CapsCanada produces and distributes empty hard capsules across several geographies and sectors. What type of clients do you typically manufacture for in the nutraceuticals industry?
Martha: We serve a diverse range of clients, including global nutritional companies and local businesses. On a global level, our wide distribution network allows us to cater to multinational entities, while locally, we work with U.S.-based, Canadian and Latin American customers.
These range from small compounding pharmacies, which order in smaller volumes, to large-scale multinational nutritional corporations. This versatility and reach make us an appealing partner for businesses of all sizes. What attracts these clients is our ability to provide tailored solutions that meet their specific needs - whether for global nutritional standards or localized market requirements.
How are supplements companies adapting to deliver capsule products that meet the demands of today’s health-conscious, synthetics-averse consumers?
Martha: Consumers increasingly want clean-label and natural products, while regulatory changes, especially in Europe, have influenced a shift away from synthetic additives like titanium dioxide. To adapt, we have developed solutions like our vegetarian K-CAPS line and titanium-free capsules, which use calcium carbonate for whitening instead of titanium dioxide. We also offer natural colorants derived from sources like spirulina, annatto, or sweet potato to meet consumer preferences for non-synthetic options.
CapsCanada manufactures capsules in Colombia and Canada. How would you describe the competition landscape in these markets?
Martha: These markets are crowded, with significant competition, including an influx of products from Eastern markets. However, CapsCanada stands out in terms of quality and proximity. Being nearshore, especially within the Americas, gives us a distinct advantage in serving our clients efficiently and reliably.
Jonathan: In Latin America, gelatin capsules remain more popular due to their lower cost compared to HPMC capsules. However, in markets like Europe, Asia, and North America, there is a noticeable shift toward plant-based HPMC capsules.
Is the shift toward vegetarian capsules primarily driven by price or customer preferences?
Martha: It is largely driven by the conscious consumer’s demand for alternatives to animal byproducts. There is a growing preference for vegetarian capsules as consumers increasingly seek transparency about what they are ingesting. This trend has led to a significant rise in the use of vegetarian capsules in markets like Europe and the U.S..
That said, cultural differences play a role. In Latin America, for example, there is less emphasis on whether capsules are vegetarian or bovine-based. Instead, the focus is on the quality of the product inside the capsule. Conversely, European markets are much more concerned with clean, natural products, which also influences consumer behavior in North America.
How do you assess the sustainability of CapsCanada’s ingredients and processes?
Martha: Wherever we source raw materials for our vegetarian capsules, our quality team meticulously evaluates sourcing practices to ensure materials are obtained sustainably. On the gelatin side, we are vertically integrated, meaning we directly control the production. This gives us oversight to reduce waste and conserve resources.
At our production facilities, leadership actively focuses on carbon footprint while maintaining the highest quality standards. Additionally, our capsules carry FairTSA certification, guaranteeing ethical treatment and fair wages for workers throughout our supply chain. This approach aligns with global expectations, especially in markets like Europe, which prioritize sustainability and ethical sourcing.
How does CapsCanada help brands to navigate regulatory compliance for clinical testing and trials?
Martha: We have a quality assurance team specializes in global regulatory requirements, and experts familiar with guidelines from organizations like the FDA, Health Canada, and OSHA. This ensures that we meet all necessary compliance standards across different regions.
Whether it is creating monographs or securing certifications, our team supports customers in preparing for regulatory submissions. This expertise extends across our North American and Colombian operations, making us a trusted partner for brands aiming to expand or maintain regulatory compliance globally.
Who is driving innovation in over-the-counter nutrition products?
Jonathan: Private brands are leading the charge. One of our major partners, Thorne, is an excellent example. They consistently introduce new products with top-quality raw ingredients and push boundaries in quality and efficacy. Contract manufacturers, by contrast, primarily execute the specifications provided by these brands.
Martha: Private brands are highly competitive, constantly striving to enhance delivery systems, make supplements more convenient, and improve the consumer experience. Their formulators are at the forefront of market advancements, thinking creatively about how to improve products and engage consumers.
Is the gap between nutraceuticals and pharmaceuticals closing?
Martha: I believe there has been a shift, particularly in the U.S., where private nutritional manufacturers have started engaging more with the medical community. For instance, pediatricians now frequently recommend probiotics alongside antibiotics to address gut health. Personally, I began taking supplements based on advice from my primary care physician, which reflects this growing intersection between allopathic and nutritional approaches. This incremental change is encouraging and highlights a broader acceptance of nutraceuticals as part of healthcare conversations, which we expect will continue to evolve.
What trends do you anticipate will dominate the nutrition space in 2025?
Martha: Probiotics will remain a major focus, with prebiotics also gaining significant attention. While already popular, the next generation of probiotic products is emerging as consumers and the medical community increasingly recognize their benefits.
We have developed K-CAPS Delayed-Release capsules specifically to address the challenges of delivering probiotics effectively. These capsules ensure probiotics survive the digestive process and release in the small intestine, where they are most effective. This innovation has been well-received in various markets, including nutraceutical. In 2025, we aim to deepen our collaboration with the nutritional industry by partnering with leading brands, contract manufacturers, and research organizations.
