: The pea plant requires less water and fertilizer than other crops, making it a more environmentally friendly ingredient choice.
• Long Shelf Life: Pea processed ingredients have a long shelf life, making them a convenient and cost-effective ingredient for food manufacturers.
• rowing Demand: The demand for pea processed ingredients is increasing due to the growth of the plant-based and health food markets, providing opportunities for growth and innovation in the pea processed ingredients market.

By application type, the functional food segment is expected to witness the fastest growth during the forecast period

The functional foods considered for the study include infant nutrition, nutritional supplements, dairy products, plant-based yogurt, plant-based creamers, plant-based butter, and other food products fortified with additional nutrients. The incorporation of pea processed ingredients adds to the shelf-life of the functional food products, along with the improvement of the textural and sensory characteristics, owing to their water-binding capacity, gel-forming ability, fat mimetic, anti-sticking, anti-clumping, texturizing, and thickening effects.

By source type, the yellow split peas segment is projected to grow at the fastest CAGR in the pea processed ingredients market until 2026.

The demand for yellow split peas is high owing to presence of high protein content and popularity among the food manufacturers. There is rising production of yellow peas over the years owing to the increasing demand of the same. For instance, according to the 2018 American Pulse Association Data, dry peas rank fourth in terms of the world production of food legumes below soybeans, peanuts, and dry beans. They have also reported that yellow peas and green peas, along with other minor classes, are the most commonly grown, with yellow peas accounting for approximately two-thirds of the US production. Yellow split peas are also regarded as high in fiber and is considered taste neutral thereby resulting to rising application of the same in the food and beverage products.

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North America is estimated to dominate the global pea processed ingredients market over the forecast period.

Consumers in the North American region are gradually shifting their diet preferences and are going vegan due to the health and wellness benefits associated with it. This paradigm shift in food culture is being supported by health & fitness industries, medical communities, celebrities, and athletes, which has bolstered the demand for pea-based food ingredients. The rising incidences of obesity, cardiovascular diseases, and diabetes among the American population have also prompted consumers to adopt vegan diets.

Plant-based Meat Market Will Hit Big Revenues In Future

The global plant-based meat market is estimated to be valued at USD 7.9 billion in 2022. It is projected to reach USD 15.7 billion by 2027, with a CAGR of 14.7%, in terms of value between 2022 and 2027. There is a growth in the vegan and flexitarian population, a rise in awareness about the health benefits of plant-based meat over animal-based meat products, an increase in investment by government bodies and R&D activities, and investment of the major food industry giants in plant-based meat products. These factors together are propelling the plant-based meat market.

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By product, the strips & nuggets segment is projected to occupy the second-largest market share during the forecast period

By product, the strips & nuggets segment is projected to occupy the second-largest market share in terms of value by 2027 in the plant-based meat market. The demand for strips & nuggets is on the rise because of their taste appeal and consumer popularity, particularly in American and European countries. Thus, due to their rising popularity, several companies are focusing on expanding their product portfolios by incorporating other strips & nuggets made from chickpeas, wheat, soy, corn, rice, and oats. All these factors together are projected to contribute to the market share of this product category by 2027.

The food retail segment among distribution channels is estimated to have the largest market

Based on the distribution channel, the food retail segment is estimated to account for the largest share of the plant-based meat market in 2022. Food retail refers to operating retail, supermarkets, hypermarket stores, and other stores where various products, such as grocery items, vegetables, uncooked meat, and frozen products, are made available to consumers. The distribution channel is already popular among consumers worldwide due to the wide availability of various products. Therefore, this distribution channel is being used by established plant-based meat companies and startups to increase the penetration of their products in the market, making it the largest segment during the forecast period in the plant-based meat market.

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Europe region holds the largest share in the plant-based meat market

The European plant-based meat market accounted for the largest market share in 2020. This dominance is attributed to the rising health concerns among consumers regarding meat products and the exponentially growing veganism trend in the region. Furthermore, European plant-based meat manufacturers focus on developing innovative products backed by appropriate research and development facilities available in the region. Several European retailers and supermarkets have added plant-based meat products to their product range to cater to the rising demand for plant-based meat products across the region.

This report includes a study on the marketing and development strategies, along with the product portfolios of leading companies. It consists of profiles of leading companies, such as Beyond Meat (US), Kellogg Company (US), Impossible Foods Inc. (US), Maple Leaf Foods (Canada), Unilever (UK), Conagra Foods (US), Gold & Green Foods Ltd (Finland), Sunfed (New Zealand), and Monde Nissin (Philippines).a

Growth Strategies Adopted by Major Players in the Precision Fermentation Ingredients Market

The global precision fermentation ingredients market size is estimated to be valued at USD 2.8 billion in 2023 and is projected to reach USD 36.3 billion by 2030, recording a CAGR of 44.0% by value. Changing consumer preferences towards veganism, increasing protein consumption, and rising investments in innovations are the major factors for market growth. Substantial breakthroughs in the genetic engineering space have enabled the cost-effective and sustainable reprogramming of microorganisms (synthetic biology) through precision fermentation to create a wide range of specialized food protein constituents.

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By ingredient type, the whey & casein protein segment accounted for the second largest share.

The burgeoning awareness of animal-free options, veganism, and plant-based lifestyles has driven manufacturers to introduce an array of dairy-free ingredients. In the precision fermentation ingredients market, whey and casein play pivotal roles with versatile applications across industries. Companies like Modern Kitchen, based in the US, utilize precision fermentation-based whey protein from Perfect Day to produce animal-free cream cheese. Brazilian company Up Dairy specializes in precision fermentation to create dairy ingredients, with a focus on whey protein and casein. Up Dairy employs advanced technologies such as Cell Line Development, Host Strain Development, Target Molecule Selection, Bioprocess Design, and Ingredient Optimization. Formo Bio's approach to crafting animal-free cheese through precision fermentation showcases the intersection of traditional practices and innovative technology. By sourcing whey and casein from microorganisms inspired by cow DNA, they tap into both heritage and innovation, providing a sustainable alternative to traditional dairy cheese.

By microbe type, the fungi segment constitutes around one-fourth of the global demand.

Extensive research and development activities in the field of precision fermentation helped food producers in evolving the landscape of animal-free protein alternatives using microbes such as bacteria, yeast, and fungi. One advantage of utilizing fungi metabolic engineering is that their eukaryotic origin allows them to tolerate and functionally express heterologous eukaryotic proteins and enzymes, resulting in proper protein folding and post-translational modifications. Better Meat Co., a US based company, developed a process for biomass protein from the filamentous fungi Neurospora crass In February 2022, VTT Technical Research Centre of Finland developed egg white protein (ovalbumin) from fungi using precision fermentation.

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The Asia Pacific region is projected to grow at the highest CAGR in the precision fermentation ingredients market during the forecast period

The key factors driving the Asia Pacific precision fermentation ingredients market are the rapid urbanization and changing lifestyles that have led to an increased demand for specialized products, such as alternative proteins and sustainable ingredients, which precision fermentation excels in producing. The region's focus on technological advancements and innovation aligns with precision fermentation ingredient's cutting-edge nature, fostering a thriving ecosystem for research and development. Additionally, Consumer willingness to adopt innovative products is evident across countries, extending beyond curiosity to active purchasing intent. Also, investments and expansions in the region drive the growth of the Asia Pacific market.