EMPTY CAPSULES MARKET ANALYSIS

The high manufacturing cost of empty capsules can hamper the global empty capsules market growth. Empty capsule manufacturing is a complex process which involves various steps like gelatin preparation, die design, filling and sealing. Each of these steps requires sophisticated machinery and skilled workforce, which increases the overall production cost. As gelatin is key raw material used in capsule shells manufacturing, its rising prices can significantly impact the manufacturing costs of these capsules. According to World Bank Data, global annual inflation rate increased sharply to 7.8% in 2022 from 1.7% in 2020 mainly due to rising input costs including gelatin. The empty capsule manufacturers find it challenging to pass on the entire rising input cost burden to customers due to price sensitivity in the pharmaceutical industry. This price pressure on manufacturers has restricted their ability to invest in advanced production technologies that can enhance efficiencies and lower per unit costs. Stringent regulatory norms for capsule manufacturing facilities in terms of hygiene and quality standards increases compliance complexities and associated expenses.

Market Opportunities: Growing focus on customized capsules

Global empty capsules market growth is driven by growing focus on customized capsules by pharmaceutical manufacturers. Customized capsules allow pharmaceutical companies to develop capsules tailored to specific drug formulations and targeted patient groups. This offers them an opportunity to enhance patient outcomes and experiences. Various pharmaceutical vendors are now investing in sophisticated technologies and equipment to augment their customized capsule production capabilities. For example, many manufacturers are opting for laser engraving techniques that enable printing logos, graphics and text on capsule shells. This helps increase brand recognition of drugs and also aids pharmacists and patients in identifying each product variety easily. Vendors can further personalize capsules by offering different colors, shapes and flavors based on patient profiles. This high level of customization as per specific product requirements can boost demand for empty capsules in the near future. Rising uptake of vegetarian and halal capsules can also provide growth opportunities for empty capsules providers. In 2021, according to the United Nations Report, annual vegetarian capsule demand is expected to increase by over 25% globally by 2025. Several large pharmaceutical manufacturers are expected to launch more vegetarian drugs in the future in response to growing health-conscious demographic worldwide. This will mandate increased use of plant-based or halal empty capsules, thus, driving the market growth.