Methods and compositions for producing hydrogel capsules enveloped with at least one coating layer is disclosed. The coating formulations deposited on the surface of the capsules can improve the physical integrity and the water-retention properties of the alginate beads. The coating formulations can be sequentially applied in various combinations to obtain desirable properties, such as improved physical integrity, mechanical strength, and low permeability, that can extend the shelf-life of the capsules when incorporated into various consumer products.