Vegetarian Capsules Market Forecast, Size, and Growth 2031

The vegetarian capsules market is projected to reach US$ 3.5 billion by 2031 from US$ 1.8 billion in 2023. The market is expected to register a CAGR of 8.4% during 2023–2031. The outsourcing of vegetarian capsule is likely to remain key vegetarian capsules market trends during the forecast period.

Vegetarian Capsules Market Analysis

Rising Preference for Vegan Capsules Over Gelatin-Based Capsules

For many years, there have been medical, religious, cultural, and ethical concerns about adding animal substances to capsule coatings or formulations in pharmaceutical medicines. Also, some consumers expressed concerns over the use of animal-derived pharmaceutical medicines due to the associated healthcare risks. In July 2023, the Center for Disease Control and Prevention (CDC) published a report stating that consumption of animal-derived medicines and supplements is responsible for causing Alpha-gal syndrome (AGS) among patients. Also, AGS patients revealed serious allergic reactions after consuming medications or supplements that include mammalian-derived ingredients. Such instances have raised the interest among the manufacturers to produce animal-free medications and supplements.

Table: Comparative Analysis Between Gelatin Capsules and Vegetarian Capsules

Factors	Gelatin Capsules	Vegetarian Capsules
Source	Bovine, Cow, and Pigs	Plants
Target Audience	Vegan, Vegetarian, and Nonvegetarian Population	Vegan or Vegetarian Population
Allergy	Allergy Due to Cow and Pig-Based Ingredient	No Allergies
Cross Linking Ingredients	Cross Linking with Other Drug-Drug Derivatives	No Cross Linking
External Ingredients	Preservatives	No Preservatives

Source: The Insight Partners Analysis

Currently, the high volume of pharmaceutical capsules available in the market are composed of gelatin. However, the crosslinking of the gelatin with drug incompatibilities and strict regulations on the use of animal-derived gelatin have encouraged pharmaceutical manufacturers to replace gelatin components with vegetable-based ingredients. Pharmaceutical manufacturers identified that Hydroxypropyl Methylcellulose (HPMC)-derived vegetarian capsules is a good alternative to gelatin due to its vegetable derived source. Vegicaps soft capsules are the best example of animal-free capsules. The shell is composed of seaweed extract and gluten-free starch containing no modified sugars and artificial colors. Advantages of Vegicaps soft capsules are that they are free from animal derivatives, easy to swallow, soft, natural, and healthier products. In the case of gelatin-based capsules, the shell may get soft and become sticky upon spraying aqueous enteric polymer dispersions or may become brittle due to water evaporation during drying, ultimately losing mechanical stability. However, in HPMC-derived vegetarian capsules, it is less sensitive to aqueous coating, and the capsule shell is hard that avoids leakage of the ingredients.

Therefore, rising preference toward vegetarian medicines proves advantageous for the manufacturers to accelerate the production of vegetarian capsules, which drives the vegetarian capsules market growth.  

Vegetarian Capsules Market Overview

Technology, innovation, and smart technological solutions such as continue to influence vegetarian capsule demand significantly. Rising preference for vegan capsules over gelatin-based capsules and growing demand for vegetable capsules despite their high cost are among the most influential factors responsible for the vegetarian capsules market growth. Innovative product launches of vegetarian capsules will provide a lucrative opportunity for the vegetarian capsules market during the forecast period.

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Vegetarian Capsules Market: Strategic Insights

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Vegetarian Capsules Market Trends and Opportunities

Growing Demand for Vegetable Capsules Despite Their High Cost

The majority of pharmaceutical companies are producing vegetarian capsules over animal-derived capsules as they have low moisture content and better stability for hygroscopic compounds. Also, vegetarian capsules are considered a "premium product" as it has been proven from clinical studies (in-vitro and in-vivo) that vegetarian capsules show bioequivalence properties such as distribution, absorption, metabolism, and excretion like gelatin capsules. It also eliminates cross-linking of the ingredients and has effective disintegration properties. The high cost of vegetarian capsule manufacturing can be attributed to specialized raw materials and manufacturing processes and the delivery of higher consumer value. However, despite the high cost of these capsules, consumers are willing to spend more on vegetarian capsule products as animal-derived ingredients in capsules may cause AGS. As per the Lonza company website, more than 50% of consumers are willing to pay an extra price for natural-derived products and organic products globally. For example, in the US, 35% of supplement users reveal that a vegetarian or animal source is important when choosing a supplement. Therefore,  the rising demand for vegetable capsules, despite their high costs, fuels the vegetable capsules market growth.

Innovative Product Launches of Vegetarian Capsules – An Opportunity

Innovation in vegetarian capsule products is of utmost importance for manufacturers to promote it as the best alternative to gelatin capsules. Nutraceutical companies are launching modified-release vegetarian capsules for effective drug absorption and to achieve predetermined clinical objectives.

"DRcaps capsules" by Lonza's (Capsugel) are vegetarian capsules manufactured using hydroxypropyl methylcellulose (HPMC), which disintegrates more slowly than traditional gelatin capsules. Such HPMC-derived vegetarian capsules keep the ingredients intact in the capsule shell. Also, DRcaps capsules do not require any external application of chemical coatings to keep the ingredients intact, mask taste, or postpone the release of the active ingredients, proving advantageous for consumers who doubt capsule coatings as "unnatural." The clinical in-vitro studies on DRcaps capsules reveal that the capsule contents are intact for at least 30 minutes, with a gastric pH of 1.2, and disintegrate fully at an intestinal pH of 6.8. The DRcaps capsules are modified-release vegetarian capsule types that benefit consumers dealing with bad taste or aftertaste caused by some ingredients. Further, these capsules can eliminate certain disintegration steps such as coating, which reduces high production costs and time.

Several nutraceutical manufacturers are developing acid-resistant vegetarian capsules as probiotics cannot travel through stomach acid. Several probiotic products contain "strains" that cannot survive the passage of stomach acid. The SILVACO company's "Acid-Resistant vegetable HPMC capsules" can pass through the stomach acid, travel in low-pH environments, and quickly disintegrate in the intestinal tract.

Vegetarian capsule manufactures are developing innovative products to obtain predetermined clinical objectives and gain a significant advantage over gelatin capsules, which is expected to offer lucrative opportunities for the vegetarian capsules market during the forecast period.

Vegetarian Capsules Market Report Segmentation Analysis

Key segments that contributed to the derivation of the vegetarian capsules market analysis are product, application, functionality, and end user.

• Based on product, the vegetarian capsules market is segmented into Hydroxypropyl Methyl Cellulose (HPMC), pullulan, and others. The HPMC segment held the largest market share in 2023.
• By application, the market is segmented into antibiotic & antibacterial drugs, vitamin and dietary supplements, anti-inflammatory, cardiovascular therapy, antacid & antiaffluent, and others. The antibiotic and antibacterial drugs segment held the largest share of the market in 2023.
• In terms of functionality, the market is segregated into immediate-release, sustained-release, and delayed-release. The immediate-release segment dominated the market in 2023.
• In terms of end user, the market is segmented into pharmaceutical industry, nutraceutical industry, contract manufacturing organizations, and cosmetic industry. The pharmaceutical industry segment dominated the market in 2023.

Vegetarian Capsules Market Share Analysis by Geography

The geographic scope of the vegetarian capsules market report is mainly divided into five regions: North America, Asia Pacific, Europe, the Middle East & Africa, and South & Central America.

Asia Pacific dominated the vegetarian capsules market in 2023. In the Asia Pacific market, India accounts for a considerable share. India has no specific regulations for nutraceutical products and food supplement sales. For example, the Food Safety and Standards Authority of India (FSSAI) proposed a draft of Food Safety Standards (Food or Health Supplements, Nutraceuticals, Foods for Special Dietary Uses, Foods for Special Medical Purposes, Functional Foods and Novel Food) Regulations, in 2015. These are the most influential factors responsible for the market growth. Further, Asia Pacific is anticipated to register the highest CAGR in the coming years.

Vegetarian Capsules Market Regional Insights

The regional trends and factors influencing the Vegetarian Capsules Market throughout the forecast period have been thoroughly explained by the analysts at Insight Partners. This section also discusses Vegetarian Capsules Market segments and geography across North America, Europe, Asia Pacific, Middle East and Africa, and South and Central America.

Vegetarian Capsules Market Report Scope

Vegetarian Capsules Market Players Density: Understanding Its Impact on Business Dynamics

The Vegetarian Capsules Market market is growing rapidly, driven by increasing end-user demand due to factors such as evolving consumer preferences, technological advancements, and greater awareness of the product's benefits. As demand rises, businesses are expanding their offerings, innovating to meet consumer needs, and capitalizing on emerging trends, which further fuels market growth.

Market players density refers to the distribution of firms or companies operating within a particular market or industry. It indicates how many competitors (market players) are present in a given market space relative to its size or total market value.

Major Companies operating in the Vegetarian Capsules Market are:

1. Shanxi Guangsheng Medicinal Capsules (GS Capsules),
2. Lefancaps,
3. SUHEUNG,
4. ACG,
5. Capsugel, Inc. (Subsidiary of Lonza Group AG),
6. HealthCaps India.,

Disclaimer: The companies listed above are not ranked in any particular order.

Vegetarian Capsules Market News and Recent Developments

The vegetarian capsules market is evaluated by gathering qualitative and quantitative data post primary and secondary research, which includes important corporate publications, association data, and databases. The following is a list of developments and strategies in the market:

• In March 2021, ACG announced a new "ACGcaps NTone and ACGcaps TSafe," a range of capsules for nutraceutical consumers. The "ACGcaps NTone" product is naturally colored capsules and aesthetically appealing color solutions such as Ocean Blue, Sunny Yellow, Desert Brown, Purple Pure Carrot, and Red Pure Radish. The company claims that the colors are safe and nontoxic without containing any artificial ingredients, and there is no change in product shelf-life as compared to synthetic-colored capsules. (Source: ACG Company Name, Press Release/Company Website/Newsletter, 2021)

Vegetarian Capsules Market Report Coverage and Deliverables

The “Vegetarian Capsules Market Size and Forecast (2021–2031)” report provides a detailed analysis of the market covering below areas:

• Market size and forecast at global, regional, and country levels for all the key market segments covered under the scope
• Market dynamics such as drivers, restraints, and key opportunities
• Key future trends
• Detailed PEST and SWOT analysis
• Global and regional market analysis covering key market trends, major players, regulations, and recent market developments
• Industry landscape and competition analysis covering market concentration, heat map analysis, prominent players, and recent developments
• Detailed company profiles