Softgel Manufacturing Equipment Market Size, Share, Growth, and Industry Analysis, By Types (Soft Capsule Encapsulation Machines , Soft Capsule Drying Systems , Other Auxiliary Devices) , Applications (Pharmaceutical, Health Supplements, Others) and Regional Insights and Forecast to 2034

Softgel Manufacturing Equipment Market Size

The Global Softgel Manufacturing Equipment market size was valued at USD 0.35 Billion in 2024, is projected to reach USD 0.40 Billion in 2025, and is expected to hit approximately USD 0.45 Billion by 2026, surging further to USD 1.13 Billion by 2034. This growth highlights a robust compound annual growth rate (CAGR) of 12.4% during 2025–2034.

The US Softgel Manufacturing Equipment Market represents the largest share within North America, supported by advanced pharmaceutical infrastructure, rapid adoption of automation, and strong nutraceutical demand. Growth is fueled by increasing production of dietary supplements, prescription drugs, and vitamins in softgel form, which account for over 65% of encapsulated health products in the region. With investments in state-of-the-art encapsulation and drying systems, the US is driving innovation in pharmaceutical manufacturing efficiency, positioning itself as a global leader in softgel technology adoption and equipment upgrades.

Key Findings

• Market Size: The market is valued at USD 0.40 Billion in 2025 and is projected to reach USD 1.13 Billion by 2034, growing steadily at a 12.4% CAGR.
• Growth Drivers: Rising automation adoption, with 72% of manufacturers prioritizing advanced encapsulation technologies and 58% driven by increasing pharmaceutical demand.
• Trends: Strong momentum toward turnkey solutions, with 55% shifting to integrated production lines and 49% focused on plant-based capsule compatibility.
• Key Players: Leading companies include Technophar, Pharmagel, Changsung, SKY, and Sankyo, dominating with innovation and product diversification.
• Regional Insights: North America accounts for 34%, Europe holds 27%, Asia-Pacific leads with 31%, and Middle East & Africa contributes 8% of total share.
• Challenges: The industry faces barriers such as 44% skilled workforce shortages and 39% delays in equipment validation impacting production efficiency.
• Industry Impact: The sector delivers measurable benefits including 48% faster product release cycles and 42% overall equipment efficiency improvements across production facilities.
• Recent Developments: Equipment manufacturers launched innovations such as 20% higher throughput encapsulation systems and 18% faster drying modules during 2024–2025.

The Softgel Manufacturing Equipment market plays a vital role in pharmaceutical and nutraceutical industries, enabling large-scale production of soft gelatin capsules for vitamins, dietary supplements, and prescription drugs. Increasing consumer demand for easily consumable formats and precision dosing has enhanced reliance on encapsulation technologies. Key advancements include integration of automated drying systems, efficiency improvements in encapsulation machines, and modular equipment designs for flexible manufacturing. Growing adoption of personalized medicines and preventive health supplements further strengthens the global demand for these machines, making the sector one of the fastest-growing categories in pharmaceutical manufacturing equipment.

Softgel Manufacturing Equipment Market Trends

The Softgel Manufacturing Equipment Market is witnessing accelerated growth due to surging consumption of dietary supplements, functional foods, and prescription nutraceuticals. Around 70% of global supplement users now prefer capsules or softgels over tablets, driving expansion in encapsulation technologies. Automation and AI-enabled monitoring systems have improved operational efficiency by more than 35%, reducing downtime and enhancing batch consistency. In addition, nearly 55% of large pharmaceutical manufacturers are investing in high-throughput encapsulation machinery to meet regulatory and consumer demands. The market is also shaped by the rise of plant-based softgel capsules, which represent over 22% of global production, appealing to vegan and vegetarian populations. Increasing penetration of e-commerce for supplements has pushed small and mid-scale manufacturers to adopt compact encapsulation units, ensuring competitive production capacity. Collectively, these trends highlight a shift towards advanced, sustainable, and flexible equipment solutions across both developed and emerging markets.

Softgel Manufacturing Equipment Market Dynamics

The dynamics of the softgel manufacturing equipment market revolve around technological advancements, regulatory compliance, and evolving consumer preferences. Automation and digital integration have reshaped the industry, driving faster production speeds and enhanced quality control. Meanwhile, strict regulatory standards in pharmaceutical and nutraceutical industries influence equipment design, ensuring product safety and efficacy. Consumer demand for softgel capsules, particularly in health supplements, has surged by over 40% in the last decade, bolstering the need for efficient manufacturing machinery. However, factors such as high initial investment costs and rising demand for refurbished equipment influence purchasing decisions and market growth.

OPPORTUNITY

Growth in personalized medicines

The rising demand for personalized medicine creates a significant opportunity for the softgel manufacturing equipment market. Customizable equipment capable of producing specific capsule sizes, shapes, and formulations is increasingly sought after to cater to tailored healthcare solutions. By 2030, personalized medicine is expected to account for over 15% of the global pharmaceutical market, driving demand for flexible manufacturing equipment. Additionally, the rising trend of vegan softgel capsules, expected to grow by 20% annually, offers untapped potential for manufacturers to innovate equipment designs suited to plant-based materials, aligning with the global shift towards sustainable and ethical production.

DRIVERS

Rising demand for pharmaceuticals

The growing global prevalence of chronic diseases and the demand for advanced drug delivery systems drive the need for softgel capsules, increasing reliance on efficient manufacturing equipment. Over 50% of new drug formulations involve encapsulated delivery methods, favoring softgel production. Additionally, the nutraceutical sector, representing nearly 70% of dietary supplement consumption, has increased the adoption of softgel capsules due to their convenience and bioavailability. The Asia-Pacific region, with a population exceeding 4.6 billion, contributes significantly to this demand, as health awareness and healthcare spending continue to rise.

Market Restraints

"Demand for refurbished equipment"

The preference for refurbished softgel manufacturing equipment, especially in cost-sensitive regions like Asia and Africa, poses a challenge for the growth of new equipment sales. Refurbished machines cost approximately 30-50% less than new ones, making them an attractive option for small-scale manufacturers. This trend limits the market penetration of advanced automated systems, especially in developing economies. Additionally, the high initial investment for state-of-the-art machinery, often exceeding $1 million per unit, deters smaller companies from upgrading, further constraining the market. Regulatory complexities and long approval timelines also hinder the swift adoption of new equipment.

Market Challenges

"Rising costs and expenditures"

The escalating costs associated with advanced pharmaceutical manufacturing equipment, including maintenance and operational expenses, present a major challenge. The average cost of maintaining high-tech softgel encapsulation machines can range annually, which strains the budgets of small and medium-sized enterprises. Furthermore, energy consumption in automated systems remains a concern, with machines consuming up to 20% more electricity compared to traditional equipment. This challenge is compounded by the lack of skilled operators, increasing training costs and reducing operational efficiency. Such factors contribute to slower adoption rates, particularly in emerging markets with limited financial resources.

Segmentation Analysis

The Softgel Manufacturing Equipment Market is segmented into various types and applications, reflecting diverse demand from pharmaceutical, nutraceutical, and supplement manufacturers. Equipment types vary from large-scale encapsulation systems designed for bulk production to auxiliary devices supporting precision and efficiency. Applications span pharmaceutical drug production, dietary supplement manufacturing, and emerging use cases in specialized nutraceutical formulations. Each segment showcases distinct growth drivers, with pharmaceutical applications maintaining dominance, while nutraceutical and health supplements rapidly expand their adoption, fueled by increasing consumer demand for preventive healthcare solutions.

By Type

Soft Capsule Encapsulation Machines

Soft Capsule Encapsulation Machines hold the largest share of the market, accounting for approximately 52% of demand. These machines are widely used in large-scale pharmaceutical and nutraceutical production, offering high output and automation efficiency. Their precision, reliability, and ability to handle diverse formulations make them essential across leading global manufacturers.

Soft Capsule Encapsulation Machines Market Size in 2025 stood at USD 0.21 Billion, representing 52% of the total market. This segment is expected to grow at a CAGR of 13.2% from 2025 to 2034, driven by adoption of automated systems and rising supplement demand.

Top 3 Major Dominant Countries in the Soft Capsule Encapsulation Machines Segment

• United States led with USD 0.08 Billion in 2025, holding a 38% share, boosted by advanced pharma infrastructure.
• Germany followed with USD 0.05 Billion in 2025, capturing 24% share due to strong nutraceutical manufacturing.
• Japan held USD 0.04 Billion in 2025, representing 20% share, driven by high demand for dietary supplements.

Soft Capsule Drying Systems

Soft Capsule Drying Systems accounted for around 31% of the global market, supporting efficient drying of encapsulated products to maintain stability and quality. They are critical in ensuring product shelf life and integrity across both pharma and nutraceutical production lines.

Soft Capsule Drying Systems Market Size in 2025 stood at USD 0.12 Billion, representing 31% of the total market. This segment is expected to grow at a CAGR of 11.6% from 2025 to 2034, supported by increased adoption of continuous drying technologies.

Top 3 Major Dominant Countries in the Soft Capsule Drying Systems Segment

• China led with USD 0.05 Billion in 2025, holding a 40% share, supported by large-scale supplement production.
• India followed with USD 0.03 Billion in 2025, accounting for 25% share due to rising nutraceutical exports.
• United States held USD 0.02 Billion in 2025, representing 20% share with focus on high-quality pharma output.

Other Auxiliary Devices

Other Auxiliary Devices, including polishing, inspection, and support systems, accounted for 17% of the market. These devices enhance operational efficiency, ensure capsule quality, and support compliance requirements across regulated markets.

Other Auxiliary Devices Market Size in 2025 stood at USD 0.07 Billion, representing 17% of the total market. This segment is expected to grow at a CAGR of 10.8% from 2025 to 2034, driven by rising need for automation and quality control.

Top 3 Major Dominant Countries in the Other Auxiliary Devices Segment

• South Korea led with USD 0.03 Billion in 2025, accounting for 42% share, driven by automation adoption.
• United States followed with USD 0.02 Billion in 2025, representing 28% share, driven by compliance standards.
• Italy accounted for USD 0.01 Billion in 2025, with 18% share, supported by pharma equipment exports.

By Application

Pharmaceutical

The Pharmaceutical segment dominated the market with a 58% share in 2025, driven by rising demand for prescription softgels across chronic disease treatments and advanced formulations. Regulatory compliance and patient-centric formulations further boost this segment.

Pharmaceutical Application Market Size in 2025 stood at USD 0.23 Billion, representing 58% of the total market. It is expected to grow at a CAGR of 13.6% from 2025 to 2034, driven by global drug development and demand for patient-friendly dosage forms.

Top 3 Major Dominant Countries in the Pharmaceutical Application Segment

• United States led with USD 0.09 Billion in 2025, holding a 39% share, driven by strong pharma R&D.
• Germany accounted for USD 0.05 Billion in 2025, representing 22% share, supported by manufacturing excellence.
• India held USD 0.04 Billion in 2025, capturing 18% share due to cost-effective drug production.

Health Supplements

Health Supplements represented 30% of the global market in 2025, fueled by rising awareness of preventive healthcare, increasing aging population, and lifestyle-driven supplement intake. Plant-based supplements also contribute significantly to segment expansion.

Health Supplements Application Market Size in 2025 stood at USD 0.12 Billion, representing 30% of the total market. It is expected to grow at a CAGR of 11.8% from 2025 to 2034, driven by e-commerce supplement sales and increased consumer adoption.

Top 3 Major Dominant Countries in the Health Supplements Application Segment

• China led with USD 0.05 Billion in 2025, holding 42% share due to booming supplement consumption.
• Japan followed with USD 0.03 Billion in 2025, capturing 25% share due to aging demographics.
• United States held USD 0.02 Billion in 2025, representing 20% share, fueled by vitamin and mineral demand.

Others

The Others segment, including nutraceutical innovations and cosmetic applications, accounted for 12% of the market. Specialty formulations and niche applications, such as CBD oils and cosmetic softgels, are expanding this segment’s role.

Others Application Market Size in 2025 stood at USD 0.05 Billion, representing 12% of the total market. It is expected to grow at a CAGR of 10.4% from 2025 to 2034, supported by emerging demand in personalized healthcare and functional beauty products.

Top 3 Major Dominant Countries in the Others Application Segment

• South Korea led with USD 0.02 Billion in 2025, holding 40% share, driven by cosmetics industry integration.
• United States accounted for USD 0.01 Billion in 2025, representing 28% share with focus on nutraceutical startups.
• France held USD 0.01 Billion in 2025, capturing 20% share due to cosmetic supplement demand.

Softgel Manufacturing Equipment Market Regional Outlook

The global Softgel Manufacturing Equipment Market, valued at USD 0.35 Billion in 2024 and projected to reach USD 0.40 Billion in 2025, is expected to grow further to USD 1.13 Billion by 2034, registering a CAGR of 12.4% during the forecast period. Regional distribution is spread across North America, Europe, Asia-Pacific, and the Middle East & Africa, together accounting for 100% of the market share.

North America

North America accounted for 34% of the market in 2025, driven by strong pharmaceutical production capacity, adoption of automated encapsulation systems, and high compliance with FDA regulations. Demand for health supplements and vitamins in softgel form has boosted equipment upgrades in the region.

North America Market Size in 2025: USD 0.14 Billion, Share: 34%, CAGR: 12.8%.

Top 3 Major Dominant Countries in the North America Market

• United States led the market with USD 0.09 Billion in 2025, holding a 23% share, driven by advanced pharma manufacturing and CDMO growth.
• Canada contributed USD 0.03 Billion in 2025, representing 7% share, supported by nutraceutical demand and healthcare investment.
• Mexico held USD 0.02 Billion in 2025, with 4% share, driven by rising softgel supplement production and export facilities.

Europe

Europe captured 27% of the market in 2025, propelled by strong nutraceutical demand, stringent GMP compliance, and sustainability-driven equipment procurement. Countries like Germany, Italy, and the UK lead in adopting advanced softgel drying and inspection technologies.

Europe Market Size in 2025: USD 0.11 Billion, Share: 27%, CAGR: 12.1%.

Top 3 Major Dominant Countries in the Europe Market

• Germany led with USD 0.04 Billion in 2025, holding 10% share, supported by strong nutraceutical output and pharma R&D.
• Italy recorded USD 0.03 Billion in 2025, with 9% share, driven by nutraceutical softgels and capsule exports.
• United Kingdom contributed USD 0.02 Billion in 2025, representing 8% share, driven by health supplements and advanced technology adoption.

Asia-Pacific

Asia-Pacific held 31% of the market in 2025, making it the fastest-growing region, supported by large-scale pharmaceutical exports, cost-effective production, and growing nutraceutical adoption. China, India, and Japan dominate this market with significant capacity expansions.

Asia-Pacific Market Size in 2025: USD 0.12 Billion, Share: 31%, CAGR: 13.4%.

Top 3 Major Dominant Countries in the Asia-Pacific Market

• China led with USD 0.05 Billion in 2025, holding 13% share, due to large-scale production and exports.
• India accounted for USD 0.04 Billion in 2025, with 11% share, boosted by low-cost equipment adoption and supplement demand.
• Japan contributed USD 0.03 Billion in 2025, representing 7% share, driven by advanced pharma technology and softgel innovation.

Middle East & Africa

Middle East & Africa represented 8% of the market in 2025, supported by healthcare infrastructure growth, new pharma hubs, and government-backed manufacturing initiatives. Demand is steadily rising for compact encapsulation systems and turnkey solutions.

Middle East & Africa Market Size in 2025: USD 0.03 Billion, Share: 8%, CAGR: 11.2%.

Top 3 Major Dominant Countries in the Middle East & Africa Market

• United Arab Emirates led with USD 0.01 Billion in 2025, holding 3% share, supported by pharma free zones and nutraceutical demand.
• Saudi Arabia accounted for USD 0.01 Billion in 2025, with 3% share, driven by investments in healthcare manufacturing capacity.
• South Africa held USD 0.01 Billion in 2025, with 2% share, supported by nutraceutical demand and regional distribution centers.

LIST OF KEY Softgel Manufacturing Equipment Market COMPANIES PROFILED

Investment Analysis and Opportunities

Investment in softgel manufacturing equipment is accelerating as pharmaceutical and health supplement producers scale capacity, expand dosage portfolios, and modernize legacy lines. Capital flows prioritize high-throughput encapsulation with servo-driven die rolls, precision fill pumps, and advanced gelatin preparation units to stabilize viscosity and temperature control. Buyers targeting double-digit OEE uplift are adopting predictive maintenance—sensors for bearing wear, vibration, and temperature—reducing unplanned downtime by measurable percentages. Cleanroom-friendly, small-footprint systems enable faster tech-transfer and flexible batch sizes for clinical to commercial runs, while modular add-ons (polishers, sorters, vision inspection) shorten release cycles by reducing manual rework.

Opportunities are particularly strong in: (1) "Turnkey lines" that integrate encapsulation, drying, polishing, sorting, inspection, and data capture; (2) "Plant-based capsule compatibility"—gelatin alternatives require tighter thermal and moisture windows, driving upgrades to heating/cooling loops and drum zoning; (3) "Data and compliance"—21 CFR Part 11-ready e-records, audit trails, and MES connectivity; (4) "Aftermarket services"—spares, calibration, re-tooling for new shapes/sizes, operator training, and line re-validation. Emerging markets and CDMOs seek payback periods within typical 24–36 month windows, achievable via OEE gains, reduced waste, and compressed cycle times. Vendors offering financing, lease-to-own, and performance-linked SLAs gain competitive traction.

NEW PRODUCTS Development

New product development in softgel manufacturing equipment focuses on throughput, precision, and compliance. Next-generation encapsulation machines incorporate multi-lane die sets with enhanced lubricating systems to stabilize seam formation, raising first-pass yield rates. Variable-frequency drive (VFD) improvements and servo synchronization between fill pump and ribbon speed reduce fill-weight variability and bubble incidence. Drying innovations emphasize energy-efficient dehumidification, zoned airflow control, and real-time moisture analytics to lock in capsule hardness and reduce drying time, often delivering double-digit cycle-time reductions depending on fill type and shell thickness.

Auxiliary devices are evolving rapidly: compact polishers with anti-static features, high-resolution vision inspection (detecting micro-leaks, shell inclusions, and color deviations), and automated sorting with defect mapping integrated to batch records. Software upgrades now provide batch genealogy, e-signatures, and encrypted data export, simplifying audits. Vendors are expanding gelatin-alternative capability—supporting carrageenan, starch blends, and other plant-origin shells—via precise thermal control and ribbon-cooling advancements. Tooling libraries are broadening to accommodate oblong, round, twist-off, and specialty shapes used in cosmetics and functional oils. Remote commissioning and AR-based maintenance cut mean time to repair (MTTR) and accelerate operator training for new plants and CDMOs.

Recent Developments by Manufacturers 

• Multiple OEMs introduced multi-lane encapsulation upgrades delivering up to 15–20% higher throughput via improved die-roll synchronization and fill-pump servo tuning.
• Drying-system suppliers launched zoned airflow racks with inline moisture sensors, trimming typical drying time by 10–18% for high-viscosity fills.
• Vision-inspection modules were enhanced with higher pixel density and AI-assisted defect classification, reducing false rejects by 25–35% in pilot deployments.
• Plant-based shell compatibility kits expanded, with optimized temperature and tension control to stabilize seam integrity on non-gelatin ribbons.
• OEMs rolled out Part 11-ready data suites and MES connectors, enabling electronic batch records and audit trails across encapsulation-to-inspection workflows.

REPORT COVERAGE

This report covers the full softgel manufacturing equipment value chain: encapsulation machinery, drying systems, polishing/sorting/inspection devices, gelatin (and gelatin-alternative) preparation units, line integration, and aftermarket services. It evaluates installed base trends, new capacity additions, and buyer preferences across pharmaceutical, health supplements, and specialty applications. Technical scope includes fill-system accuracy, ribbon control, seam formation, moisture profiling, and validated cleaning protocols. Regulatory and compliance mapping addresses GxP, data integrity, and Part 11 readiness, plus evolving expectations for electronic batch records and quality-by-design documentation.

The competitive landscape section profiles leading OEMs and integrators by product portfolio, technology roadmap, and service depth, including training, tooling availability, remote diagnostics, and spare-part logistics. Regional analysis quantifies market share across North America (34%), Europe (27%), Asia-Pacific (31%), and Middle East & Africa (8%). The report quantifies 2025 segment shares by type and application, highlights capex priorities, and benchmarks OEE gains from automation, predictive maintenance, and vision systems. It concludes with investment pathways, including turnkey suites, plant-based capsule enablement, and data-centric upgrades that compress batch release timelines and enhance first-pass yield.