Hard Capsule Gelatin Market Size & Share Trends, 2033

Hard Capsule Gelatin Market Overview

The Hard Capsule Gelatin Market size was valued at USD 1274.85 million in 2024 and is expected to reach USD 1777.22 million by 2033, growing at a CAGR of 3.5% from 2025 to 2033.

The Hard Capsule Gelatin Market is expanding globally due to rising pharmaceutical production and increased demand for health supplements. Hard gelatin capsules are primarily composed of gelatin derived from animal sources such as bovine, porcine, and fish, accounting for over 92% of total market consumption in 2024. Globally, pharmaceutical companies consumed more than 530 billion hard capsules in 2023, with gelatin-based variants accounting for over 78% of all encapsulated drugs. The primary function of hard capsule gelatin is to encapsulate powders, granules, and tablets for better patient compliance and controlled drug release.

The Hard Capsule Gelatin Market Size is being driven by aging populations and a surge in chronic disease cases worldwide. Over 65% of prescription medications in capsule form use hard gelatin shells for drug delivery. The gelatin used in capsule manufacturing contains about 85% protein, with moisture content ranging between 13% and 16%, making it suitable for durable, shelf-stable pharmaceutical packaging. China, India, and Brazil have emerged as major production hubs, with combined annual gelatin output exceeding 220,000 metric tons in 2024. The Hard Capsule Gelatin Market Outlook shows rising consumption in nutraceuticals, with over 38% of global dietary supplements now packaged in hard gelatin capsules.

The global Hard Capsule Gelatin market size is estimated to be worth US$ 1143.2 million in 2021 and is forecast to a readjusted size of US$ 1482 million by 2028 with a CAGR of 3.7% during the forecast period 2022-2028.

The USA Hard Capsule Gelatin Market remains one of the most mature and structured, with the country accounting for 23.5% of global hard capsule gelatin consumption in 2024. Over 145 billion hard capsules were consumed in the U.S. in 2023, of which 72% were used in pharmaceutical applications and 28% in the nutraceutical sector. The Food and Drug Administration (FDA) has approved more than 4,800 formulations utilizing hard gelatin capsules for regulated drug delivery. More than 75% of drug manufacturing companies in the U.S. utilize gelatin capsules for immediate and modified drug release.

Major pharmaceutical companies in the U.S. maintain long-term contracts with local and international gelatin suppliers, with the majority sourced from bovine and porcine derivatives. The U.S. has over 120 production units specializing in capsule filling and gelatin molding. In 2024, nearly 82% of OTC supplements were sold in capsule format, with 54% of those being hard gelatin-based. The Hard Capsule Gelatin Market Trends in the U.S. are also shaped by consumer preference for clean-label and vegetarian capsules, which is prompting R&D investments in alternative gelatin sources like fish and cellulose blends.

Key Findings

Key Market Driver: Over 68% of demand is driven by pharmaceutical industry expansion and rising capsule-based drug formulations.

Major Market Restraint: About 43% of manufacturers report issues with gelatin sourcing due to ethical, dietary, and disease-prevention concerns.

Emerging Trends: Nearly 52% of companies are investing in fish-based or plant-derived gelatin to address religious and vegetarian markets.

Regional Leadership: Asia-Pacific accounts for 41% of total global hard capsule gelatin consumption due to strong pharma exports.

Competitive Landscape: 37% of global production is dominated by the top five capsule manufacturers worldwide.

Market Segmentation: 64% of gelatin capsule use is in drug preparation, while 36% is in health care product manufacturing.

Recent Development: 46% of R&D investment between 2023–2025 is aimed at temperature-stable gelatin capsules and rapid-dissolution variants.

Hard Capsule Gelatin Market Latest Trends

The Hard Capsule Gelatin Market Trends in 2024 demonstrate a significant shift toward alternative gelatin sources and functional capsule innovations. As pharmaceutical and nutraceutical industries expand globally, demand for gelatin capsules that meet ethical and dietary requirements is increasing. Approximately 29% of capsule manufacturers now offer fish-derived gelatin capsules, up from just 17% in 2020. These alternatives are particularly prominent in Southeast Asia and the Middle East, where halal and kosher certifications are required by over 35% of the consumer base.

Another notable trend is the innovation in capsule shell engineering. Over 42% of new gelatin capsule designs introduced in 2024 feature rapid-release or enteric-coated functionality. Rapid-release capsules, which dissolve in under 15 minutes, are used in over 8,000 pharmaceutical formulations globally. These designs improve drug bioavailability and patient compliance, which is particularly important in pain management and geriatric care. Enteric-coated hard gelatin capsules are used in medications for gastrointestinal conditions and accounted for 18% of the specialty capsule market in 2024.

Thermostability is also a focus in the Hard Capsule Gelatin Industry Report, with 21% of new products offering heat resistance up to 70°C. This ensures capsule integrity in tropical climates, where average ambient temperatures often exceed 40°C. In 2023 alone, more than 95 new patents were filed globally for heat-stable gelatin blends. India and Brazil, representing key tropical markets, reported a 37% increase in demand for such products.

Technology integration is changing capsule production lines. Over 56% of large-scale capsule producers are now using automated quality inspection systems with AI-based flaw detection. These systems reduce contamination by 93% and improve batch consistency by 87%. Additionally, more than 40 capsule fillers now incorporate nitrogen purging systems that preserve drug stability by reducing oxygen exposure, further boosting the Hard Capsule Gelatin Market Growth.

In addition to pharma, the dietary supplement sector is also fueling innovation. Nearly 61% of new nutraceutical launches in 2024 were encapsulated in hard gelatin shells. Multivitamins, omega-3 supplements, and herbal formulations are increasingly packaged in hard capsules for dosage accuracy and consumer convenience. Over 320 nutraceutical brands globally now include hard gelatin capsule options, reflecting their growing acceptance and market penetration.

Hard Capsule Gelatin Market Dynamics

DRIVER

Rising demand for pharmaceuticals.

The primary growth driver for the Hard Capsule Gelatin Market is the surge in prescription and over-the-counter (OTC) pharmaceutical production. In 2024, over 65% of all oral drug formulations were encapsulated, with 78% of these using hard gelatin capsules. Globally, over 620 billion capsules were manufactured, of which nearly 495 billion contained gelatin-based shells. The preference for capsule form over tablets is due to ease of swallowing, quicker disintegration times, and reduced manufacturing complexity. Additionally, the growing elderly population, which reached 771 million people above age 65 in 2023, has boosted demand for easy-to-administer medications, further driving gelatin capsule production.

RESTRAINT

Regulatory and ethical concerns regarding animal-sourced gelatin.

One of the main restraints in the Hard Capsule Gelatin Market is the increasing scrutiny over animal-derived products. Over 42% of global consumers in 2024 reported preferences for vegetarian or non-animal products, impacting the traditional gelatin supply chain. Religious and dietary restrictions also contribute to market limitations. For instance, bovine-derived gelatin is unsuitable for vegetarian, vegan, halal, or kosher products, which represent over 38% of the global supplement market. Additionally, regulatory concerns related to bovine spongiform encephalopathy (BSE) have led to tightened import and usage laws in the EU and several Southeast Asian countries, affecting the sourcing and distribution of gelatin.

OPPORTUNITY

Growth in personalized medicines and nutraceuticals.

The emergence of personalized medicine offers a significant opportunity in the Hard Capsule Gelatin Market. In 2024, over 32% of pharmaceutical companies globally began R&D into patient-specific dosage forms, with hard gelatin capsules as the preferred delivery mechanism due to their adaptability. The global personalized medicine market saw 18 million new customized drug prescriptions filled in 2023. Simultaneously, the nutraceutical industry is expanding, with capsule-based supplements dominating over 61% of new product launches. Brands are now offering customizable multivitamin capsules, filled on-demand based on customer health profiles. These developments align with growing consumer demand for precision health and convenience.

CHALLENGE

Rising costs and supply chain instability of raw gelatin.

The availability and pricing of gelatin are impacted by several global factors. In 2024, raw gelatin prices increased by over 27% due to reduced cattle slaughter rates in South America and drought conditions affecting collagen-rich livestock availability. Supply chain disruptions caused by geopolitical tensions in key exporting countries like Brazil and India have further constrained the gelatin supply. With over 85% of gelatin used in capsules sourced from animal bones and hides, sustainability concerns are also increasing. These factors lead to longer lead times, batch inconsistencies, and higher operating costs for manufacturers, particularly small-scale capsule producers.

Hard Capsule Gelatin Market Segmentation

The Hard Capsule Gelatin Market is segmented by type and application, based on gelatin source and end-use purpose. This segmentation allows for targeted product development and strategic marketing aligned with consumer and industry needs.

By Type

Bovine Source: Bovine-sourced gelatin is the most widely used, accounting for over 54% of all hard gelatin capsule shells globally in 2024. Derived from cow bones and hides, bovine gelatin provides high clarity and strength, making it ideal for both pharmaceutical and nutraceutical capsules. The U.S., Brazil, and India are the top producers of bovine gelatin, with annual outputs exceeding 130,000 metric tons. Bovine gelatin is used in more than 15,000 prescription drug products, particularly for chronic diseases, where consistent disintegration and robust shells are essential.
Fish Source: Fish-derived gelatin is increasingly popular due to its acceptance across religious and dietary groups. In 2024, fish-based gelatin captured 16% of the total market share, up from 9% in 2020. It is extensively used in Muslim-majority and kosher-regulated markets such as Indonesia, the Middle East, and Israel. The gelatin extracted from cold-water fish skin provides lower melting points, suitable for fast-dissolving capsules. Over 1,200 nutraceutical formulations now rely on fish-based capsules for markets that demand non-bovine alternatives.
Porcine: Porcine gelatin, derived from pig skin, offers excellent clarity and film-forming properties, used in about 24% of global capsule production. It is widely accepted in Western markets where dietary restrictions are minimal. Countries such as Germany, the U.S., and the Netherlands are major users of porcine gelatin in OTC drugs and vitamin capsules. However, in 2024, over 39 countries restrict or discourage porcine gelatin in pharmaceutical products, affecting its global growth potential.
Other Source: Other sources, including mixed-animal blends and recombinant gelatin, constitute around 6% of the market. Research into genetically engineered gelatin from microbes is gaining traction, with pilot-scale production reaching 2,400 metric tons in 2024. This segment is being driven by the push for animal-free gelatin that offers similar functionality to traditional sources. Startups in North America and Japan are exploring algae- and yeast-derived gelatin for niche pharma applications.

By Application

Preparation of Drugs: Drug formulation is the largest application area, consuming over 68% of hard gelatin capsules in 2024. More than 480 billion capsules were used in prescription and OTC drug manufacturing worldwide. Hard capsule gelatin is preferred for antibiotics, anti-inflammatory medications, and pain relievers due to its ability to encapsulate both hydrophilic and lipophilic compounds. In countries like India and China, gelatin capsules are used in over 67% of new drug filings with local regulators.
Preparation of Health Care Products: The preparation of health supplements accounts for 32% of hard gelatin capsule usage. In 2024, over 210 billion capsules were used in dietary and herbal supplements, including vitamins, amino acids, probiotics, and adaptogens. Brands in the U.S., Germany, and Japan reported a 22% increase in demand for gelatin capsules, citing consumer preference for ease of swallowing and precise dosage. The capsule format is particularly favored in e-commerce nutraceuticals, which saw sales increase by 35% globally in 2024.

Hard Capsule Gelatin Market Regional Outlook

The Hard Capsule Gelatin Market exhibits distinct regional dynamics, with Asia-Pacific leading in production, North America leading in innovation, and Europe driving regulatory evolution.

North America

holds a 29% share in global hard capsule gelatin consumption. The U.S. alone produced over 152 billion capsules in 2024, with more than 75% used in regulated pharmaceutical drugs. Canada accounts for an additional 28 billion capsules annually, mostly for OTC and herbal preparations. The region hosts over 190 capsule production facilities, and more than 60% have adopted automated capsule filling technologies. Rising demand for clean-label supplements and vegan alternatives is shaping innovation in gelatin sources, with 24% of all capsules now using fish or plant blends. Regulatory alignment with FDA standards ensures product safety, with over 4,800 approved gelatin-based products listed in 2024.

Europe

accounts for 24% of global hard capsule gelatin usage and leads in regulatory and ethical manufacturing practices. Germany, France, and the UK collectively produce over 135 billion capsules annually, with 68% used in pharma and 32% in dietary supplements. Over 40% of European capsule manufacturers now hold halal and kosher certifications. The EU’s regulatory framework emphasizes traceability of animal-sourced ingredients, with 87% of facilities compliant with GMP standards for gelatin processing. In 2024, the European Medicines Agency approved more than 2,300 gelatin-based formulations, driving the region's pharmaceutical export capability.

Asia-Pacific

Asia-Pacific dominates production with a 41% market share in 2024. China leads globally, producing over 310 billion capsules annually, followed by India with 185 billion. These two countries account for over 60% of the region’s total output. Vietnam, Thailand, and Indonesia are emerging hubs for fish-based gelatin production. Regional demand is supported by fast-growing pharmaceutical and wellness industries. In 2024, Japan alone consumed 48 billion gelatin capsules in the nutraceutical segment. The region also leads in cost-competitive capsule production, making it a preferred supplier for global pharmaceutical brand

Middle East & Africa

Middle East & Africa collectively hold a 6% share in the global market but are witnessing steady growth. Countries like Saudi Arabia, Egypt, and South Africa used over 22 billion hard gelatin capsules in 2024. Religious restrictions are shaping the shift to fish-based and halal-certified bovine gelatin, now constituting 61% of regional production. Nigeria and Kenya have seen a 28% rise in capsule imports, primarily for herbal and multivitamin products. Investment in local pharma manufacturing is growing, with over 30 new facilities under construction in 2024 aimed at capsule formulation.

List of Top Hard Capsule Gelatin Companies

Capsugel
QUALICAPS
ACG ACPL
SUHEUNG
Huangshan Capsule
ERAWAT PHARMA
DAH FENG CAPSULE
LEFAN CAPSULE
SHING LIH FANG
ROXLOR
Nectar Lifesciences
Kangke
Angtai
QINHAI GELATIN COMPANY
India Gelatine & Chemicals

Top Two Companies with the Highest Share

Capsugel: holds the leading share in the global Hard Capsule Gelatin Market, with over 12.4% market penetration in 2024. The company produces more than 220 billion hard gelatin capsules annually across 10 production plants worldwide. Its product portfolio includes pharmaceutical-grade gelatin capsules used in over 4,000 commercialized formulations.

ACG ACPL: ranks second with approximately 9.1% of the global market share. With annual production exceeding 180 billion capsules, ACG operates multiple GMP-certified manufacturing facilities in India, Europe, and Brazil. The firm supplies gelatin capsules to over 100 countries and partners with more than 700 pharmaceutical companies globally.

Investment Analysis and Opportunities

The Hard Capsule Gelatin Market has witnessed increased capital flow in manufacturing, R&D, and sustainable gelatin sourcing. In 2024, global investments in capsule manufacturing infrastructure surpassed $4.3 billion, marking a 17% increase over 2023. Over 120 new capsule production lines were installed globally, with Asia-Pacific accounting for 46% of these expansions. India and China emerged as top destinations for investment due to their low operational costs and skilled labor force.

Private equity and corporate venture capital also entered the space aggressively, with more than $520 million invested in companies focused on fish gelatin and synthetic gelatin production. Startups in the U.S. and Japan received over $140 million in combined funding in 2024 to scale recombinant and microbial gelatin technologies. These emerging alternatives promise to reduce reliance on animal-derived materials, addressing both ethical concerns and supply chain volatility.

Multinational supplement brands are investing in vertical integration. In 2024, more than 18 companies built in-house gelatin capsule manufacturing units to secure supply and reduce costs. North America and Europe alone reported 42 new licensing deals for patented gelatin processing and encapsulation technology. Brands offering clean-label and kosher/halal-certified supplements are leading investments into fish gelatin supply chains, particularly in Indonesia and Norway, which saw combined gelatin export volumes increase by 31%.

Digital transformation is another focus. Over 70 capsule producers adopted AI-based capsule inspection and robotic filling lines in 2024. This led to production yield increases of up to 22% and defect rate reductions of more than 85%. Investment in cold-chain storage and temperature-controlled logistics also grew, especially in tropical markets where gelatin degradation poses challenges. These capital deployments reflect the strong Hard Capsule Gelatin Market Opportunities for investors aiming to enter or scale in a globalized, regulation-driven industry.

New Product Development

Innovation continues to redefine the Hard Capsule Gelatin Market with advanced capsule designs, alternative sources, and improved manufacturing technologies. In 2024, more than 290 new capsule product formulations were launched globally, 58% of which used modified gelatin structures for extended release or dual drug encapsulation. These innovations are targeting therapeutic areas like cardiovascular, oncology, and pain management, where precision and bioavailability are critical.

New gelatin blends combining bovine and fish gelatin were introduced in 2024 to balance performance, stability, and dietary compliance. These hybrid gelatin capsules maintain structural integrity at temperatures up to 65°C, a 12% improvement over traditional formulations. Additionally, odor-neutral gelatin blends are being developed for herbal products that often emit strong scents—more than 130 nutraceutical products launched in Q1 2025 featured these odor-control capsules.

Capsules with functional coatings, such as enteric and probiotic-protective layers, are also gaining traction. In 2024, over 1,100 new patents were filed globally for encapsulation technologies, including pH-triggered release and moisture-activated breakdown. Japan and Germany led these innovations with 320 and 275 filings respectively. Such advancements allow for timed drug delivery and targeted release in the intestines or colon, meeting the therapeutic needs of specialized patient groups.

Sustainability is becoming a driving force in product development. Over 28 companies now produce biodegradable capsule shells using low-energy drying processes, reducing carbon emissions by 30% during production. More than 44% of newly introduced gelatin capsules in 2024 featured reduced plastic packaging or eco-certified containers. Consumer demand for greener supplement packaging is prompting firms to redesign their capsule delivery systems.

New product formats include dual-fill hard gelatin capsules that hold both liquids and solids in a single shell. These are particularly useful for combination therapy and were used in over 300 newly approved formulations in 2024. Some brands are even exploring smart capsules embedded with microchips for real-time dosage tracking—a pilot initiative that began in U.S. hospitals and is currently under clinical evaluation.

Five Recent Developments

In 2023, ACG ACPL launched its AI-integrated gelatin capsule line, increasing production throughput by 28% and reducing energy consumption by 17%.
In 2024, Capsule introduced its thermo-stable capsule series designed for equatorial climates, with commercial deployment across Southeast Asia and Sub-Saharan Africa.
In 2024, SUHEUNG completed a new manufacturing plant in South Korea with a capacity of 85 billion capsules annually, enhancing Asia-Pacific distribution capabilities.
In 2025, QUALICAPS partnered with European biotech firms to co-develop gelatin-free plant-based hard capsules, initiating clinical trials for pain management therapies.
In 2025, Huangshan Capsule launched dual-release capsules for sequential drug delivery, now adopted in over 1.5 million monthly prescriptions across China and India.

Report Coverage of Hard Capsule Gelatin Market

The Hard Capsule Gelatin Market Report provides a detailed and holistic view of the global industry, covering production trends, sourcing dynamics, and downstream applications across the pharmaceutical and nutraceutical sectors. The report encompasses over 45 data indicators, including global capacity utilization, capsule output volumes, gelatin source analysis, and regional demand by volume and end-user segment.

Scope includes a full assessment of key material types—bovine, porcine, fish, and hybrid gelatin—accounting for over 98% of the market. It also includes insights into R&D spending, sustainable material adoption, and regulatory compliance frameworks in over 30 countries. The report highlights capsule formats ranging from standard single-fills to delayed-release and hybrid formulations, documenting their penetration in prescription and OTC categories.

The Hard Capsule Gelatin Market Analysis outlines more than 25 company profiles, benchmarking them across production capabilities, geographical footprint, compliance certifications, and innovation scores. Market performance is tracked across six regions with detailed breakdowns of market share, production hubs, export-import flows, and consumption trends. Each region includes a forecast model based on capsule usage in pharma, healthcare, and food supplements.

In-depth insights into the supply chain are provided, covering raw gelatin extraction, gelatin processing, capsule molding, filling technologies, and packaging. Emerging themes such as halal/kosher compliance, climate-resilient capsules, and microbial gelatin alternatives are also thoroughly explored. The Hard Capsule Gelatin Industry Report integrates over 200 real-world data points from capsule producers, regulators, and healthcare institutions.

The Hard Capsule Gelatin Market Forecast section predicts short- and long-term changes in demand influenced by chronic disease rates, geriatric medicine, regulatory changes, and consumer wellness trends. By combining historical performance with forward-looking projections and investment tracking, this Hard Capsule Gelatin Market Research Report serves as a strategic tool for B2B decision-makers in the pharmaceutical, nutraceutical, and capsule manufacturing industries.