Global Vegetable (HPMC) Capsule Market Size, Share, Growth Analysis Report - Forecast 2034

Vegetable (HPMC) Capsule Market: Industry Perspective

The global vegetable (HPMC) capsule market size was worth around USD 663.32 Million in 2024 and is predicted to grow to around USD 1723.61 Million by 2034 with a compound annual growth rate (CAGR) of roughly 10.02% between 2025 and 2034. The report analyzes the global vegetable (HPMC) capsule market's drivers, restraints/challenges, and the effect they have on the demands during the projection period. In addition, the report explores emerging opportunities in the vegetable (HPMC) capsule industry.

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The report analyzes the global vegetable (HPMC) capsule market’s drivers, restraints/challenges, and the effect they have on the demands during the projection period. In addition, the report explores emerging opportunities in the vegetable (HPMC) capsule industry.

Vegetable (HPMC) Capsule Market: Overview

Vegetable (HPMC) capsules are made up of plant-sourced compounds, namely, hydroxypropyl methylcellulose (HPMC). Hydroxypropyl methylcellulose (HPMC) or Hypromellose is derived from wood pulp and, generally, consists of partly methylated & hydroxypropylated cellulose units. HPMC is a tasteless, vegetarian, clear, and vegan-appropriate material. These capsules are non-animal derived, non-GMO, and provide good oxygen barrier properties. HPMC capsules are resistant & robust against cross-linking during extreme storage conditions. Various molecules make formulation issues with conventional gelatin-based capsules. In order to address concerns with active pharmaceutical ingredients (API) & excipients that are incompatible with gelatin, HPMC capsules are developed and widely used. HPMC capsules also solve concerns associated with moisture sensitivity & hygroscopicity of gelatin-based capsules. All current United States Pharmacopeia (USP) and food chemical codex (FCC) criteria can be fulfilled using HPMC capsules. HPMC Capsules can be used for both fast-release & delayed (target) drugs. Manufacturers & researchers, across the globe, are engaged in the development of HPMC for better formulation performance of capsules in different applications.

Key Insights

• As per the analysis shared by our research analyst, the global vegetable (HPMC) capsule market is estimated to grow annually at a CAGR of around 10.02% over the forecast period (2025-2034).
• Regarding revenue, the global vegetable (HPMC) capsule market size was valued at around USD 663.32 Million in 2024 and is projected to reach USD 1723.61 Million by 2034.
• The vegetable (HPMC) capsule market is projected to grow at a significant rate due to increasing vegetarian and vegan preferences, rising demand for plant-based pharmaceutical and nutraceutical products, stringent gelatin-free regulations, and growth in health supplement consumption.
• Based on Dosage, the 1 segment is expected to lead the global market.
• On the basis of Application, the Weight Loss segment is growing at a high rate and will continue to dominate the global market.
• Based on the Distribution Channel, the Online Retail segment is projected to swipe the largest market share.
• By Capsule Size, the Size 00 segment is expected to dominate the global market.
• Based on region, North America is predicted to dominate the global market during the forecast period.

Vegetable (HPMC) Capsule Market: Growth Drivers

Rising demand & development for plant-based capsules to drive market growth during the forecast period.

The global vegetable (HPMC) capsule market is projected to grow owing to the rising demand & development for plant-based capsules for both pharmaceuticals & health supplements applications. HPMC capsules are derived from plant- or wood-based materials. HPMC capsules are a safe drug for human consumption and a good substitute for gelatin capsules. These capsules offer a good substitute for consumers who do not take animal products such as vegetarians & vegans. Considering kosher & halal approvals, these capsules are preferred by a consumer who follows a strict religious diet. HPMC capsules are easy to take as they mask up the unpleasant flavors & odors of the inside active ingredients. These capsules offer good moisture resistance as well as resistance to bacterial growth on capsule surfaces.

Various manufacturing firms are improving their product portfolio with vegetable HPMC capsules. For instance, in July 2022, Evonik Industries AG started to provide enteric-protected ready-to-fill capsules EUDRACAP in IPEC-GMP quality. IPEC-GMP corresponds to a high level of excipient quality in pharmaceutical formulations. These coated hydroxypropyl methylcellulose (HPMC) capsules are suitable to protect sensitive active pharmaceutical ingredients (APIs) from moisture and gastric acid. EUDRACAP, an HPMC-based capsule, can be employed smoothly on fully automated capsule-filling machines at high speed.

In November 2021, ACG planned to set up a vegetable HPMC capsule plant in Maharashtra, India with an investment of around INR 800 crore in collaboration with the Maharashtra state government to replace gelatin capsules.

Increasing demand from global pharmaceutical sectors is fueling the consumption of vegetable HPMC capsules for a wide range of prescribed or over-the-counter (OTC) drugs. For instance, according to the European Federation of Pharmaceutical Industries and Associations (EFPIA), the global pharmaceutical (prescription) industry was valued at EUR 1,222,921 million (around USD 1,287,736 million) at ex-factory prices in 2022. Wherein, the pharmaceutical production in Europe accounted for around EUR 340,000 million in 2022, registering a growth rate of around 4.95% compared to the previous year. Europe accounted for around 22.4% of the global pharmaceutical (prescription) industry share.

Vegetable (HPMC) Capsule Market: Restraints

Availability of close substitutes to restrict market expansion

The vegetable (HPMC) capsule industry is expected to be hindered by the presence of close substitutes such as gelatin-based capsules, pullulan capsules, and others. Gelatin capsules are also widely used for oral medication drug delivery. Moreover, gelatin capsules also provide accurate & convenient unit dosing of vitamins, drugs, and health supplements. Gelatin capsules are made up of gelatin derived from the collagen of animal skin or bone, thereby, these capsules are not preferred by vegan, vegetarian, or kosher consumers. Pullulan capsules are another key alternative for vegetable HPMC capsules, as pullulan is also derived from plant-based material. Specifically, pullulan is a natural, edible polymer with no detectable taste. Pullulan capsules are manufactured from tapioca starch and are suitable for vegetarians and vegans. However, pullulan capsules are more expensive than HPMC capsules. Manufacturers such as Lonza, ACG, SUHEUNG, and others also offer gelatin & pullulan capsules for a wide range of pharmaceutical and health supplement applications. Thereby, considering the presence of close substitutes such as gelatin & pullulan capsules in the industry, the growth of the vegetable HPMC capsule industry is expected to be restrained in the coming years.

Vegetable (HPMC) Capsule Market: Opportunities

Increasing research & development in the pharmaceutical industry to provide growth opportunities

The global pharmaceutical sector is heavily engaged in R&D activities to improve product quality & development of new products, as per the current standards & norms set by regulatory bodies. Vegetable-based HPMC capsules are in line with various standards such as USP, FCC, Vegan Certified, Non-GMO Project Verified, Vegetarian Society Approved, Halal Certified, Kosher Approved, and others. Considering these approvals and growth potential in the industry, various firms are making investments to enter the vegetable HPMC capsule industry. For instance, in February 2023, Vivion, Inc. launched HPMC capsules in its product portfolio. These capsules are available in different sizes and can be consumed by children, adults, and small animals.

Moreover, the increasing research & development in Europe is expected to support the growth of the vegetable (HPMC) capsule industry. According to the European Federation of Pharmaceutical Industries and Associations (EFPIA), Europe spent around EUR 44,500 million on pharmaceutical-related research & development, up by around 4.63% over the previous year. Both pharmaceutical & nutraceutical firms are showing their interest in plant-based alternatives for gelatin capsules, due to rising consumer awareness, changing consumer preferences, and others. Such factors are creating opportunities for the vegetable (HPMC) capsule industry, across the globe.

Vegetable (HPMC) Capsule Market: Challenges

High cost of manufacturing and difficulties in raw material sourcing to challenge market cap growth

The cost of HPMC capsule manufacturing is higher compared to its close alternative, i.e., gelatin capsules. In addition, sourcing high-quality raw materials is also a challenging task for manufacturers. The cost required for the HPMC capsule raw material is around 4 times that of gelatin and the production cost is around 3 times the cost of gelatin. However, the challenge from the cost factor can be covered up, considering the rising preference of consumers for HPMC capsules over gelatin capsules prospects in the pharmaceutical & nutraceutical industry.

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Vegetable (HPMC) Capsule Market: Segmentation

The global vegetable (HPMC) capsule market is segmented based on type, application, and region.

Based on Type, the global market segments are HPMC with gelling agents and HPMC without gelling agents. Currently, the global market is dominated by HPMC with gelling agents, considering their acid-resistant characteristics. To manufacture HPMC capsules, the cold pin molds are dipped into a hot HPMC solution, gelled at a low temperature, and then dried. This manufacturing process is suitable for gelatin, as it starts to gel on its own at low temperatures, unlike HPMC. Thereby, manufacturers require gelling agents in this process to produce HPMC capsules. Some of the key gelling agents used are gellan gum, carrageenan, pectin, and others. However, currently, manufacturers such as ACG, Lonza, and others are shifting to the HPMC capsule manufacturing process, which doesn’t require any gelling agent.

Based on Application, the vegetable (HPMC) capsule industry is segmented into pharmaceuticals, nutraceuticals, and other applications. The pharmaceuticals segment dominated the market share in 2022. Due to the naturally low moisture content of vegetable HPMC capsules, it is feasible to encapsulate pharmaceutical ingredients that are hygroscopic & moisture-sensitive. Currently, HPMC capsules are being widely used by various major pharmaceutical drug manufacturers, across the globe. These capsules can contain ingredients in different forms such as powders, pellets, semisolids, as well as liquids. HPMC capsules are used for delivering drugs with nasty & unpleasant tastes & smells.

Vegetable (HPMC) Capsule Market: Report Scope

Vegetable (HPMC) Capsule Market: Regional Analysis

North America to lead the market during the forecast period

The global vegetable (HPMC) capsule market growth is expected to be driven by North America, during the forecast period. North America has a significant share of the global pharmaceutical and nutraceutical industry, thereby, creating a huge demand for vegetable (HPMC) capsules each year from these sectors. According to the European Federation of Pharmaceutical Industries and Associations (EFPIA), North America (including the United States and Canada) accounted for around 52.3% share of the global pharmaceutical (prescription) market. Further, as per the American Society of Health-System Pharmacists, overall drug expenditures reached USD 633.5 billion in 2022, witnessing a growth rate of around 9.4% year-on-year. In the United States, specialty drug expenditures accounted for 51.1% of total prescription expenditures. Moreover, the United States accounts for one of the largest markets for nutraceutical products. Some of the key players in the United States Nutraceutical industry are Ambay, ADM, Herbalife Nutrition Ltd, GNC Holdings, LLC, and others. In addition, North America, including the United States and Canada, is home to some of the largest pharmaceutical firms in the world, which include Johnson & Johnson, Eli Lilly and Co, Pfizer Inc, Novartis, Roche, GlaxoSmithKline, Sanofi, and others. These manufacturers can get the supply of HPMC capsules from HPMC capsules players operating in the country. Some of the key manufacturers of vegetable HPMC capsules in North America are Lonza, CapsCanada (Lyfe Group), Qualicaps, and ACG, among others. All such factors are expected to support the growth of the vegetable (HPMC) capsule industry in the coming years.

Asia Pacific, especially China & India, also has a significant position in the pharmaceutical industry. China is home to a large pool of HPMC capsule manufacturers such as Shanxi Guangsheng Capsule Co., Ltd., Qingdao Yiqing Biotechnology Co., Ltd., Shaanxi Genex Bio-Tech Co., Ltd, and Shaoxing Zhongya Capsule Co., Ltd., among others. According to the National Bureau of Statistics of China, the pharmaceutical industry of the country generated revenue of around CNY 3.3 trillion in 2021 and increased at a significant rate in 2022. India is the largest supplier of generic drugs, across the globe, at affordable prices. According to the India Brand Equity Foundation (IBEF), the Indian pharmaceutical industry revenue is likely to reach USD 65 billion by 2024 and around USD 130 billion by 2030. The domestic pharmaceutical industry in India comprises around 3,000 medicine companies and more than 10,500 production units. The government of India is promoting foreign direct investment (FDI) for the pharmaceutical industry in the country. In FY2022, the Indian drugs & pharmaceuticals sector reached around USD 1,414 million in FDI inflows. All the aforementioned factors are creating huge potential for the vegetable (HPMC) capsule industry in the region.

Vegetable (HPMC) Capsule Market: Competitive Analysis

The report provides a company market share analysis to give a broader overview of the key market players. In addition, the report also covers key strategic developments of the market, including acquisitions & mergers, new product launches, agreements, partnerships, collaborations & joint ventures, research & development, and regional expansion of major participants involved in the vegetable (HPMC) capsule market on a global and regional basis.

The global vegetable (HPMC) capsule market is dominated by players like:

• Capsugel
• Swan Caps
• LIANFONG CAPSULENEWPARA Bomac
• QualiCaps
• ACG Capsule
• ACG Caps
• Shimadzu
• Suheung Capsuleab
• Suheung Capsule
• Ober

The global vegetable (HPMC) capsule market is segmented as follows;

By Dosage

• 1
• 350 mg
• 1
• 700 mg
• 2
• 350 mg
• 3
• 250 mg

By Application

• Weight Loss
• Dietary Supplement
• Medical Treatment

By Distribution Channel

• Online Retail
• Offline Retail

By Capsule Size

• Size 00
• Size 0
• Size 1
• Size 2
• Size 3

By Region

• North America
  • The U.S.
  • Canada
  • Mexico
• Europe
  • France
  • The UK
  • Spain
  • Germany
  • Italy
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • Australia
  • South Korea
  • Rest of Asia Pacific
• The Middle East & Africa
  • Saudi Arabia
  • UAE
  • Egypt
  • Kuwait
  • South Africa
  • Rest of the Middle East & Africa
• Latin America
  • Brazil
  • Argentina
  • Rest of Latin America