Starch Capsules Market Trends

Growth Drivers

• Rising prevalence of chronic diseases: One of the primary drivers for the starch capsules market is the rising burden of chronic diseases such as diabetes. In this regard, the CDC data in February 2024 has depicted that 129 million people in the U.S. are living with chronic disease. Similarly, in May 2024, the CDC data stated that the U.S. reported diabetic cases among 38.4 million individuals, which fueled the demand for delayed-release formulations, directly benefiting the starch capsules industry.
• Sustainability preferences: The eco-friendly necessity of pharmaceutical products is massive, especially to meet the ESG (Environmental, Social, and Governance) commitments. In this regard UN Sustainable Development Group reported that many firms are imposed to ESG controls for biodegradable capsules. Besides, the UN SDGs state that starch capsules are sustainable and reduce the carbon footprint when compared with gelatin. This global shift, both by regulatory frameworks and consumers for eco-friendly therapeutics, is driving growth in the market.
• Strategic company collaborations and innovation: Major pharmaceutical companies are forming strategic alliances with capsule manufacturers to secure supply and co-develop advanced delivery solutions. These collaborations concentrate on boosting stability for biologics and other aspects of capsule performance. Further expansion of the companies such as in December 2024, Lonza Capsules & Health Ingredients has announced its expansion of its manufacturing unit to India and China, focusing to meet the demand and quality standards.

Regulatory Limits of Sodium Octenyl Succinate Starch %

Source: NLM August 2022

Challenges

• Government price controls: The aspect of reimbursement barriers and government price controls can act as a significant restraint for the starch capsules market to capture optimum manufacturer base. Europe is at the forefront hindering starch capsule profitability imposing strict price controls. Besides WHO in 2023 reported that the AMNOG law imposed for Germany manufacturers-controlled prices limiting the earnings. This has been tough for the suppliers to opt for starch capsule production with such price caps imposed.
• Challenges in showing comparative advantage: It is hard to demonstrate to regulators and payers that there is a material benefit to a starch capsule compared to gelatin. Despite being beneficial for the vegetarian and vegan community, this is often not a recognized clinical outcome.  For example, a starch product's clearance was delayed in 2022 when Japan's PMDA requested further stability testing, requiring the manufacturer to show comparable performance under varying humidity levels.