Softgel Capsules Market by Product Type (Gelatin Softgel Capsules and Vegetarian Softgel Capsules)
Industry: Food and Beverages
Published Date: March-2023
Format: PPT*, PDF, EXCEL
Delivery Timelines: Contact Sales
Number of Pages: 300
Report ID: PMRREP14608
The historical period assessment of the Global Softgel Capsules Market showed significant sales and a growth rate of ~4.0% during (2018 to 2022). The market value has increased and registered sales of US$ 611.8 Million in 2023.
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Softgel capsules Market Size (2023E) |
US$ 611.8 Million |
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Projected Sales of Softgel capsules (2033F) |
US$ 932.1 Million |
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Value CAGR (2023 to 2033) |
~4.3% |
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Value Share of Top 4 Countries (2023 E) |
~40 to 45% |
The Global Softgel Capsules Market has witnessed significant growth in the historical period registering a CAGR of ~4.0% in the historical period and was valued at US$ 611.8 Million in 2023. Softgel capsules have been derived using gelatin as the major raw material, for many years. Investments by manufacturers in research and development activities and advancements in technology have led to the development and usage of other sources for producing softgel capsules, which are vegetarian in nature, and also provide seamless manufacturing procedures for softgel capsules. Moreover, pharmaceutical and nutraceutical companies entering into long-term contracts with softgel capsule manufacturing companies, imports and exports across all regions, and competitive pricing initiatives for large-scale purchasing, are expected to emerge as key trends for achieving sustainable revenue growth in the global softgel capsules market.
The market of health-conscious consumers seeking natural, 'green' products is booming. More than 50 percent of consumers are willing to pay a premium price for a natural product, and nearly half say that they are willing to pay more for organic products, which is expected to drive the growth of the vegetarian softgel capsules (HPMC, starch, and pullulan softgel capsules) segment.
“Increasing Demand for Gelatin Alternative Capsules.”
Gelatin capsules (made of the skin and bones of bovine, porcine, and fish) continue to be the primary products used by pharmaceutical and nutraceutical industries, while emerging alternatives to gelatin capsules are gaining traction, such as HPMC capsules and vegetarian-based capsules. However, rising complications and drug interactions associated with gelatin capsules are the main factors fuelling the demand for gelatin alternatives in the pharmaceutical and nutraceutical industries. End users are still looking for a variety in terms of vegetarian capsules to attract customers, especially vegetarians.
“Adoption of Novel Technologies by Manufacturers is expected to drive the Market Demand”
Manufacturers are undertaking various endeavors to provide unique empty softgel capsules that are more versatile and convenient for pharmaceutical, nutraceutical, and cosmeceutical industry applications. Preference of pharmaceutical and nutraceutical industries is more likely to be inclined towards various empty softgel capsules because of their suitable properties for different formulations such as liquid and solid dosage forms, and easy-to-use features while administrating drugs orally or through inhalation routes.
Various Softgel capsules products are entering the market with advanced novel capsule features, such as chew caps, hydrophilic sandwich (HS) capsules, and duo caps, among others, which are witnessing significantly in demand among end users.
“Various Growth Strategies by Market Players”
The trend to use novel technologies for filling liquids and semi-solids into softgel capsules in pharmaceutical, cosmeceutical, and nutraceutical companies is expected to drive revenue from the empty softgel capsules market during the forecast period.
Companies manufacturing halal softgel capsules are obtaining halal certification from the Islamic Food and Nutrition Council of America (IFANCA), to capture a share of the markets in Muslim-dominated countries. Countries such as Malaysia and Indonesia are currently looking, both, to imported and domestic products that contain gelatin, but which have been produced using halal-certified ingredients.
However, a few companies are maintaining their product portfolio with only hard and soft gelatin capsules. These companies can expect robust incremental growth opportunities if they expand their product portfolio with softgel capsules, vegetarian capsules, and other plant-sourced gelatin capsules.
“Increasing Demand from Health-Conscious Consumers”
Sports nutrition is gaining strong traction among not only professional athletes and weightlifters but also modern health conscious consumers are also leveraging the benefits of sports nutrition supplement. Global events, marathons, gym-goers, and games events have all together thrown sports into the spotlight, and the rising interest in fitness and body image has made brands reposition themselves in providing products for a healthy lifestyle.
Thus, retailers are keeping more shelf space for sports nutrition products. This allows sport supplement manufacturers to market sports nutrition products to a vast and varied consumer base in an oral dosage format – softgel capsules, globally.
“High Cost of Vegetarian-based Capsules”
Gelatin capsules are cheaper and widely used for encasing herbal supplements, vitamins, or own custom dietary supplement blends. However, gelatin capsules are made from collagen, an animal byproduct obtained from animal organs and connective tissues.
Nutraceutical products have gained popularity in recent years as health-conscious consumers are becoming more conscious of the benefits of natural herbs. The adoption of vegetarian capsules among a growing group of vegetarian supplement consumers is increasing each day. However, the cost of vegetarian capsules is higher than that of gelatin capsules due to the higher production and raw material costs for vegetarian capsules. The increasing demand for inexpensive vegetarian capsules, which are alternatives to gelatin capsules, is expected to hamper the growth of the global softgel capsules market during the forecast period.
Which Region accounts the Second-Largest Market Share for Softgel Capsules during the Forecast Period?
North America captures around ~36.8% in the softgel capsules market in 2023. Improved production technology, the presence of significant players in the region, and increasing R&D expenditure to broaden its product portfolio. Furthermore, the presence of health-conscious consumers and the prevalence of pharma leaders in the region are the key determinants responsible for the largest market share.
What is demand outlook for Softgel capsules in China?
China holds the market share of around ~15% in the East Asian market for softgel capsules and is anticipated to grow at high CAGR of ~7.7% during the forecast period. The significant presence of generic medication producers in China, rising demand for fast-improving economic conditions, cost-effective treatments, and an increase in contract manufacturing organizations in the region are all factors contributing to the country's rapid growth.
Which Type of Softgel capsules is expected to dominate the Market?
Gelatin softgel capsules holds the major share of ~72% in the global market and anticipated to expand at over ~3.8% CAGR, registering significant growth when compared with vegetarian softgel capsules.
Due to the unique properties of bovine and porcine gelatin, manufacturers are producing capsules employing a combination of the two. Bovine gelatin enhances capsule stiffness, whereas porcine gelatin offers the formulation's clarity and plasticity. Moreover, the factors responsible for its widespread market popularity are ease of digestion, superior mechanical resistance and seal quality, tamper-evident capsule production, abundant resource availability, and neutral, and clean-label raw material.
Some of the key players such as Soft Gel Technologies, Inc., Renown Pharmaceuticals, Aenova Group GmbH, Celix Pharma, and Capsugel ,among others all targeting regional marketplaces by providing regionally dedicated softgel capsules to choose from or collaborating with major suppliers and distributors to enhance market growth.
Multinational players are relatively less concentrated in softgel capsules market as compared to local players and regional players as an approximate share of 15%. Moreover, multinational players are engaging in increasing their global presence by expanding their operations to other regions, launching innovations in softgel capsules and by strengthening their partnerships with end use companies and contract manufacturers.
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Attribute |
Details |
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Forecast period |
2023 to 2033 |
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Historical data available for |
2018 to 2022 |
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Market analysis |
USD million for value |
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Key regions covered |
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Key countries covered |
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Key market segments covered |
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Key companies profiled |
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Report coverage |
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Customization & pricing |
Available upon request |
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The global market for softgel capsules has a value of US$ 611.8 Mn in 2023.
The global market for softgel capsules has a value CAGR of ~4.0% from 2018-2022.
The global market for softgel capsules has a value of US$ 932.1 Mn in 2033.
The global market for softgel capsules has a value CAGR of ~4.3% from 2023-2033.
The top players in the global softgel capsules market include Soft Gel Technologies, Inc., Renown Pharmaceuticals, Aenova Group GmbH, Celix Pharma, and Capsugel, among others.
