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How is the softgel manufacturing market looking in 2023? Right now, the outlook appears to be good, and a burgeoning market is great news for softgel manufacturers in the USA and elsewhere worldwide. But what is driving this growth, and how long can we expect it to last?

We’re going to be answering these questions in this article as we examine the growth projections for softgel manufacturing. As sales increase around the world, the need for reliable softgel drying trays is rising too, and we are developing Chemtech’s product range in an effort to support sustainable development in the field.

The Market Generally Looks Positive for Softgel Suppliers

The softgel market is looking strong right now. In 2020, the global market was valued at around $6.52 billion, while Fortune Business Insights estimated a compound annual growth rate (CAGR) of 5.5% between 2021 and 2027. The following year, 2021, another study valued the global market at $7.62 billion – around $0.8 billion ahead of the projected CAGR increase. The future of the market was re-evaluated – we could expect to see a CAGR rate of 7.9% between 2021 and 2030, which is significantly greater than the estimate from the previous year.

In 2022, further research found that the predictions seemed to be correct. The global market was valued at $8.2 billion – in line with the expected growth rate. The CAGR was re-adjusted a little, falling to 7.6% between 2022 and 2030, but this still puts us on course for a global market worth $14.73 billion by the end of the decade.

There are lots of figures to take in here, but all of them point to the same general conclusion – growth is good, and softgel manufacturing organizations have no shortage of customers who want to purchase their products.

The Entire Market Is Growing

Softgel manufacturers in the USA and across the world need to be aware of other trends, too, such as machinery and equipment trends. Here, we are witnessing growth, too – the total softgel manufacturing equipment market was valued at around $238 million in 2022 but is expected to grow at a rapid rate. Even though factors such as Covid-19 and the outbreak of war between Russia and Ukraine have impacted markets, the latest reports suggest a CAGR of 12.4% between 2023 and 2029.

This would give the global market a value of $544.5 million by 2029 – more than double the current value. Right across the board, all aspects of the softgel manufacturing market seem to be strong as we look forward to the coming years.

Softgels Are Holding Their Own Against Potential Competitors

It seems that softgels are performing well, even after the arrival of competitors in the market in recent years. Customers had been expected to switch to other forms of dosage delivery, such as chewable gummies, which have been growing in popularity. The market data we’ve examined above suggest this is very much not the case.

Michael Baumann, the global strategic marketing manager for IFF Pharma Solutions’s dietary supplements arm, was not surprised that softgels continue to be the delivery method of choice for consumers. He cited how softgels protect fill materials from oxidization – something that is extremely valuable in fill ingredients that are vulnerable to oxygen exposure, like fish oils.

Baumman’s IFF colleague, application and innovation manager Benjamin Roscoe, also cited the aesthetic impact of softgel capsules and how this makes them very popular among consumers.

“[Softgels are a] very elegant dosage form that you can achieve different aesthetics depending on your brand strategy,” he said. “[They are] adaptable to different colors, [they] can take on different sizes and shapes. You can make them colorless, and if you have a nice colored fill, they can come through as looking almost like a gem or a crystal.”

Softgel Technology Is Becoming More Sophisticated and More Diverse

One of the factors driving this growth is increased sophistication in softgel manufacturing and design. Newer forms of softgel products feature controlled drug release capabilities that allow gradual absorption of active ingredients into the bloodstream. In addition to this, tamper-evident features help to improve consumer confidence when they purchase health supplements, while modern materials achieve extended shelf life for healthcare products.

These new capabilities make soft gels very enticing to consumers and help to grow the demand for softgel manufacturing and associated equipment solutions, such as drying trays.

Manufacturers Are Shifting Away From Gelatine Materials

Softgel manufacturing plants have traditionally used gelatine – an animal-derived substance – in their production methods. This makes old-style capsules unsuitable for vegan diets and may have dissuaded some consumers in the past. As customers grow more conscious of dietary, ecological and ethical issues, vegetarianism and veganism are becoming more common.

New softgel materials can accommodate this shift in lifestyle trends. Increasingly, manufacturers are using non-animal-based materials to produce their capsules, and this, in turn, is expanding the market’s scope.

Consumers Have Grown More Health Conscious, Post-Covid

Covid-19 dealt the world a heavy blow, and in some ways, it has changed the way we approach certain issues. Health and wellbeing are high on the agenda now, and sales of products like immunity supplements went through the roof during the pandemic and in its immediate aftermath.

Not all of these immunity supplements are softgel based products. However, a general rise in public awareness and increasing customer motivation are likely to be important drivers for the softgel manufacturing market in the coming years, both here in the USA and abroad.

Supporting Softgel Growth With Chemtech Products – High-Quality Drying Trays

Here at Chemtech, we are dedicated to creating a product range that truly supports our customers and clients. This includes providing high-quality drying trays, like the MFG soft cap drying tray. These Chemtech products are tough and durable while remaining lightweight enough for easy handling and cost-effective enough for long-term budget sustainability. Learn more about these trays and their specifications when you explore our product range or reach out directly to our team if you have any questions or queries about what we provide.