Market Trends of Pharmaceutical Gelatin Industry
This section covers the major market trends shaping the Pharmaceutical Gelatin Market according to our research experts:
Capsules Segment is Anticipated to Witness a Growth in the Market Over the Forecast Period
Hard and soft capsules' shells are commonly made of gelatin, which effectively shields the contents from airborne contaminants, microbial growth, light, oxygen, contamination, taste, and odor. The factors driving the growth of this capsule segment include the rise in consumption of over-the-counter (OTC) medicines, the rise in chronic diseases, and the rise in initiatives from the key market players for the manufacture of innovative gelatin capsule shells, among others. For instance, in May 2021, etectRx, Inc., a digital health startup, launched a study to track antiretroviral therapy adherence among prescription opioid users living with HIV. The "MyTPill" trial evaluates patient adherence using the ID-Cap System, which involves a hard gelatin capsule with an embedded ingestible wireless sensor and a wearable reader. Such initiatives are likely to increase the adoption of gelatin to produce hard gelatin capsules (ID-Cap), driving this segment's growth.
Furthermore, in August 2021, Advent International acquired a majority ownership interest in Shanxi Guangsheng Medicinal Capsule Co., Ltd., a domestic capsule provider in China. GS Capsule produces gelatin capsules for pharmaceutical and healthcare product companies across China and exports them to international markets in North America, Europe, and Southeast Asia. Such mergers and acquisitions will lead to the implementation of strategies by the key market players in capsule manufacturing, driving this segment's growth.
The elderly population takes more prescription drugs and vitamin supplements, which typically come in the form of hard gelatin capsules, to enhance their health conditions. Thus, the rise in the geriatric population and chronic diseases is projected to boost market expansion. For instance, as per the WPP 2022 report, in 2022, there were 771 million people aged 65 or over globally. The older population is projected to reach 994 million by 2030 and 1.6 billion by 2050. Therefore, due to the rise in chronic disease, rising demand for pharmaceutical-grade gelatin, and increasing burden of chronic disease, along with the rising geriatric population, the studied segment is anticipated to witness growth over the forecast period.
North America is Anticipated to Witness a Growth in the Pharmaceutical Gelatin Market Over the Forecast Period
Among the factors responsible for North America's dominant position in the pharmaceutical gelatin market are the abundant availability of raw materials such as porcine and bovine, the strong foothold of key market players, and developed healthcare infrastructure.For instance, in February 2022, Canadian investment company CULT Food Science Corp. completed a strategic investment in Jellatech Inc., a cell-based collagen and gelatin ingredient company.
The advancements in technology and the rise in the incidence of chronic diseases are driving factors for pharmaceutical gelatin in North America. For instance, according to the International Diabetes Federation (IDF) updated in November 2021, the North America and Caribbean (NAC) region had the second highest diabetes prevalence among IDF regions at 14% of the total population. IDF projects that the number of people with diabetes in the NAC region is likely to increase by 24%, reaching 63 million by 2045. Such a high prevalence of chronic diseases is likely to lead to increased adoption of medication for diabetes, thereby leading to high adoption of pharmaceutical gelatin by capsule manufacturers and driving market growth in this region.
Furthermore, rising gelatin capsule manufacturing services in North America are also expected to drive market growth in this region. For instance, in March 2021, CapsCanada, a company in capsule technology, introduced a new service for the production of liquid-filled hard capsules. The goal of CapsCanada was to support the complete manufacturing process, from product discovery and formulation to full-scale production. Such initiatives are likely to lead to increased adoption of pharmaceutical gelatin for capsule filling in formulation development, driving market growth in this region.
Furthermore, the increased launch of new gelatin brands is expected to drive market growth in this region.For instance, in May 2021, GelDAT was launched by Darling Ingredients' Rousselot Brand. It launched X-Pure-GelDAT as an alternative for GelTYR-Gelatin Tyramine by considering the limitations, irreproducibility, and lack of a scalable production process of GelTYR. Such launches of innovative products will further drive market growth due to the rise in adoption of their improved properties.
Therefore, owing to factors such as the rise in chronic diseases and the rise in capsule manufacturing services, North America is expected to witness growth in the studied market over the forecast period.
