The main difference between lamination and encapsulation is the type of film used and the level of protection provided:
Lamination: Laminating your print uses a thin sheet of clear plastic on either one or both sides of your print. It helps protect from handling damage and is often used for aesthetic appearance. It is commonly used for outer covers or corporate prints and is available in gloss, matt or soft touch finishes. Lamination offers some protection, but is not 100% waterproof, as the edges of the sheet are not protected. Lamination is often a cheaper option for longer runs as it is applied from a roll of film.
Encapsulation: Encapsulation uses a pouch of two sheets of clear plastic applied to both sides of your print. It extends beyond the print by around 5mm sealing the paper within the sheet of plastic. It is more protective than laminate and is waterproof. You’ll usually find encapsulation for items like ID badges – any environment where you want to ensure long lasting prints with the ability to wipe clean too. Usually only available in gloss finishes. Is most cost effective for shorter runs of print, but can be more expensive for runs of 20+ units.