Increasing demand for vegan and Halal pharmaceuticals is ramping up adoption, and providing support to a market, which is primarily driven by Type-A (pork-based) capsules. Development of hypromellose capsules for the treatment of pulmonary and non-pulmonary diseases are also creating growth opportunities for manufacturers.
Gelatin-based capsules will continue to account for higher demand than vegetarian-based capsules, accounting for nearly 75% revenue share of the market in 2018. Type-A (pork skin), the largest segment in terms of raw materials, will grow at a lower rate than non-pork based empty capsules, especially hydroxy propyl methyl cellulose (HPMC) and fish bone gelatin. While type-A (pork skin) revenues will grow by 4.86% in 2017, fish bone gelatin and HPMC revenues will grow by 8.99% and 8.50% respectively.
Size “4” capsules will continue to be the largest revenue segment on the basis of capsule size, with total revenues expected to reach US$ 285.7 Mn in 2018. Size “1” and Size “2” capsules will also account for substantial demand, collectively accounting for over US$ 510 Mn in market revenues in 2017.
Empty capsules are administered orally, and only a small percentage of these drugs is inhaled – the former accounted for 92.1% revenue share of the global market in 2017. While inhalation-based empty capsules will grow at a higher rate, they will continue to account for a revenue share of less than 10% of the overall market.
Pharmaceutical companies – the largest end-use segment for empty capsules – will continue to post strong gains in 2018. Revenues from this segment are anticipated to increase at 6.39% in 2018 to total US$1096.5 Mn. Demand will also be healthy in the cosmetics and nutraceutical sector, with this segment collectively accounting for nearly US$ 500 Mn in revenues in 2018.
The U.S. is the largest market for empty capsules, with total revenues expected to reach US$ 600 Mn in 2018. The North America empty capsules market (U.S. and Canada) is the largest globally in terms of revenues, accounting for nearly 45% revenue share of the market. Western Europe will maintain its position as the second largest market for empty capsules, with total revenues expected to reach US$ 279.4 Mn in 2018. Germany and France are the two largest markets in terms of revenues, with the former accounting for the highest revenue share and the latter growing at the highest rate.
Long-term Outlook:The global empty capsules market is anticipated to increase at a CAGR of over 7% to reach US$ 2,902.5 Mn in revenues by 2026.