The Pharmaceutical Gelatin market studied is expected to grow with an estimated CAGR of 5.5%, over the forecast period.
COVID 19 has a great impact on gelatin production and the supply chain. Lonza, a key player in the capsules segment has reported that COVID 19 has impacted the demand and supply chain of pharmaceutical capsules, on the other side there is an increased demand for Over counter (OTC) medication too, hence they expect the market to be flat in 2021. COVID 19 is also having a positive tail as this pandemic has raised demand in capsules and tablet manufacturing as there is high consumption.
Types of gelatin are A gelatin - Gelatin produced from the acidic treatment of porcine skin. B gelatin - Gelatin produced from the alkaline treatment of bovine skin. An article published on Biotechnological Processing of Laying Hen Paw Collagen into Gelatins at Multidisciplinary Digital Publishing Institute in Nov 2020 states that hen paws are the alternative source for gelatin which contains a high proportion of collagen (apprx.77%), is an excellent source of raw materials for preparing gelatins. Gelatin’s remarkable functional properties, its ability to stabilize, thicken, gel, foam or bind, It’s high usage in surgeries as hemostat reagent, coating of hard & soft-gel capsules, which facilitates ease in swallowing and provides protection from environmental changes there by increasing the shell-life of the product, made it predominant in pharmaceutical industry. Lonza, to increase the overall production capacity of capsules within CHI's Capsugel portfolio by 30 billion capsules annually, announced a USD 93 million investment in its Capsules and Health Ingredients (CHI) Division in Oct 2020 which is a dosage form delivery partner to the health nutrition and biopharma industry.
The advancements in technology and rise in incidence of diseases are driving the factors for pharmaceutical gelatin. For instance vaccine, to ensure the safety and effectiveness of the vaccine during storage and transport, gelatin derived from pork is being used as stabilizer, which is a driving factor for high demand of pharmaceutical grade gelatin in the present market. Especially in countries like the United States, Canada where there is high prevalence of chronic diseases. Hence, owing to above mentioned factors, the market is expected to witness significant growth in the future.
Key Market Trends
Capsules Segment is expected to grow Faster and Dominate the Market Over The Forecast Period
Being gelatin used as a coating for hard and soft-gel capsules, its wide range of applications drives positive growth of the gelatin market in the pharmaceutical industry. Gelatin is used as an excipient in the production of softgels and hard capsules. Gelatin effectively protects sensitive ingredients from contamination, oxygen, light, and microbial growth. An increase in chronic diseases and the geriatric population is also a major factor that drives the capsules segment of the pharmaceutical gelatin market. Hard capsules contain two cylindrical shells closed at one end, the upper one is a cap and the lower one is the body. Hard capsules are produced without filling the active ingredient inside them, in a second step, they fill these empty gelatin capsules with active ingredients or drugs. Softgels are hermetically sealed that contain liquids or semisolid fills, these are one-piece capsules. It's easy to use and identify, they are also easy to swallow as they are frictionless. National Health Council estimated that 157 million Americans, are affected with chronic diseases in 2020 out of which 81 million Americans, have multiple conditions. More than 75% of healthcare costs are for chronic conditions, the most common and expensive chronic conditions are heart disease, cancer, Pulmonary conditions, and mental disorders. By corelating the advantages of consumption of gelatin capsules and rise in incidence os diseases and geriatric population, this clearly indicates a positive trendnt in growth of capsules segment.
Major uses of gelatin in the pharmaceutical industry include excipient in hard capsules and soft gels, lower production cost and rate of risk in manufacturing, secures active pharmaceutical ingredient (API) dissolution rates, especially protects sensitive ingredients from contamination. The major players covered in the pharmaceutical gelatin market are Darling Ingredients INC, Nitta Gelatin INC, Gelita AG, Tessenderlo Group, Weishardt.
North America Dominates the Market and Expected to do Same in the Forecast Period
North America holds the major market share in the Pharmaceutical Gelatin market. Asia Pacific region and Europe is expected to grow at the highest CAGR during this forecast period as there is ample availability of raw materials such as porcine and bovine, especially in Europe. Pharmaceutical grade gelatin is having better technical advantages compared to that of non-gelatin excipients, hence it's highly used in medical applications.
Gelatin contains lysine that helps to build bone health and also improves the ability to absorb calcium by bones which helps in preventing bone loss. Hence, the rise in the incidence of diseases such as Osteoarthritis is also a driving factor, Osteoarthritis is characterized by the breakdown of cartilage in joints, also known as a degenerative disease. It is reported at the Centers for Disease Control and Prevention that around 54.4 million arthritis-related cases are reported in the United States from 2013 - 2015, projected to 63 million in 2020, and it is estimated to reach 78 million by 2045.
Considering Arthritis a serious condition in Canada the ‘Arthritis Society’ estimated that Canadians affected with arthritis would rise to 9 million by 2040, osteoarthritis is said to be the most common chronic condition in Canadians. The arthritis society has also announced in Accelerating Impact Research Strategy 2020 - 2025 that it will invest USD 30 million in research, fund 60 innovative research projects and launch 150 new research careers in arthritis.The prevalance of diseases associated with pharmaceutical gelatin gives a clear indication that the market moves in positive direction.
The Pharmaceutical Gelatin market is moderately competitive with several players across the globe. In terms of market share, few of the major players currently dominate the market. High prevalence of diseases, gelatin being used as gelatin nanoparticles in drug delivery systems and vaccines, many global players are expected to be a part of the pharmaceutical gelatin market over the forecast period.
Some of the major players of the market are Darling Ingredients INC, Nitta Gelatin INC, Gelita Ag, Tessenderlo Group, Weishardt, Trobas Gelatine B.V, Rousselot, Tessenderlo Group, Nitta Gelatin, Capsugel, Lapi Gelatine S.P.A, India Gelatine & Chemicals Ltd, Gelnex Industria E Comercio Ltda, Junca Gelatines Sl, Italgelatine S.P.A.
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Table of Contents
1.2 Scope of the Study
4.2 Market Drivers
4.2.1 Rising Demand for Pharmaceutical Grade Gelatin
4.2.2 Increasing Burden of Chronic Disease, along with Rise in Geratric Population
4.2.3 Growing Advancemnets of Gelatin Nanoparticles in Drug and Vaccine
4.3 Market Restraints
4.3.1 Rising trend in Veganism and Culture Restrictions
4.3.2 Side effects Associated with Animal Derived Gelatin in Humans
4.4 Porter's Five Force Analysis
4.4.1 Threat of New Entrants
4.4.2 Bargaining Power of Buyers/Consumers
4.4.3 Bargaining Power of Suppliers
4.4.4 Threat of Substitute Products
4.4.5 Intensity of Competitive Rivalry
5.1.3 Other Applications
5.2 By Source
5.3.1 North America
126.96.36.199 United States
188.8.131.52 United Kingdom
184.108.40.206 Rest of Europe
220.127.116.11 South Korea
18.104.22.168 Rest of Asia-Pacific
5.3.4 Middle East and Africa
22.214.171.124 South Africa
126.96.36.199 Rest of Middle East and Africa
5.3.5 South America
188.8.131.52 Rest of South America
6.1.1 Darling Ingredients INC
6.1.2 Nitta Gelatin INC
6.1.3 Gelita Ag
6.1.4 Tessenderlo Group
6.1.6 Trobas Gelatine B.V.
6.1.7 Lonza Group AG (Capsugel)
6.1.8 India Gelatine & Chemicals Ltd.
6.1.9 Gelnex Industria E Comercio Ltda
6.1.10 Junca Gelatines Sl
6.1.11 Italgelatine S.P.A.
A selection of companies mentioned in this report includes:
- Darling Ingredients INC
- Nitta Gelatin INC
- Gelita Ag
- Tessenderlo Group
- Trobas Gelatine B.V.
- Lonza Group AG (Capsugel)
- India Gelatine & Chemicals Ltd.
- Gelnex Industria E Comercio Ltda
- Junca Gelatines Sl
- Italgelatine S.P.A.