Liquid Filled Hard Capsule Market Size, Share, and Industry Analysis, By Material (Hydroxypropyl Methylcellulose (HPMC) and Gelatin), By Size (Large, Medium, and Small), By Application (Supplements and Drugs), By End Users (Pharmaceutical, Nutraceutical, and Others), and Regional Forecast, 2025-2032

The liquid filled hard capsule market is witnessing robust growth owing to several advantages over other solid dosage forms, including accurate dosing, enhanced bioavailability, and ease of swallowing. Liquid filled hard capsules (LFHCs) typically have a gelatin or a hydroxypropyl methylcellulose (HPMC) shell and are filled with liquids or compositions that can flow below 70°C. They are often used for medications that need to take effect quickly or are poorly soluble, improving the stability and efficacy of encapsulated materials. The capsules are utilized in various applications, such as pain relief, vitamins, essential oils, and other health supplements.

• According to data published by Alta Sciences in February 2021, 70% to 80% of small molecule drug candidates were poorly water-soluble. As a result, scientists chose liquid-filled hard-shell capsules as they could formulate compounds with poor solubility.

The growing prevalence of chronic diseases has been increasing the demand for effective therapeutics which in turn has also been fueling the demand for liquid filled hard capsules.

• In May 2024, the Centers for Disease Control and Prevention (CDC) reported that every year, approximately 805,000 individuals in the U.S. suffer from a heart attack.


• In March 2021, the U.S. FDA approved the first liquid filled aspirin capsule called the VAZALORE in the country.

Liquid Filled Hard Capsule Market Driver

Increasing Demand for Nutraceuticals and Dietary Supplements to Fuel Market Demand

The rising demand for nutraceuticals and dietary supplements is being increasingly driven by the people's desire to ensure that they have enough nutrients to maintain good health. As a result, the increasing demand for nutraceuticals and other supplements has been driving the market growth.

• According to the National Center for Biotechnology Information (NCBI) in December 2021, in the U.S., the multivitamin sales increased by 51.2% in March 2020, with total vitamin and supplement sales reaching almost 120 million units for that period alone.

Growing Geriatric Population and Increasing Prevalence of Chronic Diseases to Drive Demand

The rising prevalence of chronic diseases can be attributed to factors such as obesity, a sedentary lifestyle, alcohol and cigarette consumption, and poor eating habits, among others. These habits can lead to the increased incidence of diseases such as cancers and diabetes. Consequently, this increase has been driving the growth of the market for liquid filled hard capsules.

• For example, in May 2024, the National Cancer Institute (NCI) estimated that there were 2,001,140 new cases of cancer diagnosed in the U.S., and 611,720 people died from the disease.

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According to data published by the Centers for Disease Control and Prevention in 2021 in the U.S., in the age group of 18-44, 5.8 million adults suffered from diabetes, while in the age group of 45-64, 15.8 million individuals suffered from diabetes, and in the 65 and older age group, 16.5 million individuals suffered from diabetes.

Liquid Filled Hard Capsule Market Restraint

Cultural Challenges Regarding Source of Gelatin May Hinder Product Adoption

Gelatin is primarily used to harden the shell of liquid filled hard capsules. Due to its origin, culture, and beliefs, the intake of gelatin is restricted in certain countries. Gelatin is often composed of animal body parts, mainly the skin or bones. This restriction negatively impacts the global market as many of these products are made from animal derived products that are prohibited in certain cultures.

Additionally, a certain proportion of the population is generally vegan or vegetarian and does not consume non-vegetarian products. The source of these capsules and certain cultural practices and lifestyles have been limiting its widespread utilization among the global population, thereby limiting the market growth.

Liquid Filled Hard Capsule Market Opportunity

Technological Advancements in Capsule Filling Equipment to Provide Opportunities for Growth

The technology for filling liquid in the liquid filled hard capsules is continuously advancing and expanding. The equipment used to ensure accuracy and efficacy in filling these capsules are being continuously innovated upon and improved. Additionally, the capsule-filling machines are now equipped with advanced technologies for sealing and filling, as well as for packaging the liquid filled hard capsules, which helps minimize errors. These advancements are driving the market growth during the forecast period.

• For instance, in November 2022, Lonza launched the CFS 1200 Capsule filling and sealing machine which is compatible for the bioavailability of poorly soluble drugs and gives optimal efficacy.

Segmentation

Key Insights

The report covers the following key insights:

• Overview: Technological Advancements in Liquid Filled Hard Capsules


• Pricing Analysis, By Key Players


• New Product Launches, By Key Players


• Key Industry Developments (Mergers, Acquisitions, and Partnerships)


• Impact of COVID-19 on the Market

Analysis by Material

By material, the market for liquid filled hard capsules is fragmented into hydroxypropyl methylcellulose (HPMC) and gelatin.

The gelatin segment accounted for a significant market share in 2023. The segment growth is attributed to the protection provided by the gelatin material. Gelatin offers many advantages, such as low costs, easy availability, biodegradability, and low immunogenicity, which promotes the cell adhesion. Moreover, the pharmaceutical industry uses gelatin in capsules for better treatment as it protects the active pharmaceutical ingredient (API) from external factors such as light and humidity. Hence

Analysis by Application

By application, the market is segmented into supplements and drugs.

The supplements segment is making a significant contribution to the expansion of the global market. Various companies actively produce and distribute liquid filled hard capsule to meet the diverse needs and tastes of the customer, as these capsules include supplements are absorbed more quickly and effectively by the body than traditional medicine such as capsules and tablets.

• For instance, Vantage Nutrition (an ACG group company) launched an innovative product in January 2021, combining fenugreek oil and glucomannan fiber in a liquid filled hard capsule used for controlling blood sugar levels.

Analysis by Size

By size, the market is segmented into large, medium, and small.

The medium segment holds a considerable market share. The medium segment comprises products called the size 0 capsules, as they are widely used in manufacturing given that they offer sufficient volume for different formulations and are easy to swallow. The advantages of medium-sized capsules include enhanced bioavailability for poorly soluble drugs, improved absorption rates, and protection from factors such as light, moisture, and oxygen, which contributes to their stability.

Analysis by End-user

By end-users, the market for liquid filled hard capsules is divided into pharmaceutical, nutraceutical, and others.

The nutraceutical segment holds a significant market share. The segment growth is attributed to the increased prevalence of lifestyle diseases such as diabetes, cardiovascular disease, and obesity. As a result, there is a growing preference toward nutraceuticals worldwide.

• For example, according to data published by the National Center for Biotechnology Information (NCBI) in September 2023, it was reported that heart-related diseases, such as heart attack and heart failure, cause the death of 20.5 million people every year globally.

Regional Analysis

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By region, the market has been studied across North America, Europe, Asia Pacific, Latin America, and the Middle East & Africa.

In 2023, North America held a significant share of the global market. The region's advanced healthcare infrastructure, along with a growing number of capsule manufacturing processes, is responsible for the segment growth. Additionally, increasing regulatory approvals for pharmaceutical products that utilize liquid filled hard capsules to treat various diseases are contributing to the regional market expansion.

• For instance, in March 2021, CapsCanada announced that it had received the U.S. Food and Drug Administration (FDA) and HealthCanada approval for K-Caps, which are used for the gastrointestinal treatment. Liquid filled hard capsules provide stability for moisture-sensitive compounds, making them suitable for various gastrointestinal applications that require effective drug absorption.

In addition, Europe held a considerable market share in 2023. Industry participants' growing efforts to develop therapies for chronic diseases and their increasing focus on obtaining regulatory approvals for chronic treatments that utilize liquid filled hard capsules are some of the factors driving the market growth in the European region.

The Asia Pacific market is expected to depict significant growth due to developing countries such as India solving the problem of easy accessibility of drugs. Due to this factor, there is an excessive demand for liquid filled hard capsule machines, which also increases the product demand.

Key Players Covered

The market consists of companies such as ACG, CapsCanada, and Lonza, among others. The report includes the profiles of the following key players:

• ACG (India)


• CapsCanada (U.S.)


• Altasciences. (U.S.)


• Lonza. (U.K.)


• Lefancaps (U.S.)


• Qualicaps (U.S.)


• Biovencer Healthcare Pvt Ltd (India)


• GoCaps GmbH (Germany)

Key Industry Developments

• In May 2022, Lonza expanded its capsule offering by launching a titanium dioxide-free (TiO2-free) white hard gelatin capsule to meet the new titanium dioxide-free requirements for food in the European Union.


• In April 2022, Aenova constructed a new capsule/structure for highly potent active substances at Regensburg.