Rising Preference for Vegan Capsules Over Gelatin-Based Capsules

For many years, there have been medical, religious, cultural, and ethical concerns about adding animal substances to capsule coatings or formulations in pharmaceutical medicines. Also, some consumers expressed concerns over the use of animal-derived pharmaceutical medicines due to the associated healthcare risks. In July 2023, the Center for Disease Control and Prevention (CDC) published a report stating that consumption of animal-derived medicines and supplements is responsible to cause Alpha-gal syndrome (AGS) among patients. Also, AGS patients revealed serious allergic reactions after consuming medications or supplements that include mammalian-derived ingredients. Such instances have raised the interest among the manufacturers to produce animal-free medications and supplements.

Table: Comparative Analysis Between Gelatin Capsules and Vegetarian Capsules

Factors	Gelatin Capsules	Vegetarian Capsules
Source	Bovine, Cow, and Pigs	Plants
Target Audience	Vegan, Vegetarian, and Nonvegetarian Population	Vegan or Vegetarian Population
Allergy	Allergy Due to Cow and Pig-Based Ingredient	No Allergies
Cross Linking Ingredients	Cross Linking with Other Drug-Drug Derivatives	No Cross Linking
External Ingredients	Preservatives	No Preservatives

Source: The Insight Partners Analysis

Currently, the high volume of pharmaceutical capsules available in the market are composed of gelatin. However, the crosslinking of the gelatin with drug incompatibilities and strict regulations on the use of animal-derived gelatin have encouraged pharmaceutical manufacturers to replace gelatin components with vegetable-based ingredients. Pharmaceutical manufacturers identified that Hydroxypropyl Methylcellulose (HPMC)-derived vegetarian capsules is a good alternative to gelatin due to its vegetable derived source. Vegicaps soft capsules is the best example of animal-free capsules. The shell is composed of seaweed extract and gluten-free starch containing no modified sugars and artificial colors. Advantages of Vegicaps soft capsules are that they are free from animal derivatives, easy to swallow, soft, natural, and healthier products. In the case of gelatin-based capsules, the shell may get soft and become sticky upon spraying aqueous enteric polymer dispersions or may become brittle due to water evaporation during drying, ultimately losing mechanical stability. However, in HPMC-derived vegetarian capsules, it is less sensitive to aqueous coating, and the capsule shell is hard that avoids leakage of the ingredients.

Therefore, rising preference toward vegetarian medicines proves advantageous for the manufacturers to accelerate the production of vegetarian capsules, which drives the vegetarian capsules market growth.

Innovative Product Launches of Vegetarian Capsules – An Opportunity

Innovation in vegetarian capsule products is of utmost importance for manufacturers to promote it as the best alternative to gelatin capsules. Nutraceutical companies are launching modified-release vegetarian capsules for effective drug absorption and to achieve predetermined clinical objectives.

“DRcaps capsules” by Lonza’s (Capsugel) are vegetarian capsules manufactured using hydroxypropyl methylcellulose (HPMC), which disintegrates more slowly than traditional gelatin capsules. Such HPMC-derived vegetarian capsules keep the ingredients intact in the capsule shell. Also, DRcaps capsules do not require any external application of chemical coatings to keep the ingredients intact, mask taste, or postpone the release of the active ingredients, proving advantageous for consumers who doubt capsule coatings as “unnatural.” The clinical in-vitro studies on DRcaps capsules reveal that the capsule contents are intact for at least 30 minutes, with a gastric pH of 1.2, and disintegrate fully at an intestinal pH of 6.8. The DRcaps capsules are modified-release vegetarian capsule types that benefit consumers dealing with bad taste or aftertaste caused by some ingredients. Further, these capsules can eliminate certain disintegration steps such as coating, which reduces high production costs and time. 

Several nutraceutical manufacturers are developing acid-resistant vegetarian capsules as probiotics cannot travel through stomach acid. Several probiotic products contain “strains” that cannot survive the passage of stomach acid. The SILVACO company’s “Acid-Resistant vegetable HPMC capsules” can pass through the stomach acid, travel in low-pH environments, and quickly disintegrate in the intestinal tract.

Vegetarian capsule manufactures are developing innovative products to obtain predetermined clinical objectives and gain a significant advantage over gelatin capsules, which is expected to offer lucrative opportunities for the vegetarian capsules market during the forecast period.

Vegetarian Capsules Market: Geographic Overview

The vegetarian capsules market, by geography, is segmented North America (the US, Canada, and Mexico), Europe (Spain, the UK, Germany, France, Italy, and the Rest of Europe), Asia Pacific (South Korea, China, India, Japan, Australia, and the Rest of Asia Pacific), the Middle East & Africa (South Africa, Saudi Arabia, the UAE, and the Rest of Middle East & Africa), and South & Central America (Brazil, Argentina, and the Rest of South & Central America). In 2023, Asia Pacific held the largest vegetarian capsules market share. India is the largest contributor to the market in Asia Pacific. Further, North America holds the second-largest share of the global market. In the North America market, the US holds the largest share.

Vegetarian Capsules Market, by Product:

Based on product, the vegetarian capsules market analysis is carried out by considering the following subsegments: Hydroxypropyl Methyl Cellulose (HPMC), pullulan, and others. The HPMC segment held the largest market share in 2023. The pullulan segment is anticipated to register the highest CAGR of 9.0% during the forecast period.

Vegetarian Capsules Market, by Application:

By application, the vegetarian capsules market is segmented into antibiotic & antibacterial drugs, vitamin and dietary supplements, anti-inflammatory, cardiovascular therapy, antacid & antiaffluent, and others. The antibiotic & antibacterial drugs segment held the largest vegetarian capsules market share in 2023. The vitamin and dietary supplements segment is anticipated to register the highest CAGR of 9.3% during the forecast period.

Vegetarian Capsules Market, by Functionality:

The vegetarian capsules market, based on functionality, is segmented into immediate-release, sustained-release, and delayed-release. The immediate-release segment held the largest market share in 2023. The sustained-release segment is anticipated to register the highest CAGR of 9.2% during the forecast period.

Vegetarian Capsules Market, by End User:

By end user, the vegetarian capsules market is segmented into pharmaceutical industry, nutraceutical industry, contract manufacturing organizations, and cosmetic industry. The pharmaceutical industry segment held the largest vegetarian capsules market share in 2023 and is anticipated to register the highest CAGR of 8.8% during the forecast period.

Vegetarian Capsules Market: Competitive Landscape and Key Developments

The vegetarian capsules market analysis is carried out by identifying and evaluating key players in the market across different regions. Shanxi Guangsheng Medicinal Capsules (GS Capsules); Lefancaps; SUHEUNG; ACG; Capsugel, Inc. (Subsidary of Lonza Group AG); HealthCaps India; NATURAL CAPSULES LIMITED; Sunil Healthcare Limited; QUALICAPS; Zhejiang Honghui Capsule Co., Ltd.; BrightCaps GmbH; CapsCanada; Zhejiang Huili Capsules Co., Ltd.; and Yasin are among the prominent players profiled in the vegetarian capsules market report. These companies focus on introducing new technologies, upgrading existing products, and undertaking geographic expansions to address the globally increasing consumer demand.