Market Overview:
Empty capsules are two-piece capsules used for encapsulation of pharmaceutical and nutraceutical ingredients. They are made of either gelatin or non-gelatin material like hydroxypropyl methylcellulose (HPMC). Empty capsules provide numerous advantages for drug delivery such as ease of swallowing, unit dosage form, and accurate dosing of medicines. They enable development of novel drug delivery systems using customized fill materials.
The Empty Capsules Market is estimated to be valued at US$2.3 Bn in 2023 and is expected to exhibit a CAGR of 7.9% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market key trends:
The empty capsules market is driven by increasing demand for nutraceutical products across the globe. Nutraceuticals are considered as functional foods that provide health benefits in addition to basic nutrition. Growing health concerns among people related to lifestyle diseases like diabetes, obesity and cardiovascular issues is boosting the adoption of nutraceuticals. Empty capsules provide an optimal delivery vehicle for various nutraceutical ingredients like vitamins, minerals, herbs and other therapeutic agents. Moreover, technological advancements in capsule manufacturing like development of new size variants, modified release capabilities and improved film coating techniques are further supporting the market growth. Emerging economies with large nutraceutical consuming populations also present lucrative opportunities for players in empty capsules market.
Porter’s Analysis
Threat of new entrants: The empty capsules market requires high initial capital investments for machinery and production facilities, making the threat of new entrants moderate.
Bargaining power of buyers: The bargaining power of buyers in the empty capsules market is high due to the presence of many established players offering capsules of varied sizes, shapes and gelatin types.
Bargaining power of suppliers: Pharmaceutical companies have a wide pool of raw material suppliers to choose from. Hence, the bargaining power of suppliers is moderate.
Threat of new substitutes: There are no viable substitutes for empty capsules used for oral drug delivery. Hence, the threat of new substitutes is low.
Competitive rivalry: The empty capsules market is fragmented with the presence of multiple established players globally.
SWOT Analysis
Strength: Empty capsules enjoy strong demand from pharmaceutical companies due to their effectiveness in oral drug delivery. Gelatin capsules have well-established global production facilities.
Weakness: Frequent regulatory changes for pharmaceutical manufacturing can increase operational costs. Vegetarian capsules made of HPMC have lesser moisture resistance than gelatin capsules.
Opportunity: Growing preference for vegetarian capsule formulations present an opportunity. Expanding markets in emerging economies offer high growth potential.
Threats: Stringent regulatory norms can delay new product approvals. Availability of alternative drug delivery methods can impact future demand.
Key Takeaways
The global empty capsules market is expected to witness high growth, exhibiting CAGR of 7.9% over the forecast period, due to increasing preference for vegetarian capsule formulations and self-administered treatments.
Regionally, Asia Pacific dominates the empty capsules market and is expected to grow the fastest during the forecast period. This can be attributed to factors such as increasing pharmaceutical production, large patient pool and rising healthcare expenditure in the region.
Key players operating in the empty capsules market are ACG Worldwide, Capsugel, Qualicaps Inc., Bright Pharma Caps Inc., Sunil Healthcare Ltd., CapsCanada Corporation, Roxlor LLC, Snail Pharma Industry Co. Ltd., Suheung Co. Ltd., and Medi-Caps Ltd. ACG Worldwide and Capsugel collectively account for over 50% share of the global market.