The global Gelatin Capsule Market is set to experience significant expansion, with its valuation expected to grow from USD 11 billion to USD 18 billion by 2030, at a compound annual growth rate (CAGR) of 8% from 2025 to 2030. This growth is driven by rising pharmaceutical and nutraceutical demands, advancements in capsule technology, and increased investment in research and development.

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Market Overview

A gelatin capsule is an oral dosage form featuring a hollow shell composed of gelatin, a protein derived from collagen found in animal bones and skin. These capsules encapsulate powdered or liquid medications, protecting them from external elements like moisture and light until consumed. Upon ingestion, the gelatin dissolves in the stomach, releasing the medication efficiently.

Gelatin capsules offer a tasteless and smooth solution for medication intake, making them particularly advantageous for individuals with swallowing difficulties. Their versatility enables the encapsulation of a wide range of pharmaceutical compounds, including dry powders, liquids, and semi-solids, enhancing their appeal across multiple industries.

Market Dynamics and Trends

Pharmaceutical Industry Growth Drives Market Expansion

The rapid expansion of the pharmaceutical sector and increased medical spending globally are key drivers of the gelatin capsule market. According to the U.S. Centers for Medicare & Medicaid Services, prescription drug spending rose by 8.4% to USD 405.9 billion in 2022, exceeding the 6.8% growth observed in 2021. This increase in pharmaceutical spending highlights the growing demand for advanced drug delivery solutions, including gelatin capsules.

Moreover, major industry players such as Darling Ingredients Inc., Health Caps India, and Lonza Group AG continue to invest in research and development, ensuring high-quality production standards and innovation. For example, in May 2022, Lonza launched white titanium dioxide (TiO₂)-free hard gelatin capsules, responding to regulatory concerns surrounding TiO₂ as a whitening agent. These new capsules use crystalline salts to achieve opacity while maintaining quality standards, reflecting the industry’s commitment to innovation.

Challenges in Market Growth

Despite the market’s positive outlook, challenges remain. The reliance on animal-based gelatin due to the high cost of plant-based alternatives hinders growth. Additionally, gelatin derived from animal collagen may cause allergic reactions in certain individuals, limiting its consumer base. As a result, manufacturers are exploring alternatives to address these concerns.

Opportunities: Active Ingredient Integration

A promising opportunity for the gelatin capsule market lies in the integration of active ingredients directly into capsule shells. This approach can optimize therapeutic effects, improve dissolution rates, and eliminate the need for additional coatings, offering a more efficient and convenient drug delivery method.

Market Segmentation and Scope

The gelatin capsule market is segmented based on capsule type, raw material, application, and region:

• By Capsule Type: Hard Gelatin Capsules, Soft Gelatin Capsules
• By Raw Material: Bovine Gelatin, Porcine Gelatin, Others
• By Application: Pharmaceutical, Nutraceutical
• By Region: North America, Europe, Asia-Pacific, and the Rest of the World (RoW)

Geographical Analysis

Europe Dominates the Gelatin Capsule Market

Europe leads the gelatin capsule market, driven by the region’s growing preference for plant-based alternatives. Plant-based gelatin capsules are increasingly favored for their hypoallergenic properties, addressing rising allergy concerns. It is estimated that 150 million Europeans currently suffer from allergies, with projections suggesting that one in every two Europeans will experience some form of allergy by 2025.

In response to this trend, companies like International Flavors & Fragrances (IFF) introduced Verdigel SC, a pectin-based premix launched in April 2023. This innovative, carrageenan-free, plant-based soft gelatin capsule formulation caters to the demand for vegan, halal, kosher, and non-GMO products, further fueling market growth.

Moreover, increasing concerns over vision impairment in Europe are propelling the demand for soft gels, which can be formulated to deliver nutrients beneficial for eye health. According to the World Health Organization, around 90 million people in Europe suffer from vision impairment or blindness, prompting drug manufacturers to develop targeted soft gel formulations.

For instance, in August 2023, Sirio Europe introduced two novel soft gel formulations—one for menopause support and another for eye health—at the Convention on Pharmaceutical Ingredients (CPHI) in Barcelona, aligning with the region’s growing demand for specialized nutraceuticals.

Asia-Pacific Emerges as a High-Growth Region

The Asia-Pacific region is witnessing rapid growth in the gelatin capsule market, primarily due to the expansion of the pharmaceutical sector in countries like China and India. According to the Indian Pharmaceutical Association, India’s pharmaceutical industry is expected to reach a market size of USD 130 billion by 2030.

India’s increasing global influence in pharmaceutical production further supports this trend. The country currently manufactures 60% of the world’s vaccines and supplies between 40% and 70% of the World Health Organization’s demand for essential vaccines.

Additionally, the region’s burgeoning nutraceutical industry is contributing to the market’s expansion. The International Trade Administration reported that China’s nutraceutical industry reached approximately USD 40 billion in 2023, demonstrating a 14% year-on-year growth. This rising demand for dietary supplements is boosting the adoption of gelatin capsules as a preferred delivery method.

Competitive Landscape

Several key players dominate the gelatin capsule market, including:

• ACG
• Lonza
• Qualicaps
• Caps Canada Corporation
• EMBOCAPS
• Erawat Pharma Limited
• Dah Feng Capsule Industry Co., Ltd
• HBI Eurocaps (DCC plc Group)
• Nectar Lifesciences Ltd.
• Sigma Aldrich
• GELITA AG
• Fortcaps
• GoCaps GmbH
• Sunil Healthcare Limited
• Empty Capsules

These market leaders continue to expand their product offerings and invest in technological advancements to maintain a competitive edge.

For example, in November 2023, Gelita introduced Easyseal Gelatin, a groundbreaking solution aimed at reducing soft gel capsule leakage during production. Easyseal enhances capsule seam strength by up to 50%, minimizing leaks and production waste while improving overall manufacturing efficiency.

Additionally, in March 2023, ACG Worldwide, through its subsidiary Vantage Nutrition, acquired ComboCap Inc., a global technology company in the pharmaceutical and nutraceutical industries. This acquisition positions ACG as the only company offering side-by-side health products, including the world’s first 2-in-1 capsules, expanding its portfolio of vegetarian and gelatin capsules.

Conclusion

The global gelatin capsule market is on a robust growth trajectory, driven by pharmaceutical and nutraceutical advancements, increasing investments in research and development, and evolving consumer preferences. With ongoing innovations and strategic market expansions, key industry players are well-positioned to capitalize on emerging opportunities and address evolving consumer demands.