Download Sample
Schedule a Meeting
NA : +1 804 441 9344
sales@towardshealthcare.com
August 2025
The global softgel capsules market size reached USD 9.88 billion in 2024, grew to USD 10.47 billion in 2025, and is projected to hit around USD 17.59 billion by 2034, expanding at a CAGR of 5.94% during the forecast period from 2025 to 2034.
The softgel capsules market is experiencing steady growth, driven by increasing demand for dietary supplements, pharmaceuticals, and nutraceuticals that offer enhanced bioavailability and ease of consumption. Softgels are favoured for their smooth texture, quick absorption, and ability to encapsulate oils, fat-soluble nutrients, and complex formulations.
Rising health awareness, preventive healthcare trends, and the aging population are fueling consumption, particularly for vitamins, omega-3s, herbal extracts, and prescription drugs. Technological advancements in encapsulation are enabling innovative product development, while expanding retail and e-commerce distribution channels are making softgel products more accessible. Strong demand from both healthcare and wellness sectors continues to propel market adoption.
| Table | Scope |
| Market Size in 2025 | USD 10.47 Billion |
| Projected Market Size in 2034 | USD 17.59 Billion |
| CAGR (2025 - 2034) | 5.94% |
| Leading Region | North America Share 38% |
| Market Segmentation | By Type, By Application, By Manufacturing Technology, By End User, By Distribution Channel, By Region |
| Top Key Players | Catalent, Inc., Aenova Group, EuroCaps Ltd., Sirio Pharma Co., Ltd., Lonza Group AG, BASF SE, Fuji Capsule Co., Ltd., Procaps Group, Soft Gel Technologies, Inc., Strides Pharma Science Limited, Robinson Pharma, Inc., Capsugel (Lonza), Captek Softgel International, Inc., NOW Health Group, Inc., NutraScience Labs, Patheon (Thermo Fisher Scientific Inc.), GelTec Health Ltd., Vesco Pharma, Amway Corporation (Nutrilite), Herbalife Nutrition Ltd. |
The softgel capsules market encompasses the production, distribution, and commercialization of oral dosage forms in which active pharmaceutical ingredients, nutraceuticals, or other bioactive compounds are encapsulated in a gelatin-based shell containing a liquid or semi-liquid fill. Softgel capsules are favored for their high bioavailability, easy swallowing, precise dosage, and ability to mask unpleasant tastes or odors. They are widely used in pharmaceuticals, dietary supplements, and cosmetics for delivering vitamins, minerals, oils, botanical extracts, and complex drug formulations. The market covers both animal-derived gelatin and plant-based (vegetarian) alternatives, meeting diverse dietary, cultural, and regulatory requirements.
Expansion & Shift to Plant-Based (Vegan & Clean-Label) Capsules
There’s a significant move away from animal-derived gelatin toward plant-based alternatives such as HPMC (hydroxypropyl methylcellulose), starch, and pullulan as consumers increasingly demand vegetarian, vegan, halal, or kosher options. This shift supports ethical and sustainable product preferences. Clean-label, plant-based products that support contemporary lifestyle objectives have drawn increasing consumer attention in 2025. One of the new brands that is quietly gaining popularity is Zotrim, a weight-loss and health supplement designed to be easily incorporated into everyday activities.
Personalized Nutrition & Controlled Release Technologies
Custom softgels tailored to individual health needs are gaining traction. Innovations include personalized formulations, modulated release mechanisms (e.g., sustained or enteric release), and multi-ingredient capsules.
Expansion into Beauty and Cosmetic Applications
Softgel capsules are becoming popular in the beauty space, especially for "beauty-from-within" products. Ingredients like collagen, hyaluronic acid, and skin-targeted actives are being encapsulated to maintain potency and support precise dosing in skincare and haircare supplements.
Advanced Encapsulation Techniques & Enhanced Bioavailability
Innovations like nano-encapsulation, lipid-based systems, and self-emulsifying drug delivery systems are improving absorption and stability, especially for poorly soluble compounds. Controlled-release capabilities and tamper-evident designs are also advancing.
Automation, Digitization & Smart Manufacturing
Integration of automation, digital monitoring, and AI-driven analytics is transforming softgel production. Smart machines enable real-time monitoring, predictive maintenance, and consistent quality control while boosting efficiency and supporting sustainability initiatives.
Sustainability in Materials & Manufacturing Processes
Eco-conscious consumers and stricter regulations are driving greener practices like using renewable energy, reducing waste, and developing biodegradable packaging and plant-based capsule materials.
AI integration is transforming the softgel capsules industry by enhancing efficiency, precision, and innovation across the production cycle. In manufacturing, AI-powered computer vision systems enable real-time inspection of capsules, detecting defects such as cracks, bubbles, or incorrect fills, while predictive maintenance algorithms reduce downtime by forecasting equipment issues. In R&D, AI accelerates formulation development by analyzing ingredient stability, bioavailability, and dissolution data, supporting faster innovation, including plant-based capsule alternatives.
Supply chain operations benefit from AI-driven demand forecasting, improving inventory management and delivery timelines. Additionally, AI supports personalized medicine and nutrition by tailoring softgel formulations to individual health data, while sustainability tracking optimizes resource usage and ensures compliance with environmental standards, making production eco-friendlier and cost-efficient.
Rising Demand for Nutraceuticals & Dietary Supplements
Increasing health awareness and focus on preventive healthcare are boosting the consumption of vitamins, omega-3s, herbal extracts, and other supplements in softgel form.
Superior Bioavailability & Easy Consumption
Softgels offer better absorption for fat-soluble and oil-based ingredients, along with smooth texture and ease of swallowing, making them preferred by consumers of all ages.
Gelatin Sourcing Challenges & Limited Suitability for Certain Formulations
The key players operating in the market are facing issues due to limited suitability for certain formulations and gelatin sourcing challenges, which are estimated to restrict the growth of the market. Dependence on animal-derived gelatin creates supply fluctuations, ethical concerns among vegetarian/vegan consumers, and susceptibility to diseases affecting livestock. Softgels are not ideal for highly water-soluble or heat-sensitive ingredients, restricting their application range.
Adoption in Pediatric and Geriatric
Softgels are preferred for children and elderly patients due to ease of swallowing, pleasant taste, and ability to mask unpleasant drug flavors.
Emerging Market Expansion
Rapid urbanization, rising disposable incomes, and increasing health awareness in Asia-Pacific, Latin America, and Africa are fueling demand for dietary supplements and pharmaceutical products in softgel form.
The gelatin-based softgels segment dominates the market due to its proven effectiveness, versatility, and cost-efficiency in manufacturing. Gelatin offers excellent film-forming properties, allowing for seamless encapsulation of a wide range of formulations, including oils, fat-soluble vitamins, and complex drug molecules. It provides superior oxygen barrier protection, enhancing the stability and shelf life of sensitive ingredients. Additionally, gelatin-based softgels are widely accepted by regulatory authorities and preferred by pharmaceutical and nutraceutical companies for their scalability and compatibility with high-speed production lines. Their smooth texture, easy swallowability, and ability to mask unpleasant tastes further boost consumer acceptance, maintaining their market leadership.
The non-gelatin softgels segment is the fastest-growing in the softgel capsules market due to rising consumer demand for plant-based, vegan, and vegetarian-friendly products. Made from materials like hydroxypropyl starch, pullulan, or carrageenan, these capsules cater to individuals with dietary restrictions, religious preferences, or gelatin allergies. Increasing awareness of clean-label and sustainable products is further boosting their adoption, particularly in the nutraceutical and functional foods sectors. Moreover, advancements in non-gelatin encapsulation technology have improved their stability, compatibility with a wide range of active ingredients, and visual appeal. Growing regulatory support for plant-based alternatives also fuels their rapid expansion in global health and wellness markets.
The nutraceuticals segment dominates the market and is estimated to grow at the fastest CAGR during the forecast period due to the rising global focus on preventive healthcare, wellness, and nutritional supplementation. The vitamins & minerals sub-segment held the major share under the nutraceuticals segment. Softgels are preferred for nutraceutical formulations because they offer superior bioavailability, precise dosage, and enhanced stability for sensitive ingredients like omega-3 fatty acids, vitamins, and herbal extracts. Their smooth texture and easy-to-swallow format improve consumer compliance, while the ability to mask unpleasant tastes and odors increases market appeal. Additionally, the growing popularity of dietary supplements, functional foods, and fortified products, driven by aging populations and lifestyle-related health concerns, has significantly boosted demand for softgel-based nutraceuticals, securing this segment’s leadership in the market.
Under the nutraceuticals segment, the omega-3 and other fatty acids sub-segment is estimated to be the fastest-growing in the softgel capsules market due to increasing awareness of their role in supporting heart, brain, joint, and eye health. The rising prevalence of cardiovascular diseases, cognitive disorders, and lifestyle-related health issues has fueled consumer demand for omega-3 supplements derived from fish oil, krill oil, and plant-based sources like algae. Softgels are the preferred delivery format for these oils as they protect against oxidation, ensure precise dosing, and enhance bioavailability. Growing vegan and vegetarian alternatives, along with clinical research validating health benefits, are further accelerating adoption, especially in preventive healthcare and wellness-focused markets.
The rotary die encapsulation segment dominates the market due to its efficiency, precision, and scalability in large-scale production. This technology enables uniform capsule size, accurate fill weight, and consistent quality, making it ideal for pharmaceuticals, nutraceuticals, and dietary supplements. Its ability to encapsulate a wide range of fill materials, including oils, suspensions, and semi-solids, offers versatility for various formulations. Additionally, rotary die machines support high-speed, continuous manufacturing, reducing production time and costs. Advances in automation, quality control systems, and gelatin or non-gelatin shell materials have further strengthened its adoption, making it the preferred choice for meeting global demand with strict regulatory compliance.
The softdrop technology segment is the fastest-growing in the softgel capsules market due to its advanced precision, flexibility, and suitability for small-batch and specialty production. This method allows for the gentle encapsulation of sensitive or heat-labile ingredients, such as probiotics, herbal extracts, and certain vitamins, without compromising their potency. Soft drop technology supports innovative formulations, including clean-label and plant-based softgels, catering to the rising demand for vegan and allergen-free products. Its adaptability for customized shapes, sizes, and colors appeals to the nutraceutical and cosmetic industries, aiming for product differentiation. Moreover, its reduced setup time and lower material wastage make it cost-effective for premium and niche markets.
The nutraceutical & dietary supplement manufacturers segment dominated the market due to the growing consumer shift toward preventive healthcare and wellness-focused lifestyles. Softgels are preferred in this sector for their ability to deliver oils, fat-soluble nutrients, and bioactive compounds with enhanced bioavailability and easy swallowability. The format is especially popular for omega-3 fatty acids, herbal extracts, vitamins, and probiotics, aligning with rising demand for functional and clean-label supplements. Manufacturers benefit from softgels’ aesthetic appeal, tamper resistance, and longer shelf life, which improve consumer trust. Additionally, the trend toward personalized nutrition and innovative formulations further strengthens this segment’s leadership in the market.
The contract manufacturing organizations (CMOs) and contract development and manufacturing organizations (CDMOs) segment is the fastest-growing in the softgel capsules market due to the rising trend of outsourcing among pharmaceutical, nutraceutical, and cosmetic companies. These organizations offer comprehensive services, including formulation development, encapsulation, quality testing, and large-scale production, enabling brands to reduce costs and accelerate time-to-market. Their expertise in regulatory compliance and ability to deliver customized solutions for diverse formulations make them highly valuable. Furthermore, the growing demand for specialized softgel products, coupled with the need for flexible manufacturing capacities, positions CMOs and CDMOs as essential partners for driving innovation and meeting evolving market demands.
The retail pharmacies segment dominates the distribution channel in the market due to their widespread accessibility, trusted reputation, and ability to offer a wide range of over-the-counter (OTC) and prescription softgel products. Consumers often prefer retail pharmacies for the convenience of in-person purchases, immediate availability, and professional guidance from pharmacists. These outlets cater to both routine health needs and specialized treatments, ensuring consistent demand. Additionally, retail pharmacies frequently run promotional campaigns and loyalty programs, further boosting sales. Their strong supply chain networks and partnerships with manufacturers also ensure a steady flow of high-quality softgel capsules to meet consumer needs.
The online pharmacies segment is the fastest-growing distribution channel in the softgel capsules market due to the rising trend of e-commerce in healthcare, offering convenience, doorstep delivery, and competitive pricing. Increasing internet penetration and smartphone usage have made it easier for consumers to purchase softgel capsules online, especially for chronic health management and wellness supplements. Online platforms provide access to a broader product range, detailed information, and user reviews, enhancing purchasing decisions. Additionally, discounts, subscription models, and discreet delivery options attract a wider customer base. The COVID-19 pandemic further accelerated this shift, as consumers increasingly preferred contactless purchasing of medicines and supplements.
North America holds a commanding position in the global market share by 38% in 2024, buoyed by several key factors and bolstered by recent industry developments. The region benefits from a robust presence of leading pharmaceutical and nutraceutical manufacturers, a well-established healthcare infrastructure, and substantial R&D investment, all of which foster early adoption of innovative formulations and high-volume production. Rapidly growing demand for dietary supplements, especially among an aging population, drives strong consumption of softgels, valued for their ease of swallowing and enhanced bioavailability.
The U.S. dominates the North American softgel capsules market. Key drivers include a well-developed healthcare ecosystem, robust pharmaceutical and nutraceutical industries, and strong consumer demand for dietary supplements and vitamins. The increasing popularity of non-animal-based softgels, such as plant-derived alternatives, reflects growing health consciousness and clean-label trends. Additionally, regulatory rigor from FDA standards bolsters consumer trust and market stability.
The Canadian softgel capsules market, while smaller, is steadily growing. The country's health-conscious consumer base and rigorous quality standards contribute to sustained demand. Although growth rates are more modest compared to the U.S., Canada continues to support innovations in softgel formulations while maintaining product integrity.
The Asia-Pacific region is emerging as the fastest-growing market for softgel capsules, propelled by several dynamic factors. Increasing health consciousness and rising disposable incomes across countries like China, India, and Japan are fueling strong demand for convenient dietary supplements and nutraceuticals, with softgels favored for their superior bioavailability and ease of ingestion. Additionally, an expanding consumer preference for clean-label and plant-based products is driving innovation in vegetarian softgel alternatives. Technological advancements such as multi-layered formulations, controlled-release mechanisms, and enhanced stability further broaden the application scope. Rapid urbanization and improvements in healthcare infrastructure across emerging markets like Indonesia, Thailand, and the Philippines also play significant roles in boosting regional adoption.
China commands strong influence in the region, propelled by growing healthcare needs, increasing disposable income, and a large consumer base keen on health and wellness trends. A wave of new dietary supplements and nutraceuticals, particularly in softgel form, is emerging as Chinese consumers seek convenience and efficacy. Attracting global investment, companies such as Lonza are expanding manufacturing capacity domestically in both China and India in late 2024 and early 2025 to serve local and regional demand.
India’s healthcare and pharmaceutical sectors continue to fuel softgel demand. Key players are launching innovative products and forming strategic partnerships: Zydus Cadila introduced a new softgel supplement line in September 2023, RSM Laboratories partnered with Hetero Labs in August 2023 to co-develop advanced formulations, and Strides Pharma Science expanded its product reach via collaboration with New Era Pharmaceuticals in March 2023.
The Europe region is experiencing notable growth in the softgel capsules market, driven by several key factors. The region’s stringent regulatory environment, guided by authorities like the European Medicines Agency (EMA), ensures high product quality and safety standards, which encourages innovation in advanced softgel formats such as plant-based and allergen-free capsules. An aging population with increasing health concerns fuels demand for easy-to-swallow, high-bioavailability dosage forms, especially for nutraceuticals and pharmaceuticals. Technological advances, including lipid-based delivery systems that improve solubility and controlled-release mechanisms, enhance drug efficacy and open new application areas. Furthermore, robust e-commerce infrastructure, particularly in leading markets like Germany, ensures broader consumer reach and convenient access to softgel-based products.
In May 2024, Steve Amoussou-Guenou, Technical Developer Manager Europe at Roquette, stated that the mission at Roquette is to address the most difficult drug delivery problems. This can manifest in a variety of ways; as the Roquette company’s LYCAGEL VS 720 main objective was to give softgel manufacturers a superior, readily usable substitute to gelatin. As vegan capsules gain popularity, the company understands that their clients require more control to alter their formulas. The solution is LYCAGEL Flex, which provides the same performance and stability with additional adaptability to distinguish.
By Type
By Application
By Manufacturing Technology
By End User
By Distribution Channel
By Region
August 2025
August 2025
August 2025
August 2025