The global hard gelatin capsules market is projected to grow from USD 2.05 billion in 2025 to USD 3.46 billion by 2035, registering a compound annual growth rate (CAGR) of 5.8%. Rising demand for oral solid dosage forms across the pharmaceutical and nutraceutical industries continues to support the market’s expansion.
These capsules are widely favoured for their ease of swallowing, rapid dissolution, and compatibility with a broad range of active pharmaceutical ingredients (APIs). As aging populations and chronic disease prevalence increase globally, the need for safe and effective delivery systems is driving consistent growth.
Hard gelatin capsules are extensively used for encapsulating antibiotics, dietary supplements, and probiotics. Their ability to accommodate both powdered and granulated ingredients adds to their flexibility in drug development. In 2025, pharmaceutical applications are expected to account for the dominant share, with companies increasingly investing in capsule-based formulations for improved patient compliance.
| Attributes | Key Insights |
|---|---|
| Historical Size, 2024 | USD 1.94 million |
| Estimated Size, 2025 | USD 2.05 billion |
| Projected Size, 2035 | USD 3.46 billion |
| Value-based CAGR (2025 to 2035) | 5.8% |
Technological advances in capsule sealing and banding are also enhancing product safety and reducing risks of tampering, further boosting their adoption in regulated markets such as the USA and Europe.
In 2025, major manufacturers began introducing non-animal gelatin alternatives to meet demand from vegetarian and halal consumer segments. By 2025, several capsule producers, including Capsugel and ACG, will have launched plant-based hard capsules with performance characteristics matching traditional gelatin types.
These products are gaining traction in nutraceutical and herbal medicine categories. Simultaneously, capsule filling machines with higher automation capabilities are being adopted by contract manufacturers and large pharmaceutical firms to increase production output and reduce contamination risks.
Asia Pacific is anticipated to witness significant market gains over the next decade due to rising generic drug manufacturing and expanding healthcare access. Countries such as India and China are becoming major production hubs, aided by government initiatives and growing local demand.
Manufacturers are also focusing on sourcing bovine gelatin from traceable and BSE-free origins to meet strict regulatory standards across global markets. With growing investments in R&D, material innovation, and sustainable sourcing, the hard gelatin capsules market is expected to continue its upward trajectory through 2035.
The table below compares the compound annual growth rate (CAGR) for the global hard gelatin capsules market from 2024 to 2025 during the first half of the year. This overview highlights key changes and trends in revenue growth, offering valuable insights into market dynamics.
H1 covers January to June, while H2 spans July to December. In the first half (H1) of the decade from 2024 to 2034, the business is predicted to surge at a CAGR of 6.9%, followed by a slightly lower growth rate of 6.5% in the second half (H2) of the same decade.
| Particular | Value CAGR |
|---|---|
| H1(2024 to 2034) | 6.9% |
| H2(2024 to 2034) | 6.5% |
| H1(2025 to 2035) | 5.8% |
| H2(2025 to 2035) | 5.3% |
Moving into the subsequent period, from H1 2025 to H2 2035, the CAGR is projected to decrease slightly to 5.8% in the first half and remain relatively moderate at 5.3% in the second half. In the first half (H1) the market witnessed a decrease of 110 BPS while in the second half (H2), the market witnessed a decrease of 120 BPS.
The type-B gelatin segment, derived from animal bones and calf skin, is projected to hold a dominant 46.7% share of the global hard gelatin capsules market in 2024. This segment's leadership is driven by the availability and lower cost of production compared to type-A gelatin sourced from pig skin.
Manufacturers prefer type-B gelatin for its reliable gelling properties, excellent film-forming ability, and strong capsule integrity. These properties make it highly suitable for pharmaceutical and nutraceutical applications that demand robust encapsulation. Companies like Capsugel (a Lonza company), ACG Worldwide, and Suheung Co., Ltd. actively utilize type-B gelatin in mass capsule production due to its consistent performance and compatibility with various active ingredients.
Furthermore, regulatory approvals and widespread consumer acceptance of bovine-sourced gelatin over porcine alternatives contribute to its global adoption. As demand rises for halal and kosher-certified gelatin solutions, type-B gelatin’s flexibility in meeting such requirements reinforces its position as the top investment segment in capsule manufacturing.
The Size “0” capsules segment is expected to account for 19.7% of the hard gelatin capsules market in 2024, leading the industry by size category. These capsules are favoured in both pharmaceutical and nutraceutical formulations due to their ideal volume-to-size ratio. Offering a fill capacity of approximately 400–500 mg (depending on the formulation density), Size “0” capsules allow manufacturers to deliver sufficient doses without compromising user convenience.
This makes them particularly useful for daily supplements, herbal blends, and over-the-counter medications. Companies such as Qualicaps, Farmacapsulas, and HealthCaps focus heavily on producing this capsule size due to its widespread acceptance across demographics and applications.
The capsules are also compatible with automated filling equipment, making them cost-effective and scalable for large production runs. Their ease of ingestion enhances patient compliance, especially among older adults and pediatric populations. As demand grows for efficient drug delivery formats, the Size “0” capsule is poised to remain the most commercially viable option within size-based segments.
Hard gelatin capsules can enhance the bioavailability of poorly soluble drugs which boost their adoption
One of the major drivers in the market is that hard gelatin capsules help in the absorption of poorly soluble drugs. Many medicines, upon administration, face certain difficulties while dissolving into the body, which decreases their effectiveness.
Hard gelatin capsules help solve this problem by enclosing the drug in a shell that dissolves quickly within the stomach and helps the drug to degrade and be absorbed effectively.
The fact that the capsule dissolves fast really exposes more of the active ingredient to the bloodstream, making the drug work better. Moreover, special ingredients can be added to the capsule to enhance the rate at which it dissolves.
This is particularly beneficial for drugs that do not dissolve well naturally. With pharmaceutical companies looking to optimize the delivery of their drugs, the amount of hard gelatin capsules being used is steadily on the rise. Therefore, these kinds of capsules prosper in the market, as there is a heightened demand for better means of drug delivery.
Expansion of nutraceutical market creates future growth opportunity
The major drivers in the hard gelatin capsules market include the rapidly growing nutraceutical market.
Increasing awareness among consumers regarding health has turned people to be more health-conscious and has made them turn to prevention rather than treatment, which again increases demand for the capsules. Therefore, dietary supplements and nutraceuticals are in demand, out of which one preferred form is hard gelatin capsules.
These are popular because of their effectiveness and convenience for nutritional supplement delivery. One good example is that supplements of fish oil are considered to be rich in omega-3 fatty acids, normally supplied in the form of hard gelatin capsules.
The shell of gelatin assists in encapsulating the oil; therefore, it protects it from oxidation and allows the delivery of the oil to the digestive system without being damaged. This protection enhances its stability and effectiveness.
Hard gelatin capsules can also mask the taste of supplements, hence making them palatable for consumers.
They enable effective dosing, which is paramount to maintain optimum health. Besides, with the trend towards preventive health and self-care continuing to grow, demand for dietary supplement and nutraceuticals in hard gelatin capsules is thus likely to go up and drive the market.
Technological Advancements in Encapsulation is acting as a major trend in the market
The technological change in encapsulation has majorly supported the growth in the hard gelatin capsule market by increasing production efficiency, improving the quality of the product, and widening the scope of applications.
New innovative encapsulation technologies that have reformed hard gelatin capsule manufacturing and use include liquid-filled hard capsules, micro-encapsulation techniques, and band-sealing techniques.
The liquid-filled hard capsule represents one of the most interesting developments in the last decades due to its capability to allow the encapsulation of liquid and semisolid formulations. Technology brings enhanced bioavailability for poorly soluble drugs and increased stability of the encapsulated product.
This allows various active pharmaceutical ingredients that can be encapsulated in more liquid form, opening new avenues in drug delivery and formulation flexibility.
In this respect, another development is represented by the techniques of microencapsulation, allowing a very specific control of drug release profile.
Coating the API with different polymers prior to encapsulation enables the manufacturer to design the capsules that would release drugs at specific sites in the gastrointestinal tract or over a more prolonged period.
This technology has been found to have special application for controlled-release formulations and is gaining more and more importance both in the nutraceutical and pharmaceutical fields.
Gelatin is derived from animal collagen, which can pose challenges due to ethical concerns
Gelatin is obtained from animal collagen, normally from beef or pork. This can create problems in that some people frown upon or have issues with the use of animal products. Besides, the supply of gelatin might be inconsistent due to changes in farming or legal environments concerning animal farming.
Such factors result in increased costs and reduced reliability in the supply of gelatin for production. This is likely to pose a headache to firms as far as sourcing gelatin and consequently ensuring a reliable production process is concerned for the hard gelatin capsule. This, therefore, means a significant consideration in the hard gelatin capsule market.
In addition, hard gelatin capsules face stiff competition from other dosage forms such as tablets, soft gels, and liquid medications. Tablets are preferred by virtue of being relatively cheap and having a longer shelf life. Soft gels are easier to swallow and can protect the sensitive ingredients inside.
Liquid medications boast the fact that they have quick absorption and flexibility of dosing. These options have different advantages and may meet various consumer needs, challenging the hard gelatin capsules market. Therefore, companies need to keep innovating and discussing the unique benefits of capsules to remain competitive.
Tier 1 companies are the industry leaders as they hold a substantial 58.5% market share worldwide. These companies have generated revenue over USD 100 million. These companies have large product portfolio and a high production capacity.
These industry leaders stand out for having a wide geographic reach, a strong customer base, and substantial experience in manufacturing. They offer a variety of product, and have a strong brand loyalty.
Prominent companies within tier 1 include ACG Worldwide, Lonza-Capsugel, Qualicaps, Inc. (Mitsubishi Chemical Holdings Corporation), CapsCanada Corporation, Suheung Co., Ltd. (EmboCaps), Medi-Caps Ltd., and NLL (Nector Lifesciences Ltd.)
Mid-size businesses with annual revenue between USD 0 and USD 100 million and which are capturing a market share of 21.7% in global market, and that are based in particular areas and have a significant impact on the local market are considered Tier 2 companies. These companies have regional presence and in-depth industry expertise.
These companies invests in newer technology and follows good manufacturing practices (GMP). These companies also collaborate with bigger companies so as to get competitive edge.
Prominent companies in tier 2 include Erawat Pharma, Dah Feng Capsule (Biocaps), Lefan Capsule, Qingdao Yiqing Medicinal Capsules Co., Ltd., Shanxi Guangsheng Medicinal Capsule, Health Caps India, Comed Chemicals, and Fortcaps Healthcare
Tier 3 companies, although, smaller but are essential for the market. They have limited reach and mostly operate in few countries. They have lesser revenue as compared with tier 1 and tier 2 companies.
The companies such as Shaoxing Zhongya Capsule, Shree Pharma Caps, Shaoxing Kangke Capsule, Zhejiang Yuexi Capsule, Saviour Caps, Chemcaps Ltd., Anhui Huangshan Capsule and other falls under this category. They specialize in specific products and cater to niche markets, adding diversity to the industry.
The section below covers the industry analysis for the hard gelatin capsules market for different countries. Market demand analysis on key countries in several regions of the globe, including North America, Asia Pacific, Europe, and others, is provided.
The United States is anticipated to remain at the forefront in North America, with a value share of 80.6% through 2035. In Asia Pacific, China is projected to witness a CAGR of 5.8% by 2035.
| Countries | Value CAGR (2025 to 2035) |
|---|---|
| USA | 1.8% |
| Germany | 1.8% |
| France | 2.9% |
| UK | 2.1% |
| China | 5.8% |
| India | 6.6% |
| Soutd Korea | 4.6% |
Germany’s hard gelatin capsules market is expected to exhibit a CAGR of 1.8% between 2025 and 2035. The Germany holds highest market share in European market.
In Germany, greater consumer preference for hard gelatin capsules due to their convenience in delivery and taste masking properties is a significant growth factor. Many patients, particularly aged patients and people suffering from dysphagia, are said to find it easier to swallow capsules rather than tablets.
Capsules are smooth and require less effort during swallowing, which is of utmost importance to people with health conditions that make swallowing a pill difficult.
Thirdly, hard gelatin capsules mask the unpleasant taste and odor of a certain drug or supplement. Because of this, it is highly desirable in over-the-counter and prescription products since they enhance the patient's experience by making the taking of medication much easier to bear.
Greater awareness of these benefits significantly raises demand for the hard gelatin capsule in the German market. This can be enabled by increasing focus on patient-centric health propositions, and also growth in dietary supplement and personalized medicine markets, which are expected to propel the capsule market.
USA market is anticipated to grow at a CAGR of 1.8% throughout the forecast period.
In the USA, the emergence of personalized medicine has encouraged the need for formulations of personalized capsules to a great extent. This kind of medicine will actually work on fitting treatments with respect to several variables that characterize a patient, like their genetic profile, life habits, or particular health conditions.
Hard gelatin capsules match very well with this approach, given the ability to tailor dosage, release mechanisms, and mixes to fit each individual's needs.
The pharmaceuticals are currently working on different types of capsules with tailored formulations that target a particular health-related problem or maximize the efficacy of a drug concerning the profile of a patient. In addition, personalization enhances treatment outcomes and minimizes the incidence of side effects.
The growth in genomic research and an increasing focus on personalized healthcare spur interest in personalized medicine.
Because patients and health professionals continue to demand more accurate and potent therapeutic treatment, the hard gelatin capsule market has emerged resiliently as a function of its demand, which is continuously growing for specialized capsule formulations.
The China is expected to hold dominating position in East Asia market of hard gelatin capsules and is anticipated to grow at a CAGR of 5.8% throughout the forecast period.
Because of better health awareness and an increase in the middle-class population, the consumption of OTC medicines is also increasing more for convenience and self-medication purposes. Hard gelatin capsules are increasingly used to produce such products as they effectively deliver a broad range of pharmaceuticals, from pain relievers to cold and flu medications.
Capsules have won a place among consumers because of the ease of swallowing, efficiency of dosage control, and masking of unpleasant tastes. Their consumption is further driven by the increase in the availability of OTC products in capsule form on retail shelves and on online platforms.
In addition, Chinese regulations are giving an impulse to demand due to supportive legislation that has promoted access and affordability of medication. As more and more consumers switch to OTC solutions for minor health issues, it is likely that demand for hard gelatin capsules will continue to rise in China.
The hard gelatin capsules market is extremely fragmented. There are large number companies that offers hard gelatin capsules in the global market involved in developing novel products so that they can meet their customer’s needs.
Prominent producers of Hard Gelatin Capsules products are concentrating on growing internationally in order to increase their revenue and increase the size of their sales footprint. These companies often collaborated with other research institutes to develop more advanced devices.
Manufacturers utilize various key strategies such as agreements, product launches, research sponsorship, and strategic collaborations to boost product sales and establish their market presence.
Recent Industry Developments in Hard Gelatin Capsules Market
| Report Attributes | Details |
|---|---|
| Market Size (2025) | USD 2.05 billion |
| Projected Market Size (2035) | USD 3.46 billion |
| CAGR (2025 to 2035) | 5.8% |
| Base Year for Estimation | 2024 |
| Historical Period | 2020 to 2024 |
| Projections Period | 2025 to 2035 |
| Quantitative Units | USD billion for value |
| Source Types Analyzed | Type-A (pork skin), Type-B gelatine (animal bones & calf skin), fish bone gelatine |
| Capsule Sizes Analyzed | Size "00", "0", "1", "2", "3", "4", "5" |
| Route of Administration Analyzed | Oral administration, inhalation |
| End Users Analyzed | Pharmaceutical companies, cosmetic & nutraceutical companies, CROs & CDMOs |
| Regions Covered | North America, Latin America, Europe, East Asia, South Asia & Pacific, Middle East & Africa |
| Countries Covered | United States, Canada, Brazil, Mexico, Germany, France, United Kingdom, China, India, Japan, Australia, UAE, South Africa |
| Key Players Influencing the Market | ACG Worldwide, Lonza, Qualicaps, Inc., Sunil Healthcare Ltd., CapsCanada Corporation, Suheung Co., Ltd., Medi-Caps Ltd., NLL, Natural Capsules, Erawat Pharma, Dah Feng Capsule, Lefan Capsule, Qingdao Yiqing Medicinal Capsules Co., Ltd., Shree Pharma Caps |
| Additional Attributes | Dollar sales, share by source, regional demand trends, growth drivers like personalized medicine and nutraceuticals, pricing trends, distribution channels, market shares, technological advancements in capsule formulation |
In terms of source, the industry is divided into type-A (pork skin), type-B gelatine (animal bones & calf skin), and fish bone gelatine
In terms of size, the industry is segregated into size "00" capsules, size "0" capsules, size "1" capsules, size "2" capsules, size "3" capsules, size "4" capsules, and size "5" capsules
In terms of route of administration, the industry is divided into oral administration and inhalation.
In terms of end user, the industry is segregated into pharmaceutical companies, cosmetic & nutraceutical companies, and CROs & CDMOs
Key countries of North America, Latin America, Europe, East Asia, South Asia & Pacific, Middle East and Africa (MEA) have been covered in the report.
The global hard gelatin capsules market is worth USD 2.05 Billion at present 2025
The global hard gelatin capsules market is expected to reach USD 3.46 Billion by the end of 2035, with sales revenue expected to register at 5.8% CAGR.
Some of the significant trends in this market are the development of liquid-filled hard gelatin capsules for oral ingestion, and powder-filled hard gelatin capsules for use in dry powder inhalers.
The USA, Germany, UK, China, and India are expected to drive demand for global hard gelatin capsule products.
The USA is one of the key markets for global hard gelatin capsules, projected to account for about 93.0% of the overall North American market during the forecast period 2035
The USA, Germany and India are the key producers in the global hard gelatin capsules market space.
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Hard Gelatin Capsules Market
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