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The empty capsules market size is forecast to increase by USD 1.06 billion at a CAGR of 7.08% between 2023 and 2028. The market is witnessing significant growth due to the increasing applications in the pharmaceutical industry, particularly in the production of sustained-release and delayed-release capsules for chronic diseases and drugs. The nutraceutical industry is also a major contributor to the market's growth, with research laboratories focusing on developing innovative capsule technologies for nutritional supplements and medicines. However, the market faces challenges such as the negative effects of traditional capsules on health-conscious customers and the environment. To address these concerns, there is a growing demand for vegan capsules and environmentally friendly, plant-based alternatives. The pharmaceutical sector is responding with drug delivery innovations that offer improved patient compliance and reduced side effects. Overall, the market for empty capsules is expected to continue its growth trajectory, driven by the increasing demand for personalized healthcare solutions and the ongoing research and development in the field of capsule technology.
The market is witnessing significant growth due to the increasing demand for nutraceuticals in the prevention and management of non-communicable diseases such as diabetes and cancer. Personal health and wellness are becoming top priorities for consumers, leading to an increase in demand for nutraceutical ingredients. Dietary restrictions and cultural practices are also driving the market for empty capsules, with an increasing preference for vegan capsules made from plant-based alternatives like pullulan and hydroxypropyl methylcellulose. The market for empty capsules is not limited to the nutraceutical sector but also extends to the pharmaceutical sector for drug delivery innovations. The aging population and the growing prevalence of chronic diseases are fueling the demand for medicinal agents encapsulated in inert substances like starch and gelatin.
However, concerns over the negative effects of gelatin on health-conscious customers are driving the demand for environmentally friendly and plant-based alternatives. The cosmeceutical industry is also leveraging capsule formulations to deliver various medicinal and nutritional supplements to consumers.
The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD billion" for the period 2024-2028, as well as historical data from 2018-2022 for the following segments.
The gelatin capsules segment is estimated to witness significant growth during the forecast period. The market encompasses gelatin and non-gelatin capsules, primarily used in the health nutrition industry for various animal origin-based products. In 2023, the gelatin capsules segment dominated the market due to its extensive use in the pharmaceutical sector. These capsules are derived from hydrolyzed collagen, which can be of animal origin or cellulose-based. Gelatin capsules are odorless, tasteless, gluten-free, GMO-free, and offer a benign oral dosage. They act as thickeners, foaming agents, plasticizers, and binding agents in the pharmaceutical industry. Their texture makes them suitable for various applications, including dietary supplements, anti-anemic preparations, anti-inflammatory drugs, and cardiovascular therapy drugs. The demand for gelatin capsules is high due to their convenience, ensuring reliable dosing, portability, and high consumer compliance. The non-gelatin capsules segment is expected to grow at a steady pace during the forecast period, but the gelatin capsules market is anticipated to maintain its dominance.
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The gelatin capsules segment accounted for USD 1.33 billion in 2018 and showed a gradual increase during the forecast period.
North America is estimated to contribute 47% to the growth of the global market during the forecast period. Technavio's analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.
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The market in North America is experiencing significant growth, driven by the increasing demand for animal origin-based products in the health nutrition industry. The US dominates the market due to the presence of numerous established companies and the rising introduction of new branded pharmaceutical drugs, particularly in the sectors of dietary supplements, anti-anemic preparations, anti-inflammatory drugs, and cardiovascular therapy drugs. The demand for FDA-approved generic medicines, especially among the geriatric population, is also contributing to the market expansion. In addition, Canada's healthcare expenditure is increasing, leading to a growing demand for advanced pharmaceutical drugs, thereby propelling the market in the region. Both the Gelatin capsules segment and the Non-gelatin capsules segment are witnessing substantial growth due to their unique properties and applications in various pharmaceutical and nutraceutical products.
Our researchers analyzed the data with 2023 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
Increasing applications in the pharmaceutical industry is the key driver of the market. The market is experiencing significant growth due to the increasing production of nutraceuticals and pharmaceuticals. Capsules are widely used for encapsulating various nutraceutical ingredients, including those used for managing non-communicable diseases such as diabetes and cancer. The personal health sector is a major consumer of empty capsules, driven by dietary restrictions and cultural practices. Gelatin and collagen are commonly used materials for manufacturing empty capsules. However, the use of gelatin derived from slaughtered animals, such as hides, bones, and hooves, has been a subject of debate due to ethical concerns. This has led to the exploration of alternative materials for capsule manufacturing.
Furthermore, the rising prevalence of non-communicable diseases and the increasing awareness of personal health are key factors driving the growth of the nutraceutical ingredients market. This, in turn, is expected to boost the demand for empty capsules during the forecast period. Cultural practices and dietary restrictions also play a significant role in the consumption of nutraceuticals and pharmaceuticals, thereby influencing the demand for empty capsules.
Increasing demand for generic drugs is the upcoming trend in the market. Empty capsules play a significant role in the production of nutraceuticals, which are dietary supplements that provide health benefits beyond basic nutrition. Consumers are increasingly focusing on personal health and wellness, leading to a growth in demand for dietary supplements that cater to various dietary restrictions and cultural practices.
Furthermore, empty capsules are essential in the manufacturing process of these supplements, as they provide a cost-effective and versatile solution for encapsulating various nutraceutical ingredients. While gelatin is the most commonly used material for producing empty capsules, there is a growing trend towards the use of collagen and other non-animal sources due to ethical concerns and religious beliefs that prohibit the consumption of products derived from slaughtered animals, hides, bones, hooves, and cattle. Generic drugs, which are equal substitutes of branded drugs, also utilize empty capsules in the pharmaceutical industry. The use of generic drugs, which are sold at 80%-85% lesser prices than branded drugs, has saved the US healthcare system over USD 2.2 trillion dollars in the past decade. The cost savings and the growing demand for nutraceuticals are expected to drive the growth of the global pharmaceuticals wholesale and distribution market for empty capsules during the forecast period.
Risk of counterfeiting in the pharmaceutical industry is a key challenge affecting the market growth. The market for capsules used in nutraceuticals, particularly those addressing non-communicable diseases such as diabetes and cancer, continues to expand as consumers prioritize personal health. The nutraceutical ingredients market experiences significant growth due to increasing dietary restrictions and cultural practices. However, the production of gelatin-based and collagen capsules poses ethical concerns, as they often originate from slaughtered animals, utilizing hides, bones, and hooves from the cattle industry. This raises questions regarding the sustainability and ethical implications of the industry. Moreover, the risk of counterfeit capsules infiltrating the supply chain is a pressing issue. Counterfeit capsules can pose serious health risks to consumers, as well as financial consequences for companies and packaging companies.
Furthermore, the complex nature of the global nutraceutical supply chain increases the likelihood of counterfeit products entering the market, potentially replacing authentic capsules at various stages, from the beginning to the end of the supply chain.
The market forecasting report includes the adoption lifecycle of the market, covering from the innovator's stage to the laggard's stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth analysis strategies.
Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
ACG - The company offers HX vegetarian capsules suitable for pharmaceutical and nutraceutical applications available in different color of combinations of blue and white and can be used with titanium dioxide free opacifiers.
The market research and growth report includes detailed analyses of the competitive landscape of the market and information about key companies, including:
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
Empty capsules are an essential component of the nutraceuticals industry, used for producing various dietary supplements, anti-anemic preparations, anti-inflammatory drugs, cardiovascular therapy drugs, and herbal formulations. The capsules market is segmented into gelatin and non-gelatin capsules. Gelatin capsules, derived from animal sources such as hides, bones, hooves, and collagen from cattle, pigs, fish, horses, and poultry, dominate the market. However, non-gelatin capsules made from plant-based alternatives like hydroxypropyl methylcellulose, starch, and pullulan are gaining popularity due to dietary restrictions, cultural practices, and ethical considerations. The health nutrition industry uses these capsules to deliver nutraceutical ingredients, catering to the growing demand for personalized medicine and patient-centric medications.
Furthermore, the pharmaceutical sector also utilizes capsules for oral administration alternatives to tablets and powders, with innovations in drug delivery systems including immediate-release, sustained-release, and delayed-release capsules. The elderly population, with its increased prevalence of chronic diseases like diabetes, cancer, and musculoskeletal conditions, drives the demand for these capsules. The convenience, taste masking, and vegetarian shells also appeal to health-conscious customers and those with specific dietary needs. The cosmeceutical industry and IV bags market also utilize capsules for various applications. Despite their benefits, empty capsules may have negative effects, such as allergic reactions to gelatin or animal-derived products. The market is expected to grow due to the increasing demand for environmentally friendly and vegan capsules, as well as the ongoing research and development in the nutraceutical and pharmaceutical sectors.
Market Scope |
|
Report Coverage |
Details |
Page number |
138 |
Base year |
2023 |
Historic period |
2018-2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 7.08% |
Market growth 2024-2028 |
USD 1.06 billion |
Market structure |
Concentrated |
YoY growth 2023-2024(%) |
6.49 |
Regional analysis |
North America, Europe, Asia, and Rest of World (ROW) |
Performing market contribution |
North America at 47% |
Key countries |
US, Germany, UK, China, and Japan |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
ACG, Ajix Inc., Bright Pharma Caps Inc., Healthcaps India Ltd., Lonza Group Ltd., Mitsubishi Chemical Group Corp., Nectar Lifesciences Ltd., Qingdao Yiqing Biotechnology Co. Ltd., Roxlor LLC, Shanxi Guangsheng Medicinal Capsule Co. Ltd., Shanxi JC Biological Technology Co. Ltd., Snail Pharma Industry Co. Ltd., Suheung Co. Ltd., and Sunil Healthcare Ltd. |
Market dynamics |
Parent market analysis, market growth inducers and obstacles, market forecast, fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, market condition analysis for the forecast period |
Customization purview |
If our market report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Type
7 Customer Landscape
8 Geographic Landscape
9 Drivers, Challenges, and Opportunity/Restraints
10 Competitive Landscape
11 Competitive Analysis
12 Appendix
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