Market Overview
Starch capsules are the vegetable capsules whose raw material is starch. These capsules are used as an alternative to the conventional gelatin-based empty capsules. The global starch capsules market is thriving on the back of the numerous factors, such as, growing technological innovations, increasing awareness among the scientific community regarding the development of sustainable and drug compatible capsule products and the increasing use of starch capsules in the pharmaceutical as well as nutraceutical sector. Moreover, with the growing concern amongst individuals around the globe for the prevalence of different type of health diseases, the demand for pharmaceutical and nutraceutical products have increased remarkably. On the other hand, there is a rising need amongst the players in the pharmaceutical industry for developing efficient drug delivery systems, backed by the rising incidences of various diseases and the increase in consumption of the pharmaceutical and nutraceutical products. According to the statistics by the World Health Organization, amongst all the other type of diseases that causes death, cardiovascular diseases has been registered as one of the leading causes of death.
The global starch capsules market reached USD 933.49 million in the year 2019 and is anticipated to touch USD 1444.46 million by the end of 2028 by growing at a CAGR of 5.14% during the forecast period, i.e. 2021-2028. The plant-based capsules are usually stable at low humidity levels which makes them ideal for keeping the contents safer. Moreover, these capsules have low moisture content and low static charge and are considered ideal for keeping oxygen-sensitive and immediate-release drugs. Such factors are anticipated to increase the acceptance of starch capsules amongst the players operating in the pharmaceutical and nutraceutical industries in the forthcoming years, and in-turn promote the market growth.
Growth Highlights Based on Region During 2019-2028
The global starch capsules market is segmented by regions into North America, Latin America, Europe, Asia Pacific and Middle East & Africa. The starch capsules market in North America registered the highest share of 37.96% in the year 2019 owing to the expanding pharmaceutical and nutraceutical industry in the region and the rising preference for soft gel capsules in these sectors. The market in the region is anticipated to grow with a CAGR of 5.16% during the forecast period and is primarily driven by the United States. The United States starch capsules market is further anticipated to touch USD 486.52 million by the end of 2028. The North America region has the most strategic partnership in the pharma industry. The pharmaceutical market in the region is fueled by the access to high quality medications, healthcare awareness and increasing expenditure on healthcare. Additionally, the rising demand for nutraceuticals, such as antioxidants, probiotics and others are also anticipated to generate enormous demand for starch capsules in the region.
The study further incorporates Y-O-Y Growth, demand & supply and forecast future opportunity in North America (United States, Canada), Latin America (Brazil, Mexico, Argentina, Rest of LATAM), Europe (U.K., Germany, France, Italy, Spain, Hungary, BENELUX [Belgium, Netherlands, Luxembourg], NORDIC [Norway, Denmark, Sweden, Finland], Poland, Russia, Rest of Europe), Asia-Pacific (China, India, Japan, South Korea, Malaysia, Indonesia, Taiwan, Hong Kong, Australia, New Zealand, Rest of Asia-Pacific), Middle East and Africa (Israel, GCC [Saudi Arabia, UAE, Bahrain, Kuwait, Qatar, Oman], North Africa, South Africa, Rest of Middle East and Africa).
Market Segmentation Synopsis
The global starch capsules market is segmented by source material into pectin, carrageenan, agar, gelatin and others. The gelatin blended capsules are the most common form of starch capsules that are used by manufacturers in the pharmaceutical and nutraceutical industries. Backed by numerous favorable properties of gelatin blended capsules, such as, superior mechanical resistance, lower melting point, better product compatibility and stability while used along with starch as raw material, the segment is anticipated to touch USD 795.91 million by the end of 2028.
The global starch capsules market is further segmented by form into liquid and powder, out of which, the powder segment constituted to the largest market share in the year 2019 and is anticipated to hold the highest share in the market throughout the forecast period. Based on size, the global starch capsules market is segmented into 0,00 & 000, 0 to 2, 3 to 5 and above 5. Out of these, the 0 to 2 segment held the largest market share of 60.55% in the year 2019 and is considered ideal for those who have trouble swallowing a relatively large capsule.
The global starch capsules market is also segmented by application into health supplements, antibiotics & anti-inflammatory, antacid & laxatives, analgesics, antifungal, sedative, cardiovascular and others. The cardiovascular segment registered the highest value of USD 306.16 million in the year 2019 on account of the increasing prevalence of cardiovascular diseases amongst the population worldwide. Based on product, the market is segmented into hard and soft capsules, where the hard capsules segment registered the largest market share, backed by its utilization across a vast majority of the formulated medications. Hard capsules, unlike the soft capsules, are usually made of two parts that include the cap and a body of different colors. The hard capsules are often used to hold dry ingredients in powder form.
The global starch capsules market is also segmented based on end user into pharmaceutical, cosmeceutical and nutraceutical companies. Out of these, the pharmaceutical industry segment held a significant share of the market and is anticipated to grow with a CAGR of 6.46% during the forecast period. Rising R&D investments, increasing healthcare expenditures and the growing need for advanced pharmaceuticals are some of the factors anticipated to drive the growth of the segment in the global starch capsules market.
Market Drivers and Challenges
Growth Indicators
Growing Incidences of Cardiovascular Diseases to Drive Market Growth
According to the statistics by the World Health Organization, in the year 2016, around 17.9 million died from cardiovascular diseases.
In the recent era, numerous people are suffering from cardiovascular diseases, and the numbers are increasing at an alarming rate. The high risks of cardiovascular diseases can be attributed to the poor behavioral factors, that include consumption of tobacco, alcohol and other unhealthy diets. The consumption of such products raises the blood pressure in the human body and also imbalances the body functions. The healthcare practitioners are increasingly prescribing medicines that are made up of starch capsules as these capsules are known to possess several benefits. In the healthcare industry, the starch capsules are considered as a very efficient alternative delivery system for orally administered compound. On the other hand, the starch-based capsules are known for their cost-effectiveness, which has further created a shift in the preference of the customers towards the consumption of these capsules.
Increasing Healthcare Expenditure to Drive Market Growth
According to the statistics by the Peterson-KFF Health System Tracker, the total national health expenditure in the U.S. increased from USD 2593.16 billion in the year 2010 to USD 3649.386 billion in the year 2018.
The increasing investment in various international healthcare programs funded by the government of nations worldwide and other organizations, such as the World Health Organization (WHO), is one of the major factors anticipated to drive the market growth. The healthcare spending around the globe is increasing on account of factors, such as the presence of an ageing population, increase in cost of medical services, and others. Moreover, a significant amount of investments is also being made by various public and private companies globally towards the rising research and developments in the healthcare industry. Such factors have led to the development of the healthcare infrastructure as a whole and also has provided greater accessibility to high-end treatment solutions to the patients, raising the need for advanced pharmaceutical products, such as starch capsules. Such a factor is therefore anticipated to drive the market growth.
Barriers
Stringent Entry Barriers to Limit Market Growth
The global starch capsules market retains a limited number of players with a confined amount of price options available to the customers. This is due to the stringent regulatory norms of the government and severe cost constraints. Moreover, the production of the starch capsules requires huge investments, therefore prohibiting new entrants to enter the existing market. Also, the fluctuating prices of raw materials, such as carrageenan and pectin is also expected to hamper the market growth.
Impact of COVID-19 on Global Starch Capsules Market
Operators functioning in the manufacturing of starch capsules around the world witnessed a severe shortage of raw materials, such as primary starch material, active pharmaceutical ingredients, biomaterials and other consumables that are required to meet the production needs. This was primarily due to the disruption of supply chain which was impacted due to the stringent government norms across nations to curb the spread of the virus. The manufacturers and their distributors with an existing inventory of finished products saw a decline in sales due to the limitations in the last-mile product delivery. Also, many countries that were previously dependent on imports from China and the U.S. for pharmaceuticals had to revaluate their priorities to cope with the drastically changed market scenario.
Top Featured Key Players
The global starch capsules market is driven by several affluent industry leaders, including players such as Capsugel (a Lonza Company), Farmacapsulas S.A., Dah Feng Capsule Industry Co., Ltd., ACG, Meihua Holdings Group Co., Ltd., GoCaps, Shaoxing Kangke Capsule Co., Ltd., and Suheung Co., Ltd. Additionally, these players are also providing approved products in the market to increase their credibility and brand value, and therefore stay ahead in the competition. For instance, on May 2020, ACG received certification of compliance from Clean Label Project™ for its ACGcaps™ H+ capsules, which are suitable for filling granules, pellets and powders for prescription and non-prescription pharmaceutical ingredients, traditional medicines and nutraceutical dietary supplements. The players in the global starch capsules market are also increasingly undertaking acquisition programs to enhance their product portfolio and improve their global footprint.
