The market for empty hard capsules (EHC) is undergoing a notable transformation, with an increasing preference for tablets among formulators. Not only did all seven of the regional markets we analyzed in our recent Empty Hard Capsules: Business Analysis and Opportunities series behave in unique ways in 2022, but the different capsule polymers also saw changing market dynamics. In the midst of this flux, what lies ahead, and where will the business opportunities be found?
“For participants in the EHC space, the 2022 post-pandemic year was all about controlling risks,” Shilpi Mehrotra, Industry Manager in Kline’s Chemicals & Materials sector, said in a recent webinar. “The formulators wanted to be more secure in their procurement of capsules, so they opened up their vendor portfolios and redistributed orders. The top suppliers, in also wanting to mitigate risk, narrowed their selection of customers down to those they could best serve.” These dynamics facilitated the entry of new, smaller, and Asian suppliers.
Each regional market is set to follow unique growth trends, with the various EHC market segments expected to behave differently over the next five years. Product differentiation will become increasingly important.
“In this current environment, it’s no longer just about portfolios,” said Mehrotra. “It’s obvious that the competition is intensifying and new entrants are being presented with opportunities.” She believes that one way the top suppliers can differentiate themselves is by enhancing their services and relationships with their customers, such as by offering enhanced technical assistance or capsule-filling services/equipment.
Mehrotra also thinks we’ll see growing sophistication in capsule technology, such as capsules within capsules or combination capsules and that remaining cutting edge will also provide suppliers with significant opportunities for growth.
To learn more, watch the webinar here. And be sure to check out our recent Empty Hard Capsules: Business Analysis and Opportunities series, which provides a comprehensive analysis of this market (both pharmaceutical and nutritional) for the seven major geographies covered. Each of these reports examines market segmentation by product type, key trends, new developments, drivers/restraints, and business opportunities, in addition to providing forecasts through 2027 and much more.
