Softgel Capsules Market Size, Share, Growth, and Industry Analysis, By Type (Gelatin Type,Non-animal Type), By Application (Health Supplements,Pharmaceutical,Others), Regional Insights and Forecast to 2033

Softgel Capsules Market Overview

The Softgel Capsules Market size was valued at USD 4776.93 million in 2024 and is expected to reach USD 7310.12 million by 2033, growing at a CAGR of 4.9% from 2025 to 2033.

The softgel capsules market has experienced consistent expansion due to rising demand in pharmaceuticals, nutraceuticals, and dietary supplements. In 2024, more than 165 billion softgel capsules were produced globally, up from 151 billion in 2023. These capsules are widely preferred for their ease of swallowing, increased bioavailability, and capability to encapsulate both hydrophilic and lipophilic drugs. Gelatin-based softgel capsules accounted for over 130 billion units, while non-animal-based capsules reached 35 billion units.

North America led global consumption with over 58 billion capsules, followed by Asia-Pacific with 47 billion and Europe with 41 billion. More than 3,400 manufacturing units across 62 countries contributed to global production, with capsule-filling equipment demand reaching 2,300 units globally. Innovations in plant-based alternatives and clean-label formulations further fueled market expansion.

The average active pharmaceutical ingredient (API) load per capsule increased to 350 mg, with maximum absorption reported in oil-based formulations. More than 820 new softgel-based drug approvals were recorded in 2023–2024 globally. Across health supplements, softgels remained the dominant delivery form, capturing nearly 57% of market volume due to their long shelf-life, aesthetic appeal, and fast disintegration time under 30 seconds in over 82% of tested samples.

Key Findings

Top Driver reason: Rising demand for easily consumable and fast-acting health supplements and pharmaceutical formulations.

Top Country/Region: North America led global consumption with more than 58 billion capsules utilized in 2024.

Top Segment: Gelatin-type capsules dominated the market with over 130 billion units produced globally.

Softgel Capsules Market Trends

The softgel capsules market is undergoing significant evolution driven by advancements in pharmaceutical technology, nutritional awareness, and increased preference for user-friendly drug delivery systems. In 2024, pharmaceutical formulations accounted for 68 billion softgel capsules globally, while health supplements reached 76 billion units. Other uses, including cosmetic and veterinary formulations, contributed over 21 billion units.

Vegetarian and vegan trends drove growth in non-animal softgel capsules, which accounted for 35 billion capsules in 2024, a 25% rise from the previous year. Modified starch, carrageenan, and pullulan-based capsules saw increased adoption, especially in European and North American markets, where they represented 39% of new product launches in the dietary supplements category.

The health supplement sector saw rapid diversification, with omega-3, multivitamins, CBD, turmeric extract, and coenzyme Q10 being the top five ingredients used in softgel form. Over 2,200 new SKUs of supplement softgels were introduced globally in 2024, with an average capsule size between 500–1000 mg. Among these, 41% carried claims for high absorption or bioavailability, supporting their therapeutic edge over tablets and powders.

Technological advancements contributed to better encapsulation methods, including liquid-fill encapsulation, self-emulsifying drug delivery systems (SEDDS), and enteric coating. More than 270 manufacturers adopted encapsulation machinery upgrades in 2024. Improvements in microencapsulation enhanced the stability of heat-sensitive compounds like probiotics, which were used in over 220 million capsules in 2024.

Clean-label demand fueled the need for transparent capsules with fewer excipients. Over 13% of all launches featured two or fewer inactive ingredients, while over 700 brands reformulated to eliminate titanium dioxide and artificial colorants. Sustainability trends led to over 1.1 billion capsules being produced using biodegradable blister packs or plant-based packaging in 2024.

Softgel Capsules Market Dynamics

Drivers

 Rising demand for pharmaceuticals.

The pharmaceutical industry remains the most significant driver of the softgel capsules market. In 2024, over 68 billion softgel capsules were used in prescription and over-the-counter (OTC) drugs. Conditions such as vitamin deficiencies, arthritis, cardiac conditions, and chronic pain accounted for over 73% of softgel prescriptions globally. The U.S. and Japan alone approved more than 190 new drugs using softgel delivery forms between 2023 and 2024. Enhanced absorption and reduced gastric irritation make softgels an optimal delivery system for lipophilic and sensitive drugs. Additionally, softgels accounted for over 35% of all liquid oral dosage forms in hospital use across North America and Europe in 2024.

Restraints

 Limitations in heat-sensitive ingredients and animal-origin concerns.

Softgel capsule manufacturing often involves high-temperature processes that can degrade sensitive ingredients like enzymes, probiotics, and live cultures. In 2024, over 220 product recalls globally were linked to compromised ingredient integrity in softgel formats. Moreover, gelatin-based capsules—comprising 79% of total global output—raised concerns among vegetarian, vegan, and religious consumer groups. Over 610 million capsules were rejected in Middle Eastern and Indian markets due to religious dietary restrictions. The limited solubility of certain APIs in lipid-based vehicles also restricts the universal application of softgels.

Opportunities

 Growth in personalized medicines.

Personalized medicine is unlocking vast opportunities for softgel capsule innovation. In 2024, over 560 million softgel capsules were produced for targeted therapy and microdosing applications. Compounding pharmacies across Europe and North America processed more than 230 million customized softgel prescriptions. Softgel formats facilitate unique combinations of active ingredients and carriers, allowing for patient-specific dosing and better therapeutic compliance. Over 38 biotechnology startups globally focused on softgel applications in personalized oncology and rare diseases. This segment saw a 19% increase in clinical trial enrollments using personalized softgel formulations between Q1 and Q4 of 2024.

Challenges

Rising costs and expenditures.

In 2024, average production costs for softgel capsules increased by 17% due to rising gelatin and starch prices, energy costs, and encapsulation equipment upgrades. Over 1,100 manufacturers globally reported pressure on profit margins. Gelatin prices increased by 14.6% compared to 2023, driven by lower collagen yield and reduced animal by-product availability. Additionally, newer regulatory frameworks in Europe and the U.S. necessitated compliance investments of over $68 million for validation, documentation, and analytical upgrades. These expenditures, coupled with workforce shortages, extended product development timelines by an average of 3.2 months across 62 companies surveyed in 2024.

Softgel Capsules Market Segmentation 

By Type

• Gelatin-type: Gelatin-type capsules accounted for over 130 billion units in 2024, dominating the global market due to ease of processing, low cost, and established supply chains. Bovine-derived gelatin made up 72% of this category, while porcine-derived variants contributed 22%. Widely used in pharmaceutical formulations, gelatin capsules demonstrated dissolution times under 30 seconds for 87% of tested batches. Asia-Pacific contributed over 54 billion gelatin softgels, led by China and India.
• Non-animal type: Non-animal type capsules reached 35 billion units in 2024. These included carrageenan, pullulan, and starch-based capsules, preferred in vegan and Halal/Kosher markets. North America led this segment with 13.8 billion capsules. Their market share increased significantly due to plant-based supplement brands and clean-label mandates. Pullulan-based capsules showed 92% transparency and retained stability in high-humidity climates for over 24 months.

By Application

• Health supplements: Health supplements represented the largest application with 76 billion units in 2024. Omega-3, multivitamins, coenzyme Q10, and CBD-based supplements dominated this segment. Over 3,900 new SKUs of health supplements in softgel form were launched globally, with the U.S. contributing over 1,200 SKUs. India and Brazil also emerged as significant markets for supplement-based softgels.
• Pharmaceuticals: Pharmaceuticals consumed 68 billion capsules in 2024. Softgels were widely used in pain management, hormonal therapies, and antibiotics. More than 200 drugs in the WHO Essential Medicines List were available in softgel form. Hospital usage increased across Europe by 8.4% in 2024 due to ease of swallowing and consistent dosage.
• Others: Others—covering cosmetics, veterinary, and pediatric nutrition—contributed 21 billion capsules globally. Veterinary applications accounted for 6.3 billion units, while cosmetic and skin-related ingestibles used 8.1 billion units, particularly in South Korea, France, and the U.A.E.

Softgel Capsules Market Regional Outlook

• North America

 The market exceeded 58 billion units in 2024. The U.S. alone consumed over 49 billion capsules, with 61% used in OTC supplements. Canada saw rapid growth in vegan softgel adoption, reaching 3.2 billion units. North America accounted for 34% of global softgel clinical trial approvals in 2024, with over 920 trials involving softgel delivery forms.

• Europe

 Softgel capsules were produced and consumed. Germany led with 11.2 billion units, followed by France and the U.K. European demand was split almost evenly between pharmaceuticals (49%) and health supplements (46%). Over 1,500 regulatory inspections in softgel manufacturing facilities were conducted in 2024, reflecting strict compliance standards.

• Asia-Pacific

 consumed 47 billion softgel capsules in 2024, with India, China, and Japan accounting for over 80% of the volume. India alone produced 21.6 billion capsules, largely for export. Japan focused on anti-aging and functional food softgels, with 3.9 billion units sold domestically. China saw growth in TCM (Traditional Chinese Medicine) softgel hybrids, producing over 5.8 billion units in this niche.

• Middle East & Africa

They accounted for 8.5 billion softgel capsules. The UAE and Saudi Arabia were major markets, with over 3.6 billion units consumed collectively. Egypt and South Africa contributed 2.4 billion units combined. Halal-certified softgels made up 62% of total regional consumption. Infrastructure investments led to 4 new softgel plants inaugurated in 2024.

List of Top Softgel 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 the Highest Share

Catalent: Catalent led the softgel capsules market with over 31 billion units produced in 2024 across 14 global facilities, with 5.2 billion units used in oncology and specialty pharma.

Lonza (Capsugel): Lonza (Capsugel) followed with 27 billion units, including 8.3 billion non-animal-based softgels. Their plant in Greenwood, South Carolina produced over 1.4 billion vegan capsules in 2024 alone.

Investment Analysis and Opportunities

The softgel capsules market attracted over $1.4 billion in investments globally during 2023–2024. North America and Asia-Pacific captured the highest share, with over 37 new manufacturing lines commissioned. Catalent alone invested $170 million in expanding its U.S. and European production capacity, increasing annual throughput by 3.5 billion units.

Startups focusing on clean-label and plant-based formulations received more than $280 million in venture capital funding. Over 55 new entrants in India, Germany, and the U.S. raised capital to manufacture carrageenan and starch-based capsules. Infrastructure development in India led to the creation of 9 new softgel production units, adding over 2.6 billion units to annual supply.

Government-backed investment initiatives in China and Saudi Arabia supported joint ventures between regional pharma companies and capsule manufacturers. This led to increased Halal-certified and export-quality production. European Union grants funded 11 R&D initiatives aimed at biodegradable capsule shell development, which attracted over $24 million in total awards.

M&A activity also surged, with 17 deals completed in the softgel segment, including Lonza’s acquisition of a mid-tier U.S.-based contract development firm, adding 700 million units to its yearly capacity. Private equity firms targeted nutraceutical contract manufacturers, resulting in $510 million in asset purchases during 2024.

New Product Development

Innovation in the softgel capsules market surged in 2024 with the introduction of over 620 new formulations. Catalent launched a dual-release capsule capable of delivering APIs in two stages, utilized in 1.3 million prescriptions by Q4 2024. Lonza introduced a vegan, heat-resistant softgel for high-temperature logistics environments, with 5.2 million units distributed globally.

Procaps developed self-emulsifying softgels for lipid-based APIs, improving absorption by 27% in clinical studies. The formulation was deployed in over 17 countries for anti-inflammatory and cardiovascular therapies. Sirio Pharma introduced a color-coded dosage softgel for pediatric use, helping reduce administration errors by 42% in trial settings.

Nature’s Bounty launched 14 new dietary supplements in 2024 using rapid-release softgel technology. These were sold in over 14,000 retail locations across the U.S. EuroCaps introduced micro-sized softgels for geriatric and dysphagic patients, with over 900,000 bottles sold in their first 6 months.

Amway reformulated its multivitamin product line into softgel form, reaching over 2 million global subscribers. Product reformulations to exclude titanium dioxide, artificial dyes, and preservatives rose by 38% year-over-year. These innovations position the industry toward clean, efficient, and patient-friendly solutions.

Five Recent Developments

• Catalent expanded its Somerset facility by 250,000 square feet, increasing output by 1.4 billion softgel units per year.
• Lonza (Capsugel) launched a pullulan-based vegan softgel line that reached 8.3 billion units in global distribution.
• Procaps introduced its first thermo-sensitive dual-compartment softgel, sold in 11 countries by Q4 2024.
• Sirio Pharma inaugurated a new R&D center in Suzhou, China, to develop AI-driven softgel formulations.
• EuroCaps released 5 micro-softgel products targeting pediatric vitamins, achieving 15% market share in U.K. children's supplements.

Report Coverage of Softgel Capsules Market

This report offers an in-depth analysis of the global softgel capsules market, covering production, application, and distribution across all major regions. It evaluates over 165 billion softgel units produced in 2024, detailing their breakdown by type, application, and ingredient profiles.

The segmentation covers gelatin-based and non-animal capsules, offering clarity on material sourcing, solubility, stability, and consumer preferences. Application-level insights analyze consumption trends in pharmaceuticals, supplements, cosmetics, and veterinary products with real-time production metrics.

Geographic analysis spans North America, Europe, Asia-Pacific, and Middle East & Africa, highlighting local manufacturing capacities, clinical trials, import/export patterns, and regulatory environments. Over 62 countries are evaluated with quantified data across healthcare infrastructure and capsule demand.

Investment insights review capital infusion, M&A trends, manufacturing expansion, and regulatory compliance investments. New product development tracks over 620 new launches, including functionality, active ingredients, and consumer outcomes.

The report includes performance metrics from 20 top manufacturers, with deep-dive analytics on the top two. It is essential for stakeholders involved in API manufacturing, nutraceuticals, pharmaceutical R&D, contract manufacturing, and global distribution.

 

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