U.S. Empty Capsules Market Size, Share & Industry Analysis, By Type (Gelatin, Hydroxypropyl Methylcellulose (HPMC), and Others), By Functionality (Immediate Release, Sustained Release, and Delayed Release), and By End-user (Pharmaceutical Companies, Nutraceutical Companies, and Others), and Country Forecast, 2024-2032

The U.S. empty capsules market size was worth USD 945.4 million in 2023 and is anticipated to grow at a CAGR of 6.4% during the forecast period.

Empty capsules are empty shells that are made from unique film-forming materials. They primarily act as protective shells for drugs and have popularly emerged as innovative drug delivery products among pharmaceutical and biopharmaceutical companies.

Moreover, the growing adoption of nutraceutical products among the general population and the increasing use of marine capsules in dietary supplements has majorly contributed to the growing demand for empty capsules in the country. These factors encouraged many international players to expand their geographical presence and strengthen their position in the market.  

The impact of COVID-19 on the market was positive in 2020. The proactive measures taken by consumers to maintain their physical and mental well-being primarily contributed to the increased awareness of immunity-boosting nutraceutical products. This increased awareness led to an increase in the purchase of dietary supplements that promote individuals' better health and contributed to an increase in demand for empty capsules during the pandemic. 

• For instance, in December 2022, Vantage Nutrition, an ACG Group company, acquired AquaCap, an asset of Nestle Health Science. The company is based in Philadelphia and is one of the leading contract manufacturers of liquid-filled capsules in the U.S.

U.S. Empty Capsules Market Trends

Advancing Technologies in Hard Capsules for the Protection of Liquid Contents

Traditionally, soft gelatin has always been the most popular material for capsules for liquid formulations. The distinct benefits of soft gelatin capsules, such as improved bioavailability and ease of digestion, have made them one of the preferred choices among manufacturers. However, the disadvantage of the soft gelatin capsule was its hygroscopic properties, which caused degradation of the inner content of the capsule.

These drawbacks of soft gelatin capsules have led manufacturers to opt for liquid filled hard gelatin capsules. The advantages, such as the requirement of less specialized equipment for manufacturing, minimal manufacturing time, and the improved bioavailability of drugs, have contributed to the growing adoption of liquid filled hard capsules in the pharmaceutical industry.

• For instance, in March 2021, PLx Pharma received approval for Vazalore, a liquid-filled aspirin capsule. The formulation has a better enteric coating and releases its content only after reaching the small intestine.  

U.S. Empty Capsules Market Growth Factors

Emphasis on Expansion of Product Portfolio by Key Players is Spurring Market Growth

The growing focus of healthcare professionals on recommending nutraceutical products as a complementary therapy for the growing number of diseases majorly contributed to the increasing demand for nutraceuticals in the U.S. Moreover, the population's growing focus on nourishing their physical and mental health by boosting their immunity has also augmented the demand for nutraceutical products in the country. These factors are contributing to increased nutraceutical consumption and the inclusion of dietary supplements in the daily diet plan. This growing demand has led to an increased demand for empty capsules in the nutraceutical industry.

Moreover, the growing emphasis of ayurvedic manufacturers on introducing their products, including traditional ingredients such as herbal products or vitamins and minerals, at a cost-effective price is also spurring the demand for empty capsules in the market. To meet this growing demand, many manufacturers are focusing on bringing new products to the U.S. market.

• For instance, in February 2023, Vivion, Inc., a brand of Operio Group, launched their new product range of empty gelatin, HPMC, and pullulan capsules. This launch aimed to expand their product portfolio for the nutraceutical and pharmaceutical industries. These two-piece capsules can also be utilized for encapsulating powder and herbs.

Globally, Lonza and ACG have a manufacturing capacity of 350 billion and 120 billion capsules annually. Both of these companies have a wide product portfolio supporting the pharmaceutical and nutraceutical industries.  

RESTRAINING FACTORS

High Raw Material Costs and Import Dependency on Other Key Countries for Gelatin Hampers Market

The increasing demand for empty capsules in the pharmaceutical, nutraceutical, cosmeceutical, and food industries has majorly contributed to the demand for gelatin, an inevitable ingredient for its manufacturing. This growing demand for gelatin as a raw material has increased its prices at a significant rate. Its exceeding application in food, pharma, and nutritional products has also resulted in inflated gelatin prices, hindering its adoption and limiting market growth. Moreover, countries' dependence on other regions for the import of high-quality gelatin is another factor further contributing to its increasing prices in the U.S.

• For instance, according to data published by The Observatory of Economic Complexity (OEC) in 2021, the U.S. stood as the largest importer of gelatin by importing a gelatin worth USD 317.0 million.   

U.S. Empty Capsules Market Segmentation Analysis

By Type Analysis

Based on type, the market is segmented into gelatin, hydroxypropyl methylcellulose (HPMC), and others.                         

The gelatin segment dominated the empty capsules market in 2022 owing to its increased application by pharmaceutical companies and dietary supplement manufacturers.

The hydroxypropyl methylcellulose (HPMC) segment is expected to exhibit the fastest growth rate during the forecast period. The low moisture content of the hydroxypropyl methylcellulose (HPMC) capsules, proven stability in extreme conditions, resistance to bacterial growth, and no requirement of preservatives for manufacturing are some factors for its growing acceptance. Moreover, the growing emotional aspect associated with forbidding the use of animal-based products is set to drive market growth.

• For instance, according to a press release by The Worldfolio in July 2021, the demand for hydroxypropyl methylcellulose (HPMC) based capsules has significantly increased in the U.S., Europe, and in the Middle East and Asia, as there is a preferential shift of consumers from animal-derived products.

By Functionality Analysis

Based on functionality, the market is segmented into immediate release, sustained release, and delayed release.

Immediate release capsules dominated the market by holding the largest share. The increasing use of antacid and antibacterial medicines has majorly contributed to its increased growth. Moreover, its ability to disintegrate its drug content instantaneously for better absorption and subsequent pharmacological action further anticipated its market growth.

The delayed release segment is projected to grow at the fastest rate during the forecast period. The growing focus of pharmaceutical manufacturers on bringing advancements in capsule delivery technologies by launching target-specific drugs is contributing to the segment growth.

• For instance, in November 2022, Lonza launched Capsugel Enprotect, a new capsule solution for intestinal drug delivery. This capsule has proven protection in acidic environments and releases its content in the intestine.

By End-user Analysis

Based on end-user, the market is segregated into nutraceutical companies, pharmaceutical companies, and others.

The U.S. empty capsules market share in 2022 was dominated by nutraceutical companies owing to a rise in the demand for preventive healthcare. This led to an increase in demand for nutraceutical products that offer boosted immunity. Moreover, increasing consumption of dietary supplements among the young population to fulfill their nutritional needs and improve their health quotient is spurring the growth of empty capsules in the nutraceutical industry.

• For instance, according to an article published by Nutraceuticals World in January 2022, 73% of Americans reported that they take at least one dietary supplement, of which multivitamin supplements are the most popular.

List of Key Companies in U.S. Empty Capsules Market

The growing emphasis of key players on expanding their geographical presence to meet the rising product demand majorly contributes to the U.S. empty capsules market growth. The key players operating in this market in the U.S. are Lonza, ACG, and CapsCanada, who captured a significant market share. The major market share is attributed to a strong presence due to robust production capabilities, a vast distribution network, a strong focus on innovation, and a diverse range of product portfolios.

For instance, in March 2021, CapsCanada, a Lyfe Group company, launched a new liquid-filled hard capsule manufacturing service in North America. This manufacturing facility offers advantages to pharmaceutical companies by advancing product development capabilities and improving their market accessibility. 

Some other companies with a considerable market presence include QUALICAPS, Capsuline, and Robinson Pharma Inc. Their growing focus on providing empty capsules in small order quantities to home-based herbal medicine manufacturers and confectionaries is contributing to their market share. Moreover, the growing focus of other market players on outsourcing empty capsules from third-party manufacturers and selling them at a lower cost is further propelling the U.S. market growth.

LIST OF KEY COMPANIES PROFILED:

• ACG (India)


• Lonza (Switzerland)


• CapsCanada (U.S.)


• Robinson Pharma, Inc. (U.S.)


• QUALICAPS (U.S.)


• Bright Pharma Caps (China)


• Capsuline (U.S.)

KEY INDUSTRY DEVELOPMENTS:

• March 2023: VANTAGE NUTRITION, an ACG company, acquired ComboCap, Inc., in the U.S. and BioCap in South Africa. The company has 80 international patent awards and is renowned for the invention and commercialization of its Side-by-side technology.


• April 2022: Ascendia Pharmaceuticals, a contract development and manufacturing (CDMO) company, stated that liquid filled capsules are a preferred option among pharmaceutical companies for clinical trials.


• November 2021: ACG launched the ‘ACG loves nothing’ campaign to demonstrate its focus on developing high-quality capsules for pharmaceutical and nutraceutical products.

REPORT COVERAGE

The U.S. empty capsules market research report provides a detailed analysis of the market. It focuses on key aspects such as technological advancements and emerging factors responsible for market trends. In addition, it includes new product launches, key industry developments such as mergers, partnerships, acquisitions, and the impact of COVID-19 on the market. Besides this, the report also highlights key industry dynamics.

Report Scope & Segmentation