Vegetarian Softgel Capsules Market Expands with Rising Vegan Demand

Vegetarian Softgel Capsules Market Size, Regional Insights with Key Trends

The global vegetarian softgel capsules market size is calculated at USD 996.32 million in 2025, grew to USD 1098.94 million in 2026, and is projected to reach around USD 2655.55 million by 2035. The market is expanding at a CAGR of 10.3% between 2026 and 2035.

The vegetarian softgel capsules market is primarily driven by the increasing demand for vegan products due to religious requirements. People are more aware of the global environmental impact and are switching to plant-based alternatives. Favorable regulatory support enables researchers to use excipients derived from natural sources. Artificial intelligence (AI) plays a crucial role in improving quality control and optimizing formulation. Advances in encapsulation technologies present future opportunities for market growth.

Key Takeaways

• Vegetarian Softgel Capsules industry poised to reach USD 996.32 million by 2025
• Forecasted to grow to USD 2655.55 million by 2035
• Expected to maintain a CAGR of 10.3% from 2026 to 2035
•      North America held a major revenue share of approximately 36% in the market in 2024.
• Asia-Pacific is expected to witness the fastest growth with a CAGR of approximately 8% during the predicted timeframe.
• By product/material, the starch-based capsules segment accounted for the highest revenue share of approximately 35% in the market in 2024.
• By product/material, the pullulan-based capsules segment is expected to expand rapidly in the vegetarian softgel capsules market with a CAGR of approximately 6-8% in the coming years.
• By application, the health supplements/nutraceuticals segment dominated the market with a share of approximately 45% in 2024.
• By application, the pharmaceuticals segment is expected to show the fastest growth with a CAGR of 7% over the forecast period.
• By distribution channel, the offline retail segment held a dominant revenue share of approximately 50% in the vegetarian softgel capsules market in 2024.
• By distribution channel, the online/e-commerce segment is expected to witness the fastest growth in the market with a CAGR of approximately 9% over the forecast period.

Executive Summary Table

Vegetarian Softgel Capsules: Plant-Based Innovation

The vegetarian softgel capsules market is experiencing rapid growth, driven by rising demand for plant-based products, health & wellness trends, regulatory acceptance of non-animal excipients, and global expansion of nutraceuticals. It covers the production, distribution, and use of softgel capsule shells made from plant-based materials (such as starch, hydroxypropyl methylcellulose (HPMC), pullulan, carrageenan) instead of traditional gelatin. These capsules are used in pharmaceuticals, nutraceuticals/supplements, and cosmetics, and meet vegetarian/vegan, halal/kosher, and clean-label requirements.

Vegetarian Softgel Capsules Market Outlook

• Industry Growth Overview: The market is expected to accelerate due to advancements in encapsulation technology and the need for plant-based excipients. Stringent regulatory requirements for environmental sustainability to build a greener future promote market growth.
• Major Investors: Numerous government and private organizations provide funding for pharmaceutical research, supporting the development of formulations. Funding also enables small- and mid-sized companies to purchase complex manufacturing equipment.
• Startup Ecosystem: The startup ecosystem is maturing in the vegetarian softgel capsules market, with the development of novel technologies for capsule production and venture capital investment. Startups identify multiple plant-based products to derive vegetarian capsules.

AI-Driven Formulation Redefines Veg Capsules

AI streamlines the research and manufacturing processes of vegetarian softgel capsules, enhancing the efficiency and precision. It allows researchers to choose from a wide range of plant-based products based on their manufacturing equipment and research requirements. AI and machine learning (ML) algorithms analyze vast amounts of data and predict the compatibility of natural excipients with active ingredients. They improve quality control and optimize the formulation of softgel capsules. AI-powered automation enhances manufacturing consistency and reproducibility.

Segmental Insights

Product/Material Insights

Which Product Segment Dominated the Vegetarian Softgel Capsules Market?

Starch-based Capsules

The starch-based capsules segment held a dominant presence with a share of approximately 35% in the market in 2024, due to high stability and strength. Starch is the most widely used excipient in the pharmaceutical sector for the preparation of tablets and capsules. It can be modified to achieve the desired properties, such as swelling capacity, mucoadhesive properties, and extended shelf-life. Starch-based capsules are specifically designed for intestinal release, supported by the presence of enzymes.

Pullulan-based Capsules

The pullulan-based capsules segment is expected to grow at the fastest CAGR of approximately 6-8% in the vegetarian softgel capsules market during the forecast period. The demand for pullulan capsules is increasing as researchers are becoming aware of their numerous benefits, such as a potential safety profile, superior oxygen barrier, and high transparency. Pullulan capsule is derived from a natural polysaccharide through the fermentation of starch by the fungus Aureobasidium pullulans.

HPMC (Hydroxypropyl methylcellulose)-based capsules

The HPMC (hydroxypropyl methylcellulose)-based capsules segment is expected to grow significantly, due to higher stability, longer shelf life, and lower moisture content. HPMC capsules have a faster dissolution time than gelatin capsules, allowing for quicker absorption of nutrients. In addition, HPMC capsule shells offer enhanced handling properties during the manufacturing and packaging phases.

Application Insights

Why Did the Health Supplements/Nutraceuticals Segment Dominate the Vegetarian Softgel Capsules Market?

Health Supplements/Nutraceuticals

The health supplements/nutraceuticals segment held the largest revenue share of approximately 45% in the market in 2024, due to the rising awareness of health & wellness products. The World Health Organization (WHO) reported that more than 80% of people in emerging economies consume plant extracts for various healthcare needs. Several multivitamins and omega capsules are available in the market. These capsules boost immunity and support the heart, brain, joints, and overall wellness. They are vegan, allergen-friendly, compatible with sensitive ingredients, and chemical-free, reducing toxicity and enhancing safety.

Pharmaceuticals

The pharmaceuticals segment is expected to grow with the highest CAGR of approximately 7% in the vegetarian softgel capsules market during the studied years. The growing demand for oral drug delivery and favorable properties, such as immediate-release or sustained-release, contribute to the segment’s growth. Capsules enhance patient convenience and can be administered by people of all age groups. Several studies have found that capsules are the most preferred oral route for numerous patients. Vegetarian capsules offer desired properties, such as moisture-sensitive and long shelf-life.

Cosmetics & Personal Care

The cosmetics & personal care segment is expected to show lucrative growth, driven by the consumer demand for plant-based and clean-label products. The shifting trend toward dietary and lifestyle preferences augments the segment’s growth. People consume vegan capsules for youthful & glowing skin, vitamin E, and better hair growth. Veg capsules are preferred due to more bioavailability and easier digestibility.

Distribution Channel Insights

How the Offline Retail Segment Dominated the Vegetarian Softgel Capsules Market?

Offline Retail

The offline retail segment contributed the biggest revenue share of approximately 50% in the market in 2024, due to the presence of skilled professionals and favorable infrastructure. Skilled professionals guide patients about the type of capsules they require based on their needs. The increasing number of retail stores enhances consumers’ accessibility. Retail stores allow customers to purchase a wide range of products for various purposes. They also offer 24/7 services.

Online/E-commerce

The online/e-commerce segment is expected to expand rapidly in the vegetarian softgel capsules market with a CAGR of approximately 9% in the coming years. The burgeoning e-commerce sector and the increasing adoption of smartphones propel the segment’s growth. Consumers can purchase capsules in the comfort of their homes directly from the manufacturer’s website. This helps them purchase products at affordable rates, eliminating the extra costs of wholesalers.

Institutional/B2B

The institutional/B2B segment is expected to grow in the coming years. B2B supply of capsules refers to wholesale sourcing of various capsule types, including empty shells and finished formulations. Wholesalers are aware of the established supply chain to deliver a reliable, long-term supply and complete traceability.

Regional Analysis

Which Factors Contribute to the Vegetarian Softgel Capsules Market in North America?

North America dominated the global market with a share of approximately 36% in 2024. The availability of state-of-the-art research and development facilities, the shifting trend toward vegetarian/vegan products, and increasing R&D investments are the major factors that contribute to market growth in North America. Favorable regulatory support promotes the use of vegetarian softgel capsules. People are more aligned towards a healthy lifestyle and are aware of wellness-related products.

Favorable Trade Policies Strengthen U.S. Dominance

The U.S. is the largest exporter of dietary supplement capsules in the world. From May 2024 to April 2025, the nation exported 1,440 shipments, marking a growth rate of 182% compared to the previous year. Most of the exports were made to Kazakhstan, the Philippines, and Costa Rica. Thus, favorable trade policies are a result of the veg capsules manufacturing and supply from the U.S.

How is Asia-Pacific Growing in the Vegetarian Softgel Capsules Market?

Asia-Pacific is expected to host the fastest-growing market with a CAGR of approximately 8% in the coming years. The increasing population, growing awareness of a healthy lifestyle, and the rising adoption of plant-based diets foster market growth. The burgeoning healthcare infrastructure and the rising disposable incomes boost the market. Countries like China, India, and Japan have a well-established manufacturing infrastructure. This encourages foreign investors and manufacturers to set up their facilities in the region.

Vegetarian Lifestyle Promotes India’s Growth

India has the highest number of vegetarians in the world. Over 39% of the total population of India is vegetarian. This is due to religious belief, ethical motivations, economic considerations, distaste for meat, and cultural influences. Key players, such as Lifevision Healthcare, Zoic Biotech, and Fermentis Life, are the major manufacturers of vegetarian softgel capsules in India.

Will Europe Grow in the Vegetarian Softgel Capsules Market?

Europe is expected to grow at a considerable CAGR in the upcoming period. The rapidly expanding pharmaceutical and cosmetics sectors and favorable government support propel the market. The increasing adoption of advanced technologies and growing research and development activities also contribute to market growth. The rising investments and public-private partnerships facilitate market growth. Germany, Italy, France, the UK, Spain, and the Netherlands are the major markets for natural products in Europe.

Changing Consumer Preferences Contribute to the UK’s Growth

As of 2023, there were 2.5 million vegans in the UK, representing 4.7% of the total UK population. NaturSupps, SC Nutra, and G. Baldwin & Co. are the major manufacturers of vegan softgel capsules in the UK. The UK government is also making constant efforts to regulate the use of gelatin in capsules and encourage researchers to find gelatin alternatives in capsules.

South America Gains Momentum in the Market

Vibrant and verdant, the South American vegetarian softgel capsules market is steadily expanding as health-conscious consumers in Brazil and beyond adopt plant-based wellness regimes. Rising supplement penetration and cleaner formulations are reshaping the landscape in key urban hubs.

Brazil’s Booming Vegan Vitality

In Brazil, vegetarian softgels are riding a powerful wave of clean-label and ethical consumption. Local supplement companies and manufacturers are ramping up production, leveraging regional infrastructure to meet growing demand for non-animal, highly bioavailable formulations.

MEA Region: Halal and Health-First Drives

Across the Middle East and Africa, vegetarian softgel capsules are becoming increasingly strategic due to rising health awareness and strong demand for halal-certified supplements. This region’s wellness market is pivoting to plant-derived, culturally compliant delivery systems.

GCC: The Plant-Powered Supplement Frontier

In the GCC, vegetarian softgels are emerging as an aspirational wellness choice, fueled by innovation, regulatory support, and high per capita supplement consumption. Manufacturers are capitalizing on technology to deliver premium, plant-based softgels suited to regional preferences.

Value Chain Analysis – Vegetarian Softgel Capsules Market

R&D

Research focuses on developing novel technologies to enhance the strength and stability of vegetarian capsules compared to animal gelatin.

• Key Players: Catalent, Inc., EuroCaps, and Aenova Group.

Raw Material Procurement

Raw materials for vegetarian capsules include corn, potato, tapioca, and red seaweed.

• Key Players: PotatoPro, Cargill, Ingredion, and SPAC Group.

Formulation & Final Dosage Preparation

Formulation & final dosage preparation include polymer preparation, encapsulation, drying, and packaging.

Company Landscape

1. Catalent, Inc.

Company Overview

Company Overview: Catalent is a premier global provider of advanced delivery technologies and development and manufacturing solutions for drugs, biologics, gene therapies, and consumer health products, including leading vegetarian softgel capabilities.

Corporate Information

• Headquarters: Somerset, New Jersey, U.S.
• Year Founded: 2007 (spun off from Cardinal Health; roots trace back to 1933)
• Ownership Type: Public (NYSE: CTLT)

History and Background

History and Background: Initially, the pharmaceutical technologies and services division of Cardinal Health. It became Catalent in 2007, focusing on global pharmaceutical and consumer health development and manufacturing. Its acquisition of R.P. Scherer in 1998 solidified its position in softgel technology, which has since been expanded to include advanced non-animal formulations.

Key Milestones/Timeline

• Key Milestones/Timeline: 
  • 2020: Launched its OptiGel DR technology, a delayed/enteric release softgel specifically applicable to vegetarian formulations.
  • 2022: Continued global expansion of manufacturing capacity, including sites focused on high-demand non-animal oral dose forms.
  • 2024: Announced a definitive agreement to be acquired by Novo Holdings, the parent company of Novo Nordisk, which is expected to close in the second half of 2024.

Business Overview

• Business Segments/Divisions: 
  • Biologics: Biologic drug substance and drug product manufacturing.
  • Softgel and Oral Technologies: Including development and manufacturing of softgels (animal and non-animal) and Zydis® fast-dissolve technologies.
  • Drug Delivery Solutions: Including clinical supply services, modified release technologies, and analytical services.
• Geographic Presence: North America (largest revenue contributor), Europe, and Asia-Pacific, with over 50 sites worldwide.
• Key Offerings: OptiGel®, OptiGel DR (Delayed Release), Vegicaps® capsules (vegetarian softgels, often starch/carrageenan-based), Zydis® orally disintegrating tablets, sterile injectables, and advanced blow-fill-seal capabilities.
• End-Use Industries Served: Pharmaceuticals, Nutraceuticals (Vitamins, Minerals, Supplements, Omega-3s), and Consumer Health Products.

Key Developments and Strategic Initiatives

• Mergers & Acquisitions: 
  • Acquisition of Novo Holdings (Pending 2024): The planned acquisition by Novo Holdings for $16.5 billion is its most significant development, positioning Catalent within a major pharmaceutical ecosystem.
• Partnerships & Collaborations: 
  • Ongoing CDMO Collaborations: Continues to partner with global pharmaceutical and biotech companies for drug development and manufacturing, including oral drug delivery platforms for NCEs.
• Product Launches/Innovations: 
  • OptiGel DR: Innovation specifically designed to provide enteric protection and delayed release without traditional gelatin or coating, benefiting vegetarian formulations.
• Capacity Expansions/Investments: 
  • 2023-2024: Continual investment in expanding its global capacity for biologics and advanced oral dose forms, including high-potency and plant-based technologies.

Regulatory Approvals

• Regulatory Approvals: Facilities hold approvals from major global agencies, including the FDA, EMA, and Japan's PMDA.

Distribution Channel Strategy

• Distribution channel strategy: Primarily a Contract Development and Manufacturing Organization (CDMO) model, serving as a B2B partner for pharmaceutical and nutraceutical brand owners globally.

Technological Capabilities/R&D Focus

• Core Technologies/Patents: OptiGel® (Softgel technology), Vegicaps® (Vegetarian Softgel), OptiGel DR, Zydis® (Orally Disintegrating Tablet).
• Research & Development Infrastructure: Dedicated R&D centers across North America and Europe focused on complex formulation, advanced delivery technologies, and non-animal capsule shell materials.
• Innovation Focus Areas: Enhanced bioavailability for poorly soluble compounds, delayed/enteric release vegetarian formulations, and large-scale manufacturing of complex biologics.

Competitive Positioning

• Strengths & Differentiators: Global scale, reputation for quality, breadth of proprietary delivery technologies (including its leading vegetarian softgel offerings), and extensive regulatory compliance expertise.
• Market presence & ecosystem role: A dominant global CDMO for pharmaceutical and nutraceutical products, driving innovation in delivery technology, particularly in the shift toward non-animal and clean-label solutions.

SWOT Analysis

• S (Strengths): Market leadership in softgels (including vegetarian), vast global footprint, advanced proprietary technologies.
• W (Weaknesses): High debt burden (prior to Novo Holdings acquisition), reliance on contract manufacturing revenue, high capital expenditure needs.
• O (Opportunities): Rising demand for complex biologics, increasing consumer preference for vegetarian/vegan supplements, and expansion in Asian markets.
• T (Threats): Intense CDMO competition, raw material and supply chain volatility, potential integration risks with Novo Holdings acquisition.

Recent News and Updates

• Press Releases: 
  • February 2024: Announced the definitive agreement to be acquired by Novo Holdings.
  • Late 2023/Early 2024: Continues to report strong segment growth in its softgel and oral technologies division, driven partly by nutraceutical demand.
• Industry Recognitions/Awards: Frequently recognized as a top-tier global CDMO for quality, reliability, and technological innovation.

2. Lonza Group (Capsugel)

Company Overview

Company Overview: Lonza Group is a leading global supplier to the pharmaceutical, biotech, and nutrition markets. Its Capsugel division, acquired in 2017, is a global leader in dosage form solutions, including premier vegetarian hard and soft capsule technologies.

Corporate Information

• Headquarters: Basel, Switzerland
• Year Founded: 1897
• Ownership Type: Public (SIX: LONN)

History and Background

History and Background: Lonza has a long history in chemistry and life sciences. The acquisition of Capsugel from KKR in 2017 for $5.5 billion was a transformative move, positioning Lonza as a global leader in drug development and manufacturing, with Capsugel providing the foundational expertise in capsule and dosage form technology, including vegetarian softgels.

Key Milestones/Timeline

• Key Milestones/Timeline: 
  • 2017: Lonza completes the acquisition of Capsugel, integrating the world's largest capsule manufacturer and dosage form solution provider.
  • 2020: Continued scaling of Vcaps® Plus and DRcaps® (hard vegetarian capsules) and Vgels® (vegetarian softgels) production to meet soaring demand.
  • 2024: Focuses on end-to-end solutions in the nutraceutical space, combining API development with advanced vegetarian delivery formats.

Business Overview

• Business Segments/Divisions: 
  • Lonza Pharma & Biotech: Integrated drug substance and drug product services (core Lonza business).
  • Lonza Small Molecules: Development and manufacturing for small molecule APIs and specialized capsules (includes Capsugel softgel offerings).
  • Lonza Nutrition: Dedicated focus on the nutraceutical market, heavily leveraging vegetarian softgel and hard capsule technologies.
• Geographic Presence: Global, with manufacturing and R&D facilities across North America, Europe, and Asia. 
• Key Offerings: Vgels® (Carrageenan-based vegetarian softgels), DRcaps® (acid-resistant HPMC hard capsules for delayed release), Vcaps® Plus (HPMC hard capsules), lipid-based delivery systems, and complete formulation services.
• End-Use Industries Served: Pharmaceuticals, Biotech, Nutraceuticals (major focus on supplements, vitamins, herbal extracts, and Omega-3s).

Key Developments and Strategic Initiatives

• Mergers & Acquisitions: 
  • Capsugel (2017): The pivotal acquisition that established its market leadership in dosage forms, including the core vegetarian softgel IP.
• Partnerships & Collaborations: 
  • Strategic CDMO Agreements: Engages in numerous long-term agreements with global supplement and pharmaceutical brands, leveraging Vgels® technology for new vegetarian product lines.
• Product Launches/Innovations: 
  • Expanding Vgels® Portfolio: Continuous innovation to improve the stability, fill range, and sealing of the plant-based Vgels® softgel formulation, making them suitable for an even wider range of oil and paste fills.
• Capacity Expansions/Investments: 
  • 2023: Announced investment in expanding its capacity in its core markets, including dedicated lines for non-animal capsule manufacturing in the U.S. and Europe.

Regulatory Approvals

• Regulatory Approvals: Holds all necessary cGMP, FDA, EMA, and various Halal and Kosher certifications for its vegetarian products globally.

Distribution Channel Strategy

• Distribution channel strategy: Operates as a B2B Contract Manufacturer and Supplier, providing capsules and complete finished product manufacturing services to brand owners.

Technological Capabilities/R&D Focus

• Core Technologies/Patents: Vgels® (Vegetarian Softgel), DRcaps® (Delayed-Release Vegetarian Hard Capsule), Vcaps® Plus, lipid-based and multiparticulate capsule filling.
• Research & Development Infrastructure: Dedicated R&D and application centers (e.g., in the U.S.) focused on dosage form development, specifically targeting the stability and processing of plant-based shell materials like carrageenan and starch.
• Innovation Focus Areas: Developing next-generation, high-performance, plant-based capsules with superior moisture barrier and enteric properties, and optimizing filling systems for nutraceutical oils.

Competitive Positioning

• Strengths & Differentiators: Unmatched reputation in capsule technology (inherited from Capsugel), high-quality plant-based portfolio (Vgels® are a market standard), and synergy with Lonza's broader biopharma services.
• Market presence & ecosystem role: A critical supplier of vegetarian encapsulation technology, enabling countless nutraceutical and pharmaceutical brands to launch clean-label, plant-based products worldwide.

SWOT Analysis

• S (Strengths): World-renowned Capsugel brand, market leadership in vegetarian capsules, strong financial backing from Lonza Group.
• W (Weaknesses): High integration cost of past acquisitions, competition from low-cost Asian manufacturers. 
• O (Opportunities): Explosive growth in the global vegan/clean-label supplement market, demand for vegetarian enteric-release systems.
• T (Threats): Supply chain volatility for key shell materials (e.g., carrageenan), the emergence of alternative oral dosage forms (e.g., gummies).

Recent News and Updates

• Press Releases: 
  • 2024: Lonza highlights the expansion of its Nutrition segment, emphasizing its ability to move products from concept to commercialization using advanced dosage forms like Vgels®.
  • Industry Recognitions/Awards: Receives regular recognition for its capsule technology excellence and its role as a leading CDMO partner.

Top Companies & Their Offerings

Other Companies

• Roquette
• Smayan Healthcare
• Fermentis Life
• Forgo Pharmaceuticals
• Natural Capsules Ltd.
• GNova Biotech
• Erkang Pharmaceutical
• ACG-Capsules

Recent Developments in the Vegetarian Softgel Capsules Market

• In May 2025, Robinson Pharma announced a major expansion of its manufacturing capabilities by integrating 10 new softgel machines into its production lines. The facility can produce 23 billion softgels annually. This expansion enables the company to solidify its position as the largest softgel manufacturing capacity in the U.S.
• In May 2024, Roquette, a French ingredient supplier, launched a new Lycagel Flex hydroxypropyl pea starch premix for nutraceutical softgel capsules. The product was launched at Vitafoods Europe in Geneva, offering formulators a vegan gelatin alternative.

Segments Covered in the Report

By Product/Material

• Starch-based Capsules
• HPMC (Hydroxypropyl methylcellulose)-based Capsules
• Pullulan-based Capsules
• Carrageenan-based Capsules
• Others (e.g., alginate, agar-based)

By Application

• Health Supplements/Nutraceuticals
• Pharmaceuticals
• Cosmetics & Personal Care
• Others (e.g., specialty food/functional ingredients)

By Distribution Channel

• Offline Retail (pharmacies, health-food stores)
• Online/E-commerce
• Institutional/B2B (contract manufacturing, bulk supply)

By Region

• North America 
  • US
  • Canada
  • Mexico
  • Rest of North America
• South America
  • Brazil
  • Argentina
  • Rest of South America
• Europe 
  • Western Europe
  • Germany
  • Italy
  • France
  • Netherlands
  • Spain
  • Portugal
  • Belgium
  • Ireland
  • UK
  • Iceland
  • Switzerland
  • Poland
  • Rest of Western Europe
• Eastern Europe 
  • Austria
  • Russia & Belarus
  • Turkiye
  • Albania
  • Rest of Eastern Europe
• Asia Pacific (APAC) 
  • China
  • Taiwan
  • India
  • Japan
  • Australia & New Zealand
  • ASEAN Countries (Singapore, Malaysia)
  • South Korea
  • Rest of APAC
• Middle East and Africa (MEA) 
  • GCC Countries 
    • Saudi Arabia
    • United Arab Emirates (UAE)
    • Qatar
    • Kuwait
    • Oman
    • Bahrain
  • South Africa
  • Egypt
  • Rest of MEA