Gelatin Capsule Market

Market Definition

The global Gelatin Capsule Market size was valued at USD 11.39 billion in 2023 and is predicted to reach USD 18.27 billion by 2030, with a CAGR of 8.2% from 2024-2030. A gelatin capsule is a type of oral medication dosage form consisting of a hollow shell made from gelatin, a protein derived from collagen found in animal bones and skin.

The capsule encapsulates a powdered or liquid medication, protecting it from light, air, and moisture until it is swallowed. When swallowed, the gelatin dissolves in the stomach, releasing the medication.

Gelatin capsules offer a smooth, tasteless way to deliver medication, especially beneficial for those with swallowing difficulties. They're versatile, holding various forms of medicine and even masking unpleasant tastes or odors.

Market Dynamics and Trends

The expansion of the pharmaceutical industry and spending on medical services globally is propelling growth within the gelatin capsule market, driven by heightened demand for encapsulating medications and supplements. 

As per the data provided by the U.S. Centers for Medicare & Medicaid Services, prescription drug spending increased by 8.4% to USD 405.9 billion in 2022, which is higher than the 6.8% growth observed in 2021.

Gelatin capsules have the potential to accommodate various pharmaceutical formulations, including dry powders, granules, liquids, and select semi-solids, which increases its demand in the pharmaceutical industry.

Moreover, the large investments and research & developments (R&D) carried out by leading market players such as Darling Ingredients Inc., Health Caps India, and, Lonza Group AG which are known for their wide-ranging product offerings further drive the gelatin capsule market. These industry leaders conduct research and create new and improved gelatin capsule technologies while adhering to strict quality control and regulatory compliance.

For instance, in May 2022, Lonza introduced white titanium dioxide (TiO?)-free hard gelatin capsules to address increasing regulatory concerns regarding TiO? as a whitening agent. Lonza's innovative capsule employs an alternative opacifying technology, harnessing the power of crystalline salts to achieve opacity.

This technique ensures comparable whiteness and masking properties to conventional TiO? capsules. This development fulfills the evolving demand to meet new titanium dioxide-free requirements for various products, including food supplements and pharmaceuticals, driving gel capsule market growth.

However, reliance on animal-based gelatin due to the high cost of plant-based gelatin restrains the growth of the gelatin capsule market. The gelatin, derived from collagen found in animal bones and skin has the potential to cause allergic reactions including skin and respiratory allergies in some individuals, which deter certain consumers from using gelatin-containing products.

On the contrary, integration of active ingredients, the substances responsible for the intended therapeutic effect, directly into the capsule shell is expected to drive the market in the coming years.

By incorporating active ingredients into the capsule material itself, manufacturers are expected to overcome some of the limitations associated with traditional encapsulation methods, such as variations in dissolution rates and the need for additional coatings.

Market Segmentations and Scope of the Study

The gelatin capsule market is segmented based on type, end-user industry, and region. Based on capsule type, the market is segmented into hard gelatin capsules and soft gelatin capsules. Based on type, the market is divided into type A and type B.

Based on the source, the market is categorized into animal and plant. Based on the end-user industry, the market is classified into pharmaceutical, nutraceutical, cosmetics, and personal care. The regional breakdown includes regions such as North America, Europe, Asia-Pacific, and the Rest of the World (RoW).

Geographical Analysis

Europe holds the dominant share of the gelatin capsule market and is expected to continue its dominance during the forecast period. This is attributed to the region's increasing preference for plant-based alternatives. Plant-based gelatin capsules are favored for their hypoallergenic properties, particularly significant amidst a rising allergy prevalence in Europe. With an estimated 150 million Europeans currently living with allergies and projections indicating that one in every two Europeans will experience some form of allergy by 2025, the demand for safer options is paramount.

Additionally, the rise in disposable income among European individuals has made plant-based gelatin capsules more affordable, further fueling market expansion. This shift towards plant-based alternatives is accentuated by the continuous launch of innovative products, such as International Flavors & Fragrances (IFF) Verdigel SC, a pectin-based premix introduced in April 2023.

This innovative technology addresses the growing demand for vegan, halal, kosher, and non-GMO products by producing carrageenan-free, plant-based soft gelatin capsules, also known as soft gels. Manufacturers can easily utilize this premix to create high-performance soft gels, thereby meeting the evolving preferences of European consumers and contributing to the growth of the gelatin capsule market in the region.

Moreover, the growing concerns related to menopause and eye issues in Europe increase the demand for soft gels. This capsule can be formulated to deliver nutrients directly to the eyes, which can be especially beneficial for people with dry eye syndrome or other eye conditions.

As per the report provided by the World Health Organization in 2023, in the European Region, approximately 90 million people suffer from vision impairment or blindness. The growing demand for soft gels enables leading drug manufacturers to make new developments to meet the growing needs of consumers.

Additionally, in August 2023, Sirio Europe, a renowned global nutraceuticals contract development and manufacturing organization (CDMO), unveiled two innovative soft gel formulations at the Convention on Pharmaceutical Ingredients (CPHI) Barcelona. The first formulation is tailored for menopause support, while the second targets enhanced eye health.

These new formulations address the growing consumer preference for products containing botanical ingredients, meeting the increasing demand for solutions related to menopause and eye health. 

On the other hand, in the Asia-Pacific region, the gelatin capsule market is steadily growing driven by the widespread utilization of gelatin capsules in the pharmaceutical industry, where it serves as a preferred method for encapsulating oral medications.

As the pharmaceutical sector experiences significant expansion in countries including China and India, the demand for gelatin capsules rises in tandem. According to data from the Indian Pharmaceutical Association (IPA), India's pharmaceutical industry is poised for significant growth, with projections indicating a market size of USD 130 billion by 2030. 

The COVID-19 pandemic has spurred growth in the Indian pharmaceutical sector, while its global influence has consistently expanded in recent years. India now produces 60 percent of the world's vaccines and supplies 40 to 70 percent of the World Health Organization's demand for vaccines such as Tetanus, Pertussis, Diphtheria, and Bacillus Calmette–Guerin. This robust growth reflects the increasing demand for pharmaceutical drugs in the region leading to the rising need for gelatin capsules as a vital component in the pharmaceutical industry.

Also, the growth of the gelatin capsule market in the Asia Pacific is driven by its extensive utilization in the nutraceutical industry, where it serves as a popular delivery method for dietary supplements, vitamins, and herbal remedies. The increasing demand for nutraceutical products, coupled with the widespread adoption of gelatin capsules in this sector, fuels the rising need for gelatin capsules across the region.

As per the data provided by the International Trade Administration, the nutraceutical industry in China experienced significant growth, reaching approximately USD 40 billion in 2023 with a remarkable 14% year-on-year increase.

This surge underscores the pivotal role of gelatin capsules in facilitating the delivery of nutraceutical products to consumers. As the nutraceutical industry continues to expand in Asia Pacific, the demand for gelatin capsules is expected to rise in tandem, driving the growth and expansion of the gelatin capsule market in the region.

Competitive Landscape

Various market players operating in the gelatin capsule industry include ACG Worldwide, Gelita AG, Seheung Co Ltd., Lonza Group AG, PB Leiner, Darling Ingredients Inc., Health Caps India, Natural Capsules Ltd., Nitta Gelatin Inc., Qualicaps Inc. These market players continue to adopt various market development strategies including product launches, acquisitions, and others to maintain their dominance in the gelatin capsule market.

For instance, in November 2023, Gelita introduced Easyseal gelatin, a solution aimed at reducing soft gel capsule leakage during production. This innovative gelatin technology increases the seams of soft gel capsules by up to 50%, significantly reducing the occurrence of leaking. Easyseal gelatin is designed to improve the sealing process, prevent leakers, and enhance the stability of soft gels, ultimately reducing waste and production costs for manufacturers.

Additionally, in March 2023, ACG Worldwide, through its group company Vantage Nutrition, acquired ComboCap Inc., a technology company with global reach across the pharmaceutical and nutraceutical industries. This acquisition enables ACG to become the only company in the world to supply side-by-side health products, which are the world's first 2-in-1 capsules. The move strengthens ACG’s portfolio of vegetarian and gelatin capsules, offering unique products for both the nutraceutical and pharmaceutical sectors.

Key Benefits

• The report provides quantitative analysis and estimations of the gelatin capsule market from 2024 to 2030, which assists in identifying the prevailing market opportunities.

• The study comprises a deep-dive analysis of the current and future gelatin capsule market trends to depict prevalent investment pockets in the market.

• Information related to key drivers, restraints, and opportunities and their impact on the gelatin capsule market is provided in the report. 

• A competitive analysis of the players, along with their market share is provided in the report.

• SWOT analysis and Porter's Five Forces model are elaborated in the study.

• Value chain analysis in the market study provides a clear picture of the roles of stakeholders.

Gelatin Capsules Market Key Segments

By Capsule Type 

• Hard Gelatin Capsules 

• Soft Gelatin Capsules

By Type 

• Type A 

• Type B

By Source 

• Animal 

• Plant

By End-User Industry 

• Pharmaceutical 

• Nutraceutical 

• Cosmetics 

• Personal Care 

By Region

• North America

  • The U.S.

  • Canada

  • Mexico

• Europe

  • The UK

  • Germany

  • France    

  • Italy

  • Spain

  • Denmark

  • Netherlands

  • Finland

  • Sweden

  • Norway

  • Russia

  • Rest of Europe

• Asia-Pacific

  • China

  • Japan

  • India

  • South Korea

  • Australia

  • Indonesia

  • Singapore

  • Taiwan

  • Thailand

  • Rest of Asia-Pacific

• RoW

  • Latin America

  • Middle East

  • Africa

REPORT SCOPE AND SEGMENTATION:

Parameters	Details
Market Size in 2023	USD 11.39 Billion
Revenue Forecast in 2030	USD 18.27 Billion
Growth Rate	CAGR of 8.2% from 2024 to 2030
Analysis Period	2023–2030
Base Year Considered	2023
Forecast Period	2024–2030
Market Size Estimation	Billion (USD)
Growth Factors	The growing adoption of gelatin capsule within the pharmaceutical industry. The presence of key market players contributes to the worldwide growth of the gelatin capsule market.
Countries Covered	28
Companies Profiled	10
Market Share	Available for 10 companies
Customization Scope	Free customization (equivalent up to 80 working hours of analysts) after purchase. Addition or alteration to country, regional, and segment scope.
Pricing and Purchase Options	Avail customized purchase options to meet your exact research needs.

KEY PLAYERS

• ACG Worldwide

• Gelita AG

• Seheung Co Ltd.

• Lonza Group AG

• PB Leiner

• Darling Ingredients Inc.

• Health Caps India

• Natural Capsules Ltd.

• Nitta Gelatin Inc.

• Qualicaps Inc.