Softgel Capsules Market Growth to Touch US$13.2 Billion by 2032 - Persistence Market Research

The global softgel capsules market is poised for substantial growth, with the market size expected to reach USD 8.7 billion by 2025 and grow to USD 13.2 billion by 2032. This represents a compound annual growth rate (CAGR) of 6.2% during the forecast period from 2025 to 2032. The market's growth trajectory is driven by the increasing demand for nutraceuticals and pharmaceutical products, heightened health awareness, and advancements in encapsulation technologies. Additionally, evolving consumer preferences for convenient dosage forms, enhanced formulation capabilities for poorly soluble drugs, and the shift toward plant-based capsule materials are factors supporting this growth.

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Key Industry Highlights

Leading Region: North America is expected to maintain the dominant market share of around 35% in 2025, driven by its mature pharmaceutical and nutraceutical R&D landscape.

Fastest-growing Regional Market: The Asia Pacific region is set to exhibit the highest growth rates through 2032, fueled by a growing middle class and improvements in supply chain infrastructure.

Dominant Source: Porcine gelatin is predicted to remain the leading source of softgel capsules, accounting for approximately 55% of the market share in 2025.

Fastest-growing Material Type: Non-animal-based softgel capsules, including those made from pullulan, are expected to see the highest growth due to increased consumer demand for vegan and halal-compliant products.

Dominant Application: Nutraceuticals are anticipated to make up around 60% of the total softgel capsule applications, driven by the global shift toward preventive healthcare.

Market Factors - Growth, Barriers, and Opportunity Analysis
Driver: Increasing Adoption of Vegan Lifestyles and Religious Dietary Restrictions

The global rise in veganism and stricter adherence to religious dietary laws, such as Halal and Kosher, is creating a growing demand for plant-based softgel capsules. According to the Vegan Society, the global vegan population is increasing by approximately 6-8% annually, particularly in North America and Europe. This shift has prompted regulatory bodies such as the U.S. FDA and the European Food Safety Authority (EFSA) to emphasize transparency in capsule ingredient sourcing. Manufacturers are thus investing in R&D to develop alternatives to animal-based gelatin, with plant-based options such as starch, cellulose, pullulan, and carrageenan gaining prominence.

Restraint: Cost Stability Fueled by Supply Chain Disruptions

The softgel capsules market faces significant barriers due to its reliance on animal-derived gelatin, which is primarily sourced from porcine and bovine origins. Diseases such as African Swine Fever (ASF) have disrupted global supply chains, causing volatility in the availability and pricing of porcine gelatin. This has driven up raw material costs by 15-20%, while also influencing market prices. Additionally, environmental and ethical concerns surrounding animal-based ingredients are prompting calls for greater sustainability and transparency in supply chains, leading to higher compliance costs.

Opportunity: Steady Rise in Nutraceutical Demand in Emerging Economies

The Asia Pacific region represents a significant growth opportunity for the softgel capsules market. The region is experiencing a surge in health-consciousness, driven by increasing disposable incomes, urbanization, and expanding middle-class populations. Nutraceuticals, such as omega-3 fatty acids, vitamins, and herbal supplements, are gaining traction in key markets such as India and China. Rising health awareness and government health initiatives are also contributing to the uptick in demand for nutraceutical products. Companies entering this market have the opportunity to invest in local manufacturing facilities, co-develop region-specific formulations, and optimize distribution networks to cater to local preferences.

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Category-wise Analysis

Material Insights

Gelatin-based softgel capsules dominate the market, accounting for an estimated 80% of the share in 2025. Their widespread use can be attributed to their excellent mechanical properties, such as gel strength and flexibility, which ensure reliable encapsulation and controlled release profiles. However, non-animal-based capsules are rapidly gaining ground, driven by increasing consumer demand for vegan and halal-compliant products. Plant-based alternatives, such as pullulan, carrageenan, and starch-based capsules, are witnessing a sharp rise in adoption as they align with sustainability goals and consumer preferences for ethical products.

Source Insights

Porcine gelatin is expected to remain the dominant source segment, accounting for roughly 55% of the market share by 2025. Despite regional religious restrictions limiting its acceptance in some areas, porcine gelatin remains the preferred choice in Western countries and East Asia. However, the growing demand for plant-based alternatives is driving the adoption of pullulan-based capsules. Pullulan, derived from starch fermentation, is gaining popularity for its oxygen-impermeable properties, which are particularly beneficial for sensitive nutraceuticals. The increasing availability and reduced production costs of pullulan have made it a viable alternative for premium formulations.

Application Insights

Nutraceuticals represent the dominant application for softgel capsules, comprising about 60% of total applications in 2025. The market for nutraceutical softgels is expanding due to the increasing prevalence of chronic diseases, aging populations, and a rising fitness-conscious demographic. Softgel capsules are highly favored in nutraceuticals for their ability to enhance the bioavailability of fat-soluble vitamins, omega-3 fatty acids, and botanical extracts.

Pharmaceutical applications of softgel capsules are also expected to grow at a healthy pace during the forecast period. Technological advancements have made softgels an effective delivery system for poorly soluble active pharmaceutical ingredients (APIs). Softgel capsules are now being used for the encapsulation of biologics, enhancing patient compliance and controlled drug release, which drives further adoption in specialty and orphan drug segments.

Regional Insights

North America Softgel Capsules Market Trends

North America is expected to lead the softgel capsules market, with a market share of approximately 35% in 2025. The U.S. pharmaceutical and nutraceutical sectors are well-established and continue to invest in softgel capsule R&D, particularly in the development of plant-based alternatives and advanced softgel formulations. High consumer health awareness and a growing preference for convenient, customized nutrition solutions, particularly among the aging population, are key drivers of market demand.

Asia Pacific Softgel Capsules Market Trends

The Asia Pacific region is expected to exhibit the fastest growth rate in the softgel capsules market, capturing nearly 30% of the market share by 2025. Strong growth in China, India, Japan, and ASEAN nations is fueled by rapid urbanization, expanding middle-class populations, and a growing focus on preventive healthcare. Rising disposable incomes are driving the consumption of high-quality nutraceuticals, and increasing government efforts to improve healthcare infrastructure and product quality standards are opening new avenues for market expansion.

Europe Softgel Capsules Market Trends

Europe is projected to hold about 25% of the softgel capsules market by 2025, with key players from Germany, the U.K., France, and Spain leading the regional growth. The European Medicines Agency (EMA) provides a harmonized regulatory framework that enhances market stability and accelerates product approvals. Sustainability is a key theme in the region, with stricter guidelines on sourcing raw materials and reducing environmental impact influencing product formulations and supply chain practices.

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Competitive Landscape

The global softgel capsules market is moderately concentrated, with a few large players dominating the market. Catalent Pharma Solutions, Aenova Group, and Suheung Co. Ltd. are among the market leaders, with strong technological capabilities, expansive global manufacturing footprints, and robust supply chain networks. The competitive landscape is also becoming more dynamic with the rise of regional and niche players focusing on plant-based softgel technologies and advanced formulations that cater to ethical consumer demands.

Key Industry Developments

Robinson Pharma, in May 2025, expanded its capacity by adding 10 softgel machines, becoming the largest softgel producer in the U.S. with an annual capacity of 23 billion softgels.

Jupiter Neurosciences partnered with Catalent Pharma in March 2025 to manufacture JOTROL softgel capsules for a Phase 2a Parkinson's trial, highlighting Catalent's expertise in efficient and timely production.

In February 2025, the Icaritin (ICA) extract, a natural compound from Epimedium, was approved as a Class 1.2 Traditional Chinese Medicine (TCM) innovative drug, showcasing its potential in the treatment of advanced hepatocellular carcinoma.

Conclusion

The softgel capsules market is poised for significant growth in the coming years, driven by advancements in encapsulation technology, evolving consumer preferences for convenient and ethical dosage forms, and an expanding nutraceutical market. North America is expected to maintain a dominant share, while Asia Pacific offers immense growth potential, driven by expanding middle-class populations and rising health consciousness. With increasing demand for plant-based alternatives and innovations in formulation technology, the market is set for a dynamic and competitive future.

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