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In recent years, the pharmaceutical industry has witnessed a significant surge in the popularity of capsule-based drug delivery systems, leading to an unprecedented demand for capsules. This surge in demand has prompted numerous market players to make substantial investments in capsule manufacturing plants, with the primary objective of enhancing their production capacity to meet the growing market needs.
A noteworthy instance in this trend occurred in August 2016 when ACG Worldwide, a prominent player in the pharmaceutical industry, demonstrated its commitment to meeting the escalating demand for capsules. ACG Worldwide invested a substantial amount of THB 1.85 billion to establish a state-of-the-art capsule manufacturing facility in Rayong, Thailand. This strategic move aimed to not only increase production capacity but also to ensure a steady and reliable supply of capsules to the market.
Similarly, in March 2015, Capsugel, now part of Lonza, a global leader in pharmaceutical and biotechnology solutions, made a significant investment exceeding USD 25 million. The purpose of this investment was to augment the production capacity of Capsugel's vegetarian capsule portfolio. By injecting substantial funds into expanding their manufacturing capabilities, Capsugel aimed to stay ahead in the competitive market and effectively address the escalating demand for vegetarian capsules.
Another noteworthy development in the pharmaceutical capsule manufacturing landscape occurred in February 2018 when CapsCanada, a key player in the industry, undertook a significant expansion initiative. CapsCanada invested a substantial sum of USD 28 million to scale up the manufacturing capacity of its K-CAPS product line. This strategic move was driven by the company's foresight into the increasing demand for their products and the necessity to meet this demand by bolstering their production capabilities.
These instances illustrate a broader trend in the pharmaceutical industry where companies are proactively investing in expanding their manufacturing facilities to ensure a robust supply chain and meet the burgeoning demand for capsules. The investments not only focus on increasing production capacity but also emphasize the importance of staying technologically advanced and competitive in a rapidly evolving market.
The implications of these investments are far-reaching. As companies fortify their production capabilities, the market can expect a consistent and sufficient supply of capsules. This, in turn, is expected to act as a driving force in propelling the growth of the capsule market during the forecast period. The strategic investments made by industry players reflect their confidence in the continued and increasing demand for capsules, driven by factors such as advancements in drug delivery systems, an aging population, and an upsurge in pharmaceutical research and development.
In conclusion, the surge in popularity of capsule-based drug delivery systems has led to a heightened demand for capsules in the pharmaceutical market. Market players are responding to this demand by making substantial investments in capsule manufacturing plants, aiming to enhance production capacities and meet market needs effectively. These strategic moves not only signify a commitment to meeting current demands but also demonstrate a forward-looking approach to stay competitive in an ever-evolving pharmaceutical landscape. As a result, the increasing investments in capsule manufacturing plants are poised to act as a significant driving force for the industry's growth in the forecast period.
Covered Aspects:
| Report Attribute/Metric | Details |
|---|---|
| Market Opportunities | An increasing number of ongoing clinical trials and novel product launches in the industry Emerging developments of smart capsules for efficient drug delivery |
| Market Dynamics | A Rise in demand for Softgel health supplements Growing R&D activities to support the usage of Softgel capsules |
Softgel Capsule Market Highlights:
Global Softgel Capsule Market Overview
Softgel Capsule Market was valued at USD 7.5 billion in 2023 and is projected to grow from USD 8.0 billion in 2024 to USD 13.57 billion by 2032, exhibiting a CAGR of 6.20% during the forecast period (2023 - 2032). The rising prevalence of chronic diseases such as cardiovascular disease and diabetes, as well as the increasing number of softgel capsule clinical trials, are driving market demand. 
Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review
Softgel Capsule Market Trends
- Emerging demand for plant-based capsules to drive market growth
Vegetarian Softgel сарѕulеѕ or non-animal Softgel capsules are derived from natural plant sources, are free of аnіmаl dеrіvаtіvеѕ and GМО, and are free of gluten and modified sugars. One of the primary benefits of using cellulose-based or vegetarian capsules is that they are not made of animal byproducts. This distinct character makes them suitable for people who do not consume animal-sourced products. Vegetarian capsules stand out in terms of stability, solubility, and bioavailability. In terms of solubility, both capsules easily dissolve at body temperature. Vegan capsules, however, disintegrate more readily in water than gelatin-type caps at room temperature.
Vegetarian capsules are also 100% natural. Thus, no known potential health risk is associated with consuming them over an extended period. Vegetarian capsules are ideal for consumers looking for an animal-free alternative to gelatin capsules. The population is becoming increasingly interested in this broad range of products due to the advantages of vegan capsules. As a result, pharmaceutical companies see this as a profitable trend to market vegan capsules, capturing a significant share of the industry.
Increased R&D activities to support the use of Softgel capsules, a surge in demand for Softgel health supplements, a rise in consumer awareness of preventative healthcare, and the proliferation of distribution channels are other factors driving global Softgel capsules market growth in the forecast period. Furthermore, lifestyle changes, an increase in the geriatric population, and an increase in the number of self-directed consumers are some factors that have fueled market revenue growth.
Softgel Capsule Market Segment Insights
Softgel Capsule Type Insights
Based on type, the softgel capsule market segmentation includes gelatin and non-animal types. The gelatin-type segment held the majority share in 2021, contributing to around ~70-72% of the softgel capsule market revenue. Gelatin is the preferred active ingredient among manufacturers owing to its unmatched benefits over other substances. The ease of digestion, tamper-evident capsule production, high mechanical resistance, high seal quality, patient compliance, abundant resource availability, and inert and clean-label raw material are all factors that contribute to the product's widespread market acceptability. Producers make capsules with bovine and porcine gelatin due to their unique properties. Bovine gelatin improves capsule stiffness, whereas porcine gelatin improves formulation fluidity and clarity. Despite the advantages of gelatin capsules, non-animal-based capsules experienced rapid growth during the forecast period. The market is expected to grow owing to increased consumer acceptance among vegetarians and growing research by leading industry competitors.
Figure 2: Softgel capsule market, by Type, 2021 & 2030 (USD Million)
Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review
Softgel Capsule Application Insights
Based on application, the softgel capsule market segmentation includes vitamins, supplements, and nutrition. Vitamins dominated the global market in 2021 and are predicted to grow fastest from 2022 to 2030. Vitamins are susceptible to atmospheric oxidation and deterioration when made into tablets or gummies. Therefore, Softgel capsules are the best formulation option because they offer protection from oxidation and UV radiation, extending their shelf life. According to studies, vitamins may be absorbed into the bloodstream more quickly when given as Softgel capsules than tablets. These benefits have led to a large market size for vitamins in the application segment, where they are primarily sold in the form of soft gel capsules.
April 2020: ISDIN, a dermatology business in Spain, has announced the introduction of SunISDIN Softgel Capsules to the American market. It is a nutritional supplement that can be taken orally to aid in the fight against photoaging.
Softgel Capsule Regional Insights
By Region, the study provides market insights into North America, Europe, Asia-Pacific, and the Rest of the World. The North American Softgel Capsule market accounted for USD 3.08 billion in 2021 and is anticipated to exhibit a significant CAGR growth over the projection period. Improved manufacturing technology, the presence of major regional players, and increased R&D spending to broaden their product portfolio. Moreover, the existence of health-conscious consumers and pharma leaders in the region are the primary factors responsible for the region's largest market share. The major regional pharmacy chains are also working to commercialize the capsules, creating lucrative opportunities to expand the soft gel capsule market revenue over the forecast period. Key regional players seek US FDA and other regulatory approvals to increase their base of customers in other regions.
In addition, the United States, Germany, Canada, France, the United Kingdom, India, Italy, Spain, Australia, Japan, South Korea, and Brazil are among the major nations covered in the market report.
Figure 3: SOFTGEL CAPSULE MARKET SHARE BY REGION 2021 (%)
Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review
The European Softgel capsule market is the world's second-largest. Increased personalized medicine and high-tech processing spending to optimize soft gel production are expected to drive European market growth. Moreover, the increase in contract manufacturing organizations in the region provides a great opportunity for new entrants. The rapidly increasing prevalence of chronic diseases such as CVD, as well as growing population awareness about the consumption of various health and dietary supplements, are a few other factors that are likely to contribute to the market's expansion in this region. Furthermore, the UK Softgel capsule market held the largest market share, while the France Softgel capsule market is the fastest-growing market in the European region.
The Asia-Pacific Softgel Capsule Market is expected to grow at the fastest CAGR from 2022 to 2030. The large presence of generic pharmaceutical manufacturers in India and China, rising demand for cost-effective therapeutics, rapidly improving economic conditions, and increasing contract manufacturing organizations in the region all contribute to the region's rapid growth. In addition, the region's significant presence of several organizations actively involved in novel pharmaceutical industries will boost overall industry demand. Increasing awareness of highly developed doses from various disease treatments will drive market expansion. Additionally, growing healthcare expenditure, increasing disposable income, and favorable reimbursement scenarios are expected to drive the Softgel capsules market rate potential in the coming years. China’s Softgel capsule market held the largest market share, and the Indian Softgel capsule market was the fastest-growing market in the Asia-Pacific region.
Softgel Capsule Key Market Players & Competitive Insights
The softgel capsule market is extremely competitive owing to the presence of third-party manufacturers and SMEs. Large manufacturers are leading the way in embracing the outsourcing of Softgel capsules, which lowers their burden of equipment expenditure and ensures a competitive sales price to adhere in the competitive market. Market leaders conduct R&D to create Softgel capsules, tablets in capsules, and controlled-release medications for essential drugs to improve their product lineup and hold onto their leadership positions. Manufacturers in the Softgel capsule market focus on establishing a strong position by improving their production capabilities.
Manufacturers in the Softgel capsules market are increasing their product offerings with a diverse range of vegetarian Softgel capsules with improved properties like better resistance to gastric acid, rapid disintegration, enteric coating, and customized capsules for clinical trials to increase their market share. For instance, some businesses produce different kinds of vegetarian Softgel capsules, like pullulan, starch, and HPMC capsules. Furthermore, rising R&D investments by industry leaders and a growing population preference for natural products are boosting industry growth in the coming years.
Catalent Inc is an American multinational corporation company with headquarters in New Jersey. It is a leading global supplier of delivery technologies, gene therapies, biologics, drug development, and consumer health products. Catalent acquired a manufacturing plant in Oxfordshire in April 2022 to broaden biologics capabilities in the United Kingdom and Europe. Moreover, Catalent announced the launch of its OptiGel DR technology to formulate and produce enteric release Softgel in October 2020.
The Aenova Group is a market-leading contract manufacturer for the healthcare and pharmaceutical sectors. The Aenova Group declared the start of a new canning and bottling line for soft gelatin capsules at Cornu, Romania, in July 2021. It will increase the packaging department's capacity with cans and bottles, making it a one-stop shop for manufacturing and soft packaging capsules in all genetic variants. Moreover, in October 2021, Aenova, AlaskOmega AG, and Algarithm created and manufactured VegaGels containing omega-3 DHA fatty acids derived from microalgae. These vegan capsules are also chewable. The company's product portfolio has grown due to these product developments.
Key Companies in the Softgel capsule market include
- Weihai Baihe Biology Technological Co. Ltd
- Patheon
- Catalent Inc
- Captek Softgel International Inc.
- Capsugel
- Amway
- EuroCaps Ltd
Softgel Capsule Industry Developments
May 2022: Windzor Pharma Ltd introduced Solferol Softgel capsules, an Rx Vitamin D3 product, to the Irish market. It is one of the more affordable Solferol Softgel Vitamin D3 capsules.
November 2021: Roquette Pharmaceuticals has introduced a vegetarian Softgel containing pea-starch technology suitable for pharmaceutical and nutraceutical applications.
August 2021: Catalent Inc has announced its acquisition of Bettera Holdings LLC, a well-known nutritional supplement manufacturer. This has expanded the company's Softgel product offering and broadened its manufacturing capabilities.
Softgel Capsule Market Segmentation
Softgel Capsule Type Outlook
- Gelatin Type
- Non-Animal Type
Softgel Capsule Application Outlook
- Vitamins
- Supplements
- Nutrition
Softgel Capsule Regional Outlook
- North America
- US
- Canada
- Europe
- Germany
- France
- UK
- Italy
- Spain
- Rest of Europe
- Asia-Pacific
- China
- Japan
- India
- Australia
- South Korea
- Australia
- Rest of Asia-Pacific
- Rest of the World
- Middle East
- Africa
- Latin America
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