The global softgel capsules market is undergoing a significant transformation, driven by rising demand for nutraceuticals and pharmaceuticals, supported by advancements in encapsulation technology and a growing awareness of health and wellness. As of 2025, the softgel capsules market is expected to be valued at approximately US$8.7 billion, with projections indicating that this figure will rise to US$13.2 billion by 2032, reflecting a Compound Annual Growth Rate (CAGR) of 6.2% during the forecast period.

This article explores the factors contributing to the market’s growth, examines regional dynamics, discusses material trends, and highlights key developments that are shaping the competitive landscape of this fast-evolving industry.

Key Industry Highlights

The softgel capsules market is poised to benefit from several key industry trends. North America is expected to lead the market, commanding around 35% of the market share in 2025, driven by a robust pharmaceutical and nutraceutical ecosystem. At the same time, the Asia Pacific region is expected to be the fastest-growing market due to factors such as an expanding middle class, increased health consciousness, and improving supply chain infrastructures.

Porcine gelatin, derived from pigs, remains the dominant source for softgel capsules, accounting for approximately 55% of the market share. However, plant-based alternatives such as pullulan-based capsules are gaining traction and are expected to grow rapidly due to ethical consumer preferences and regulatory demands for transparency in sourcing.

Softgel capsules are widely used in the nutraceutical sector, which is expected to represent about 60% of the applications in 2025. This demand is fueled by a global shift toward preventive healthcare and personalized nutrition. At the same time, advancements in encapsulation technologies are enabling the pharmaceutical sector to expand the use of softgel capsules, especially for poorly soluble drugs and biologics.

Market Growth Trajectory

The trajectory of growth in the softgel capsules market is underpinned by evolving consumer preferences and innovations in formulation technology. Increasing consumer demand for convenient and easy-to-consume dosage forms has spurred significant interest in softgel capsules. Their ability to improve the bioavailability of fat-soluble drugs and nutrients, including vitamins, omega-3 fatty acids, and herbal extracts, is a key driver of market growth.

One of the notable factors contributing to the market’s expansion is the increasing preference for plant-based and non-animal capsule materials, especially in regions like North America and Europe, where ethical considerations, dietary restrictions (such as Halal and Kosher), and veganism are growing trends. This shift toward plant-based capsules is aligned with broader global trends emphasizing sustainability and environmental consciousness.

Market Factors: Growth, Barriers, and Opportunities

The growing adoption of vegan lifestyles and dietary restrictions, such as Halal and Kosher laws, is creating a rising demand for plant-based softgel capsules. This trend is particularly significant in regions like North America and Europe, where veganism is growing at an annual rate of approximately 6-8%. To meet this demand, manufacturers are investing heavily in research and development to produce capsules from alternatives such as starch, cellulose, pullulan, and carrageenan. These plant-based alternatives offer a solution to the supply chain issues associated with animal-derived gelatin, which can be affected by diseases such as African Swine Fever.

Cost stability is another challenge facing the softgel capsules market. The reliance on animal-derived gelatin, particularly porcine and bovine sources, introduces supply chain risks that can lead to price volatility. For example, African Swine Fever outbreaks have resulted in significant disruptions in the supply of porcine gelatin, causing price increases of up to 18%. These supply chain challenges are exacerbated by environmental and ethical concerns, which are pushing manufacturers to seek alternative sourcing options that align with consumer demands for sustainability.

However, the nutraceutical sector presents significant opportunities, especially in emerging economies in Asia Pacific. Rising health awareness, expanding middle-class populations, and increasing disposable incomes are boosting demand for health supplements such as vitamins, omega-3 fatty acids, and herbal products in countries like China and India. The growing demand for preventive healthcare and personalized nutrition is helping to drive the adoption of softgel capsules in these regions.

Category-wise Analysis

The material segment of the softgel capsules market is primarily dominated by gelatin-based capsules, which account for approximately 80% of the market share in 2025. Gelatin’s well-established manufacturing processes, cost-effectiveness, and desirable physical properties such as flexibility and gel strength make it the preferred choice for mass-market applications, particularly in the pharmaceutical and nutraceutical industries.

Non-animal-based capsules, however, are experiencing rapid growth. These capsules are made from plant-based ingredients and are highly sought after due to rising consumer demand for vegan, vegetarian, and halal-compliant products. Pullulan-based softgel capsules are gaining particular attention for their oxygen-impermeability, biodegradable properties, and natural origins. Manufacturers are focusing on improving the mechanical properties, shelf-life, and taste-masking capabilities of plant-based capsules to match the performance characteristics of traditional gelatin.

Source Insights

Porcine gelatin remains the dominant source for softgel capsules, making up roughly 55% of the market in 2025. Porcine gelatin is favored for its excellent gel strength and thermoreversibility, which ensures efficient encapsulation and stability of active ingredients. However, religious dietary restrictions in certain regions, including the Middle East and parts of Southeast Asia, limit the acceptance of porcine gelatin, prompting a shift toward plant-based alternatives.

Pullulan-based capsules are expected to see the fastest growth during the forecast period. These capsules are derived from starch fermentation and are not only oxygen-impermeable but also biodegradable, making them an attractive choice for companies looking to meet the rising demand for sustainable and clean-label products. Technological advancements have made pullulan-based capsules more commercially viable, and their use is expected to increase as the market for nutraceuticals and specialty pharmaceuticals expands.

Application Insights

Nutraceuticals are expected to dominate the softgel capsules market, accounting for approximately 60% of the market share in 2025. The demand for nutraceuticals is being fueled by a growing emphasis on preventive healthcare, personalized nutrition, and a rising awareness of the health benefits of supplements. Softgel capsules, particularly those containing fat-soluble vitamins, omega-3 fatty acids, and herbal extracts, are in high demand due to their convenience, easy consumption, and ability to improve bioavailability.

Pharmaceutical applications of softgel capsules are also poised for steady growth, driven by advancements in drug formulation technologies. Softgel capsules are increasingly being used to encapsulate poorly soluble active pharmaceutical ingredients (APIs) and biologics, improving their stability and absorption in the body. Innovations in softgel design are enabling the encapsulation of a broader range of therapeutic agents, including those used in specialty and orphan drug treatments.

Regional Insights

North America

North America is expected to maintain its leadership in the softgel capsules market, capturing around 35% of the market share in 2025. This is primarily due to the strong presence of well-established pharmaceutical and nutraceutical industries in the U.S., supported by stringent regulations enforced by the FDA. Additionally, North American consumers are highly health-conscious, with an increasing preference for convenient dosage forms and plant-based supplements. Companies are also investing in green manufacturing processes and supply chain digitalization to meet the growing demand for transparency and sustainability.

Asia Pacific

Asia Pacific is poised to be the fastest-growing region in the softgel capsules market, with a projected CAGR higher than the global average during the 2025-2032 period. Rapid urbanization, expanding middle-class populations, and government initiatives focused on preventive healthcare are driving the demand for nutraceuticals and dietary supplements in countries like China, India, Japan, and the ASEAN region. The market in Asia Pacific is also benefiting from cost advantages in manufacturing and a rising preference for plant-based products.

Europe

Europe is forecast to capture approximately 25% of the market share in 2025. The European market is characterized by a strong regulatory framework and a high level of consumer interest in natural health solutions. As the demand for plant-based products continues to rise, Europe is seeing a shift toward plant-based softgel capsules and sustainable sourcing practices. The region’s aging population and rising rates of chronic diseases are also driving the growth of the nutraceutical sector.

Competitive Landscape

The global softgel capsules market is moderately concentrated, with leading players such as Catalent Pharma Solutions, Aenova Group, and Suheung Co. Ltd. dominating the market. These companies leverage technological leadership, global manufacturing footprints, and strong supply chain capabilities to maintain a competitive edge.

However, the market is also witnessing the emergence of regional and niche manufacturers, particularly those focused on plant-based softgel capsules and advanced softgel formulations. As consumer preferences shift toward sustainability and ethical sourcing, companies that innovate in these areas are likely to enjoy significant growth.

Key Industry Developments

In May 2025, Robinson Pharma expanded its softgel production capacity by adding 10 new machines, becoming the largest softgel producer in the U.S., with an annual capacity of 23 billion capsules. This expansion solidifies Robinson Pharma’s position as a leader in custom nutraceutical manufacturing.

In March 2025, Jupiter Neurosciences partnered with Catalent Pharma to produce JOTROL softgel capsules for a Phase 2a clinical trial on Parkinson’s disease, highlighting the growing use of softgel capsules in the pharmaceutical industry for specialized drug delivery.

Conclusion

The softgel capsules market is poised for robust growth, driven by increasing consumer demand for convenient, effective, and ethically sourced products. As the industry continues to innovate with plant-based and sustainable materials, manufacturers that can adapt to changing consumer preferences and regulatory requirements will be well-positioned to capture market share. With expanding opportunities in emerging economies, particularly in Asia Pacific, the market for softgel capsules is set to experience significant growth in the coming years.