According to our new research study on "Vegetarian Capsules Market Size and Forecast to 2031 -Impact and Country Analysis - by Product, Application, Functionality, and End User," the vegetarian capsules market size is projected to grow from US$ 1.8 billion in 2023 to US$ 3.5 billion by 2031; the market is estimated to record a CAGR of 8.4% during 2023-2031. The vegetarian capsules market report emphasizes key driving factors such as the rising preference for vegan capsules over gelatin-based capsules and growing demand for vegetable capsules despite their high cost. However, product recall impede the market growth. The outsourcing of vegetarian capsule are likely to remain key vegetarian capsules market trends.
Market Opportunity
Innovative Product Launches of Vegetarian Capsules
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.
Report Segmentation and Scope:
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.
- In terms of end user, the market is segmented into poultry farms, veterinary hospitals, and poultry vaccination centers & clinics. The poultry farms segment dominated the market in 2023.
Product-Based Insights
By product, the vegetarian capsules market is segmented as Hydroxypropyl Methyl Cellulose (HPMC), pullulan, and others. The Hydroxypropyl Methyl Cellulose (HPMC) segment held the largest share of the market in 2023. HPMC capsules are a plant-based alternative to traditional gelatin capsules. The HPMC capsules are suitable for vegetarians, vegans, and consumers with specific religious dietary needs, setting them apart from traditional animal-based options. Most health supplements are made with the HPMC material as it has no smell or taste and is safe for vegetarians and vegans. The "QUALI-V-N" manufactured by Qualicaps is a plant-derived HPMC-based capsule containing no animal-derived material/formulation. It is chemically stable and unaffected by the drug content. Furthermore, the HPMC capsules can be customized in terms of size, color, and dosage like gelatin and pullulan capsules. Therefore, Hydroxypropyl Methyl Cellulose (HPMC) will bolster the vegetarian capsules market growth during the forecast period.
Application-Based Insights
In terms of application, the market is categorized into antibiotic & antibacterial drugs, vitamin and dietary supplements, anti-inflammatory, cardiovascular therapy, antacid & antiaffluent, and others. The antibiotic & antibacterial drugs segment dominated the market in 2023. Antibiotic and antibacterial supplements, including antibacterial, antifungal, antiviral, and antiparasitic agents, eliminate or slow down the spread of microorganisms. Manufacturers such as Wren Laboratories manufacture vegan supplements with antibiotic and antibacterial properties, including Optibac Probiotic products. The product is well suited for patients already on antibiotics but looking for a high-quality, friendly bacterial supplement that can be taken alongside the course of antibiotics. Optibac's Probiotic product includes bacterial strains such as Lactobacillus rhamnosus Rosell-11, Bifidobacterium lactis Lafti B94 and Lactobacillus acidophilus/helveticus Rosell-52. Further, the vegan and gluten-free products contain no added sweeteners or flavorings.
Functionality-Based Insights
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. Rapid and consistent in-vivo drug dissolution of the capsules is critical for drug absorption. Such immediate-release capsules offer an excellent dissolution profile with pH-independent performance, low moisture content, great machinability, and visual quality. Therefore, manufacturers are performing several trials to compare gelatin (animal-derived capsules) with HPMC (plant-derived) capsules. Capsugel's "Vcaps Plus," an HPMC-derived immediate-release vegetarian capsule, has an in-vivo performance that has bioequivalent properties like gelatin-coated capsules.
End User-Based Insights
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. Demand for vegetarian supplements is rising among young people to maintain a healthy and balanced lifestyle. According to Lonza's published survey in the US, in 2023, 44% of supplement users in the US consider that vegetarianism is important when choosing a supplement, up from 26% in 2006. Such a high increase is due to consumers' shift toward non-animal-based products with no addition of pesticides or preservatives. With the rising consumption of animal-free supplements, top pharmaceutical manufacturers such as ACG, Lonza, and others are developing the purest vegetarian supplement products. For instance, Lonza continuously invests in research and development (R&D) to bring new solutions for the effective delivery of supplements under the vegetarian and plant-based capsules portfolio. Also, each product developed is preservative-free, GMO-free, gluten-free, and biodegradable.
Shanxi Guangsheng Medicinal Capsules (GS Capsules); Lefancaps; SUHEUNG; ACG; Capsugel, Inc. (Subsidary of Lonza Group AG); HealthCaps India; NATURAL CAPSULES LIMITED; Sunil Healthcare Limited; QUALICAPS; Zhejiang Honghui Capsule Co., Ltd.; BrightCaps GmbH; CapsCanada; Zhejiang Huili Capsules Co., Ltd.; and Yasin are among the key companies operating in the vegetarian capsules market. Leading players adopt strategies such as launching new products, expanding and diversifying their market presence, and expanding new customer base to tap prevailing business opportunities.
Industry Developments and Future Opportunities:
Various strategic developments by leading players operating in the vegetarian capsules market are listed below:
- 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).
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