Disclosed is an electrostatic spray drying process for encapsulating a core material, such as a volatile flavor oil, within a carrier or wall material. The process is achieved by atomizing a liquid emulsion comprising the core material and the wall material, applying an electrostatic charge at the site of atomization, and drying the atomized emulsion into an encapsulated, free-flowing powder. Applying an electrostatic charge at the site of atomization allows the spray drying to be accomplished at significantly reduced temperatures, in particular, inlet temperatures in the range of 25° C. to 110° C., and outlet temperatures in the range of 25° C. to 80° C. The low drying temperatures impart improvements in the resulting encapsulated powdered product, including better retention of volatile flavor components, a flavor profile comparable to that of the starting liquid formulation, and better hydration and dissolution in water-based applications.