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The empty capsules market is witnessing tremendous growth due to the rising demand for dietary supplements and nutraceuticals globally. Empty capsules are two-piece capsules that are usually composed of gelatin and contain active pharmaceutical ingredients. They are used for encapsulating powder, granules, tablets or liquids in pharmaceutical, nutraceutical, and dietary supplement products. The increasing adoption of capsule dosage forms over conventional tablet forms owing to advantages like ease of swallowing and enhanced bioavailability is another factor fueling the demand for empty capsules.
The Global Empty Capsules Market is estimated to be valued at US$2.3 Bn in 2024 and is expected to exhibit a CAGR of 7.9% over the forecast period 2023 to 2030.
Key Takeaways
Key players operating in the empty capsules market are ACG Worldwide, Capsugel, Qualicaps Inc., Bright Pharma Caps Inc., Sunil Healthcare Ltd., CapsCanada Corporation, Roxlor LLC, Snail Pharma Industry Co. Ltd., Suheung Co. Ltd., and Medi-Caps Ltd.
The rising demand for dietary supplements and nutraceutical products globally due to the increasing health consciousness among consumers is one of the major factors contributing to the growth of empty capsules market. With growing middle-class population in emerging economies, the demand for dietary supplements is expected to increase significantly over the coming years.
Geographical expansion into emerging countries of Asia Pacific and Latin America through partnerships, mergers, and acquisitions is one of the key strategies adopted by major players to gain a higher share in the global empty capsules market. The growing consumer base in these regions offers lucrative opportunities for companies operating in the empty capsules space.
Market Key Trends
One of the major trends seen in the empty capsules market is the rising demand for vegetarian capsules. With growing cases of dietary restrictions and intolerances caused by gelatin, there is a rising demand for plant-based empty capsules. To capitalize on this demand, companies are actively engaged in the development and launch of innovative vegetarian capsules made from ingredients like hydroxypropyl methylcellulose (HPMC). For example, in 2020, ACG Worldwide launched VegiCaps – a range of 100% vegetarian HPMC capsules helping companies appeal to a larger target audience.
Porter’s Analysis
Threat of new entrants: Empty capsules manufacturing process requires high investment costs and stringent regulations which act as entry barriers for new players.
Bargaining power of buyers: Major buyers in the empty capsules market are pharmaceutical companies. Growing availability of generics have increased buyer bargaining power.
Bargaining power of suppliers: Key raw materials for empty capsule production include hydroxypropyl methylcellulose (HPMC), gelatin, and starch. Suppliers have moderate bargaining power due to availability of substitute materials.
Threat of new substitutes: Empty capsules face competition from alternative drug delivery forms like tablets. However, capsules are preferred for certain drug types like nutraceuticals.
Competitive rivalry: The empty capsules market is dominated by few global players. Intense competition keeps pricing pressure on existing players.
Geographical Regions
North America accounts for the largest share of the empty capsules market, both in terms of value and volume. This is attributed to the presence of major pharmaceutical companies and increasing healthcare spending in the region.
Asia Pacific region is expected to be the fastest growing market for empty capsules during the forecast period. Rising generic drug production and increasing patient pool make China and India high potential markets. Countries like Japan are also contributing to regional growth.
Geographical Regions
Europe holds the second position in global empty capsules market backed by growing pharmaceutical industry and availability of advanced healthcare facilities across countries like Germany, UK, and France.
The Middle East and Africa region demonstrates high demand for empty capsules due to improving access to medicines and expanding healthcare infrastructure.
Latin America offers lucrative opportunities for capsule manufacturers owing to rising medical tourism, healthcare reforms, and increasing generic drug consumption in Brazil and Mexico.
*Note:
- Source: Coherent Market Insights, Public sources, Desk research
- We have leveraged AI tools to mine information and compile it
