Empty capsules market is estimated to witness high growth, owing to increasing demand for nutraceuticals and growing geriatric population
Empty capsules market is estimated to be valued at USD 3.21 Bn in 2024, exhibiting a CAGR of 6.3% over the forecast period 2024-2031. Increasing demand for nutraceuticals and growing geriatric population can drive the empty capsules market growth. Furthermore, technological advancements in capsule manufacturing can also drive the market growth.
Market Dynamics:
Growth in the nutraceutical industry: Nutraceuticals offer several health benefits and help in preventing or treating various diseases. These are gaining immense popularity worldwide due to changing customer preferences towards healthy lifestyle. Capsules are extensively used in nutraceutical products as these provide containment, protection and targeted delivery of active ingredients. Thus, rising demand for nutraceuticals from developed as well as developing regions can boost demand for empty capsules.
Growing geriatric population: Growing geriatric population has increased the incidence of chronic diseases. Elderly people commonly suffer from age-related ailments like arthritis, diabetes, cardiovascular diseases, and others. This increases the intake of medicines and supplements in the form of capsules. Easy to swallow gelatin capsules offer convenience to aging consumers
Increasing Demand for Nutraceuticals and Dietary Supplements
Growing demand for nutraceuticals and dietary supplements leads to increasing demand for empty capsules, which are extensively used for encapsulating various nutraceutical and dietary supplement ingredients. Manufacturers are introducing innovative products customized for specific health conditions to capitalize on the opportunities in the nutraceuticals market. Empty capsules allow for easy ingestion of oil and powder-based ingredients commonly used in supplements. Their availability in different sizes also enables customized formulations.
Rising Preference for Alternative Medicines
Alternative medicines such as herbal medicines, ayurveda and homeopathy have gained immense popularity worldwide. Many people are shifting to alternative therapies to avoid side effects from allopathic drugs. Herbal supplements are commonly administered in the form of capsules and this boosts demand for empty capsules. The booming alternative medicine industry has expanded the customer base for empty capsule suppliers. Availability of vegetarian and halal capsule options has further increased their preference over other dosage forms. Manufacturers are also developing new variants such as softgels to cater to specific alternative medicine requirements.
Stringent Regulatory Environment
Empty capsules are medical devices that are strictly regulated under the FDA and other regulatory bodies. Manufacturers need to obtain the requisite approvals and certifications to market their products globally. This involves expensive validation, change management and compliance procedures. Strict adherence to cGMP norms further increases production costs. The regulatory complexities pose challenges, especially for new players. Procurement of raw materials meeting global quality standards is also an expensive affair.
Fluctuating Raw Material Prices
Major raw materials used in empty capsule manufacturing like hydroxypropyl methylcellulose (HPMC), gelatin, and starch face constant price volatility in the worldwide market. Fluctuations in agricultural commodity prices directly impact gelatin costs. Changes in foreign currency exchange rates affect import of HPMC from various regions. This makes raw material procurement a difficult task for capsule makers. Any rise in input costs gets transferred to the customers, reducing the price competitiveness of products. Manufacturers have limited control over raw material markets, making business planning a difficult task.
Increasing Demand in Emerging Markets
Emerging Asian countries like China, India and others are becoming major markets for nutraceuticals and pharmaceutical products. fTheir large populations and increasing health awareness boosts demand for empty capsules. Local and international players are setting up production facilities in these regions to capitalize on the opportunities. Moreover, vendors can leverage the relatively lenient regulations to quickly launch innovative offerings. Growing per capita spends on healthcare can drive the market growth in emerging nations.
Alternative Capsule Technology
Alternative technologies like cellulose-, starch- and HPMC-based capsules are gaining popularity. Their application is increasing in vegan, kosher and halal products due to compatibility with religious and dietary preferences. These variants avoid common issues with gelatin caps like leakage, plasticization and batch duplication challenge. Successful adoption would help artisan producers penetrate regulated international markets. Evolution of softgel encapsulation technology also expands the scope for heat- and moisture-sensitive compounds. Innovations like 3D printing of capsules indicate can offer new growth opportunities.
Link: https://www.coherentmarketinsights.com/market-insight/empty-capsules-market-1328
Key Developments:
- In November 2021, ACG Capsules launched the "ACG Loves Nothing" campaign, emphasizing zero-problem production in pharmaceutical and nutraceutical manufacturing. It aim to prevent issues such as product damage during storage by providing high-quality empty capsules and expert guidance. By addressing a specific case where capsules were breaking due to their hygroscopic nature, ACG developed modified capsules that effectively resolved the problem.
- In March 2021, CapsCanada, a company under Lyfe Group, introduced a new service for manufacturing liquid-filled hard capsules
- In August 2020, Dr. Reddy's Laboratories, a global pharmaceutical company, received approval from the U.S. Food and Drug Administration (USFDA) to launch generic Penicillamine capsules in the U.S. market. These capsules are used to treat Wilson's disease and cystinuria.
- In April 2020, Qualicaps, a pharmaceutical company, expanded its operations in the Middle East and Africa by establishing agency and distribution partnerships with several leading companies in the region
Key Players: ACG Worldwide, Capsugel, Qualicaps Inc., Bright Pharma Caps Inc., Sunil Healthcare Ltd., CapsCanada Corporation, Roxlor LLC, Snail Pharma Industry Co. Ltd., Suheung Co. Ltd., Medi-Caps Ltd., Qingdao Yiqing Medicinal Capsules Co., Ltd., Shanxi Guangsheng Medicinal Capsules Co., Ltd., Nectar Lifesciences Ltd., Kerry Inc., JC Biological Technology Co. Ltd.
