Vegetarian Capsules Market Report By Insights, Size, and Growth

The vegetarian capsules market is expected to expand significantly, with projections indicating growth from US$ 1.8 billion in 2023 to US$ 3.5 billion by 2031. This growth trajectory suggests a compound annual growth rate (CAGR) of 8.4% from 2021 to 2031.

The increasing preference for plant-based capsules over traditional gelatin options, alongside a rising demand for vegetarian capsules despite their higher price point, is driving this market forward. However, challenges such as product recalls may hinder growth in the vegetarian capsules sector. Additionally, the trend of outsourcing the production of vegetarian capsules is anticipated to play a significant role in shaping the market landscape from 2021 to 2031.

Growth Drivers:

Shift Towards Vegan Capsules Over Gelatin-Based Options

Concerns regarding the inclusion of animal-derived substances in capsule formulations have been prevalent for many years, influenced by medical, ethical, cultural, and religious factors. Many consumers are wary of using animal-based pharmaceutical products due to potential health risks. A report released by the Centers for Disease Control and Prevention (CDC) in July 2023 highlighted that the consumption of animal-derived medications and supplements can lead to Alpha-gal syndrome (AGS), which is associated with severe allergic reactions in patients who consume mammalian-derived ingredients. Such findings have prompted manufacturers to focus on developing animal-free alternatives in the pharmaceutical and supplement industries.

Comparative Analysis of Gelatin 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 Ingredients	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, a significant portion of pharmaceutical capsules on the market is made from gelatin. However, issues such as crosslinking with incompatible drugs and stringent regulations regarding animal-derived gelatin have led many pharmaceutical companies to seek plant-based alternatives. Hydroxypropyl methylcellulose (HPMC) capsules have emerged as a viable substitute for gelatin due to their plant origin. An example of this is Vegicaps soft capsules, which are made from seaweed extract and gluten-free starch, containing no modified sugars or artificial colors. These capsules are not only free from animal derivatives but are also easier to swallow, softer, and considered healthier. In contrast, gelatin capsules can become soft and sticky when exposed to aqueous enteric polymer dispersions or may become brittle due to moisture loss during drying, compromising their mechanical integrity. HPMC capsules, however, are more resistant to moisture and maintain their structural integrity better.

Thus, the growing inclination towards vegetarian formulations is beneficial for manufacturers, propelling the production of vegetarian capsules and contributing to market growth.

Market Segmentation and Scope:

Vegetarian Capsules Market by Product:

The vegetarian capsules market is analyzed based on product types, including Hydroxypropyl Methyl Cellulose (HPMC), pullulan, and others. The HPMC segment dominated the market in 2023, while the pullulan segment is projected to experience the highest CAGR of 9.0% during the forecast period.

Vegetarian Capsules Market by Application:

In terms of application, the market is divided into segments such as antibiotic & antibacterial drugs, vitamin and dietary supplements, anti-inflammatory treatments, cardiovascular therapies, antacids, and others. The antibiotic & antibacterial drugs segment held the largest market share in 2023, with the vitamin and dietary supplements segment expected to achieve the highest CAGR of 9.3% during the forecast period.

Vegetarian Capsules Market by Functionality:

The market is also segmented by functionality into immediate-release, sustained-release, and delayed-release capsules. The immediate-release segment was the largest in 2023, while the sustained-release segment is anticipated to grow at the highest CAGR of 9.2% during the forecast period.

Vegetarian Capsules Market by End User:

The end-user segmentation includes the pharmaceutical industry, nutraceutical industry, contract manufacturing organizations, and the cosmetic industry. The pharmaceutical sector held the largest market share in 2023 and is expected to grow at the highest CAGR of 8.8% during the forecast period.

Regional Analysis:

The vegetarian capsules market report covers five key regions: North America, Asia Pacific, Europe, Middle East & Africa, and South & Central America. The analysis includes insights into market trends, major players, regulations, and recent developments.

Asia Pacific currently leads the vegetarian capsules market and is projected to grow at the highest CAGR in the coming years, with India being the largest contributor in this region. North America follows as the second-largest market, with the United States holding the largest share.

Vegetarian Capsules Market Report By Insights, Size, and Growth - 2031

Growth Drivers:

Shift Towards Vegan Capsules Over Gelatin-Based Options

Comparative Analysis of Gelatin and Vegetarian Capsules

Market Segmentation and Scope:

Vegetarian Capsules Market by Product:

Vegetarian Capsules Market by Application:

Vegetarian Capsules Market by Functionality:

Vegetarian Capsules Market by End User:

Regional Analysis:

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