The global softgel encapsulation machine market is projected to experience sustained growth over the next decade, expanding from an estimated USD 115.9 million in 2025 to USD 178.8 million by 2035, at a CAGR of 4.4%. This rise underscores the accelerating adoption of automated encapsulation systems and growing demand for nutraceutical and pharmaceutical softgels worldwide.
Softgel encapsulation machines, vital to the production of gelatin-based capsules containing liquid or semi-solid formulations, are increasingly becoming the backbone of the pharmaceutical and nutraceutical manufacturing industries. Their ability to enhance production efficiency, precision, and material utilization is redefining manufacturing standards across sectors.
Rising Demand for Dietary Supplements and Pharmaceuticals Drives Market Momentum
Softgel capsules continue to gain traction due to their enhanced bioavailability, stability, and patient compliance, particularly within the pharmaceutical sector—the market’s strongest end-user segment. Concurrently, nutraceutical manufacturers are amplifying their investments to meet surging global demand for vitamins, omega-3s, and herbal supplements, with the supplement industry surpassing USD 170 billion in early 2023, according to IADSA.
By 2035, the global demand for softgel encapsulation machines is expected to rise by 1.5 times as companies modernize their production processes to accommodate high-output, automated systems. This momentum reflects a broader market shift toward automation, precision engineering, and sustainable manufacturing.
Technological Advancements Redefining Production Efficiency
The integration of servo-controlled filling systems, real-time monitoring, and built-in drying mechanisms has revolutionized capsule production. These innovations have dramatically reduced material waste while improving consistency and operational reliability.
Manufacturers are also introducing next-generation designs, such as rolling Parker collar systems and fully automated encapsulation units that offer enhanced multifunctionality and scalability. Such advancements are pushing the market toward greater operational autonomy, allowing firms to reduce labor costs and minimize human error in sensitive pharmaceutical processes.
As of 2025, fully automatic encapsulation machines are expected to command a market share exceeding 86.6%, driven by their ability to provide consistent quality, high throughput, and energy efficiency. These systems—featuring touch-screen controls, microcomputer-programmed settings, and automated counting mechanisms—are becoming the gold standard in large-scale softgel production facilities.
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High-Efficiency Models Set New Industry Benchmarks
Demand for mid-to-high output models (25,000–50,000 softgels per hour) is rising rapidly, with this segment projected to capture over 36.5% of the market share. These machines strike the ideal balance between production speed and quality assurance, offering an absolute dollar opportunity of USD 15.5 million from 2025 to 2035.
This surge in adoption reflects the growing pressure on manufacturers to scale production without compromising on precision or sustainability. Efficiency-driven innovations are allowing producers to achieve continuous operation with minimal downtime—an essential factor as global pharmaceutical demand intensifies.
Regional Outlook: Asia Pacific Leads, Europe and North America Steady
The Asia Pacific region remains the fastest-growing hub for softgel encapsulation technology. India (6.1% CAGR), China (5.7%), and Japan (5.1%) are projected to lead the global expansion, supported by the rapid growth of contract development and manufacturing organizations (CDMOs) and increased healthcare investments.
China’s booming pharmaceutical sector and aging population continue to propel equipment demand, with the market expected to reach USD 33.1 million by 2035. Meanwhile, India’s vibrant nutraceutical industry is stimulating equipment exports and partnerships between domestic manufacturers and global technology providers.
In Europe, Germany stands out with an expected CAGR of 5.1%, fueled by advanced pharmaceutical R&D and a strong cancer treatment ecosystem. Softgel encapsulation machines are being increasingly deployed for chitosan-alginate BSA-gel-capsule production used in chemotherapy support.
The United States, a key global exporter of advanced pharmaceuticals, is forecast to reach USD 29.8 million by 2035, backed by its leadership in biotechnology and precision medicine. Continuous export of advanced formulations is further boosting domestic demand for cutting-edge encapsulation machinery.
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Established and Emerging Players Expanding Footprint
The competitive landscape is diversifying rapidly, with a mix of Tier I, II, and III manufacturers innovating across scale and specialization.
- Tier I companies such as ACIC Pharmaceuticals Inc., CapPlus Technologies, United Pharmatek, and Joysun Mech-Tech dominate 30–35% of the market through global reach and large-scale production capabilities. These firms are investing in automation, smart monitoring systems, and energy-efficient designs to maintain regulatory compliance and enhance throughput.
- Tier II firms like Volks Vita, Changsung Softgel System Ltd., ACG World, and Qualicaps contribute 25–30% of the share, focusing on customized regional solutions and mid-scale systems that balance flexibility with performance.
- Tier III companies—including Kamata Machine Co., Ltd., Beijing Xin Hang Cheng Technology Development Co., Ltd., and Hedagel—serve niche local markets and account for 40–45% of total market activity, often specializing in bespoke, compact encapsulation systems.
Together, these players are creating a vibrant ecosystem characterized by strategic partnerships, product innovation, and global expansion.
Industry Developments and Strategic Collaborations
The market has witnessed several pivotal developments shaping its competitive future:
- May 2024 – CVC Technologies unveiled its new Softgel Encapsulation System and High-Speed Counting Line (CVC625), underscoring its commitment to precision and efficiency in pharma manufacturing.
- December 2023 – Technophar launched a fully automated softgel encapsulation machine with integrated drying and higher capacity, reducing costs and enhancing consistency.
- March 2023 – CVC Technologies acquired Changsung Softgel System, expanding its global presence and merging encapsulation expertise with advanced packaging technologies.
These developments reflect a broader trend of technological convergence and strategic acquisitions, as leading firms strengthen their competitive edge in both innovation and market reach.
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