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We study the connection between the Goodwillie tower of the identity and the lower central series of the loop group on connected spaces. We define the simplicial theory of homotopy n-nilpotent groups. This notion interpolates between infinite loop spaces and loop spaces. We prove that the set-valued algebraic theory obtained by applying $π_0$ is the theory of ordinary n-nilpotent groups and that the Goodwillie tower of a connected space is determined by a certain homotopy left Kan extension. We prove that n-excisive functors of the form $ΩF$ have values in homotopy n-nilpotent groups.
preprint / 2008