Global Softgel Capsules Market to Reach $7.5 Billion by 2031
Softgel Capsules Market Growth and demand
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What are Softgel Capsules?
Softgel capsules are a specialized oral dosage form consisting of a soft gelatin shell that encloses a liquid or semi-liquid active ingredient. This unique encapsulation offers advantages over conventional tablets and hard-shell capsules, including:
Ease of swallowing for patients and consumers.
Enhanced bioavailability, ensuring better absorption of poorly soluble drugs.
Masking unpleasant tastes or odors, improving patient compliance.
Versatility, allowing for delivery of oils, fat-soluble vitamins, probiotics, and even cosmetic formulations.
Because of these benefits, softgel capsules are widely utilized in pharmaceuticals, health supplements, and cosmetic applications.
Market Drivers
1. Growing Demand for Health Supplements
The rising focus on preventive healthcare and wellness is driving consumption of nutraceutical products, especially fish oils, multivitamins, and omega-3 supplements, many of which are delivered in softgel form. Consumers associate softgels with smooth ingestion, better absorption, and overall improved wellness outcomes.
2. Pharmaceutical Applications
In the pharmaceutical sector, softgels are increasingly adopted to enhance solubility and bioavailability of drugs. Poorly soluble APIs (active pharmaceutical ingredients) can be formulated more effectively in softgels, offering improved therapeutic results.
3. Rise of Plant-Based Alternatives
As plant-based and vegan lifestyles gain traction, non-gelatin capsules made from materials like tapioca starch and modified polysaccharides are emerging. These options address consumer concerns regarding animal-derived gelatin while opening new market opportunities.
4. Expansion of Online Pharmacies
E-commerce and online health platforms are significantly boosting accessibility to softgel products. Digital channels allow consumers to purchase supplements and medications conveniently, accelerating market penetration.
Market Challenges
Despite positive growth prospects, the industry faces challenges such as:
High production costs associated with advanced encapsulation technologies.
Regulatory scrutiny over gelatin sourcing and use of animal-based ingredients.
Competition from alternative dosage forms, including chewable gummies, liquid suspensions, and tablets.
For manufacturers, balancing cost-efficiency with innovation—particularly in plant-based formulations—remains essential.
Segmental Analysis
The global softgel capsules market is segmented by type, application, distribution channel, and region.
By Type
Gelatin Softgels: Dominated the market in 2021 due to cost-effectiveness and wide acceptance in pharmaceuticals and supplements.
Non-Gelatin Softgels: Expected to grow at the highest CAGR as vegetarian and vegan alternatives gain popularity.
By Application
Health Supplements: Largest share in 2021, driven by demand for vitamins, minerals, omega-3s, and CBD oil supplements.
Pharmaceuticals: Increasingly adopted for drug absorption enhancement.
Cosmetics: Growing adoption for skincare formulations, including anti-aging oils and topical treatments.
By Distribution Channel
Pharmacies & Drug Stores: Held the largest share in 2021, attributed to consumer trust and easy accessibility.
Supermarkets & Hypermarkets: Offer broad availability of over-the-counter softgel supplements.
Online Providers: Fastest-growing channel, providing convenience and product variety.
By Region
North America: Dominated the global market in 2021, driven by advanced healthcare infrastructure, strong supplement demand, and presence of major pharmaceutical manufacturers.
Europe: Focus on quality and stringent drug regulations supports adoption of premium softgel formulations.
Asia-Pacific: Anticipated to grow at the highest CAGR, supported by increasing healthcare awareness, rising disposable incomes, and expansion of contract manufacturing organizations (CMOs).
LAMEA: Emerging economies in Latin America and the Middle East present growth opportunities due to rising healthcare infrastructure.
Industry Innovations & News
Recent industry moves highlight the sector’s momentum:
Procaps Group (Jan 2022) acquired its first U.S.-based softgel production facility, strengthening its global footprint.
Aenova Group (Oct 2021) introduced probiotic softgels, merging gut health benefits with advanced capsule technology.
Catalent, Inc. (Aug 2021) acquired Bettera Holdings, expanding its nutritional supplements portfolio.
Catalent also launched CosmoPod Duo softgel technology (Feb 2021) for topical skin treatments and OptiGel DR for delayed-release formulations.
Aenova Group (Nov 2020) launched chewable VegaGels with algae-based omega-3, addressing vegan and vegetarian markets.
These innovations underline the shift toward functional, plant-based, and consumer-friendly capsule technologies.
Competitive Landscape
Key players shaping the global softgel capsules market include:
Catalent, Inc.
Aenova Group
Procaps Group
Captek Softgel International, Inc.
Robinson Pharma, Inc.
Best Formulations, Inc.
Lyfe Group (Caps Canada)
Sirio Pharma Co. (Ayanda)
Thermo Fisher Scientific, Inc. (Patheon)
DCC Plc (Eurocaps)
These companies are investing in R&D, acquisitions, and product innovation to maintain competitiveness in a rapidly evolving market.
Future Outlook
The softgel capsules market is positioned for steady expansion through 2031, supported by:
Rising demand for nutraceuticals and preventive health products.
Development of plant-based, non-gelatin capsules for ethical and sustainable consumption.
Increasing adoption in pharmaceutical applications to improve drug delivery.
Growth of online pharmacies, enhancing accessibility worldwide.
As consumer lifestyles evolve toward health-conscious, ethical, and convenient choices, the demand for innovative softgel solutions will only accelerate.
Conclusion
Softgel capsules remain a preferred dosage form due to their convenience, bioavailability, and adaptability across industries. With the market projected to grow from $4.4 billion in 2021 to $7.5 billion by 2031, industry players have significant opportunities to expand through plant-based innovation, nutraceutical growth, and advanced pharmaceutical applications. The future of the softgel capsule market lies not only in improving health outcomes but also in aligning with consumer values of sustainability, wellness, and ease of use.
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