The main reason for choosing vegan over gelatin capsules includes ethics, performance and market considerations. According to Grand View Research 2023 data, the global vegetarian capsule market’s annual growth rate is 18.2%, significantly higher than gelatin’s 5.5%, the market size in 2023 was 980 million US dollars, and will be over 2.2 billion US dollars in 2028. This is due to a growing global vegetarian population (12% to 15% in Europe and the US), religious compliance needs (14% annual growth in Halal/Kosher certified medicines), and environmental regulations (the European Union requires a 30% decrease in the use of animal-derived materials by 2030).
From the production and cost perspective, vegan vs gelatin capsules is quite different. The raw material for the vegetarian capsule is Hydroxypropyl methylcellulose (HPMC) or Pullulan polysaccharide and the price is 35-50% higher than gelatin (HPMC price 45-60 US dollars /kg, gelatin 20-30 US dollars /kg). But production energy use is 30% lower (HPMC cold forming process energy use 80 kWh/ 10,000 particles vs. gelatin high temperature sol 120 kWh/ 10,000 particles). For example, capsule major Lonza uses low temperature extrusion technology in its Vegicaps line to produce 180,000 capsules/hour (close to 200,000 capsules/hour with gelatin) and boost the yield to 98.5% (97% for gelatin). In addition, the mold wear rate of vegetarian capsules was 20% higher than gelatin (due to HPMC hardness 80-100 Shore A vs gelatin 50-70), but the mold life was extended to 12 million pieces (previously 8 million pieces) by optimizing the Hybrid model from Bosch, Germany.
In terms of performance parameters, vegan vs gelatin capsules also possess some pros and cons. Vegetarian capsules are more resistant to high temperature and humidity (40 ° C /75% RH) (weight gain 5% versus gelatin 8%), but with longer disintegration time (15-20 minutes versus gelatin 10 minutes in gastric juice). In 2021, Pfizer substituted the capsule material of its new coronavirus oral drug Paxlovid with HPMC to comply with the Islamic market needs, and its deviation of drug loading accuracy was reduced from ±10% to ±5%, and the production cost of a pill rose from $0.04 to $0.06, but due to the expansion of market access, the annual income increased by $230 million. Gelatin capsules have definite advantages in carrying dense powder (bulk density ≥ 0.9g/cm³), used by Sun Pharma of India to make antimalarial medicines at only $0.02 per capsule ($0.035 for vegetable capsules), enjoying 60% market share in Africa.
Regulation and innovation drive industry revolution. EU Green Deal 2022 calls for 40% reduction in pharma packaging material’s carbon footprint, and vegetarian capsules (35% lower carbon than gelatin) are driven in demand. Capsugel of Switzerland’s VeggieGel range has been USP<3> certified for biodegradation (6 months’ degradation time versus gelatin 2 years) and is Novartis’ and Roche’s first choice. Technological developments also accelerate substitution: in 2023, Budenheim, Germany, launched Pululan polysaccharide capsules with a tensile strength of 15 N (HPMC is 10 N), which can be filled with anti-cancer drugs such as paclitaxel (filled 300 mg vs HPMC 250 mg). Vegetarian capsules will account for 25% of oncology drug use by 2025 (only 8% by 2020), Transparency Market Research predicts.
The market case confirms the strategic relevance. With Charlotte’s Web using Lonza vegetarian capsules in the US, the product premium was 20% and the return rate of the consumer was 35% above (due to the green label factor among millennials). Qingdao Runhao in China made an investment of 50 million US dollars for the expansion of HPMC capsule production, return on investment happened within 18 months, and Middle East exports increased by 200%. By way of contrast, however, India’s Dr. Reddy’s relies on the use of gelatin to manufacture hypoglycemic tablets in one listing priced at $0.018 with a 65% gross margin.
Therefore, ultimately the vegan vs gelatin capsule issue comes down fairly precisely to the issue of a valuation of value, cost, and technology. Vegetarian capsules are exposed to premium pricing (20-30% higher end price) and manufacturing concerns, but ethical compatibility (for 95% of religious needs) and low carbon traits (12 kg CO₂ per 10,000 capsules) are revolutionizing the world supply chain. Vegetarian capsules will lead gelatin by 2030 and have 55% market share (Mordor Intelligence forecast) if raw material cost reduces by 20% (through biosynthesis).