The global empty capsules market is projected to increase from $3.1 billion in 2024 to $4.2 billion in 2029, a CAGR of 6.3%.
The growth is due to several factors, including changing drug delivery technologies, higher nutraceutical demand, and expanding capacity in North America and Asia. North America continues to be the leading market due to factors like existing pharmaceutical ecosystems, a demand for diverse OTC medications and supplements, and the aging population. However, the Asia Pacific market is often favored for new manufacturing investments due to affordable labor, low energy costs, fewer regulatory and tax barriers, and access to profitable domestic markets.
Additionally, regulatory scrutiny around cross-contamination, heavy metal limits, and bioavailability testing is forcing capsule producers to innovate faster while keeping production costs in check.
Global leaders in empty capsules are already making moves to meet this higher demand. Capsugel (Lonza) has pushed the envelope with Capsugel Enprotect — a coating-free capsule for targeted intestinal delivery, ideal for peptides and RNA-based therapeutics. India-based ACG has invested $100 million to build what will be the largest capsule manufacturing plant in Asia, capable of producing 240 billion capsules a year. In addition, QUALICAPS has expanded its manufacturing capabilities in the U.S., Europe, Japan, and Brazil.