Empty capsules are used in pharmaceutical and nutraceutical industries as delivery vehicles for various active pharmaceutical ingredients (APIs). They are commonly used to encapsulate powders, pellets, tablets and liquids. Empty capsules provide numerous advantages over conventional tablet formulations such as ease in swallowing, accurate dosing of APIs, and taste masking of bitter drugs. The global empty capsules market is primarily driven by increasing preference for capsule formulations and growth in pharmaceutical and nutraceutical industries.

The global Empty Capsules Market is estimated to be valued at US$ 2.3 Bn in 2024 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 Opportunity:
Rapid growth in pharmaceutical and nutraceutical industries presents significant growth opportunities for empty capsules market. According to industry estimates, the global pharmaceutical industry is expected to grow at a CAGR of over 7% during 2023-2028. Similarly, nutraceutical industry is growing rapidly owing to increasing focus on preventive healthcare and functional foods & beverages. Rising healthcare spending and growing demand for effective drug delivery systems are major factors driving the demand for empty capsules from pharmaceutical and nutraceutical sectors. The growing industries provide immense untapped potential for empty capsule manufacturers to gain new customers and increase product penetration in existing markets.

Porter's Analysis

Threat of new entrants: The threat of new entrants is moderate due to the requirement of high capital investment in R&D, manufacturing and distribution.

Bargaining power of buyers: The bargaining power of buyers is high due to availability of numerous local and global manufacturers offering empty capsules.

Bargaining power of suppliers: The bargaining power of suppliers is low as the key raw materials like gelatin and HPMC are commoditized and available from numerous suppliers globally.

Threat of new substitutes: The threat of new substitutes is low as empty capsules have many advantages over other drug delivery formats.

Competitive rivalry: The competition is high among the existing players.

SWOT Analysis

Strengths: Growing pharmaceutical industry drives capsule demand. Wide application in nutraceuticals and cosmeceuticals.

Weaknesses: Price fluctuations of raw materials impact profits. Significant R&D investment required.

Opportunities: Emerging economies offer high growth potential. Rising demand for halal-certified capsules.

Threats: Stringent regulations for approval of new drugs and dosage forms. Introduction of alternative drug delivery formats.

Key Takeaways
The global empty capsules market is expected to witness high growth at a CAGR of 7.9% during the forecast period of 2023-2030. The market size is projected to reach US$4.3 Billion by 2030 from US$2.3 Billion in 2024.

Regional analysis - North America dominates the global empty capsules market currently owing to developed pharmaceutical industry and rising healthcare spending. However, Asia Pacific is projected to witness the fastest growth during the forecast period supported by expanding pharmaceutical manufacturing sector in India and China.

Key players - 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 is the global leader with strong presence across various dosage forms while Capsugel and Qualicaps also hold significant market shares.