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Robinson Pharma feels effects of soft gel demand

By Clarisse Douaud, 06-Jul-2007

If the experience of Robinson Pharma spells true, soft gel encapsulation for the dietary supplement market is on the rise, driven by the omega-3 and CoQ10 markets.

The Californian soft gel manufacturer said it has grown to over 400 employees and claims to have experienced record growth over the past year, particularly in its core business area of soft gel encapsulation.

Consumers appear to favor a clear soft gel over other forms of capsules because it allows them to see the content of their dietary supplement. This has leant particularly well to omega-3 fish oil encapsulation.

"The market for soft gelatin capsules has grown rapidly over the past three years, primarily due to expansion in consumer in demand for omega 3 fatty acids and enhanced absorption CoQ10," said Kenn Israel, vice president of marketing with Robinson Pharma. "Future growth will be driven by these product segments as well as enhanced customer service and a keen focus on cGMP compliant manufacturing."

While the omega-3 market has soared in recent years, it is now especially growing via the functional food category, meaning growth for supplements may not be as rapid in the future.

According to market researcher Packaged Facts, foods with added omega-3 will reach $7bn in sales by 2011. In 2006, this figure stood at $2bn, and the boom over the past four years has followed the lipid ingredient's move into the mainstream.

The analyst also has reported that such functional foods are likely to eat into sales of traditional dietary supplements. It estimated the US functional food market to be worth around $24.8bn in retail sales in 2006 - up 9.5 percent from 2005.

Still, business is picking up for Robinson Pharma, which now has capacity for over 10 billion soft gels per year.

"Last year we opened our "Phase II" production facility- the first 100 percent continuous dry soft gel operation in the U.S.," said Robinson Pharma president and founder, Tuong Nguyen. "After this initial success with continuous drying technology, we have converted the balance of the plant to this more efficient and faster production method."

Robinson Pharma has over 20 production lines operating 24 hours a day and has increased staffing to reflect growth in almost all departments of the company with specific focus on production, quality control, and plant support.

At the same time as aesthetic and sensory motivators instigate soft gel technology breakthroughs, consumer values have played a role in new research and development across the capsule industry as well.

BSE scares, religious convictions and an increasing number of vegetarian consumers have encouraged supplement formulators to seek out non-animal options.

Over the past two years the size of the US vegetable capsule market has grown by 54 percent. The market for these soft gels rose from $43.3mn in 2004 to $66.6mn in the year ending May 2006, according to natural products market researcher SPINS.