Softgel Capsule Market is estimated to be valued at USD 7,850 Mn in 2025 and is expected to reach USD 12,118.8 Mn in 2032, exhibiting a compound annual growth rate (CAGR) of 6.4% from 2025 to 2032.
Softgel capsules, also known as soft gelatin capsules, consist of a solid outer shell and an inner fill containing a liquid or semi-solid drug. The active pharmaceutical ingredient (API) can be placed in either the shell or the fill, making these capsules versatile for various formulations. Typically administered orally, the soft gelatin shell is composed of ingredients such as animal- or plant-derived gelatin, plasticizers like glycerin or sorbitol, water, and sometimes opacifiers. With broad pharmaceutical applications—including treatments for cardiovascular diseases, bacterial infections, and as carriers for health supplements and antacids. The softgel capsule market demand is increasing significantly due to their ease of administration, bioavailability, and consumer preference for convenient dosage forms.
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Global Bovine Gelatin Shortages |
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U.S. Regulatory Reforms on GRAS Pathway |
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The global trade of softgel capsules illustrates a growing and geographically diverse ecosystem, driven by rising demand in both pharmaceutical and nutraceutical applications. According to Coherent Market Insights, India exported approximately USD 4.5 million worth of softgel capsules across 58 countries, primarily to the Philippines (23% share) and the United States (20%) of total export value. Export volumes averaged around USD 0.05 per unit, indicating widespread shipment of small to mid-sized packs.
In terms of product type, the gelatine softgel capsule segment, holding an estimates share of 56.2% in 2025, dominate the global softgel capsule market. Gelatin easily forms a stable, flexible, and smooth shell that effectively encloses both liquid and semi-solid ingredients, making it ideal for softgel capsules. Gelatin dissolves quickly in the stomach, enabling rapid release and absorption of the active ingredients, which enhances bioavailability, especially for fat-soluble compounds. They are derived from animal collagen (typically bovine or porcine), gelatin is generally recognized as safe (GRAS) and widely accepted in pharmaceutical and nutraceutical applications.
Moreover, compared to alternatives like vegetarian or synthetic polymers, gelatin is cost-efficient, making it a preferred choice for large-scale production. Gelatin can accommodate a wide range of formulations, including vitamins, omega-3 oils, CBD, and herbal extracts, which has made it popular in nutraceuticals and dietary supplements.
In January 2025, ACG, a pharmaceutical and nutraceutical production solutions, has officially begun operations at its new 175,000 m² facility in Rayong, Thailand, the largest capsule plant in the country. The plant is designed to produce 20 billion empty gelatin capsules per year and employs 250 people, serving markets across Asia. The plant is equipped with ACG’s advanced capsule‑printing technology and focused on efficiency and customization; the facility enhances regional supply‑chain responsiveness.
In terms of Source Type, the animal-based segment is projected to hold the largest share in the global softgel capsule market in 2025 due to their superior encapsulation properties, cost-effectiveness, and widespread availability. Gelatin derived from bovine or porcine collagen offers excellent film-forming and oxygen barrier capabilities, making it ideal for protecting and delivering fat-soluble vitamins, omega-3 fatty acids, and other sensitive bioactive compounds. Additionally, animal-based gelatin is more affordable to produce compared to plant-based alternatives such as HPMC or pullulan, making it a practical choice for large-scale manufacturing. Its long-standing regulatory acceptance by agencies like the FDA and EMA further reinforces its use in pharmaceutical and nutraceutical applications.
In May 2025, CapsCanada highlighted the advantages of its G‑CAPS® bovine gelatin capsules, made from 100% bovine‑hide collagen. These capsules offer superior mechanical strength, elasticity, and bioavailability, and come with Kosher and Halal certifications, supporting global dietary compliance and market reach. Such innovation are accelerating the softgel capsule market revenue.
In terms of application, the health supplement segment is projected to capture the highest share of the global softgel capsule market in 2025, due to their excellent functionality and consumer-friendly features. Softgel capsules offer enhanced bioavailability, particularly for fat-soluble nutrients such as omega-3, vitamin D, and CoQ10, enabling faster and more efficient absorption by the body. They are also easier to swallow than traditional tablets, making them especially suitable for children, the elderly, and individuals with swallowing difficulties. Additionally, softgels effectively mask the unpleasant taste or odor of certain ingredients like fish oil or herbal extracts, enhancing the overall consumer experience. Their airtight, sealed structure also protects the active ingredients from moisture and oxygen, thereby extending shelf life. With their smooth texture and glossy appearance, softgel capsules also appeal visually to health-conscious consumers, adding to their popularity.
In September 2024, Torque Pharma launched its new Multipower Soft Gelatin Capsules, a nutraceutical formulation combining essential vitamins and minerals to boost energy, immunity and overall wellness. Key ingredients include ginseng extract, vitamins A, B1, B2, B3, B6, B12, C and E, and minerals such as calcium, copper, iodine, iron, manganese and zinc, targeting nutritional deficiencies.
In terms of end user, the pharmaceutical companies segment dominates the global softgel capsule market with greatest share in 2025, due to their versatile drug delivery advantages and consumer-friendly characteristics. Softgels offer enhanced bioavailability for poorly soluble drugs, enabling faster and more efficient absorption in the body. They are ideal for encapsulating liquid or oil-based formulations, including vitamins, omega-3s, and sensitive APIs, which are often challenging to deliver in solid form.
Moreover, softgels provide accurate dosing, better stability, and mask unpleasant tastes or odors, improving patient compliance. The growing focus on self-medication, nutraceuticals, and chronic disease management is further boosting pharmaceutical companies’ preference for softgel formats, especially in over-the-counter (OTC) and lifestyle medications.
In December 2023, Amneal Pharmaceuticals, in partnership with Strides Pharma Science, launched icosapent ethyl acid soft‑gel capsules in two strengths (0.5 g and 1 g). The capsules contain an ethyl ester of eicosapentaenoic acid (EPA) and are indicated as an adjunct to diet for adults with severe hypertriglyceridemia (≥ 500 mg/dL).
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North America is expected to be the largest market for softgel capsule during the forecast period, accounting for over 35.70% of the market share in 2025. This is due to strong healthcare infrastructure and expenditure in countries like the U.S. along with the widespread presence of major capsule manufacturers operating production facilities in the region. These companies have been investing heavily in research and development (R&D) to develop innovative softgel dosage formulations, targeting different therapeutic applications.
For instance, in December 2024, Shandong Head Group Co., Ltd. revealed an USD 80 million investment to construct a cutting-edge manufacturing plant in the United States dedicated to HPMC (vegetarian) capsules. The new facility is projected to produce over 20 billion capsules annually, aimed at strengthening supply chain responsiveness for North American clients and reducing lead times. As a result, the region enjoys early adoption of new softgel products and holds a leading share of patent filings.
Asia Pacific is expected to be the fastest growing region for softgel capsule market, accounting for over 25.2% of the market share in 2025. The Asia Pacific region has emerged as the fastest expanding softgel capsule market globally. Countries like China, India, Japan and South Korea have growing healthcare needs of their large and rapidly developing populations. This burgeoning demand is complemented by increased per capita incomes and rising health awareness. Favorable policies to promote the domestic manufacturing of pharmaceuticals have attracted major global softgel capsule companies to set up production bases in the region to cater to local as well as international sales.
For instance, in December 2024, Lonza Capsules & Health Ingredients (Lonza CHI) expanded its hard capsule manufacturing capacity at sites in Rewari, India, and Suzhou, China. Existing production lines began operations in Q4 2024, while additional automated lines are slated to become operational in Q3 2025.
The United States is a key driver of the softgel capsule market, owing to high consumption of dietary supplements, over-the-counter (OTC) products, and advanced pharmaceutical R&D. Around 77% of U.S. adults regularly use supplements, boosting demand for softgel forms due to their ease of swallowing and better absorption. The market is further supported by strong retail and e-commerce channels, as well as a favorable regulatory environment. Pharmaceutical companies in the U.S. are increasingly adopting softgel technology for complex drugs, particularly in chronic disease treatment. Key focus areas include vitamins, CBD-based supplements, and prescription medications.
China is seeing strong demand for softgel capsules due to its growing healthcare sector, aging population, and rising health awareness. Softgels are preferred for their ease of use, especially among the elderly and children. The integration of traditional Chinese medicine into modern softgel forms—such as herbal and nutraceutical formulations—is also gaining popularity. Government initiatives like "Healthy China 2030" and rising middle-class income further support softgel capsule market growth.
| Report Coverage | Details | ||
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| Base Year: | 2024 | Market Size in 2025: | USD 7,850 Mn |
| Historical Data for: | 2020 To 2024 | Forecast Period: | 2025 To 2032 |
| Forecast Period 2025 to 2032 CAGR: | 6.4% | 2032 Value Projection: | USD 12,118.8 Mn |
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| Companies covered: |
Catalent, Inc., Aenova Group GmbH, Sirio Pharma Company Ltd, Captek Softgel International Inc., Elnova Pharma, Fuji Capsule Co., Ltd., Capsugel, EuroCaps Ltd, Guangdong Yichao Biological Co., Ltd., Hunan ER-KANG Pharmaceutical Co Ltd, KD Pharma Group, United Laboratories, Soft Gel Technologies, Inc., Windzor Pharma Ltd, ZYUS Life Sciences Inc., and EuroCaps |
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The nutraceuticals industry has been growing rapidly across the world in the past decade. More people are becoming health conscious and prefer consuming dietary supplements, functional foods and beverages infused with natural ingredients that provide health benefits. Softgel capsules have emerged as one of the most popular formats for delivering oil-based supplements as they help in ensuring the ingredients are absorbed efficiently by the body. The easy to swallow soft and gelatinous outer shell of softgels makes them ideal for supplementing ingredients such as fish, krill, algae, and flaxseed oils that have various health promoting properties. According to ongoing softgel capsule market research, this trend has significantly increased the consumption of softgels, especially for delivering omega-3, probiotics, and essential vitamins. Manufacturers are continuously innovating with novel formulations and launching new products while adopting targeted marketing strategies to raise awareness of softgel-based supplements among consumers.
As the elderly population continues to grow, we are observing a consequent rise in cardiovascular diseases (CVDs), peripheral artery diseases (PADs), and other age-associated vascular and arterial conditions. This demographic shift is crucial for the softgel capsule market because older individuals are more susceptible to such health issues that may necessitate interventions also the geriatric population often has specific dietary and medication needs due to chronic diseases and age-related physiological changes. Since, softgel capsules are easier to swallow as compared to other dosage forms, they are more suitable for elderly patients. This contributes to an increased demand for softgels in the pharmaceutical and nutraceuticals industries. Thus, the rising geriatric population is a significant market driver for the softgel capsules industry. For instance, in February 2025, according to the World Health Organization (WHO), The number of people aged 60 and older worldwide is projected to increase from 1.1 in 2023 to 1.4 billion by 2030. This is further proliferating the softgel capsule market revenue.
The softgel capsule market value, though often perceived as a commoditized segment within the nutraceuticals and pharmaceutical industries, is undergoing a definitive shift driven by formulation science, consumer preference, and therapeutic innovation. The dominant narrative is no longer merely about ease of swallowing or superior bioavailability; it is about how formulation adaptability is converging with personalized health trends to rewire the competitive landscape.
A clear sign of this shift is the proliferation of lipid-based delivery systems being adopted in advanced therapeutic classes. For instance, omega-3 ethyl esters for hypertriglyceridemia, traditionally administered in hard capsules or tablets have seen a growing tilt toward softgel formats due to their proven absorption efficiency in the lymphatic system. Clinical trials have repeatedly validated that softgel-encased lipophilic drugs demonstrate 25–30% higher absorption rates compared to conventional dosage forms.
On the consumer side, aging populations in key regions like Japan, Germany, and Italy are increasingly leaning toward combination supplements (e.g., CoQ10 + Vitamin D3) in softgel formats, citing digestibility and once-a-day dosing convenience. This behavioral shift is critical: it positions softgels not just as a delivery vehicle, but as a compliance facilitator, a factor often overlooked in conventional dosage economics.
From a manufacturing standpoint, encapsulation technology innovation is acting as a barrier to commoditization. Advanced rotary die encapsulation systems now allow for rapid production of dual-fill softgels, enabling manufacturers to deliver both hydrophilic and lipophilic ingredients in a single unit. For example, Capsugel's Licaps Fusion Technology allows integration of heat-sensitive probiotics with omega-rich oils without degradation, thus unlocking premium positioning for otherwise low-margin segments.
Furthermore, regulatory headwinds around excipient safety are pushing formulators toward plant-based softgel solutions, especially in markets like the EU where gelatin sourcing transparency is under scrutiny. In fact, industry feedback indicates that over 60% of new product development requests in Europe now seek non-gelatin encapsulation, a number that was in the single digits just five years ago.
In conclusion, the Softgel Capsule market is no longer a peripheral category, it is becoming a strategic formulation battleground. Winners will be those who integrate cross-functional capabilities: pharmaceutical-grade engineering, ingredient synergy, and consumer-centric design. The industry’s future will be defined less by cost per capsule and more by the value per dosage experience.
*Definition: A softgel capsule is a one-piece, hermetically sealed soft gelatin shell encapsulating a liquid, which is a suspension, or a semi-solid called a fill. Here are the key characteristics of softgel capsules:
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About Author
Vipul Patil is a dynamic management consultant with 6 years of dedicated experience in the pharmaceutical industry. Known for his analytical acumen and strategic insight, Vipul has successfully partnered with pharmaceutical companies to enhance operational efficiency, cross broader expansion, and navigate the complexities of distribution in markets with high revenue potential.
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