Opportunities in the Global HPMC Capsules Market
Greater focus on manufacturing vegetarian capsules could translate into higher revenues
Vegetarian capsules are witnessing rising adoption as these types enhance formulation design in both pharmaceutical as well as nutraceutical industries. Capsule manufacturers are generating high revenues from pharmaceutical industries by providing vegetarian or non-animal capsules, with effective physiological properties such as low moisture content that is best suited for hygroscopic drug and nutrient supplements. Capsule manufacturers are generating significant revenues from nutraceutical companies by providing vegetarian capsules along with liquid filling technology. For instance, in 2015 Capsugel invested US$ 25 Mn across a number of its manufacturing sites to increase production of vegetarian capsules.
Increasing demand for halal and kosher certified capsules is trending the global HPMC capsules market
Pharmaceutical industries have already started using halal-certified ingredients and manufacturing methods to cash in on the high purchasing power of Muslims in Europe. Although Muslims in Europe are fewer than in other parts of the world, their purchasing power is much higher than that of members of the community in Southeast Asia, the Middle East and Sub-Saharan Africa, with Turkey, Russia and France all figuring in the top 10 markets. In Asia Pacific countries, manufacturers have started providing HPMC capsules that are in accordance with Halal and Kosher requirements.
Product line expansion is a key business strategy
HPMC capsules manufacturers are offering a wide range of products with properties such as gastric acid resistance, enteric coating and fast disintegration; and are also facilitating customized clinical trials to increase the revenue base. This is primarily due to customers shifting preference from or rejecting gelatin-based products that are derived from bovine hide and pork skin. However, few companies are maintaining their product portfolio with only hard gelatin capsules but not vegetarian capsules. These companies can expect robust incremental growth opportunity if they expand their product portfolio with vegetarian, marine and other plant-sourced gelatin capsules.
Pharmaceutical Companies end user segment is expected to be the second most lucrative segment in the global HPMC capsules market
The Pharmaceutical Companies segment is projected to expand at 10.8% CAGR over the forecast period and be valued at more than US$ 120 Mn by 2025 end. This segment is estimated to account for over 20% revenue share of the global HPMC capsules market by 2017 end but is expected to lose 23 BPS in its market share by 2025 over 2017. This segment is expected to create absolute $ opportunity of US$ 7.4 Mn in 2018 over 2017. The revenue of the Pharmaceutical Companies segment in the global HPMC capsules market is expected to grow 2.2X by 2025 end as compared to that in 2017. This segment is anticipated to be the second most lucrative segment in the global HPMC capsules market by end user, with a market attractiveness index of 0.9 during the forecast period.
Regional analysis of the HPMC capsules market
North America and Europe are likely to be strong markets for HPMC capsules in terms of revenue share over the forecast period. Revenue growth in North America is likely to be impacted by well-defined product labeling and harmonized regulations. The Europe market is witnessing an increasing preference for capsules with clean labels and Kosher, Halal, and BSE certifications. Japan has seen an increase in the number of new clinical trials to the tune of 94% between 2006 and 2012 and this is one of the contributors of revenue growth of the HPMC capsules market in Asia Pacific. North America will continue to dominate the global HPMC capsules market throughout the forecast period while markets in Latin America and MEA will show sustained growth in the coming decade. The MEA region is a potential gold mine for HPMC capsules manufacturers owing to the increasing demand for halal certified products from Middle East countries.
Demand for HPMC capsules is increasing despite high prices. Nutraceutical and pharmaceutical companies are showing interest towards vegetarian-based capsules to avoid manufacturing problems such as drug-gelatin interactions and limitations in formulations with gelatin capsules. The global HPMC capsules market is expected to witness significant growth in the coming years. Rising demand for halal certified products from Muslim populated countries is also expected to fuel market demand for HPMC capsules. Pharmaceutical companies are shifting their strategy to produce halal certified products in order to leverage opportunities arising from this increasing demand. Moreover, the formation of a structured regulatory framework is expected to result in manufacturers developing and introducing HPMC capsules. This is the gist of a new report by Persistence Market Research on the global HPMC capsules market titled “HPMC Capsules Market: Global Industry Analysis and Forecast, 2017–2025.” The analysts have observed that the APAC market is expected to witness the highest increase in demand, thus registering the most attractive CAGR over the forecast period. Mature markets are expected to witness a rapid increase in product innovation and novel technologies to attract consumers as well as to assist pharmaceutical and nutraceutical companies that are facing various manufacturing challenges.
Pharmaceutical and nutraceutical companies entering into long-term contracts with HPMC manufacturing units for imports and exports across all regions and competitive pricing initiatives for large-scale purchasing are expected to emerge as key trends for achieving sustainable revenue growth in the global HPMC capsules market. While studying the various regions it has been observed that increasing vegetarian capsules product portfolio, which is an alternative to gelatin capsules, providing customized capsules to CROs to conduct pre-clinical and clinical trials and providing R&D capsule kits to pharmaceutical and nutraceutical manufacturers to save on R&D costs and time are key differentiating strategies that capsules manufacturers are adopting currently. Investments in R&D and new manufacturing units for HPMC capsules in economically stable countries and acquisitions and collaborations with manufacturers in different regions are other key differentiating strategies of the leading market players.
Primarily, the report takes an overview of the global HPMC capsules market. The report presents the market taxonomy and market dynamics including factors influencing the development of the global HPMC capsules market. Yearly change in inflation rate has not been considered while forecasting market numbers. Top-down approach has been used to counter-validate the reached numbers, while bottom-up approach has been used to assess market numbers for each product category. Indicators such as healthcare expenditure, research funding from government and non-profit organizations etc., epidemiology of diseases, regulatory scenario etc. have been considered to arrive at the indicated market numbers.
This report covers the global HPMC capsules market performance by revenue contribution from various segments. The report also includes Persistence Market Research’s analysis of key trends, drivers, restraints and opportunities influencing the progress of the global HPMC capsules market. The report also provides key strategic recommendations for both existing and new players in the market to emerge sustainably profitable. In the final section of the report, the global HPMC capsules market landscape is included to provide report audiences with a dashboard view on the basis of categories of providers across the market, their presence in the global HPMC capsules market and key differentiators.
Global HPMC Capsules Market Segmentation
By End User
In-depth secondary research has been leveraged to ascertain overall market size and top products
The forecast presented in this report assesses total revenue of the global HPMC capsules market. When developing the market forecast, the starting point involves sizing the current market, which forms the basis for forecasting how the market is anticipated to take shape in the near future. The report also takes into consideration year-on-year growth to understand the predictability of the market and to identify the right opportunities across the global HPMC capsules market. As previously highlighted, the market for HPMC capsules is split into various categories. All these segments have been analyzed in terms of basis point share to understand segmental contribution to overall market growth. This detailed level of information is important for the identification of various key trends likely to govern the global HPMC capsules market.