Softgel Capsules Marke: Growth, Size, Share, and Trends

Market Growth Outlook Summary

The global softgel capsules market growth forecasted to transform from $1.1 billion in 2023 to $1.5 billion by 2028, driven by a CAGR of 6.3%. The growth of this market is majorly driven by the benefits of softgel capsules, increasing demand for dietary supplements and nutraceuticals, and rising demand for naturally sourced ingredients. On the other hand, limited acceptance due to cultural restrictions is expected to hinder the growth of this market.

Attractive Opportunities in the Softgel Capsules Market

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Softgel Capsules Market Dynamics

DRIVER: Benefits of Softgel Capsules

Softgel capsules provide a convenient and efficient way to deliver both liquid and solid ingredients. This versatility allows for the encapsulation of various compounds, from vitamins and minerals to oils and pharmaceutical drugs. Moreover, softgel capsules are known for their superior bioavailability, ensuring that the active ingredients are absorbed more effectively by the body compared to traditional tablet forms. The airtight seal of softgel capsules helps protect sensitive compounds from moisture and oxygen, increasing their shelf life and preserving their potency. Furthermore, these capsules have a smooth, easy-to-swallow exterior, enhancing patient compliance and overall user experience. These benefits have increased the demand for softgel capsules among the patient population.

DRIVER: Rising demand for naturally sourced ingredients

An increase in health concerns among consumers has driven the demand for natural ingredients. Consumers perceive that natural ingredients positively impact health; this perception has increased the demand for naturally sourced ingredients in products. Ingredient labeling has resulted in manufacturers becoming increasingly cautious about the ingredients used in their products. Frequent consumption of artificial ingredients is linked to health problems such as cancer, allergic reactions among sensitive individuals, and foodborne illnesses. Hence, the demand for natural ingredients is on the rise.

The increased focus on health and nutrition, especially the need to control the spread of diabetes and obesity, is increasing the demand for fat replacers. The demand for a low-calorie diet has also been driving the use of gelatin as a sugar replacer. Gelatin is useful as a functional ingredient; it is a natural source of protein and is considered a healthy ingredient. For instance, according to a survey by the Natural Products Association, 70% of consumers are looking for natural ingredients in their dietary supplements. Factors responsible for increasing the demand for naturally sourced ingredients include the rising popularity of vegan and vegetarian diets, the growing demand for personalized dietary supplements, and the development of new technologies for making softgel capsules. The increasing awareness among the patient population and consumers about vegan softgel capsules is further likely to fuel the market growth.

RESTRAINT: Negative environmental impact

The production of softgel capsules can have a negative environmental impact, which is a growing concern for consumers and regulators. The production of gelatin can generate waste products, and the use of solvents and other chemicals can pollute the environment. Conventional gelatin production based on liming is time-consuming and leads to significant land pollution and wastewater. The worldwide production of gelatin is about 330,000 tons per year. During the production of gelatin, 10% of waste is released, which is not hydrolyzed at a production temperature of 600C. The negative environmental impact on waste disposable is likely to hamper the market growth in the coming years. However, research scientists are focusing on reducing waste from gelatin production, which may help the market gain momentum in the next 5-7 years.

OPPORTUNITY: Personalization and Customization

Softgel capsules allow for easy customization of formulations, enabling precise dosing and targeted drug delivery. Consumers are increasingly looking for products that are tailored to their individual needs and preferences. Softgel capsules can be personalized and customized in several ways, which can make them more attractive to consumers. By personalizing and customizing softgel capsules, manufacturers can create products that are more likely to meet the needs and preferences of consumers. This can lead to increased sales and brand loyalty. With an increase in the demand for personalized healthcare products, the demand for raw materials for customized softgel formulations is also expected to increase.

CHALLENGE: Rising prices of raw materials

Due to its applications across various industries, including pharmaceutical, nutraceutical, dietary supplement, cosmetic, and personal care products, the demand for gelatin has witnessed significant growth. The use of gelatin in food preparations has increased six-fold in the last decade. Similar trends have been observed in the nutraceutical and cosmetic industries, where gelatin is used to produce dietary supplement capsules, lotions, shampoos, hair sprays, and creams.

The leather, tanning, and paper production industries also use large amounts of pigskin and bovine skin to produce various commercial goods. The increasing demand for these raw materials from different industries has boosted the prices of these ingredients. In the last five years, the gelatin manufacturing industry has faced challenges due to the lower availability of raw materials—bovine hide and bones and pigskin. For instance, Rousselot, one of the major suppliers of gelatin for the pharmaceutical, nutraceutical, and food & beverage industries, increased the prices of pigskin gelatin products by ~7% due to the decreased availability of pig gelatin; bovine gelatin by 10%; and bovine hide gelatin by 3–5%. The company’s updated reports suggested a mandatory price increase to compensate for the ongoing upward trend in raw material availability and cost in the coming years. The declining availability of raw materials is, therefore, intensifying the demand for gelatin across various industries, thus creating a supply-demand imbalance. Therefore, raw material supply must be considered carefully to meet the demand for raw materials and gelatin across all industries.

On the basis of materials type, the global softgel capsules market is segmented into gelatin and other materials, such as plantderived cellulose, HPMC (hydroxypropyl methylcellulose), pullulan, starch-glycerin, and carrageenan. In 2022, gelatin segment accounted for the largest share of softgel capsuels industry.

On the basis of material type, the global softgel capsules market is segmented into gelatin and other materials, such as carrageenan, plant-derived cellulose, hydroxypropyl methylcellulose (HPMC), pullulan, and starch-glycerin. In 2022, the gelatin segment accounted for the largest market share of the softgel capsules industry. The rising demand for health supplements and the benefits of soft gelatin capsules, such as easy to swallow, no taste, unit dose delivery, tamper-proof, and availability in a wide range of colors, shapes, and sizes. The gelatin material is a key component that gives softgels their soft, flexible, and easy-to-swallow nature. Thus supporting the growth of this market. In extension supporting the growth of raw materials used for softgel capsules.

On the basis of source, the global softgel capsules market has been segmented into porcine, bovine, and other sources (including poultry, marine, and plant sources). In 2022, the bovine segment accounted for the largest share of the softgel capsules industry. Strong emphasis on the launch of new products in the market specifically for softgels and the abundance and easy availability of bovine is further likely to have a positive impact on the market growth. However, the prices of bovine gelatin is expected to increase in the coming years which can hinder the growth of this market segment.

Based on application, the global softgel capsules market is segmented into pharmaceutical, nutraceutical and dietary supplement, and cosmetics & personal care industries. In 2022, the nutraceutical and dietary supplement industry segment accounted for the largest market share of the softgel capsules industry. Factors such as the growing trend of adopting healthy lifestyles, growing demand for health supplements is a major driver for the nutraceutical and dietary supplement industry segment.

The Asia Pacific is the fastest-growing region

The softgel capsules market is broadly divided into North America, Europe, Asia Pacific, Latin America, and the Middle East & Africa. During the forecast period, Asia Pacific is expected to grow the highest.

The Asia Pacific is the fastest-growing and most dynamic market in the world and is estimated to be the most attractive regional market for softgel capsule manufacturers. Countries such as China, India, and Japan are expected to witness high growth in the market for softgel capsule raw materials because of the large population in these countries. Also, due to rising health concerns, higher incomes, and better government initiatives, the pharmaceutical market in this region is projected to grow. Together, these factors fuel the growth of the market in the Asia Pacific region. The growing Asian scientific base and capability, growth in the Asian pharmaceutical market and pharmaceutical manufacturing capabilities, and the large patient pool in several Asia Pacific countries are driving the growth of this regional market. With its huge potential for growth and the low cost of manufacturing, several global pharmaceutical manufacturers are establishing manufacturing facilities or enhancing their existing facilities in the Asia Pacific.

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Key players in the softgel capsules market are Gelita AG (Germany), PB Leiner (part of Tessenderlo Group) (Belgium), Nitta Gelatin, Inc. (Japan), Sterling Gelatin and Croda Colloids (India), Narmada Gelatines Limited (India), Italgel S.r.l. (Italy), Darling Ingredients Inc. (US), Lapi Gelatine S.p.a. (Italy), Trobas Gelatine B.V. (Netherlands), Weishardt (France), India Gelatine & Chemicals Ltd. (India), Xiamen Gelken Gelatin Co., Ltd. (China), Gelco International (Brazil), Boom Gelatin (China), Geliko LLC (US), Kenney & Ross Limited Marine Gelatin (Canada), Baotou Dongbao Bio-Tech Co., Ltd. (China), Jellice Gelatin & Collagen (Netherlands), Athos Collagen Pvt. Ltd. (India), Kubon Biotechnology Co., Ltd. (Cambodia), C.J. Gelatine Products Limited (India), American Gelatin (US), and Geltech (South Korea).

Scope of the Softgel Capsules Industry:

This report categorizes the softgel capsules market to forecast revenue and analyze trends in each of the following submarkets:

By Material Type

• Gelatin
• Other Materials

By Source

• Porcine
• Bovine
• Others

By Application

• Pharmaceuticals
• Nutraceutical and Dietary Supplements
• Cosmetics & Personal Care

By Region

• North America
  • US
  • Canada
• Europe
  • Germany
  • UK
  • France
  • Italy
  • Spain
  • Rest of Europe (RoE)
• Asia Pacific (APAC)
  • China
  • Japan
  • India
  • Rest of Asia Pacific (RoAPAC)
• Latin America (LATAM)
• Middle East and Africa (MEA)

Recent Developments of Softgel Capsules Industry

• In March 2023, Darlings Ingredients Inc. acquired Gelnex, which is a global producer of gelatin and collagen products. This acquisition would give the company the capacity to serve the growing needs of its collagen customers while continuing to serve the growing gelatin market.Thermo fisher launched Tumoroid Culture Medium to accelerate development of novel cancer therapies.
• In November 2022, PB Leiner established a joint venture with D&D Participações Societárias. Under the terms of this joint venture, D&D Participações Societárias will acquire a minority stake in the shares of the Brazilian plant of PB Leiner (PB Brasil Industria e Comercio de Gelatinas Ltda). The combined strength of the two companies will enable a long-term sustainable offering of a premium product range of beef hide gelatin based on PB Leiner’s technology.
• In October 2022, PB Leiner extended the gelwoRx Dsolve pharmaceutical portfolio with the launch of three new products—Dsolve B, Dsolve P, and Dsolve xTRA. Dsolve P (pig skin) and Dsolve B (beef hide) are specially developed to reduce cross-linking and fast dissolution of soft capsules. Dsolve xTRA (bovine bone) promises to perform better than Dsolve, Dsolve P, and Dsolve B.

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