India Food Encapsulation Market Overview, 2028

In recent years, the food encapsulation market in India has grown significantly, owing to shifting customer preferences and rising demand for convenient and creative food items. Encapsulation, the act of encapsulating food ingredients within a protective shell, has emerged as a critical technology in the food business, providing numerous benefits such as increased shelf life, controlled release of flavours and nutrients, and improved sensory experience. In keeping with global trends, India has seen an increase in the use of food encapsulation techniques, with an emphasis on encapsulated flavours, colours, vitamins, and functional components. This market is characterised by a varied spectrum of participants, including huge international firms, domestic producers, and startups, all of which are attempting to meet the changing wants of the Indian consumer. Moreover, sustainability and clean labeling have emerged as key trends in the industry, with a growing emphasis on natural and eco-friendly encapsulation materials. As consumers become more health-conscious, there is a rising demand for encapsulated functional ingredients, such as probiotics and dietary supplements, to address specific health needs. Overall, the food encapsulation market in India is witnessing a dynamic and promising landscape, driven by innovation, evolving consumer preferences, and a focus on sustainable and healthier food products. India has a diverse and expansive food industry, and ensuring food safety and extending shelf life are critical concerns. Food encapsulation technologies, such as microencapsulation, can protect sensitive ingredients from degradation, oxidation, moisture, and other environmental factors. This helps in prolonging the shelf life of food products and reducing food waste.

According to the research report "India Food Encapsulation Market Overview, 2028," published by Bonafide Research, the India food encapsulation market is expected to grow at 10.56% CAGR from 2023 to 2028. As consumers become more health-conscious, there is a growing demand for functional foods and ingredients with specific health benefits. Encapsulation enables the controlled release of bioactive compounds, such as vitamins, probiotics, omega-3 fatty acids, and antioxidants, in food products. This allows for enhanced nutrient delivery, improved bioavailability, and targeted release, catering to the health and wellness needs of consumers. Indian research institutions and food companies have been actively engaged in research and development activities related to food encapsulation. They have been exploring various encapsulation techniques, such as spray drying, freeze drying, extrusion, and coacervation, to encapsulate bioactive compounds, flavors, and nutrients. These efforts have focused on improving encapsulation efficiency, stability, and controlled release properties. Encapsulation materials play a crucial role in ensuring the stability and functionality of encapsulated ingredients. In India, there have been efforts to explore and develop novel encapsulation materials with improved properties. Researchers have investigated the use of natural polymers, such as proteins, polysaccharides, and lipids, as encapsulation matrices. These materials offer advantages such as biocompatibility, biodegradability, and improved sustainability compared to synthetic alternatives.

The regulatory framework for food encapsulation in India is primarily governed by the Food Safety and Standards Authority of India (FSSAI), which is the apex regulatory body for food safety and standards in the country. FSSAI sets the standards, regulations, and guidelines related to food safety, including those applicable to encapsulated food products. Food Safety and Standards regulation, these regulations lay down the standards for various food products, including those that may involve encapsulated ingredients or additives. They specify the permissible ingredients, additives, and their respective usage levels in food products. Encapsulated ingredients and additives need to comply with these regulations to ensure their safety and quality. FSSAI has detailed regulations for labeling and packaging of food products, which also apply to encapsulated food products. The labeling requirements include mandatory information such as the name of the product, list of ingredients, nutritional information, allergen declaration, and the FSSAI logo. Proper labeling ensures that consumers have access to essential information about the encapsulated food product they are purchasing.

Based on the core phase, which includes vitamins, minerals, enzymes, probiotics, sweeteners, organic acids, flavours and essences, colours, preservatives, essential oils, prebiotics, and others, In India, minerals have a significant market share. Minerals are essential for preserving general health and well-being. They are required for a variety of body activities such as metabolism, immunological function, and bone health. Mineral encapsulation provides for regulated release and targeted distribution, resulting in optimal absorption and utilisation by the body. As a result, encapsulated mineral supplements have grown in popularity among India's health-conscious consumers. Furthermore, mineral shortages are a problem for many populations, including India. Mineral encapsulation is a simple and effective technique to correct these deficits. Manufacturers can create fortified food items that contain the appropriate mineral content in a bioavailable and easily digestible form by encapsulating minerals. This technique aids in the prevention and treatment of dietary deficiencies in the population.

Based on the shell types, which include polysaccharides, proteins, lipids, emulsifiers, and others, in India, proteins have the second largest market share. With the growing popularity of plant-based diets and the increased demand for alternative protein sources, there is a growing trend towards employing plant-based materials as protein encapsulation shells. Shells made from plant fibres, starches, and proteins are being used to encapsulate protein components. This development corresponds to customer preferences for sustainable and plant-based eating options. Based on the application types, which include functional foods, dietary supplements, bakery products, confectionary products, beverages, frozen products, and dairy products, the Functional foods segment is the leading segment, and dairy products are also a growing segment. Dairy products have a high nutritional value, especially as a source of protein, calcium, and vitamins. Encapsulation allows dairy products to be fortified with additional nutrients such as vitamins, minerals, and probiotics. The nutritional profile of dairy products can be improved by encapsulating these bioactive substances, giving customers additional health benefits.



Based on the technology types, the segment includes micro-encapsulation, Nano-encapsulation, and Hybrid technology; among them, micro-encapsulation is the leading segment in the market. Microencapsulation provides a high level of protection and preservation for sensitive ingredients. The microencapsulation process involves enclosing the active ingredients within microscopic particles or capsules, creating a protective barrier. This barrier shields the encapsulated ingredients from degradation caused by factors like heat, moisture, light, and oxidation. In the context of India, where diverse climatic conditions and storage challenges exist, microencapsulation helps in maintaining the quality, stability, and extended shelf life of food products. Microencapsulation technology is effective in enhancing the sensory attributes of food products. It allows for the encapsulation of flavors, fragrances, and volatile compounds, which can be released upon consumption, thereby intensifying the taste and aroma experience. In a country like India, where flavors and spices play a vital role in the cuisine, microencapsulation offers a means to preserve and deliver these sensory attributes in a controlled manner, leading to enhanced consumer acceptance.

Considered in this report
• Geography: India
• Historic year: 2017
• Base year: 2022
• Estimated year: 2023
• Forecast year: 2028

Aspects covered in this report
• India Food Encapsulation market with its value and forecast along with its segments
• Various drivers and challenges
• On-going trends and developments
• Top profiled companies
• Strategic recommendation

By Core Phase:
• Vitamins
• Minerals
• Enzymes
• Pro-biotic
• Sweeteners
• Organic Acids
• Flavors & Essence
• Colors
• Preservatives
• Essential Oils Pre-biotic
• Others

By Shell Material:
• Polysaccharides
• Proteins
• Lipids
• Emulsifiers
• Others

By Technology:
• Micro-encapsulation
• Nano-encapsulation
• Hybrid technology

By Application:
• Functional Foods
• Dietary Supplements
• Bakery Products
• Confectionary Products
• Beverages
• Frozen products
• Dairy Products

The approach of the report:
This report consists of a combined approach of primary as well as secondary research. Initially, secondary research was used to get an understanding of the market and listing out the companies that are present in the market. The secondary research consists of third party sources such as press releases, annual report of companies, analyzing the government generated reports and databases. After gathering the data from secondary sources primary research was conducted by making telephonic interviews with the leading players about how the market is functioning and then conducted trade calls with dealers and distributors of the market. Post this we have started doing primary calls to consumers by equally segmenting consumers in regional aspects, tier aspects, age group, and gender. Once we have primary data with us we have started verifying the details obtained from secondary sources.

Intended audience
This report can be useful to industry consultants, manufacturers, suppliers, associations & organizations related to Food Encapsulation industry, government bodies and other stakeholders to align their market-centric strategies. In addition to marketing & presentations, it will also increase competitive knowledge about the industry.