Empty Capsules Market-- Global Forecast to 2026

Empty Capsules Market by Type (Gelatin (Porcine, Bovine), Non gelatin (HPMC, Pullulan)), Functionality (Delayed release)- Global Forecast to 2026.

　　Empty Capsules Market by Type (Gelatin (Porcine, Bovine), Non gelatin (HPMC, Pullulan)), Functionality (Delayed release), Application (Antibiotics, Dietary Supplements, Anti- Inflammatory) - Global Forecast to 2026

　　The global empty capsules market is projected to reach USD 3.7 billion by 2026 from USD 2.6 billion in 2021, at a CAGR of 7.2% during the forecast period. The overall growth of the empty capsules market is largely driven by the growing adoption of capsule formulations among the growing geriatric population, the growth of the pharmaceutical market, increasing R&D activities & clinical trial studies, and advancements in capsule delivery technologies. Emerging markets, with their low manufacturing costs, are expected to present significant opportunities for players. Other areas of opportunity are the development of halal gelatin and vegetarian capsules.

　　Covid-19 Impact On The Global Empty Capsules Market

　　A mix of established pharmaceutical companies, as well as small startups have stepped forward to develop treatments and vaccines that target the infection caused by the novel coronavirus. Vaccine-related research activities in pharmaceutical and biotechnology companies, research centers, and academic research institutes are considered essential and have been largely unaffected in operations and output. Due to the increase in research activities, the availability of funding for research is expected to grow.

　　In 2020, the COVID-19 pandemic impacted this market negatively due to supply chain disruptions and the imposition of government regulations on production units. According to connect2india, the export of COVID-19 capsules declined by 33.0% in 2020 (as compared to 2019). However, overall, the pandemic is expected to positively impact the growth of the empty capsules market in the coming years.

　　The impact of COVID-19 on the empty capsules market is not as significant as that on the overall pharmaceutical industry. Increasing demand for pharmaceuticals and nutraceuticals. The demand for nutraceuticals such as multivitamins and dietary supplements has increased due to the COVID-19 pandemic. Considering safety issues, various pharmaceutical companies are developing COVID-19 vaccines and delivering them through capsules. For instance, Vaxart, Inc. has developed VXA-CoV2-1, an oral COVID-19 tablet vaccine candidate to prevent COVID-19. The candidate is currently under Phase 1 clinical trial and is expected to launch by the end of 2021.

　　EMPTY CAPSULES: MARKET DYNAMICS

　　Driver: Increasing demand for nutraceuticals

　　According to MarketsandMarkets, the nutraceutical ingredients market was valued at USD 162.1 billion in 2020 and is projected to reach USD 227.5 billion by 2025, at a CAGR of 7.0% from 2020 to 2025. Nutraceutical products are usually rich in fiber, antioxidants, heart-healthy ingredients, vitamins and minerals, omega-3 fatty acids, vitamin D, calcium, and whole grains.

　　Over the last few years, the demand for nutraceuticals has been on the rise due to the growing prevalence of non-communicable diseases such as cancer, diabetes, heart ailments, and lung disorders. Also, during the COVID-19 pandemic, personal health has gained prominence in a large part of the global population. This trend has positioned the nutraceutical industry for further expansion and success in the coming years. This is a positive indicator of market growth as most nutraceuticals are marketed in the capsule form.

　　Opportunity: Expansion of capsule production in emerging countries

　　The traditionally lucrative pharmaceuticals market is becoming challenging from a growth perspective due to the diminishing drug pipeline, government-induced pressure to reduce costs and regulations on innovative products. This is encouraging pharmaceutical manufacturers to move their manufacturing bases closer to high-growth emerging markets. Through this, manufacturers can take advantage of low-cost manufacturing along with several financial benefits in terms of attractive tax rates and lenient regulatory guidelines for manufacturing.

　　A number of major pharmaceutical manufacturers are either planning capacity expansions of their existing plants in emerging countries or setting up new manufacturing plants in emerging markets such as China and India. These investments are aiding the growth of pharmaceutical production, in turn, increasing the demand for empty capsules. Some of the recent expansions in this industry include:

　　In February 2021, Qualicaps Europe S.A.U expanded its presence in the South Asia region. In addition to two production sites based in Europe, the company has capsule manufacturing experts located in the EMEA and South Asia.

　　In October 2020, Lonza invested USD 93 million (CHF 85 million) in its Capsules and Health Ingredients (CHI) Division, a dosage form delivery partner to the biopharma and health nutrition industry. The investment has been made to expand its overall production capacity of capsules within CHI's Capsugel portfolio by 30 billion capsules annually while maintaining the high-quality standards with Lonza's Sigma Series. The investment is expected to increase its capsule production capacity by 15.0%. Lonza's newest investment will be released to eight sites, including Bornem, Belgium; Colmar, France; Greenwood, South Carolina; Haryana, India; Jakarta, Indonesia; Puebla, Mexico; Sagamihara, Japan; and Suzhou, China.

　　Challenges: Rising prices and lower availability of raw materials in the gelatin industry

　　Globally, the demand for gelatin and its raw materials has witnessed a significant increase over the entire application spectrum—the pharmaceutical industry, in which the demand for capsules for pharmaceutical production has registered a vast increase, and the food processing, nutraceutical, leather, cosmetic, dying & tanning, and paper production industries. The use of gelatin in food preparations has increased six-fold in the last decade. Similar trends have been observed in the nutraceutical and cosmetic industry, where gelatin is used for the production of dietary supplement capsules, lotions, shampoos, hair sprays, and creams. On the other hand, the leather, tanning, and paper production industries use pigskin and bovine skin for the production of various commercial goods.

　　The increase in demand has boosted the prices of these ingredients. In the last five years, the gelatin manufacturing industry has faced challenges due to the lower availability of raw materials—bovine hide and bones and pigskin. Raw material costs constitute almost 50–55% of the total costs in the gelatin industry. According to a report by Nitta Gelatin (India), the gelatin industry consumes around 18,000 tons of crushed bones per month in India. However, availability came down to 15,000 tons in the earlier months of 2017. The annual gelatin production is expected to come down to 15,000 tons from 20,000 tons in 2018, due to the non-availability of bones owing to the ban imposed by the government on the slaughter of cattle.

　　The outbreak of bovine and swine diseases has resulted in regulatory restrictions and guidelines for bovine and pig farmers, which has increased the cost of farming. Feed prices have also increased. The cumulative effect of these factors and the subsequent price hikes have been passed onto end users such as gelatin manufacturers and thus have increased the overall gelatin prices. The slow declining availability of raw material is, therefore, intensifying the demand for these ingredients in the pharmaceutical industry, thus creating a supply-demand imbalance. Thus, raw material supply has to be considered carefully to meet the demand for raw material and gelatin across all industries.

　　By type, the gelatin capsules segment accounted for the largest share of the empty capsules market in 2020.

　　Based on type, the empty capsules market is categorized into gelatin capsules and non-gelatin capsules. In 2020, gelatin capsules accounted for the largest share in the empty capsules market. The various advantages of gelatin capsules, such as rapid drug release, uniform mixing of drugs, and a barrier to atmospheric oxygen (preventing oxidation of drug molecules), make them a preferred choice for manufacturing capsule shells.

　　By functionality, the immediate-release capsules accounted for the largest share of the empty capsules market in 2020.

　　Based on functionality, the empty capsules market has been segmented into immediate-release, sustained-release, and delayed-release capsules. In 2020, immediate-release capsules accounted for a major share in the empty capsules market. This is because immediate-release capsules are widely used to manufacture antibiotics, antibacterials, antacids, painkillers, inhalators, cold and cough drug preparations, and dietary supplements.

　　By therapeutic application, the antibiotic & antibacterial segment accounted for the largest share of the empty capsules market in 2020.

　　Based on therapeutic applications, the empty capsules market is segmented into antibiotic & antibacterial drugs, dietary supplements, antacid & antiflatulent preparations, antianemic preparations (hematinic), anti-inflammatory drugs, cardiovascular therapy drugs, cough & cold drugs, and other therapeutic applications.

　　By end user, the pharmaceutical industry segment accounted for the largest share of the empty capsules market in 2020.

　　Based on end users, the empty capsules market is segmented into the pharmaceutical industry, nutraceutical industry, cosmetic industry, and research laboratories. The pharmaceutical industry segment accounted for the largest share in the empty capsules market in 2020. The demand for empty capsules in the pharmaceutical industry is largely driven by the increasing number of drugs launched as capsule formulations and the growing prevalence of diseases for which capsule-based formulations form the primary treatment.

　　North America accounted for the largest share of the empty capsules market in 2020.

　　Geographically, the market is dominated by developed countries across North America and Europe, which account for ~65.6% of the global market. North America accounted for the largest share of 37.4% of the global market. The dominance of the North American region can be attributed to the existing presence of major capsule manufacturers with large production capacities, along with the presence of a number of pharmaceutical giants with large production capacities utilizing these capsules. The growing emphasis on superior pharmaceutical products and generics has also led to increased demand for empty capsules. The emerging markets across the Asia Pacific and Latin America are expected to grow at robust CAGRs during the forecast period. With significant growth in pharmaceutical manufacturing in the past few years, China and India have emerged as high-growth markets for empty capsules.

　　Recent Developments

　　In 2021, Nutra’V TiO2 launched a new range of TiO2-free capsules. Available both in gelatin and HPMC and with excellent machinability, this range of capsules offers the best encapsulation solution for ingredient masking.

　　In 2019, ACG acquired Xertecs, Xertecs develops and implements processes, products, and services for pharma companies across the globe. Its acquisition added to ACG’s capabilities.