Softgel Capsules Market Size, Share & Trends Analysis Report By Type (Gelatin-based/Animal-based, Non-animal-based), By Application, By End-use, By Region, And Segment Forecasts, 2023 - 2030

Report Overview

The global softgel capsules market size was valued at USD 7.67 billion in 2022 and is anticipated to  grow at a compound annual growth rate (CAGR) of 6.9% from 2023 to 2030. Softgel capsules offer several advantages, including ease of swallowing, effective masking of odor and taste, enhanced absorption, improved bioavailability, and excellent atmospheric stability. With the continuous advancements in manufacturing technology and the introduction of new materials, traditional capsules have evolved to offer additional features such as controlled drug release, tamper-evident properties, and expanded options for potent API formulations. These advancements are driven by reduced degradation in stomach pH, attractive aesthetics, and extended shelf life, thereby providing a wider range of choices for pharmaceutical formulations.

Currently, there is a growing importance among softgel manufacturers on the development of capsules that do not rely on gelatin and instead utilize plant-based polymers such as starch, HPMC, and gums such as Pullulan. The introduction of gelatin-free capsules addresses the specific medicinal requirements of vegetarian individuals. Moreover, opting for non-gelatin-based capsules offers technical advantages for manufacturers and suppliers, while also contributing to a reduction in animal stock waste.

This transition represents a significant advantage in the context of ethical and sustainable pharmaceutical practices. Additionally, vegetable capsule products launched by companies such as Aenova Group have increased their sales revenue by a double-digit percentage. EuroCaps is developing a chewable softgel capsule that provides improved taste masking capacity. Other market leaders such as Catalent and Roquette are developing vegan capsules to enhance their market reach among the vegan population of the globe.

Post the outbreak of the COVID-19 pandemic, most companies began researching the development of oral vaccines. The softgel capsule leader Catalent collaborated with a leading clinical-stage immunotherapy company to fulfill the alarming need for oral vaccines. Additionally, studies were undertaken to determine whether the administration of vitamin D capsules reduces the severity of mild and severe respiratory discomfort associated with COVID-19 virus infection. The pandemic differently impacted the nutraceutical industry and pharmaceutical industry.

The nutraceutical industry saw a rise during this period due to improved vitamin, nutrients, and other health supplement consumption rates. Product launches by growing nutraceutical companies using special capsule designs, and increased adoption of vegan and vegetarian capsule options have led to the increasing demand for nutraceuticals. Adoption of a healthier lifestyle surged the vitamin capsule market demand with a demographic shift toward the geriatric population.

Additionally, the market witnessed a significant boost in sales due to the pandemic. Furthermore, improvements in research studies concerning the development of capsules for potent and critical drug molecules to overcome bioavailability issues, the development of capsules for drugs needing multiple excipients like oncology medicines, and patient preference towards capsules over other oral dosage forms, are factors influencing the market’s growth.

Type Insights

The gelatin-based/ animal-based segment dominated the market with the largest revenue share in 2022. For more than 80 years, gelatin has remained the preferred excipient for manufacturers due to its unparalleled advantages over other excipients. Its exceptional attributes, such as ease of digestion, efficient production of tamper-evident capsules, superior mechanical resistance, high-quality seals, patient compliance, abundant availability as a resource, and its inert and clean-label nature, have played a significant role in its widespread acceptance within the market. These factors have cemented gelatin's position as the excipient of choice for pharmaceutical formulations.

Nowadays, manufacturers are developing capsules using a combination of bovine and porcine gelatin due to their unique properties. The extraction of gelatin from bovine sources contributes to the enhancement of capsule firmness, while gelatin derived from porcine sources imparts desirable characteristics such as plasticity and clarity to the formulation.

Despite the various advantages of gelatin-based capsules, the non-animal-based capsules segment is expected to expand at a lucrative CAGR during the forecast period. Inclination towards vegan options for medication, especially after the outbreak of the COVID-19 pandemic, increased the adoption of such capsules by vegetarian consumers. Moreover, growing research activities by leading companies are likely to boost market growth.

Application Insights

The vitamins and dietary supplements segment dominated the market with the largest revenue share in 2022. Vitamins are prone to atmospheric oxidation and degradation when formulated as tablets or gummies. Hence, softgel capsules are the best formulation choice, as they offer protection from UV radiation and oxidation, ultimately improving their shelf life.

Studies suggest that vitamins, when administered in softgel capsule form, are more quickly absorbed in the bloodstream than in a tablet formulation. Owing to such advantages, vitamins are majorly sold in the softgel capsule form, establishing its large market size in the application segment. Due to the onset of the COVID-19 pandemic, countries such as the U.S. and India witnessed a rise in sales of Vitamin C and D supplements by approximately 89% over 2019 figures.

The health supplements segment held a significant revenue share in 2022 in the softgel capsules market, aided by the increased adoption of a healthy lifestyle among the masses to tackle the COVID-19 pandemic. Wide acceptance of pre-and post-natal capsules, along with an inclination towards tasteless medication, led to a substantial increase in sales of softgel capsules, enhancing market growth.

End-use Insights

The nutraceutical companies segment dominated the market with the largest revenue share of 37.7% in 2022 and is also expected to expand at the fastest CAGR of 8.2% over the forecast period. Nutraceutical companies focus on developing vitamins, minerals, and health supplements. Thus, softgel formulations are largely developed to keep up with the rising need for nutraceutical products.

These formulations account for nearly 31% of the total revenue of most nutraceutical manufacturers. The increasing awareness regarding health supplements among developing nations, a growing number of production houses, and a surge in sales due to the COVID-19 pandemic have led to the high growth and large market share of this segment.

The pharmaceutical companies segment held a significant revenue share in 2022 due to increased collaboration with SMEs and outsourcing of softgel capsules, which have directly influenced the growth of the Contract Manufacturing Organization (CMO) segment. On the other hand, the growing need for skin and hair care products has surged the production of softgel capsules in the cosmeceutical segment.

Regional Insights

North America dominated the market with the largest revenue share of 42.3% in 2022, owing to improved production technology, the presence of major players within the region, and increased expenditure on R&D to widen their product portfolio. Additionally, the presence of health-conscious consumers and pharma leaders in the region are the leading factors responsible for the region’s strong market growth.

Asia Pacific is expected to expand at the fastest CAGR of 8.6% over the forecast period. The enormous presence of generic medicine manufacturers in China and India, increasing demand for cost-efficient therapeutics, rapidly improving economic conditions, and rise in contract manufacturing organizations within the region, are factors responsible for its high growth. The rise in personalized medicine expenditure and the adoption of high-tech processing to improve the production of softgels are also likely to boost regional market advancement.

Key Companies & Market Share Insights

The rise in competition is leading to rapid technological advancements and companies are constantly working towards the improvement of their products, with a major focus on research and development. Factors such as investment in R&D, compliance with regulatory policies, and technological advancements are constantly driving the introduction of novel techniques. Outsourcing of softgel capsules is the leading trend adopted by large manufacturers, reducing their burden of equipment expenditure, and ensuring a competitive sales price to adhere in the competitive market.

Research to develop capsule in capsules, tablets in capsules, and controlled release medication for critical drugs, is undertaken by market leaders to strengthen their product portfolio and maintain market position. Manufacturers are focusing on consolidating their position by strengthening their manufacturing capabilities. For instance, in January 2023, Sirio Pharma announced the acquisition of Best Formulations, a manufacturer of plant-based softgels, gummies, etc. This acquisition is expected to expand the production capacity, product portfolio, and research and development capabilities of Sirio Pharma.

Similarly, in April 2022, Catalent announced the acquisition of a biologics development and manufacturing facility from Vaccine Manufacturing and Innovation Centre UK Limited (VMIC Ltd.). The facility, presently under construction near Oxford, UK, will bolster Catalent's capabilities in the field of biologics.Catalent has outlined its strategic plan to invest up to USD 160 million to finalize the construction and equip the facility with cutting-edge capabilities. This investment will enable the facility to undertake the development and manufacturing of biologic therapies and vaccines, encompassing a range of advanced modalities such as mRNA, proteins, and other innovative technologies. Some of the prominent players operating in the global softgel capsules market include:

• Fuji Capsule

• Sirio Pharma Co., Ltd.

• CAPTEK Softgel International Inc.

• Thermo Fisher Scientific Inc.

• EyePoint Pharmaceuticals, Inc.

• Catalent, Inc.

• EuroCaps

• Aenova Group

• Lonza Capsules & Health Ingredients

• ProCaps Laboratories, LLC

• Soft Gel Technologies, Inc.

Softgel Capsules Market Report Scope

Global Softgel Capsules Market Report Segmentation

This report forecasts revenue growth at the global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2018 to 2030. For the purpose of this study, Grand View Research has segmented the global softgel capsules market report on the basis of type, application, end-use, and region:

• Type Outlook (Revenue, USD Million, 2018 - 2030)

  • Gelatin-Based/Animal-Based

  • Non-Animal-Based

• Application Outlook (Revenue, USD Million, 2018 - 2030)

  • Antacid and Anti-Flatulent Preparation

  • Anti-Anemic Preparations

  • Anti-Inflammatory Drugs

  • Antibiotic and Antibacterial Drugs

  • Cough and Cold Preparations

  • Health Supplement

  • Vitamin and Dietary Supplement

  • Pregnancy

• End-use Outlook (Revenue, USD Million, 2018 - 2030)

  • Pharmaceutical Companies

  • Nutraceutical Companies

  • Cosmeceutical Companies

  • Contract Manufacturing Organizations

• Regional Outlook (Revenue, USD Million, 2018 - 2030)

  • North America

    • U.S.

    • Canada

  • Europe

    • UK

    • Germany

    • France

    • Italy

    • Spain

    • Denmark

    • Sweden

    • Norway

  • Asia Pacific

    • Japan

    • China

    • India

    • Australia

    • Thailand

    • South Korea

  • Latin America

    • Brazil

    • Mexico

    • Argentina

  • Middle East & Africa

    • South Africa

    • Saudi Arabia

    • UAE

    • Kuwait