Soft Gelatin Capsules Market Size | Industry Trends [2033]

Soft Gelatin Capsules Market Overview

The Soft Gelatin Capsules Market size was valued at USD 1212.75 million in 2024 and is expected to reach USD 1849.23 million by 2033, growing at a CAGR of 4.8% from 2025 to 2033.

The soft gelatin capsules market has emerged as a critical segment in the pharmaceutical and nutraceutical industries, owing to their enhanced bioavailability and patient-friendly administration. In 2024, over 65% of all oral dosage supplements launched globally featured soft gelatin capsules due to their rapid absorption properties. These capsules are composed primarily of gelatin derived from animal or plant sources, plasticizers such as glycerin or sorbitol, and active ingredients in either liquid or semi-solid form.

Approximately 75% of soft capsules produced globally are tailored for pharmaceutical uses, while the remaining 25% serve in the health supplement sector. With the rising preference for ease-of-swallow products, more than 72% of adult consumers in North America indicated a preference for soft gel capsules over traditional tablets or hard gelatin capsules in 2023. Additionally, over 35 billion units of soft gelatin capsules were manufactured across global production facilities in 2024, with leading regions being North America, Europe, and Asia-Pacific. This segment continues to evolve with innovations in capsule coating, plant-based gelatin substitutes, and integrated delivery systems that ensure better shelf stability and dosage consistency.

Key Findings

Top Driver reason: Increased consumer demand for easier-to-swallow dosage forms and higher bioavailability of actives.

Top Country/Region: North America dominates due to technological manufacturing capacity and consumer preference trends.

Top Segment: The pharmaceutical application segment leads, accounting for over 70% of the global market volume.

Soft Gelatin Capsules Market Trends

One of the prominent trends in the soft gelatin capsules market is the growing consumer shift toward non-animal, plant-based alternatives. In 2024, nearly 18% of newly launched soft gel capsule products globally used non-animal gelatin, primarily derived from seaweed or starch-based polymers. Vegan and halal-certified formulations witnessed a 29% year-over-year increase in Asia-Pacific, responding to regional dietary preferences. Another trend is the encapsulation of complex molecules such as CBD oils and omega-3 fatty acids, which increased by 36% between 2022 and 2024, indicating broadening applications across wellness and chronic disease management sectors.

Technological enhancements in manufacturing have enabled multi-fill and dual-release capsule structures. By mid-2024, approximately 12% of soft gelatin capsule manufacturers implemented advanced fill technologies to improve the delivery of poorly water-soluble drugs. Smart packaging integration is also on the rise, with about 8% of soft gel capsule brands incorporating QR-coded traceability features for consumer verification. In e-commerce, sales of soft gel-based dietary supplements rose by 41% globally between 2022 and 2024, reflecting growing consumer acceptance.

Additionally, demand for personalized supplementation has spurred innovations. Custom capsule formulations tailored for gender-specific health, such as women’s hormonal balance or men’s vitality, grew by 23% globally in 2023 alone. In pediatric and geriatric markets, flavored soft gel capsules increased by 19%, emphasizing the trend toward palatable and compliant oral drug formats.

Soft Gelatin Capsules Market Dynamics

DRIVER

Rising demand for pharmaceuticals.

The expanding global demand for pharmaceutical formulations is a primary driver of the soft gelatin capsules market. In 2024, over 70% of all prescription nutraceutical drugs containing omega-3, Vitamin D3, and coenzyme Q10 were encapsulated in soft gel form due to their fast absorption and high bioavailability. Clinical preferences for encapsulating oily or lipophilic drug molecules in soft gels further supported their adoption. Hospital and clinical pharmacies reported a 26% rise in procurement of soft gel medications compared to conventional tablets, owing to better patient compliance and higher shelf stability. Furthermore, as global geriatric populations crossed 790 million in 2024, there has been a 31% increase in demand for easier-to-swallow formulations, a niche that soft gelatin capsules effectively address.

RESTRAINT

Stringent gelatin sourcing and regulatory concerns.

Despite their advantages, the market faces constraints due to stringent sourcing requirements and regional regulatory disparities. Approximately 58% of global gelatin used in soft gels is derived from bovine or porcine sources, raising ethical and dietary objections across religious and vegan communities. Regulatory authorities in regions like the EU and the Middle East mandate traceability for gelatin origin, which complicates international supply chains. In 2023, over 11% of import batches were delayed in Europe due to non-compliance with gelatin origin certifications. These complexities have forced manufacturers to diversify suppliers, resulting in a 15% increase in operational overhead for quality assurance protocols.

OPPORTUNITY

Growth in personalized medicines.

The trend of personalized medicine opens vast opportunities for the soft gelatin capsules market. In 2024, over 22% of newly developed therapeutic supplements in the U.S. were designed with individual biometric or lifestyle profiling, driving demand for customizable capsule fills. Soft gels allow flexible dosage concentrations and flavor customization, which suits personalized treatment regimes. The compounding pharmacy segment, particularly in the U.S. and Europe, saw a 34% rise in demand for customized soft gel formulations tailored for specific deficiencies or health conditions. Moreover, with wearable health-tech devices increasing from 320 million units in 2022 to 410 million in 2024, real-time diagnostics now influence on-demand personalized drug delivery, making adaptable capsule formats more relevant.

CHALLENGE

Rising costs and expenditures.

The cost of raw materials for soft gelatin capsule production has surged, creating operational and pricing challenges. Gelatin prices rose by 18% between 2022 and 2024 due to shortages in animal-derived materials and inflationary pressure on livestock byproducts. Plasticizers like glycerol saw a 13% price hike in the same period, increasing production costs by an average of 11% per unit for manufacturers. Energy-intensive drying and molding technologies further compound production expenses, especially in Europe, where utility prices rose by 22% in 2023 alone. These factors strain margins and create barriers for small and mid-sized manufacturers looking to scale operations.

Soft Gelatin Capsules Market Segmentation

The soft gelatin capsules market is segmented by type and application. In 2024, over 68% of the market was captured by gelatin-based capsules, while non-animal-based types accounted for approximately 32%. By application, pharmaceutical products dominated the market with a 71% share, followed by health supplements at 24% and others, including cosmetic applications, contributing 5%.

By Type

Gelatin Type: This category includes capsules made from animal-derived gelatin, mainly bovine and porcine sources. In 2024, approximately 28 billion units of gelatin-based soft capsules were consumed globally. These capsules offer superior encapsulation for oil-based or fat-soluble active ingredients. In North America, over 82% of over-the-counter drugs available in capsule form were soft gels made from animal gelatin. However, gelatin shortages in some regions due to disease control measures affected supply chains, prompting stockpiling and increased reliance on certified sources.
Non-animal Type: Non-animal soft gels, composed of starch, hydrocolloids, or seaweed-derived polymers, are growing in popularity. This category grew by 21% between 2022 and 2024. Approximately 11 billion units of non-animal capsules were manufactured globally in 2024, with Asia-Pacific accounting for 47% of the output. These are particularly favored in vegan, kosher, and halal-certified product lines. Increased use in dietary supplements targeted at lifestyle-conscious consumers, especially in Europe and Australia, has supported the growth of this type.

By Application

Health Supplements: This segment includes vitamins, omega-3 fatty acids, herbal extracts, and wellness-oriented formulations. In 2024, 12 billion units of health supplements in soft gel form were sold through retail and e-commerce channels globally. North America and Europe collectively accounted for 63% of the health supplement soft gel capsule consumption. The trend of daily nutrient packs and immune boosters, particularly post-COVID, fueled this expansion.
Pharmaceutical: This application dominates the market with approximately 29 billion units of pharmaceutical soft gel capsules consumed in 2024. These include prescription drugs for pain relief, hormonal treatments, cardiovascular therapies, and digestive aids. North America alone represented 48% of pharmaceutical-grade soft gel capsule production. The ability to encapsulate complex molecules in precise dosages with enhanced bioavailability contributed to the segment’s dominance.
Others: This includes niche sectors like cosmetics, cosmeceuticals, and veterinary applications. Although relatively smaller, this segment showed a 9% growth between 2023 and 2024. Approximately 2 billion units were manufactured, targeting applications like skin radiance enhancers and hair supplements.

Soft Gelatin Capsules Market Regional Outlook

The soft gelatin capsules market exhibits strong regional variation based on dietary habits, regulatory compliance, and consumer preferences.

North America

ccounted for approximately 41% of global soft gel capsule consumption in 2024, driven by advanced manufacturing capabilities and high consumer awareness. In the U.S., nearly 63% of dietary supplements sold in capsule form were soft gels. Canada reported a 19% increase in imports of vegan capsules between 2022 and 2024, indicating growing demand for non-animal alternatives.

Europe

Contributed about 28% to the global market in 2024. Germany, France, and the UK led regional production, collectively manufacturing over 15 billion soft gel capsules. EU regulations regarding gelatin traceability influenced the growth of plant-based alternatives, which rose by 24% in the region in 2023. Private-label supplement brands in Europe reported a 22% increase in demand for customized soft gel nutraceuticals.

Asia-Pacific

saw the fastest growth, with over 19 billion soft gel units consumed in 2024. China and India were major producers, accounting for over 70% of the regional output. Japan's nutraceutical market favored single-dose soft gels, leading to a 31% year-on-year increase in imports of flavored soft capsules. South Korea saw a 17% rise in vegan soft gel product launches in 2024 alone.

Middle East & Africa

They contributed approximately 6% to the global market in 2024. Gulf countries saw an increase of 28% in the consumption of halal-certified soft gels. South Africa’s health supplement industry reported a 12% increase in the use of soft gel capsules in wellness products. Regulatory support for nutraceutical manufacturing in the UAE helped establish localized production units, producing over 1.2 billion capsules annually.

List of Top Soft Gelatin Capsules Companies

Catalent
Aenova
Nature’s Bounty
Procaps
Patheon (Thermo Fisher Scientific)
Aland
EuroCaps
Captek
Strides Pharma Science
Lonza (Capsugel)
Soft Gel Technologies
Amway
Sirio Pharma
Baihe Biotech
Ziguang Group
Shineway
Donghai Pharm
By-Health
Yuwang Group
Guangdong Yichao

Top Two Companies with Highest Market Share

Catalent: produced over 60 billion soft gel capsules in 2024 across its 20+ global manufacturing sites, serving both pharmaceutical and nutraceutical segments.

Lonza (Capsugel): maintained a leadership role in non-animal capsule development and accounted for more than 22% of total global soft gel capsule supply for vegan formulations.

Investment Analysis and Opportunities

The soft gelatin capsules market is witnessing a surge in strategic investments across manufacturing infrastructure, automation, and new product lines. Between 2022 and 2024, over 140 new production lines dedicated to soft gel capsules were installed globally, representing a 19% increase in manufacturing capacity. Investment in high-speed encapsulation equipment, capable of producing up to 250,000 capsules per hour, grew by 27%, with North America accounting for 37% of such upgrades. Companies like Sirio Pharma and Captek expanded facilities in Asia-Pacific and North America respectively, each adding an annual production capacity of 5 billion units in 2024.

Private equity and venture capital activity also intensified in this segment. More than $1.1 billion in disclosed investments was funneled into soft gelatin capsule-related businesses globally from 2022 to 2024. Approximately 62% of this funding targeted clean-label and vegan capsule manufacturers, particularly in Europe and Southeast Asia. In India, 18 new domestic brands launched plant-based supplement lines using soft gel technology, increasing the domestic demand for vegan encapsulation material by 31%.

The nutraceutical segment, especially immunity boosters and prenatal care supplements, opened opportunities for contract manufacturing. In 2024, contract manufacturing organizations (CMOs) reported a 23% increase in outsourcing contracts specifically for soft gel formats. Smaller supplement brands turned to CMOs for customized production, helping increase capacity utilization rates from 64% in 2022 to 78% in 2024.

There are also significant opportunities in sustainable packaging and green manufacturing. About 14% of the market leaders have initiated carbon-neutral capsule production, using solar-powered facilities and biodegradable blister packaging. These initiatives attracted institutional investors focused on ESG (environmental, social, and governance) compliant businesses. In response, more than 17 global manufacturing sites converted to energy-efficient systems in 2023.

E-commerce channels further expanded the market's reach. Online sales of soft gel vitamins, driven by DTC (direct-to-consumer) models, rose by 39% in 2024, prompting companies to invest heavily in digital infrastructure and fulfillment centers. Global logistics providers optimized cold chain storage systems, with 21% growth in temperature-controlled shipment options to support climate-sensitive formulations like omega-3s and probiotics.

New Product Development

Innovation in the soft gelatin capsules market is accelerating, with new product introductions spanning both pharmaceutical and wellness categories. In 2023 and 2024 alone, more than 3,000 new soft gel formulations were launched globally, up from 2,100 launches in 2021–2022. The key focus areas include dual-action delivery, nanoencapsulation, and non-animal gelatin technologies.

A breakthrough was the development of dual-fill soft gels, where two active ingredients with different solubility profiles are co-encapsulated. These accounted for 6% of all new launches in 2024. For example, the combination of fish oil and coenzyme Q10 in one capsule improved patient adherence and showed a 19% increase in repeat purchase rates.

Nanoencapsulation of fat-soluble vitamins has gained traction, particularly for vitamins D, E, and K. These nano-formulations achieved 22% higher absorption in clinical trials and became mainstream in premium supplement lines in the U.S. and South Korea. More than 400 nano-enabled soft gel SKUs were introduced in 2024 alone, representing an increase of 35% from the previous year.

Non-animal capsule innovations are also advancing. Seaweed-based polymers such as carrageenan and starch composites were incorporated in over 700 vegan soft gel products in 2024, a 29% increase over 2023. These capsules offer equivalent stability and shelf life compared to traditional gelatin capsules and have expanded in Muslim-majority and vegan consumer markets.

There has also been innovation in capsule coating for improved shelf life and taste masking. Enteric-coated soft gels, designed to dissolve in the intestine rather than the stomach, accounted for 11% of total pharmaceutical-grade soft gels produced in 2024. These are especially popular in NSAIDs and probiotics, where pH-sensitive delivery is crucial.

In the cosmetic supplements sector, beauty-from-within products have surged. Formulations combining collagen, hyaluronic acid, and antioxidants in flavored soft gel formats increased by 21% in sales from 2023 to 2024. Companies also experimented with fruit-based flavor coatings like orange and strawberry, targeting younger demographics. More than 70 new SKUs were introduced specifically for this trend.

Five Recent Developments

Catalent expanded its European facility in Italy, adding a new soft gel capsule production line with a capacity of 7 billion units per year in 2023, bringing the site's total to 18 billion units.
Lonza (Capsugel) launched a non-animal soft gel capsule made from seaweed-based hydrocolloids in 2024, which passed stringent halal, kosher, and vegan certifications across 14 markets.
Procaps introduced a dual-delivery soft gel capsule in 2024 that delivers a fast-acting analgesic combined with a slow-release anti-inflammatory agent, improving symptom control for arthritis patients by 26% over seven days.
Sirio Pharma opened a new innovation lab in Shanghai in early 2024 focused on gummy-soft gel hybrid formats, targeting pediatric and geriatric applications with customizable flavors and chewable consistency.
Soft Gel Technologies filed a patent in 2023 for a cold-fill encapsulation method that reduces degradation of temperature-sensitive ingredients by 41%, enhancing the viability of probiotics and enzymes.

Report Coverage of Soft Gelatin Capsules Market

The report on the soft gelatin capsules market provides a detailed and structured analysis of global trends, segmentation, technological innovations, regional dynamics, investment activity, and recent developments. The market scope encompasses pharmaceutical and nutraceutical applications, exploring demand patterns across health supplements, prescription drugs, and specialty segments such as cosmetics and veterinary medicine.

In terms of segmentation, the report evaluates two major capsule types—gelatin-based and non-animal alternatives. In 2024, gelatin-based capsules made up 68% of market share, while non-animal types held a significant 32%. Application-wise, pharmaceuticals contributed 71%, with health supplements at 24% and others at 5%. This segmentation aids in identifying target opportunities based on consumer demographics, regulatory environments, and formulation flexibility.

The market has been evaluated geographically across North America, Europe, Asia-Pacific, and the Middle East & Africa. North America led with over 41% of global consumption, driven by robust infrastructure and consumer preferences. Asia-Pacific followed as a high-growth region, contributing 36% of the total volume in 2024 due to expanding middle-class populations and growing health awareness.

The report includes a comprehensive company landscape, listing 20 top players and highlighting Catalent and Lonza (Capsugel) as the dominant global leaders. It covers detailed production capacities, product development strategies, and geographic expansion plans. Catalent alone produced over 60 billion units in 2024, while Lonza led in plant-based capsule innovation.

Technological advancements such as dual-release encapsulation, nano-formulations, and cold-fill technologies are also discussed. These innovations cater to complex therapeutic needs and enhance the functionality of soft gel capsules in emerging therapeutic areas.

Additionally, the report outlines investment patterns from public and private sectors, identifying over 140 facility expansions and $1.1 billion in capital inflows from 2022 to 2024. It pinpoints high-opportunity areas like personalized supplementation, vegan capsules, and sustainability-focused manufacturing as key investment avenues for future growth.