Pick up a strip of vitamin D3 capsules, a bottle of omega-3 fish oil or a multivitamin with a glossy, jelly-like shell, and you are holding a softgel. These soft, one-piece capsules have become one of the most popular formats in Indian nutrition and wellness, and they are steadily growing in prescription use too. Doctors prescribe vitamin D3 softgels by the million. Gynaecologists recommend omega-3 and multivitamin softgels. Cardiologists suggest coenzyme Q10. Chemists sell them across the counter every day.
Most of the brands on those shelves do not own a softgel plant. Softgel manufacturing needs specialised machinery, controlled humidity and experienced technicians, so brand owners work with contract manufacturers instead. This is softgel third party manufacturing: you own the brand, the marketing and the customer relationships, and a licensed manufacturer produces the capsules for you under your label.
This guide explains how the process works, which products are commonly made as softgels, the licences you need, what affects cost and minimum order quantities, how to judge a manufacturer, and how to avoid the mistakes that catch first-time brand owners out.
What makes softgels different
A softgel is a single-piece capsule made of a gelatin or plant-based shell, filled with a liquid, an oil or a suspension. Unlike hard two-piece capsules, softgels are sealed during manufacture, so the contents cannot leak out easily or be tampered with.
This format suits ingredients that are oily or liquid by nature, such as fish oil, vitamin E, vitamin D3 in oil, evening primrose oil and lycopene. It also helps with ingredients that oxidise easily, since the sealed shell limits exposure to air. Many patients find softgels easier to swallow than large tablets, and the glossy appearance gives products a premium look on the shelf.
The trade-off is that softgels are harder to make. The process requires precise control of the gel mass, temperature and humidity. Small mistakes lead to capsules that leak, stick together, deform in heat or vary in fill weight. That is why choosing the right manufacturer matters more for softgels than for many other dosage forms.
Products commonly made as softgels
Vitamins
- Vitamin D3 (cholecalciferol) in various strengths, one of the largest-selling softgel products in India
- Vitamin E
- Vitamin A and D combinations
- Multivitamin and multimineral softgels
Omega fatty acids and oils
- Fish oil with EPA and DHA
- Flaxseed oil and plant-based omega-3
- Evening primrose oil
- Wheat germ oil and other speciality oils
Antioxidants and speciality nutraceuticals
- Coenzyme Q10
- Lycopene
- Lutein and zeaxanthin for eye health
- Combinations with antioxidants, minerals and vitamins
Pharmaceutical softgels
Some prescription medicines are also produced as softgels, for example certain vitamin preparations classified as drugs and other formulations where an oily or liquid fill is needed. These require drug approvals and manufacturing in a plant licensed for that product.
Most first-time softgel brands start with nutraceutical products such as vitamin D3, omega-3, multivitamins and antioxidants, because demand is high and regulatory steps are simpler than for prescription drugs.
Gelatin or vegetarian shells?
Traditional softgels use gelatin, which comes from animal sources. Many Indian customers prefer vegetarian products, and some refuse gelatin altogether. Plant-based softgel shells, made from modified starches, carrageenan or similar materials, are available from some manufacturers.
Points to consider:
- Market preference. In parts of India, a vegetarian label is a strong selling point. In others, customers do not mind gelatin.
- Cost. Vegetarian shells are usually more expensive than gelatin shells.
- Availability. Not every manufacturer can produce vegetarian softgels. Ask early.
- Labelling. Vegetarian or non-vegetarian status must be indicated correctly on food product labels as per food safety rules. Make sure your label matches the actual shell used.
How softgel manufacturing works
You do not need to run the process yourself, but understanding it helps you ask the right questions.
- Gel mass preparation. Gelatin or plant-based material is mixed with water, plasticisers and sometimes colours to form a gel mass.
- Fill preparation. The active ingredients are mixed into an oil or liquid base to make the fill material. Uniform mixing is essential for consistent strength.
- Encapsulation. The gel mass is formed into two ribbons that pass between rotating dies. The fill is injected as the dies seal the two halves together, forming capsules in the chosen shape and size.
- Drying. Freshly made softgels are soft and must be dried, usually in tumble dryers followed by drying trays in controlled humidity rooms, until they reach the right hardness.
- Inspection. Capsules are inspected to remove misshapen, leaking or defective units.
- Testing. Samples are tested for fill weight, content, disintegration and other parameters as per specifications.
- Packing. Capsules are packed into blisters, strips or bottles, labelled with your brand, and packed into shipping cartons.
A good manufacturer will show you each stage and explain how it controls quality at every step.
Licences: what you need as a brand owner
The licences depend on whether your product is a nutraceutical or a drug.
For nutraceutical softgels
Products like most vitamin D3, omega-3 and antioxidant supplements are usually regulated as food supplements or nutraceuticals under food safety regulations. As a brand owner, you typically need:
- A food safety licence or registration appropriate to your business as a marketer or distributor of such products
- Compliance of your product formulation with the applicable nutraceutical regulations, including permitted ingredients and limits
- Correct labelling as per food labelling rules
- GST registration and a trademark for your brand name, ideally applied for before launch
The manufacturer must hold its own licence to manufacture these products. Ask to see it.
For pharmaceutical softgels
If your product is classified as a drug, the manufacturer must hold the appropriate drug manufacturing licence and approval for that product. Brand owners selling drugs need a wholesale drug licence and must comply with drug labelling rules. In some arrangements, brand owners obtain a loan licence to have products manufactured at a licensed plant under their name. Discuss the right route with your manufacturer and, if needed, a regulatory consultant.
A word of caution
The line between drugs and nutraceuticals can be confusing, particularly for vitamins at higher strengths. Some strengths and combinations may be treated differently. Do not assume; confirm the regulatory category of each product with your manufacturer before finalising your range.
Minimum order quantities
Softgel production runs are relatively large because setting up the machine for each product takes time and material. Manufacturers usually set a minimum order quantity (MOQ) per product.
MOQs vary by manufacturer and product, but many contract manufacturers in India start somewhere around one to two lakh capsules per product, sometimes lower for standard formulations they already produce regularly. Speciality products, custom colours or vegetarian shells may need larger runs.
For a new brand, high MOQs can be a challenge. Ways to manage this include:
- Starting with two or three products instead of ten
- Choosing standard formulations the manufacturer already makes
- Using standard shapes, sizes and colours
- Asking whether the manufacturer offers shared production runs for common products
What affects the cost of softgels
Quotations can vary widely between manufacturers. Understanding the main cost drivers helps you compare fairly.
- Active ingredients. The biggest factor. Fish oil concentration, coenzyme Q10 content and speciality extracts can change the cost significantly.
- Fill weight and capsule size. Larger capsules use more gel and more fill.
- Shell type. Vegetarian shells cost more than gelatin.
- Colour and opacity. Custom colours and opaque shells add cost.
- Coatings. Enteric coating, used for some fish oil products to reduce aftertaste, adds a step.
- Packaging. Alu-alu blisters, PVC blisters, HDPE bottles and cartons all differ in cost.
- Order size. Larger orders usually bring a lower cost per capsule.
- Testing requirements. Additional testing beyond standard specifications adds cost.
When comparing quotes, make sure each manufacturer is quoting for the same formulation, the same raw material grade, the same shell type and the same packaging.
Packaging decisions
Softgels are sensitive to heat and humidity. In hot, humid conditions, poorly packed softgels can soften, stick together or leak.
- Alu-alu blisters offer strong protection against moisture and light, suitable for humid regions.
- PVC or PVDC blisters are cheaper and let customers see the capsule, but offer less protection.
- HDPE bottles with induction seals and desiccants are common for larger packs and wellness products.
Think about where your product will be sold. If your market includes coastal or very humid areas, invest in better packaging. Ask the manufacturer for stability data showing how the product holds up in the chosen packaging.
Why demand for softgels keeps growing
Several trends have pushed softgels into the mainstream. Vitamin D deficiency is widely recognised, and doctors across specialities prescribe vitamin D3 supplements routinely. Awareness of heart health has made omega-3 products familiar. Women's health, pregnancy care and healthy ageing have all created steady demand for multivitamins, antioxidants and speciality oils. And a growing number of customers buy supplements on their own, through chemists or online, as part of daily routines.
For a brand owner, this means softgel products can be sold through more than one channel: doctor prescriptions through a field force or PCD network, chemist recommendations, and direct-to-consumer sales. Few dosage forms offer that flexibility.
Working out your costing before you order
New brand owners often look only at the manufacturer's price per capsule. Your real cost per pack includes much more. Before finalising a product, build a simple cost sheet:
- Manufacturing cost per capsule, multiplied by capsules per pack
- Packaging materials: blister foil, cartons, bottles, labels, leaflets
- Testing charges, if billed separately
- Freight from the plant to your warehouse
- GST and other applicable taxes
- Storage and handling costs
- Margins for distributors and retailers
- Marketing costs: samples, literature, visual aids, online promotion
Only when you add all of these can you set an MRP that is competitive and still profitable. Many first-time brands discover too late that their MRP leaves no room for marketing, which is what actually sells a new product.
Stability and shelf life
Every softgel product should have a defined shelf life backed by stability data. Ask the manufacturer what shelf life they recommend for your formulation and packaging, and on what basis. Ingredients such as fish oil and certain vitamins can degrade over time, especially in heat, so a realistic shelf life protects both customers and your reputation.
Also ask how the product should be stored in the supply chain. If storage below a certain temperature is recommended, print it clearly on the pack and tell your distributors and chemists. Softgels left in a hot delivery van or a sunlit shop window can soften or stick, and customers will blame the brand, not the storage.
Building a long-term relationship with your manufacturer
The best contract manufacturing relationships work like partnerships. Share your sales forecasts so the manufacturer can plan raw materials. Place repeat orders early enough to avoid rush production. Report customer complaints with batch numbers and samples, and expect a proper investigation in return. Pay on agreed terms.
Over time, a manufacturer who knows your brand and trusts your business may offer better pricing, priority scheduling during busy months and help with new product development. Changing manufacturers frequently in search of small price savings rarely pays off; consistency of quality is worth far more.
Choosing the right softgel manufacturer
Visit the plant
Whenever possible, visit the manufacturing facility. Look at cleanliness, humidity-controlled drying rooms, the encapsulation machines and the quality control laboratory. A serious manufacturer will welcome a visit.
Check licences and certifications
Ask for the manufacturing licence for the product category, GMP or WHO-GMP certification where applicable, and food safety licences for nutraceutical production.
Ask about raw material sources
Where does the fish oil come from? What grade of vitamin D3 is used? Are raw materials tested on arrival? Good manufacturers know their suppliers and test every batch.
Request documentation
Certificates of analysis for each batch, product specifications and, where available, stability data. These protect you if a customer or regulator raises questions.
Understand timelines
Ask how long it takes from order confirmation to dispatch, including artwork approval, raw material procurement, production, testing and packing. For a new product, several weeks is common.
Clarify payment terms
Many manufacturers ask for an advance with the order and the balance before dispatch. Understand the terms clearly and get them in writing.
Protect your brand
Your artwork and brand name belong to you. Make sure your agreement confirms this, and that the manufacturer will not use your artwork for anyone else.
Artwork and labelling
Labelling mistakes are among the most common and costly problems for new brands. Before you approve artwork, check:
- Product name and brand name
- Composition per capsule, with correct units
- Regulatory category statements as required for nutraceuticals or drugs
- Vegetarian or non-vegetarian symbol, matching the actual shell
- Manufacturer's name and licence details, and your name as marketer
- Batch number, manufacturing date and expiry or best-before date space
- Storage instructions
- MRP and other mandatory declarations
- Any advisory statements required for nutraceuticals
Avoid making health claims that are not permitted. Exaggerated claims can attract regulatory action and damage trust with doctors.
Common quality problems and how to prevent them
- Leaking capsules. Usually a seal problem during encapsulation. Ask how the manufacturer checks seal integrity.
- Sticking. Capsules sticking together in the pack, often due to heat, humidity or insufficient drying. Good drying and packaging prevent this.
- Deformation. Softening or changing shape in hot conditions. Proper formulation of the gel mass and protective packaging help.
- Fishy smell or aftertaste. Common with fish oil. Using good-quality oil, adding flavours or enteric coating can help.
- Fill weight variation. Affects strength consistency. Ask about in-process checks.
Before placing a large order, request samples from a trial batch and test them in the conditions your products will face, including a few weeks in a warm room.
Launching your softgel brand
Start focused
Choose two to four products with proven demand, such as vitamin D3, omega-3, a multivitamin and coenzyme Q10. Build a reputation before expanding.
Decide your channel
Will you sell through doctors with a PCD-style network, through chemists, through online marketplaces or through your own website? Each channel affects pricing, packaging and labelling choices.
Price sensibly
Compare your MRP with established brands. Leave room for distributor and chemist margins and your own marketing costs.
Plan inventory
Softgels have reasonable shelf lives, but heat can affect them. Store stock in cool conditions and rotate it properly.
Selling softgels through doctors
If you plan to market your softgels through doctors, either with your own representatives or through PCD franchise partners, prepare properly. Doctors will ask about the exact strength, the source and grade of ingredients, the shell type, and why your product deserves a place on their prescription pad. Have clear product literature, accurate composition details and samples ready.
Different specialities favour different products. General physicians and orthopaedic surgeons prescribe vitamin D3 widely. Gynaecologists prescribe multivitamins, omega-3 and other supplements for women's health and pregnancy, according to their judgement. Cardiologists and physicians may recommend omega-3 and coenzyme Q10. Ophthalmologists recommend lutein-based products. Matching products to specialities keeps your promotion focused and your field force productive.
Keep your promotion honest. Present supplements for what they are, avoid unsupported claims, and let doctors decide when they are appropriate. Credibility with doctors is hard to win and easy to lose.
Mistakes first-time brand owners make
- Choosing a manufacturer on price alone. Cheap softgels that leak or stick will cost far more in returns and lost trust.
- Launching too many products. High MOQs tie up money. Start small.
- Ignoring regulatory category. Confirm whether each product is a nutraceutical or a drug.
- Weak packaging for humid markets. Invest in protection where needed.
- Labelling errors. Review artwork carefully against regulations before printing.
- Not registering a trademark. Apply early to protect your brand name.
About Farlex Pharmaceuticals
Farlex Pharmaceuticals is a verified Diamond member of Apromart, based in Panchkula, Haryana and has been in the pharma business since 2024. If you are exploring softgel contract manufacturing, you can look through the company's product catalog and services on its Apromart company page, or send an enquiry to discuss territory, product list and terms directly with the company. As with any partner, confirm the details covered in this guide — approvals, rates, monopoly and dispatch terms — in writing before you place your first order.
Frequently asked questions
What is softgel third party manufacturing?
It is an arrangement where a licensed manufacturer produces softgel capsules for your brand. You handle branding, marketing and sales, while the manufacturer handles production, testing and packing.
Which products are most popular as softgels in India?
Vitamin D3, omega-3 fish oil, multivitamins, vitamin E, coenzyme Q10, lycopene and evening primrose oil are among the most popular.
What is the minimum order quantity for softgels?
It varies, but many manufacturers start around one to two lakh capsules per product. Standard formulations may have lower minimums; custom shells or speciality products may need more.
Can I get vegetarian softgels made for my brand?
Yes, some manufacturers offer plant-based softgel shells. They usually cost more than gelatin, and not every plant can make them.
What licences do I need to launch a softgel brand?
For nutraceutical softgels, a suitable food safety licence or registration and compliance with nutraceutical regulations. For pharmaceutical softgels, drug licences and approvals apply. You also need GST registration and should register your trademark.
How long does softgel production usually take?
For a new product, it often takes several weeks from order confirmation to dispatch, including artwork approval, raw material procurement, production, testing and packing.
How do I check a manufacturer's quality?
Visit the plant, check licences and certifications, ask about raw material sourcing and testing, request certificates of analysis and stability data, and test trial samples yourself.
Why do softgels sometimes stick together?
Usually because of heat, humidity, insufficient drying or weak packaging. Good manufacturing and moisture-protective packaging prevent this.
Final thoughts
Before signing with any manufacturer, ask for a trial batch, keep a few strips in a warm room for a month and check them every week. That simple test will tell you more about a manufacturer's real quality than any brochure.
Softgels can give a new brand a premium, trusted look and access to some of the fastest-growing products in Indian healthcare. But the format is less forgiving than tablets or hard capsules. Success depends on choosing a capable manufacturer, getting the regulatory category and labelling right, investing in suitable packaging, and starting with a focused range. Take the time to visit plants, test samples and read the fine print, and your brand will be built on capsules that customers and doctors can trust.
