Vegetarian Capsules Market Forecast, Size, and Growth 2031

Vegetarian Capsules Market Size and Forecast (2021 - 2031), Global and Regional Share, Trend, and Growth Opportunity Analysis Report Coverage: By Product [Hydroxypropyl Methyl Cellulose (HPMC), Pullulan, and Others], Application (Antibiotic and Antibacterial Drugs, Vitamin and Dietary Supplements, Anti-inflammatory, Cardiovascular Therapy, Antacid and Antiaffluent, and Others), Functionality (Immediate-Release, Sustained-Release, and Delayed-Release), End User (Pharmaceutical Industry, Nutraceutical Industry, Contract Manufacturing Organizations, and Cosmetic Industry), and Geography (North America, Europe, Asia Pacific, Middle East & Africa, and South & Central America)

  • Report Code : TIPRE00008476
  • Category : Pharmaceuticals
  • Status : Published
  • No. of Pages : 220
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The vegetarian capsules market is projected to reach US$ 3.5 billion by 2031 from US$ 1.8 billion in 2023. The market is expected to register a CAGR of 8.4% during 2023–2031. The outsourcing of vegetarian capsule is likely to remain key vegetarian capsules market trends during the forecast period.

Vegetarian Capsules Market Analysis

Rising Preference for Vegan Capsules Over Gelatin-Based Capsules

For many years, there have been medical, religious, cultural, and ethical concerns about adding animal substances to capsule coatings or formulations in pharmaceutical medicines. Also, some consumers expressed concerns over the use of animal-derived pharmaceutical medicines due to the associated healthcare risks. In July 2023, the Center for Disease Control and Prevention (CDC) published a report stating that consumption of animal-derived medicines and supplements is responsible for causing Alpha-gal syndrome (AGS) among patients. Also, AGS patients revealed serious allergic reactions after consuming medications or supplements that include mammalian-derived ingredients. Such instances have raised the interest among the manufacturers to produce animal-free medications and supplements.

Table: Comparative Analysis Between Gelatin Capsules and Vegetarian Capsules

Factors

Gelatin Capsules

Vegetarian Capsules

 

Source

Bovine, Cow, and Pigs

Plants

 

Target Audience

Vegan, Vegetarian, and Nonvegetarian Population

Vegan or Vegetarian Population

 

Allergy

Allergy Due to Cow and Pig-Based Ingredient

No Allergies

 

Cross Linking Ingredients

Cross Linking with Other Drug-Drug Derivatives

No Cross Linking

 

External Ingredients

Preservatives

No Preservatives

 

Source: The Insight Partners Analysis

Currently, the high volume of pharmaceutical capsules available in the market are composed of gelatin. However, the crosslinking of the gelatin with drug incompatibilities and strict regulations on the use of animal-derived gelatin have encouraged pharmaceutical manufacturers to replace gelatin components with vegetable-based ingredients. Pharmaceutical manufacturers identified that Hydroxypropyl Methylcellulose (HPMC)-derived vegetarian capsules is a good alternative to gelatin due to its vegetable derived source. Vegicaps soft capsules are the best example of animal-free capsules. The shell is composed of seaweed extract and gluten-free starch containing no modified sugars and artificial colors. Advantages of Vegicaps soft capsules are that they are free from animal derivatives, easy to swallow, soft, natural, and healthier products. In the case of gelatin-based capsules, the shell may get soft and become sticky upon spraying aqueous enteric polymer dispersions or may become brittle due to water evaporation during drying, ultimately losing mechanical stability. However, in HPMC-derived vegetarian capsules, it is less sensitive to aqueous coating, and the capsule shell is hard that avoids leakage of the ingredients.

Therefore, rising preference toward vegetarian medicines proves advantageous for the manufacturers to accelerate the production of vegetarian capsules, which drives the vegetarian capsules market growth.  

Vegetarian Capsules Market Overview

Technology, innovation, and smart technological solutions such as continue to influence vegetarian capsule demand significantly. Rising preference for vegan capsules over gelatin-based capsules and growing demand for vegetable capsules despite their high cost are among the most influential factors responsible for the vegetarian capsules market growth. Innovative product launches of vegetarian capsules will provide a lucrative opportunity for the vegetarian capsules market during the forecast period.

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Vegetarian Capsules Market: Strategic Insights

Vegetarian Capsules Market

  • CAGR (2023 - 2031)
    8.4%
  • Market Size 2023
    US$ 1.8 billion
  • Market Size 2031
    US$ 3.5 billion

Market Dynamics

GROWTH DRIVERS
  • Rising Preference for Vegan Capsules Over Gelatin-Based Capsules
FUTURE TRENDS
  • Outsourcing of vegetarian capsule
OPPORTUNITIES
  • Growing Demand for Vegetable Capsules Despite Their High Cost

Key Players

  • Shanxi Guangsheng Medicinal Capsules (GS Capsules),
  • Lefancaps,
  • SUHEUNG,
  • ACG,
  • Capsugel, Inc. (Subsidiary of Lonza Group AG),
  • HealthCaps India.,
  • NATURAL CAPSULES LIMITED,
  • Sunil Healthcare Limited,
  • QUALICAPS,
  • Zhejiang Honghui Capsule Co., Ltd.,

Regional Overview

  • North America
  • Europe
  • Asia-Pacific
  • South and Central America
  • Middle East and Africa

Market Segmentation

Product
  • Hydroxypropyl Methyl Cellulose
Application
  • Antibiotic and Antibacterial Drugs
  • Vitamin and Dietary Supplements
  • Anti-inflammatory
  • Cardiovascular Therapy
  • Antacid and Antiaffluent
  • Others
Functionality
  • Immediate-Release
  • Sustained-Release
  • Delayed-Release
End User
  • Pharmaceutical Industry
  • Nutraceutical Industry
  • Contract Manufacturing Organizations
  • Cosmetic Industry
  • Sample PDF showcases the content structure and the nature of the information with qualitative and quantitative analysis.

Vegetarian Capsules Market Trends and Opportunities

Growing Demand for Vegetable Capsules Despite Their High Cost

The majority of pharmaceutical companies are producing vegetarian capsules over animal-derived capsules as they have low moisture content and better stability for hygroscopic compounds. Also, vegetarian capsules are considered a "premium product" as it has been proven from clinical studies (in-vitro and in-vivo) that vegetarian capsules show bioequivalence properties such as distribution, absorption, metabolism, and excretion like gelatin capsules. It also eliminates cross-linking of the ingredients and has effective disintegration properties. The high cost of vegetarian capsule manufacturing can be attributed to specialized raw materials and manufacturing processes and the delivery of higher consumer value. However, despite the high cost of these capsules, consumers are willing to spend more on vegetarian capsule products as animal-derived ingredients in capsules may cause AGS. As per the Lonza company website, more than 50% of consumers are willing to pay an extra price for natural-derived products and organic products globally. For example, in the US, 35% of supplement users reveal that a vegetarian or animal source is important when choosing a supplement. Therefore,  the rising demand for vegetable capsules, despite their high costs, fuels the vegetable capsules market growth.

Innovative Product Launches of Vegetarian Capsules – An Opportunity

Innovation in vegetarian capsule products is of utmost importance for manufacturers to promote it as the best alternative to gelatin capsules. Nutraceutical companies are launching modified-release vegetarian capsules for effective drug absorption and to achieve predetermined clinical objectives.

"DRcaps capsules" by Lonza's (Capsugel) are vegetarian capsules manufactured using hydroxypropyl methylcellulose (HPMC), which disintegrates more slowly than traditional gelatin capsules. Such HPMC-derived vegetarian capsules keep the ingredients intact in the capsule shell. Also, DRcaps capsules do not require any external application of chemical coatings to keep the ingredients intact, mask taste, or postpone the release of the active ingredients, proving advantageous for consumers who doubt capsule coatings as "unnatural." The clinical in-vitro studies on DRcaps capsules reveal that the capsule contents are intact for at least 30 minutes, with a gastric pH of 1.2, and disintegrate fully at an intestinal pH of 6.8. The DRcaps capsules are modified-release vegetarian capsule types that benefit consumers dealing with bad taste or aftertaste caused by some ingredients. Further, these capsules can eliminate certain disintegration steps such as coating, which reduces high production costs and time.

Several nutraceutical manufacturers are developing acid-resistant vegetarian capsules as probiotics cannot travel through stomach acid. Several probiotic products contain "strains" that cannot survive the passage of stomach acid. The SILVACO company's "Acid-Resistant vegetable HPMC capsules" can pass through the stomach acid, travel in low-pH environments, and quickly disintegrate in the intestinal tract.

Vegetarian capsule manufactures are developing innovative products to obtain predetermined clinical objectives and gain a significant advantage over gelatin capsules, which is expected to offer lucrative opportunities for the vegetarian capsules market during the forecast period.

Vegetarian Capsules Market Report Segmentation Analysis

Key segments that contributed to the derivation of the vegetarian capsules market analysis are product, application, functionality, and end user.

  • Based on product, the vegetarian capsules market is segmented into Hydroxypropyl Methyl Cellulose (HPMC), pullulan, and others. The HPMC segment held the largest market share in 2023.
  • By application, the market is segmented into antibiotic & antibacterial drugs, vitamin and dietary supplements, anti-inflammatory, cardiovascular therapy, antacid & antiaffluent, and others. The antibiotic and antibacterial drugs segment held the largest share of the market in 2023.
  • In terms of functionality, the market is segregated into immediate-release, sustained-release, and delayed-release. The immediate-release segment dominated the market in 2023.
  • In terms of end user, the market is segmented into pharmaceutical industry, nutraceutical industry, contract manufacturing organizations, and cosmetic industry. The pharmaceutical industry segment dominated the market in 2023.

Vegetarian Capsules Market Share Analysis by Geography

The geographic scope of the vegetarian capsules market report is mainly divided into five regions: North America, Asia Pacific, Europe, the Middle East & Africa, and South & Central America.

Asia Pacific dominated the vegetarian capsules market in 2023. In the Asia Pacific market, India accounts for a considerable share. India has no specific regulations for nutraceutical products and food supplement sales. For example, the Food Safety and Standards Authority of India (FSSAI) proposed a draft of Food Safety Standards (Food or Health Supplements, Nutraceuticals, Foods for Special Dietary Uses, Foods for Special Medical Purposes, Functional Foods and Novel Food) Regulations, in 2015. These are the most influential factors responsible for the market growth. Further, Asia Pacific is anticipated to register the highest CAGR in the coming years.

Vegetarian Capsules Market Report Scope

Report Attribute Details
Market size in 2023 US$ 1.8 billion
Market Size by 2031 US$ 3.5 billion
Global CAGR (2023 - 2031) 8.4%
Historical Data 2021-2022
Forecast period 2023 - 2031
Segments Covered By Product
  • Hydroxypropyl Methyl Cellulose
By Application
  • Antibiotic and Antibacterial Drugs
  • Vitamin and Dietary Supplements
  • Anti-inflammatory
  • Cardiovascular Therapy
  • Antacid and Antiaffluent
  • Others
By Functionality
  • Immediate-Release
  • Sustained-Release
  • Delayed-Release
By End User
  • Pharmaceutical Industry
  • Nutraceutical Industry
  • Contract Manufacturing Organizations
  • Cosmetic Industry
Regions and Countries Covered North America
  • US
  • Canada
  • Mexico
Europe
  • UK
  • Germany
  • France
  • Russia
  • Italy
  • Rest of Europe
Asia-Pacific
  • China
  • India
  • Japan
  • Australia
  • Rest of Asia-Pacific
South and Central America
  • Brazil
  • Argentina
  • Rest of South and Central America
Middle East and Africa
  • South Africa
  • Saudi Arabia
  • UAE
  • Rest of Middle East and Africa
Market leaders and key company profiles
  • Shanxi Guangsheng Medicinal Capsules (GS Capsules),
  • Lefancaps,
  • SUHEUNG,
  • ACG,
  • Capsugel, Inc. (Subsidiary of Lonza Group AG),
  • HealthCaps India.,
  • NATURAL CAPSULES LIMITED,
  • Sunil Healthcare Limited,
  • QUALICAPS,
  • Zhejiang Honghui Capsule Co., Ltd.,
    • Sample PDF showcases the content structure and the nature of the information with qualitative and quantitative analysis.

    Vegetarian Capsules Market News and Recent Developments

    The vegetarian capsules market is evaluated by gathering qualitative and quantitative data post primary and secondary research, which includes important corporate publications, association data, and databases. The following is a list of developments and strategies in the market:

    • In March 2021, ACG announced a new "ACGcaps NTone and ACGcaps TSafe," a range of capsules for nutraceutical consumers. The "ACGcaps NTone" product is naturally colored capsules and aesthetically appealing color solutions such as Ocean Blue, Sunny Yellow, Desert Brown, Purple Pure Carrot, and Red Pure Radish. The company claims that the colors are safe and nontoxic without containing any artificial ingredients, and there is no change in product shelf-life as compared to synthetic-colored capsules. (Source: ACG Company Name, Press Release/Company Website/Newsletter, 2021)

    Vegetarian Capsules Market Report Coverage and Deliverables

    The “Vegetarian Capsules Market Size and Forecast (2021–2031)” report provides a detailed analysis of the market covering below areas:

    • Market size and forecast at global, regional, and country levels for all the key market segments covered under the scope
    • Market dynamics such as drivers, restraints, and key opportunities
    • Key future trends
    • Detailed PEST and SWOT analysis
    • Global and regional market analysis covering key market trends, major players, regulations, and recent market developments
    • Industry landscape and competition analysis covering market concentration, heat map analysis, prominent players, and recent developments
    • Detailed company profiles
    Report Coverage
    Report Coverage

    Revenue forecast, Company Analysis, Industry landscape, Growth factors, and Trends

    Segment Covered
    Segment Covered

    This text is related
    to segments covered.

    Regional Scope
    Regional Scope

    North America, Europe, Asia Pacific, Middle East & Africa, South & Central America

    Country Scope
    Country Scope

    This text is related
    to country scope.

    Frequently Asked Questions


    What are the driving factors for the vegetarian capsules market across the globe?

    Key factors that are driving the growth of this market are rising preference for vegan capsules over gelatin-based capsules and growing demand for vegetable capsules despite their high cost are expected to boost the market growth for the vegetarian capsules over the years.

    What is vegetarian capsules?

    Vegetarian capsules provide a convenient alternative who can't eat meet or meat products. Also, vegetarian capsules provide benefits of a typical capsule without the issue associated with dietary restrictions.

    Which product segment leads the vegetarian capsules market?

    The HPMC segment held the largest share of the market in the global vegetarian capsules market and held the largest market share in 2023.

    Which application held the largest share in the vegetarian capsules market?

    The antibiotic & antibacterial drugs segment dominated the global vegetarian capsules market and held the largest market share in 2023.

    What is the market CAGR value of vegetarian capsules market during forecast period?

    The CAGR value of the vegetarian capsules market during the forecasted period of 2023-2031 is 8.4%.

    The List of Companie - Vegetarian Capsules Market 

    1. Shanxi Guangsheng Medicinal Capsules (GS Capsules)
    2. Lefancaps
    3. SUHEUNG
    4. ACG
    5. Capsugel, Inc. (Subsidiary of Lonza Group AG)
    6. HealthCaps India
    7. NATURAL CAPSULES LIMITED
    8. Sunil Healthcare Limited
    9. QUALICAPS
    10. Zhejiang Honghui Capsule Co., Ltd.

    The Insight Partners performs research in 4 major stages: Data Collection & Secondary Research, Primary Research, Data Analysis and Data Triangulation & Final Review.

    1. Data Collection and Secondary Research:

    As a market research and consulting firm operating from a decade, we have published many reports and advised several clients across the globe. First step for any study will start with an assessment of currently available data and insights from existing reports. Further, historical and current market information is collected from Investor Presentations, Annual Reports, SEC Filings, etc., and other information related to company’s performance and market positioning are gathered from Paid Databases (Factiva, Hoovers, and Reuters) and various other publications available in public domain.

    Several associations trade associates, technical forums, institutes, societies and organizations are accessed to gain technical as well as market related insights through their publications such as research papers, blogs and press releases related to the studies are referred to get cues about the market. Further, white papers, journals, magazines, and other news articles published in the last 3 years are scrutinized and analyzed to understand the current market trends.

    1. Primary Research:

    The primarily interview analysis comprise of data obtained from industry participants interview and answers to survey questions gathered by in-house primary team.

    For primary research, interviews are conducted with industry experts/CEOs/Marketing Managers/Sales Managers/VPs/Subject Matter Experts from both demand and supply side to get a 360-degree view of the market. The primary team conducts several interviews based on the complexity of the markets to understand the various market trends and dynamics which makes research more credible and precise.

    A typical research interview fulfils the following functions:

    • Provides first-hand information on the market size, market trends, growth trends, competitive landscape, and outlook
    • Validates and strengthens in-house secondary research findings
    • Develops the analysis team’s expertise and market understanding

    Primary research involves email interactions and telephone interviews for each market, category, segment, and sub-segment across geographies. The participants who typically take part in such a process include, but are not limited to:

    • Industry participants: VPs, business development managers, market intelligence managers and national sales managers
    • Outside experts: Valuation experts, research analysts and key opinion leaders specializing in the electronics and semiconductor industry.

    Below is the breakup of our primary respondents by company, designation, and region:

    Research Methodology

    Once we receive the confirmation from primary research sources or primary respondents, we finalize the base year market estimation and forecast the data as per the macroeconomic and microeconomic factors assessed during data collection.

    1. Data Analysis:

    Once data is validated through both secondary as well as primary respondents, we finalize the market estimations by hypothesis formulation and factor analysis at regional and country level.

    • 3.1 Macro-Economic Factor Analysis:

    We analyse macroeconomic indicators such the gross domestic product (GDP), increase in the demand for goods and services across industries, technological advancement, regional economic growth, governmental policies, the influence of COVID-19, PEST analysis, and other aspects. This analysis aids in setting benchmarks for various nations/regions and approximating market splits. Additionally, the general trend of the aforementioned components aid in determining the market's development possibilities.

    • 3.2 Country Level Data:

    Various factors that are especially aligned to the country are taken into account to determine the market size for a certain area and country, including the presence of vendors, such as headquarters and offices, the country's GDP, demand patterns, and industry growth. To comprehend the market dynamics for the nation, a number of growth variables, inhibitors, application areas, and current market trends are researched. The aforementioned elements aid in determining the country's overall market's growth potential.

    • 3.3 Company Profile:

    The “Table of Contents” is formulated by listing and analyzing more than 25 - 30 companies operating in the market ecosystem across geographies. However, we profile only 10 companies as a standard practice in our syndicate reports. These 10 companies comprise leading, emerging, and regional players. Nonetheless, our analysis is not restricted to the 10 listed companies, we also analyze other companies present in the market to develop a holistic view and understand the prevailing trends. The “Company Profiles” section in the report covers key facts, business description, products & services, financial information, SWOT analysis, and key developments. The financial information presented is extracted from the annual reports and official documents of the publicly listed companies. Upon collecting the information for the sections of respective companies, we verify them via various primary sources and then compile the data in respective company profiles. The company level information helps us in deriving the base number as well as in forecasting the market size.

    • 3.4 Developing Base Number:

    Aggregation of sales statistics (2020-2022) and macro-economic factor, and other secondary and primary research insights are utilized to arrive at base number and related market shares for 2022. The data gaps are identified in this step and relevant market data is analyzed, collected from paid primary interviews or databases. On finalizing the base year market size, forecasts are developed on the basis of macro-economic, industry and market growth factors and company level analysis.

    1. Data Triangulation and Final Review:

    The market findings and base year market size calculations are validated from supply as well as demand side. Demand side validations are based on macro-economic factor analysis and benchmarks for respective regions and countries. In case of supply side validations, revenues of major companies are estimated (in case not available) based on industry benchmark, approximate number of employees, product portfolio, and primary interviews revenues are gathered. Further revenue from target product/service segment is assessed to avoid overshooting of market statistics. In case of heavy deviations between supply and demand side values, all thes steps are repeated to achieve synchronization.

    We follow an iterative model, wherein we share our research findings with Subject Matter Experts (SME’s) and Key Opinion Leaders (KOLs) until consensus view of the market is not formulated – this model negates any drastic deviation in the opinions of experts. Only validated and universally acceptable research findings are quoted in our reports.

    We have important check points that we use to validate our research findings – which we call – data triangulation, where we validate the information, we generate from secondary sources with primary interviews and then we re-validate with our internal data bases and Subject matter experts. This comprehensive model enables us to deliver high quality, reliable data in shortest possible time.

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