Softgel Capsules Market Size, Share & Trends Analysis Report By Type (Gelatin-based/Animal-based, Non-animal-based), By Application, By End-use, By Region- Global Industry Analysis, Share, Growth, Regional Outlook and Forecasts, 2024-2033

The global softgel capsules market size was exhibited at USD 7.68 billion in 2023 and is projected to hit around USD 15.11 billion by 2033, growing at a CAGR of 7.0% during the forecast period of 2024 to 2033.

Key Takeaways:

• The gelatin-based/animal-based segment dominated the market with the largest revenue share in 2023.
• The vitamins and dietary supplements segment dominated the market with the largest revenue share in 2023.
• The nutraceutical companies segment dominated the market with the largest revenue share of 38.0% in 2023
• North America dominated the market, with the largest revenue share of 43.0% in 2023.

Softgel Capsules Market Report Scope

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 around the globe.

After 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 the pharmaceutical industry.

The nutraceutical industry saw a rise during this period due to improved vitamin, nutrient, 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 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 2023. 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 2023. 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 primarily sold in 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 vitamin D supplements by approximately 89% over 2019 figures.

The health supplements segment held a significant revenue share in 2023 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 38.0% in 2023 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 2023 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 43.0% in 2023, 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.

Some of the prominent players in the softgel capsule 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.

Segments Covered in the Report

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2021 to 2033. For this study, Nova one advisor, Inc. has segmented the global softgel capsule market.

Type

• Gelatin-Based/Animal-Based
• Non-Animal-Based

Application

• 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

• Pharmaceutical Companies
• Nutraceutical Companies
• Cosmeceutical Companies
• Contract Manufacturing Organizations

By Region

• North America
• Europe
• Asia-Pacific
• Latin America
• Middle East & Africa (MEA)