Vegetarian Softgel Capsules Market Size, Share, By Product Type (Starch, Pullulan, and Others), Application (Pharmaceutical, Health Supplements, and Others), Distribution Channel (Offline and Online), and Region - Trends, Analysis and Forecast till 2035

• Vegetarian softgel capsules market size is expected to grow at a valuation of USD 1.3 Billion by 2035.
• In 2024, the market valuation was USD 0.7 Billion.
• Target market is projected to grow at a CAGR of 5.8%.

Animal-free vegetarian softgel capsules are a plant-based substitute for gelatin capsules. It is made up of components such as pullulan, starch, and cellulose. Vegetarian softgel capsules are easy to swallow, hypoallergenic, environmentally friendly, customizable, has a longer shelf life, enhanced bioavailability, reduced risk of cross-contamination, stable under varying storage conditions, and is versatile for many formulations, thus contributing in the market expansion.

The increasing number of people adopting vegan and vegetarian diets, increasing demand for plant-based products in various sectors, such as, pharmaceuticals, nutraceuticals, and cosmetics, and growing consumer awareness about health and environmental sustainability are factors driving the vegetarian softgel capsules market growth. Additionally, availability of natural and plant-based raw materials for formulating vegetarian softgel capsules, increasing research and development, and the rise in consumer awareness, also contribute in the target market’s growth.

The vegetarian softgel capsules market growth is further fueled by innovations in softgel capsule technology and manufacturing processes enabling the production of more efficient and effective capsules. In addition to this, integrating artificial intelligence with vegetarian softgel capsules assures ingredient composition accuracy, lowers costs, and simplifies manufacturing, thereby contributing in the market diversification.

Generative AI Impact on Vegetarian Softgel Capsules Market:

• The vegetarian softgel capsules market is undergoing a transformation due to generative AI, which is speeding up product development, improving formulations, and increasing supply chain effectiveness.  It helps with quality control automation, supplement suggestion personalization, and customer preference prediction.  In addition to enhancing marketing tactics, AI-driven insights guarantee quicker market penetration and more economical production, which eventually propels the plant-based supplement sector's expansion.

Key Drivers of Target Market:

The Environment-Friendliness of Vegetarian Softgel Capsules is Skyrocketing the Market Growth

Vegetarian softgel capsules' environmental friendliness greatly propels market expansion by attracting eco-aware customers and fitting in with sustainability trends.  Vegetarian substitutes for gelatin-based capsules employ plant-derived ingredients (such seaweed or starch) that decrease animal exploitation, lower carbon emissions, and encourage biodegradability.  This promotes adherence to regulations, builds brand recognition, and draws moral investors, all of which hasten market growth.

• For Instance, in May 2021, according to the facts stated by Verdict Media Limited, vegetarian soft capsules were created and marketed as a substitute for those who, for dietary or religious reasons, abstain from eating animal products.  As customers grow more conscious of the ethical and environmental implications of the components in the food, health, and personal care products they buy, there is a growing demand for these capsules.

The Increasing Demand for Plant-Based Products is pitching the Market Growth

The vegetarian softgel capsules market expansion is mostly being driven by the growing demand for plant-based goods.  Plant-based supplements are in high demand as customers adopt vegetarian and vegan diets.  Vegetarian softgel produced from hydroxypropyl methylcellulose (HPMC) or starch satisfy nutritional, ethical, and religious requirements differently than gelatin-based capsules.  Furthermore, the desire for plant-based substitutes is driven by growing health consciousness and worries about components produced from animals.  The market is growing as a result of pharmaceutical and nutraceutical firms extending their vegetarian product lines.  Their use in a variety of sectors is supported by the availability of plant-based capsules with improved stability, bioavailability, and sustainability.

• For instance, according to the data published by Plant Based Foods Association, in 2020, consumers bought more plant-based foods than ever before, which raised the bar for growth in 2021.  This past year's steady increase in sales of plant-based meals shows how committed consumers are to buying delicious, ethically-sourced foods that are better for their own health, the environment, supply chain workers, and animals.

Restrains:

Lower Stability and Moisture Resistance of Vegetarian Softgel Capsules is Limiting the Market Expansion

Compared to gelatin-based capsules, vegetarian softgel capsules are less stable and resistant to moisture, which makes it more probable to break down in humid environments.  This may have an impact on the effectiveness and shelf life of components that are encapsulated.  It could also call for specific manufacturing procedures, which would raise the cost of manufacture.

• Counterbalance Statements: Stability can be increased by utilizing cutting-edge encapsulation technologies, such as enhanced plant-based polymers and moisture-resistant coatings.  Maintaining product integrity also involves optimizing packaging and storage conditions.

Opportunities:

Integrating Vegetarian Softgel Capsules with AI will Open up Growth Opportunities in the Future

By improving quality control, forecasting consumer trends, and optimizing formulations, integrating AI with vegetarian softgel capsules can propel market growth in the future.  Automation powered by AI assures ingredient composition accuracy, lowers costs, and simplifies manufacturing.  Furthermore, demand may be increased by AI-powered tailored nutrition recommendations, which will make plant-based supplements more enticing and available to a wider range of customers.

Product type, application, distribution channel, and region are the segmentations of the vegetarian softgel capsules market.

Product Type

By product type, the market is trifurcated into starch, pullulan, and others. The starch-based capsules are attributed to rule over the vegetarian softgel capsules market share. This is due to its versatility, cost-effectiveness, and its ability to be used with different formulations. Moreover, these starch-based capsules are made of natural ingredients.

The pullulan-based capsules are the segment attributed to grow with the fastest growth rate, in the target market. This is due to its biocompatibility, film-forming qualities, and increasing demand for vegetarian alternatives.

Application

Based on application, the market is divided into pharmaceutical, health supplements, and others. The health supplements segment is expected to lead the vegetarian softgel capsules market share due to the rising popularity of plant-based products and increased awareness of health and wellness. Additionally, these supplements help in increasing the immune system, reduces anxiety, and boosts the overall health.

The pharmaceutical segment is holding the second largest vegetarian softgel capsules market share. This is due to the rising demand for plant-based medications and supplements. Additionally, the pharmaceutical industry favors vegetarian softgel capsules as it may include a variety of active pharmaceutical ingredients (APIs) while preserving its stability and bioavailability.

Distribution Channel

According to distribution channel, the market is branched into offline and online. The offline segment such as retail stores and pharmacies holds the largest market due to the availability of discounted prices at these offline stores, trust and reliability factor, and it is the traditional method of distributing vegetarian softgel capsules.

The online distribution channel has the second leading vegetarian softgel capsules market. This is due to the growing acceptance of e-commerce, and the growing popularity of online shopping as it is convenient, and offers a variety of products and competitive pricing.

Regional Insights:

Geographically, the market is categorized into North America, Europe, Asia Pacific, Latin America, and the Middle East & Africa.

North America: This is the region dominating the vegetarian softgel capsules market, with an estimated share of 37.2%. This is due to its strong healthcare infrastructure, rising health awareness, rising disposable incomes, investment on research and development by major companies, and rising approvals from regulatory bodies.

• U.S. Vegetarian Softgel Capsules Market Insights:

The vegetarian softgel capsules market of U.S. is the most leading market, in the recent years. This is due to this country’s increasing number of vegan and vegetarian population, growing awareness of the benefits of dietary supplements and health-conscious consumer trends, presence of a significant number of companies involved in the production and distribution of vegetarian softgel capsules, increased healthcare expenditure, and increasing investment by companies on research and development to expand product portfolios.

Asia Pacific: This is the region with the vegetarian softgel capsules market growing with the highest CAGR, during the forecast period. This is due to its growing population, growing pharmaceutical industry, rapid economic growth, increasing number of contract manufacturing organizations, and increasing healthcare expenditure.

• China Vegetarian Softgel Capsules Market Insights:

The vegetarian softgel capsules market of China is growing with the fastest growth rate, during the forecast period, in the recent years. This is due to the country’s massive population which provides a substantial consumer base for both pharmaceutical and nutraceutical products, increased awareness of health and wellness, higher disposable incomes enabling consumers to spend more on healthcare and wellness products, and the growth of the pharmaceutical and nutraceutical industries.

Europe: The region which is experiencing significant growth in the recent years, during the forecast period, is Europe. This is due to this region’s growing vegetarian and vegan lifestyles, a strong focus on health and wellness, with consumers actively seeking natural and healthy products, increasing preference for plant-based products in pharmaceuticals and nutraceuticals, advancements in technology, and stringent regulations around drug formulations.

• Germany Vegetarian Softgel Capsules Market Insights:

The German vegetarian softgel capsules market is recently experiencing considerate amount of growth, during the forecast period. This is due to the country’s strong focus on wellness and health, and a strong distribution network and thriving pharmaceutical and nutraceutical companies in Germany make vegetarian softgel capsules widely accessible. Moreover, increased investment in research and development and the launch of innovative products, are further contributing in the market growth.

Vegetarian Softgel Capsules Market Report Scope:

Attribute	Details
Market Size 2025	USD 0.8 Billion
Projected Market Size 2035	USD 1.3 Billion
CAGR Growth Rate	5.8% (2025-2035)
Base year for estimation	2024
Forecast period	2025 – 2035
Market representation	Revenue in USD Billion & CAGR from 2025 to 2035
Regional scope	North America - U.S., and Canada Europe – Germany, U.K., France, Russia, Italy, Spain, Netherlands, and Rest of Europe Asia Pacific – China, India, Japan, Australia, Indonesia Malaysia, South Korea, and Rest of Asia Pacific Latin America - Brazil, Mexico, Argentina, Rest of Latin America Middle East & Africa – GCC, Israel, South Africa, and Rest of the Middle East & Africa
Report coverage	Revenue forecast, company share, competitive landscape, growth factors, and trends

Segmentation:

By Product Type:

• Starch
• Pullulan
• Others

By Application:

• Pharmaceutical
• Health Supplements
• Others

By Distribution Channel:

• Offline
• Online

By Region:

• North America
  • U.S.
  • Canada
• Europe
  • Germany
  • U.K.
  • France
  • Russia
  • Italy
  • Spain
  • Netherlands
  • Rest of Europe
• Asia Pacific
  • China
  • India
  • Japan
  • Australia
  • Indonesia
  • Malaysia
  • South Korea
  • Rest of Asia Pacific
• Latin America
  • Brazil
  • Mexico
  • Argentina
  • Rest of Latin America
• Middle East & Africa
  • GCC
  • Israel
  • South Africa
  • Rest of the Middle East & Africa

The companies operating in the vegetarian softgel capsules market are Catalent, Inc, Roquette Frères, EuroCaps, Aenova Group, CAPTEK Softgel International Inc., and others. The key players are adopting strategies such as innovation, expanding product offerings, enhancing bioavailability, and catering to specific consumer needs through personalized formulations and customized capsules for the diversification of the market.

Vegetarian Softgel Capsules Market Companies:

• Catalent, Inc
• Roquette Frères
• EuroCaps
• Aenova Group
• CAPTEK Softgel International Inc.
• Sirio Europe GmbH Co KG
• Robinson Pharma, Inc.
• Shandong Healsee Capsule Ltd.
• Velnex Medicare
• AlderBiochem

View an Additional List of Companies in the Vegetarian Softgel Capsules Market

• In October 2023, a proprietary vegan softgel capsule for nutraceuticals was introduced by IVC.  The increasing global customer demand for vegan supplements prompted this introduction. With Publication Number GB2593334, this plant softgel preparation technique created by lVC was awarded a U.K. patent. The business was developing a strong global vegan market.
• In April 2023, the new pectin-based technology from IFF, a top producer of functional ingredients, excipients, and flavors for pharmaceuticals, biotechnology, and dietary supplements, significantly expanded the company's vegan softgel product line.  When VERDIGEL SC was introduced, it allowed producers of vegan softgels to provide supplements free of carrageenan, which was highly sought after in a number of markets.
• In November 2021, Roquette, a world leader in plant-based ingredients, a pioneer in plant proteins, and a top supplier of pharmaceutical excipients, announced the release of LYCAGEL PREMIX, a pharmaceutical-grade, ready-to-use solution for vegetarian softgel capsule formulation.  For both pharmaceutical and nutraceutical applications, this gave producers a simple and practical way to guarantee quick and repeatable scale-up.
• In September 2021, Vegan softgel capsules made from seaweed extract have been produced by the Aenova Group, a top contract producer and developer for the pharmaceutical and healthcare sectors worldwide.  Based on the vegan Aenova VegaGels, the new softgel capsules contained microalgal-derived omega-3 DHA fatty acids.  These chewable capsules came in a range of flavors and colors, making them appropriate for young users.
• In May 2021, the nutrition behemoth H&H announced that it would keep creating more plant-based goods for its infant formula and health supplement categories under various brands since it thinks that consumers are becoming more interested in sustainable options.  Among these plant-based goods were hemp seed oil, which is high in omega-3 and omega-6, and vegetarian softgel capsules.

Analyst View:

The vegetarian softgel capsules market is expanding due to a number of factors, including the growing number of people following vegan and vegetarian diets, the rising demand for plant-based products across industries like pharmaceuticals, nutraceuticals, and cosmetics, and rising consumer awareness of environmental sustainability and health.

The expansion of the target market is additionally aided by the availability of natural and plant-based raw materials for the production of vegetarian softgel capsules, increased research and development, and growing consumer awareness. Innovations in softgel capsule technology and manufacturing techniques that allow for the creation of more effective and efficient capsules are also driving the market growth.  Furthermore, the incorporation of artificial intelligence into vegetarian softgel capsules guarantees the correctness of component composition, reduces expenses, and streamlines manufacturing, all of which contribute to market diversification.

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Company Name	Catalent, Inc
Headquarter	Somerset, New Jersey, United States
CEO	Mr. Alessandro Maselli
Employee Count (2024)	16,900 Employees