Japan Softgel Capsules Market Assessment, By Material Type, By Source, By Application, By End-user, By Region, Opportunities and Forecast, FY2019-FY2033F

Japan softgel capsules market is projected to witness a CAGR of 7% during the forecast period FY2026-FY2033, growing from USD 490.72 million in FY2025 to USD 843.14 million in FY2033. The market's growth is supported by the rapid expansion of the aging population, rising prevalence of chronic diseases, and increasing investments in the healthcare sector. According to the estimates of the World Economic Forum, over one in ten people are 80 or older in Japan. This growth is augmenting the requirement for various pharmaceutical products and medications to ensure and maintain the health and well-being of the population, supporting the market's expansion.

Moreover, softgel capsules are the preferred delivery system for nutritional supplements and medications as they offer enhanced bioavailability and ease of consumption, making them ideal for managing chronic conditions and maintaining nutritional requirements. Meanwhile, the expanding healthcare infrastructure and rising awareness about personalized medicines in Japan also contribute to the market's growth as different pharmaceutical companies are actively investing in research and development activities to introduce innovative formulations that are tailored to the requirements of the patient population.

Additionally, technological advancements in manufacturing softgel capsules, including production of carrageenan-free and plant-based formulations are further catering to the preferences of the health-conscious consumers seeking natural and sustainable products. Growing awareness about personalized medicines coupled with the country's robust healthcare infrastructure are other major factors sustaining the market's growth in Japan.

Aging Population Supports Market Expansion

As individuals age, they often experience difficulties swallowing tablets due to conditions such as dry mouth or reduced swallowing ability. Softgel capsules due to their gelatinous coating are smooth in nature and provide a convenient and easy-to-swallow alternative for the older population. As per the estimates of the National Institute of Population and Social Security Research, approximately 34.8% of the population will be 65 or older by 2040.

Thus, softgel capsules are widely used in the country for delivering medications and nutritional supplements that help in managing chronic conditions. The enhanced bioavailability of softgel capsules ensures effective absorption of active ingredients, critical for elderly patients that may have compromised digestive systems.

Increasing Emphasis on Health and Wellness Boosts Market Demand

The rising emphasis on health and wellness is Japan due to increasing prevalence of various chronic diseases is augmenting the requirement for different pharmaceutical and nutraceutical products. As per the estimates of an article published in the Journal of Cardiology in March 2024, approximately 310,000 people die from cardiovascular diseases in Japan every year.

The country's population is actively seeking dietary supplements and nutraceuticals for maintaining their overall health and wellbeing and preventing chronic diseases. Additionally, compared to other tablets and powders, softgel capsules offer better stability for reactive ingredients. Meanwhile, functional foods and beverages are also gaining traction in the country. Several of such products use softgels for incorporating their active ingredients to enhance efficacy and maintain potency, further supporting the market's expansion.

Gelatin-based Capsules Account for Significant Share of the Market

The popularity of gelatin-based capsules stems from their ability to encapsulate both liquid and semi-liquid formulations while ensuring enhanced bioavailability and stability of active ingredients. The strong gelatin market in Japan supports this trend, with bovine-sourced gelatin being the largest segment due to its perceived benefits like skin rejuvenation and bone strengthening. Additionally, gelatin's compatibility with pharmaceutical and nutraceutical applications makes it a preferred material for softgel manufacturing. Moreover, its affordability compared to non-animal-based alternatives further contributes to the segment's dominance. As demand for softgel capsules continues to increase in the country, gelatin-based capsules are expected to maintain their position in the market.

Nutraceutical Companies Hold Major Market Share

Due to the increasing health consciousness among the general population and rapid expansion of the aging population, the requirement for nutraceuticals is significantly increasing, bolstering the demand for softgel capsules among nutraceutical companies. In order to maintain their competitive edge and expand their presence, these companies are also focusing on launching new products. For instance, in May 2024, Natural Technology Co., Ltd. launched a new product called Eyepa, an all-in-one supplement for targeting various eye problems including eye strain and dry eyes, among others. The product contains ingredients including, astaxanthin, zeaxanthin, vitamins A, C, and E, pentadecyl, raspberry, zinc, bilberry, Megusurino tree extract, and lutein.

Future Market Scenario (FY2026 - FY2033F)

The market is expected to encounter strong expansion opportunities in the coming years due to the rapid expansion of the pharmaceutical and nutraceutical industries, innovations in softgel capsule technologies, growth of the aging population, and novel product launches. Advanced encapsulation technologies are going to provide higher stability, sustained release mechanism, and targeted delivery of the drug.

Additionally, the market's growth is also supported by increasing investments in local manufacturing to reduce dependency on imports and in research and development of functional and plant-based softgel formulations. Moreover, the integration of plant-based softgel technologies is expected to support the market's expansion, allowing leading players of the market to cater to the preferences of the vegetarian population.

Key Players Landscape and Outlook

The key players of the market are actively investing in expansion of their facilities in Japan, providing lucrative growth opportunities for the market. For instance, in May 2023, Catalent, Inc. expanded its facility in Shiga, Japan to include state-of-the-art cryogenic freezers and material transfer equipment designed to maintain the integrity of advanced therapy products by minimizing their time out of a controlled environment. This move is part of the company's strategy to enhance its ability to handle, store, and manage advanced therapies for clinical supply across the country as well as globally.