Gelatin Market

The gelatin market size is predicted to grow at a CAGR of 6.6% between 2023 and 2028, reaching a value of $5.1 billion by 2028 from a projection of $3.7 billion in 2023.

Owing to the rapid growth in the aging population across the world, the demand for medicines is expected to increase primarily due to the resulting growth in the incidents of chronic disorders. For instance, according to the American Heart Association, in 2019, in the US, 18.5% of children and 39.6% of adults were obese, while 7.7% of adults and 5.6% of children had severe obesity. Obesity was associated with a shorter lifetime and a higher percentage of cardiovascular disease-related deaths. About 45.1% of the US population could be affected by some form of CVD by 2035.

According to the International Diabetes Federation (IDF), in 2021, nearly 537 million people are suffering from diabetes globally, which is projected to reach 643 million by 2030 and 783 million by 2045. The increase in the aging population will drive the prevalence of CVD and other chronic diseases over the next few years. This, in turn, will increase the consumption of gelatin products used to treat such diseases. Gelatin is a rich source of amino acids such as glycine; it accounts for 27% of gelatin’s composition that is used to improve digestive, joint, cardiovascular, cognitive, and skin health.

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Gelatin Market Dynamics

Growing demand for functional and convenience food and beverages

There is an increasing demand for convenience food and beverages due to changing lifestyles, an increasing working population, and consumers lack the time and effort required to prepare home-cooked food and are more inclined toward convenience food products, which, in general, are highly processed and lack essential nutrients. To counter these concerns, consumers increasingly prefer functional and fortified food & beverage products. Functional foods act as the perfect means for supplying essential micronutrients to the human body. With the growing consumer awareness of food fortification and the rising demand for fortified food products, the demand for gelatin is growing at a higher rate. Gelatin is majorly used in almost all food products as a functional ingredient.

Demand for confectionery products such as candies, chocolate bars, chewing gums, and jellies is also rising. The demand for confectionery food is driven due to the rise in income levels, economic growth, and demand for convenience foods. According to the USDA, in 2022, the US will be the leading exporter of confectionery products. Canada, Mexico, and the European Union are the major exporting markets for confectionery products for the US.

The analysis further stated that in 2022, Canada accounted for 65% of the US confectionery product exports; Mexico accounted for 11%, and the European Union accounted for 5%. Canada heavily imports confectionery products from the US. The market for gummies and jellies is matured in developed regions such as North America and Europe, and therefore much scope is present in developing regions such as Asia Pacific and Latin America. Since gelatin has a major application in the confectionery industry, the growth of the industry is one of the major driving factors for the growth of the gelatin market.

Cultural restrictions

Gelatin has varied applications in the food, pharmaceutical, and nutraceutical industries. It is used as a functional ingredient in food, to manufacture hard and soft capsules, and as a protein supplement. However, gelatin is an animal by-product formed from the collagen of slaughtered animals, including the bones, hides, and hooves of cattle, pigs, fish, and poultry. Individuals with religious or dietary restrictions that forbid the consumption of animal products are not willing to consume those products that use gelatin.

For instance, pork and pork-derived products are strictly forbidden in Middle Eastern and Muslim communities. They instead prefer to consume halal-certified bovine-derived products. Therefore, the market for gelatin manufactured by pork skin is negligible in these regions. Similarly, In India, the consumption of cattle-derived products is culturally forbidden; the Hindu community does not generally consume beef and beef-derived products. Hence, in this country, pork-based gelatin is mostly consumed. Similarly, the Jewish population looks for kosher-certified products. Kosher guidelines also inhibit the consumption of pigs and pig-derived products. These cultural and regional outlooks can sometimes pose a restraint to the growth of the gelatin market.

Emerging economies to provide high-growth opportunities.

Changing lifestyles, food habits, the adoption of western food habits, an increase in demand for functional ingredients in food products, and an increase in industrial activity leading to the need for process enhancement have contributed to the development of the market in developing economies. Emerging economies such as the Asia Pacific, South Africa, the Middle East, South America, and Eastern European countries provide excellent opportunities for the gelatin market growth.

For instance, in October 2022, PB Leiner extended the gelwoRx Dsolve pharmaceutical portfolio with three new products, including Dsolve B, Dsolve P, and Dsolve xTRA. Dsolve P (pig skin) and Dsolve B (beef hide) are specially developed to reduce cross-linking and fast dissolution of soft caps. Dsolve xTRA (bovine bone) promises to perform better than Dsolve, Dsolve P, and Dsolve B. in December 2020, Gelita AG acquired 65% of shares of SelJel, a Turkish gelatin producer. With this joint venture, Gelita AG is strengthening its position as the industry’s global leader. With this, Gelita's growth plan is to fulfill the rising demand for gelatin and, specifically, halal bovine gelatin. Increasing market share in this growth region is a crucial requirement not only in Islamic states but also in a significant portion of Asia.

Rising prices and scarcity of raw materials

Due to its applications across various industries, including food & beverage, pharmaceuticals, cosmetic & personal care, biomedical, and others, demand gelatin has witnessed significant growth. To meet this growing demand, a large amount of raw materials is required. The use of gelatin in food preparations has increased six-fold in the last decade. Similar trends have been observed in the nutraceutical and cosmetic industries, where gelatin is used for the production of dietary supplement capsules, lotions, shampoos, hair sprays, and creams.

According to the CEO of a pioneer gelatin manufacturing company- raw material costs constitute almost 50%–55% of the total cost in the gelatin market. Also, the gelatin industry in India consumes about 18,000 tons of crushed bones per month. However, the availability of crushed bones came down to 15,000 tons in the earlier months of 2019. The annual gelatin production is expected to come down further due to the non-availability of bones, owing to the ban imposed by the government on the slaughter of cattle in India. Furthermore, the outbreak of bovine and swine diseases has resulted in regulatory restrictions and guidelines on bovine and pig farmers, which has increased the cost of farming. Feed prices have also increased. The cumulative effect of these factors and the subsequent price hikes have been passed onto end users such as gelatin manufacturers, increasing the overall gelatin prices.

Gelatin Market Ecosystem

Prominent companies in this market include well-established, financially stable manufacturers of gelatin. These companies have been operating in the market for several years and possess a diversified product portfolio, state-of-the-art technologies, and strong global sales and marketing networks. Key companies in this market include Darling Ingredients (US), Tessenderlo Group (Belgium), Nitta Gelatin, Inc. (Japan), Gelita AG (Germany), Weishardt (France), Lapi Gelatine Spa (Italy), India Gelatine & Chemicals Ltd. (India), Trobas Gelatine B.V. (Netherlands), Sterling (India), Roxlor (US), Suheung (South Korea), and Ewald Gelatin GmbH (Germany).

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Based on source, plant sources is estimated to account for the fastest market share of the gelatin market

Gelatin from plant sources is projected to be the fastest-growing during the forecast period registering a CAGR of 7.9% during the forecast period. Gelatin derived from plant sources is fastest growing segment due to the rise in the vegan population, many of the market players were able to introduce plant-based gelatin and derivative products to consumers. There is an increase in demand for non-mammalian gelatin for the food industry has raised interest in gelatin substitutes from plant sources.

Based on type, the type A segment is anticipated to dominate the market

Gelatin is manufactured either by acidic or alkaline treatment of the raw material. Based on the treatment of raw materials, which include bovine hide and skin, pork skin, and fish & poultry skin, there are two types of gelatins, Type A and Type B. Type A gelatin is manufactured by treating the raw materials with an acidic solution. Type A is estimated to dominate the market in 2023 due to its wider usage in the food and beverages industry.

Europe: Gelatin Market Snapshot

Europe had a market share of USD 1.3 billion in 2023, and the market is projected to grow with a CAGR of 6.1% during the forecast period in th gelatin market (2023-2028)

According to European Commission, in 2021, the food processing industry was one of the largest manufacturing sectors in Europe, with a share of about 14.2% of the total turnover of the manufacturing sector. The wine and pork exports from Europe amounted to USD 11.4 billion in 2020. The total exports and imports in 2020 were about USD 166 billion and USD 89.6 billion, respectively. The consumer buys food and beverage based on taste, safety, and cost. The strong growth of the food processing industry of Europe has supported the growth of the market. The presence of many food & beverage companies presents the European market a prominent consumer base. This ample availability of raw materials and the high dependence of European population on these sources pose as drivers for the growth of the market in the region.

Top Companies in the Gelatin Market

Key players in this market include Darling Ingredients (US), Tessenderlo Group (Belgium), Nitta Gelatin, Inc. (Japan), Gelita AG (Germany), Weishardt (France), Lapi Gelatine Spa (Italy), India Gelatine & Chemicals Ltd. (India), Trobas Gelatine B.V. (Netherlands), Sterling (India), Roxlor (US), Suheung (South Korea), and Ewald Gelatin GmbH (Germany).

Scope of the Gelatin Market Report

Target Audience for Gelatin Market Report

• Gelatin producers, suppliers, distributors, importers, and exporters
• Large-scale food and beverage ingredient manufacturers, processed food manufacturers, and research organizations
• Related government authorities, commercial research & development (R&D) institutions, FDA, EFSA, USDA, FSANZ, EUFIC government agencies & NGOs, and other regulatory bodies
• Food product consumers
• Regulatory bodies, including government agencies and NGOs
• Commercial research & development (R&D) institutions and financial institutions
• Government and research organizations

Gelatin Market Report Segmentation:

This research report categorizes the market based on type, source, application, function, and region.

Recent Developments in Gelatin Market

• In November 2022, PB Leiner, a subsidiary of Tessenderlo Group, launched TEXTURA Tempo Ready, a texturizing gelatin solution for the food service industry. It is packed in small pouches and distributed to chefs through the selected wholesalers. This product launch provides intense flavor, mouthfeel, and enhanced stability over time.
• In October 2022, Darling Ingredients launched a new gelatin product, Quali-Pure, for pharmaceutical applications, such as embolization, wound healing, drug delivery, hemostatic, and vaccinations. Quali-Pure provides controlled endotoxin levels, batch-to-batch consistency, biocompatibility, and biodegradability and completely supports medical device compliance with ISO 22442 and the new EU Medical Device Regulation (MDR) criteria.
• In December 2021, Gelita AG has acquired 65% of shares of SelJel, a Turkish gelatin producer. With this joint venture, Gelita AG strengthened its position as the industry’s global leader. Gelita's growth plan is to fulfill the rising demand for gelatin, specifically halal bovine gelatin. Increasing market share in this growth region is crucial in Islamic states and a significant portion of Asia.  

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