Softgel Capsules Market by Material, Source (Porcine, Bovine), Application (Pharmaceuticals, Nutraceuticals & Dietary Supplements, Cosmetics & Personal Care), Region (North America, Europe, APAC, Latin America, MEA) - Global Forecast to 2028
The global softgel capsules market in terms of revenue was estimated to be worth $1.1 billion in 2023 and is poised to reach $1.5 billion by 2028, growing at a CAGR of 6.3% from 2023 to 2028. The new research study consists of an industry trend analysis of the market. The new research study consists of industry trends, pricing analysis, patent analysis, conference and webinar materials, key stakeholders, and buying behaviour in the market. 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:
|
Report Metric |
Details |
|
Market Revenue in 2023 |
$1.1 billion |
|
Estimated Value by 2028 |
$1.5 billion |
|
Revenue Rate |
Poised to grow at a CAGR of 6.3% |
|
Market Driver |
Benefits of Softgel Capsules, Rising demand for naturally sourced ingredients |
|
Market Opportunity |
Personalization and Customization |
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.
Frequently Asked Questions (FAQ):
What is the projected market revenue value of the global softgel capsules market?
The global softgel capsules market boasts a total revenue value of $1.5 billion by 2028.
What is the estimated growth rate (CAGR) of the global softgel capsules market?
The global softgel capsules market has an estimated compound annual growth rate (CAGR) of 6.3% and a revenue size in the region of $1.1 billion in 2023.
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This research study involved the extensive use of secondary sources, directories, and databases to identify and collect valuable information for the analysis of the global softgel capsules market. In-depth interviews were conducted with various primary respondents, including key industry participants, subject-matter experts (SMEs), C-level executives of key market players, and industry consultants, to obtain and verify critical qualitative and quantitative information and assess the growth prospects of the market. The global market size estimated through secondary research was then triangulated with inputs from primary research to arrive at the final market size.
Secondary Research
The secondary sources referred to for this research study include publications from government sources such as the World Health Organization (WHO), Gelatin Manufacturer’s Institute of America (GMIA), Gelatin Manufacturers Association of Asia Pacific (GMAP), Gelatin Manufacturers Association of Europe (GME), European Federation of Pharmaceutical Industries and Associations (EFPIA), Pharmaceutical Research and Manufacturers of America (PhRMA), US Food and Drug Administration (USFDA), European Food Safety Authority (EFSA), United States Department of Agriculture (USDA), Organisation for Economic Co-operation and Development (OECD), Indian Pharmaceutical Association (IPA), Indian Drug Manufacturers’ Association (IDMA), Company Websites, Annual Reports, SEC Filings, Press Releases, Investor Presentations, Journals, Expert Interviews, and MarketsandMarkets Analysis. Secondary data was collected and analyzed to arrive at the overall size of the global softgel capsules market, which was then validated by primary research.
Primary Research
Primary research was conducted to validate the market segmentation, identify key players, and gather insights into key industry trends and market dynamics.
Extensive primary research was conducted after acquiring basic knowledge about the global market scenario through secondary research. Several primary interviews were conducted with market experts from the demand side (pharmaceutical, nutraceutical, dietary supplement, cosmetics, and personal care industries) and supply side (C-level and D-level executives, product managers, and marketing and sales managers of key manufacturers, distributors, and channel partners, among others, from Tier 1 and Tier 2 companies engaged in offering products) across five major regions, namely, North America, Europe, the Asia Pacific, Latin America, and the Middle East & Africa. Approximately 80% of primary interviews were conducted with supply-side representatives, while demand-side participants accounted for the remaining share. The primary data was collected through questionnaires, e-mails, online surveys, personal interviews, and telephonic interviews.
The following is a breakdown of the primary respondents:
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Market Size Estimation
The report presents a detailed assessment of the softgel capsules market and qualitative inputs and insights from MarketsandMarkets. The total market size was determined after data triangulation from three different approaches. After completing each approach, the weighted average of the four approaches was taken based on each approach’s level of assumptions. A detailed market estimation approach was followed to estimate and validate the value of the softgel capsules market and other dependent submarkets. These methods were also used extensively to estimate the size of various subsegments in the market. The research methodology used to estimate the market size includes the following:
- From the list of manufacturers of softgel capsules, companies were identified and finalized from secondary research.
- The revenues generated from the softgel capsules business of leading players have been determined through primary and secondary research.
- All percentage shares, splits, and breakdowns have been determined using secondary sources and verified through primary sources.
Top-Down Approach
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Approach: MnM Repository Analysis
For the estimation of the softgel capsules market, related market reports in the MnM Repository, including the gelatin market, pharmaceutical gelatin market, and empty capsules market were considered. The global and regional market values of softgel capsules and dependent submarkets were extracted from the MnM repository and validated through secondary and primary research. The final global market size was triangulated through the average of all approaches and validated through primary interviews with industry experts.
Data Triangulation
After arriving at the market size from the market size estimation process explained above, the total market was divided into several segments and subsegments. Data triangulation and market breakdown procedures were employed, wherever applicable, to complete the overall market engineering process and arrive at the exact statistics for all segments and subsegments.
Market Definition:
Softgel Capsules Market covers the market size for raw materials such as gelatin and other plant-based materials used for manufacturing of soft gel capsules used in various industrial applications such as pharmaceutical, nutraceutical and dietary supplement, and cosmetics & personal care industries.
Key Stakeholders
- Softgel Capsule Manufacturers, Vendors, and Distributors
- Pharmaceutical Companies
- Nutraceutical and Dietary Supplement Companies
- Cosmeceutical Companies
Report Objectives
- To define, describe, and forecast the global softgel capsules market based on material, source, application, and region
- To provide detailed information regarding the major factors influencing the market growth (such as drivers, restraints, opportunities, and challenges)
- To strategically analyze micromarkets1 with respect to individual growth trends, future prospects, and contributions to the overall market
- To analyze the opportunities in the market for stakeholders and provide details of the competitive landscape for market leaders
- To forecast the size of the market segments with respect to five main regions, namely, North America, Europe, the Asia Pacific, Latin America, and the Middle East & Africa
- To profile the key players and comprehensively analyze their product portfolios, market positions, and core competencies
- To track and analyze competitive developments such as acquisitions, product launches, expansions, agreements, partnerships, and collaborations in the global softgel capsules market
Available Customizations
With the given market data, MarketsandMarkets offers customizations as per the company’s specific needs. The following customization options are available for this report:
Geographical Analysis
- Further breakdown of the RoE softgel capsules market, by country
- Further breakdown of the RoAPAC softgel capsules market, by country
Company Information
- Detailed analysis and profiling of additional market players (Up to five)
Segment Analysis
- Further breakdown of the therapeutic area segment as per the product portfolio of prominent players operating in the market.
Growth opportunities and latent adjacency in Softgel Capsules Market