Raw Gelatin Market Overview: Challenges and Opportunities

Gelatin is a pure collagenous protein from raw animal materials such as pork, bovine, poultry, or fish materials. The most common types of gelatin are obtained from bovine bone, bovine hide, and porcine skin. Approximately 40% of the edible gelatin produced worldwide is made from pork skins, and 30% is made from split, a thin, collagen-containing layer of the cattle hide between the epidermis and the subcutaneous layer. The remaining 30% of gelatin is made from the connective tissues of cattle, pigs, chickens, and fish.

Gelatin's consumption trends have witnessed a significant evolution, branching out from conventional desserts like Jell-O to diverse applications in both food and non-food products. The key trends shaping its trajectory include integration into a wide array of food items, a growing presence in the health and wellness sector for perceived benefits on joints, skin, and hair, the rise of plant-based alternatives like agar-agar and pectin, and a steadfast focus on clean label preferences.

Increased Supplying Export Volumes

In 2022, raw gelatin global exports soared to a record value of USD 2.45 billion, marking a substantial 27% year-on-year (YoY) growth. Brazil leads the export market with 15.7%, trailed by China (13.4%) and Germany (12.3%). This surge is fueled by increasing demand across end-use industries, propelling the gelatin market forward. Simultaneously, raw gelatin global imports reached a staggering USD 2.67 billion in 2022, boasting a 29% YoY growth, indicating a robust demand surge. The United States (US) dominates imports with an 18.2% share, followed by Germany (10.9%) and France (4.1%).

Growing Demand on Diverse Sectors

Gelatin and collagen peptides find applications across diverse industries, with the food sector consuming an estimated 267.8 thousand metric tons (mt) annually. Beyond the culinary realm, gelatin's utility extends to pharmaceuticals and cosmetics, showcasing its versatility. In the food industry, gelatin's gelling, stabilizing, and thickening properties make it indispensable. It plays a crucial role in creating confectionaries like jelly babies, wine gums, and chewy candies and contributes to the light and creamy texture of yogurt, ice cream, quark, kefir, and more.

Demand for the product is also driven by the essential requirement of gelatin in food, pharmaceutical, and nutritional solutions due to its distinctive behavioral properties. Other factors promoting market expansions include rising health awareness, strong demand for supplements, technological advancements related to soft gel capsules, and increasing use of pharmaceutical drugs.

Increase Application in the Food Sector

Due to its gelling ability, gelatin is vital to modern cuisine. In creating desserts, foam formation, stabilization, and texturizing are important, and gelatin aids these processes. It is also an excellent source of protein, as it can effectively replace carbohydrates and fat in many foods and is suitable to meet nutritional needs.

Edible gelatin is crucial for producing many confectioneries, including jelly babies, wine gums, chewy candies, fruit drops, and marshmallows. Gelatin ensures elasticity, the proper chew effect, and a longer shelf life in confectionary products that are typically made from a base of sugar, corn syrup, and water. Additionally, gelatin plays a vital role in preparing and developing new varieties of milk products and desserts. The right amount and the right type of gelatin results in light and creamy yogurts or variations of other common milk products such as quark, kefir, and ice cream. In both yogurt and ice cream, as with similar dairy desserts or iced confections, gelatin melting at body temperature provides a smooth, creamy sensation and fully releases flavors and aromas.

Challenges in the Gelatin Sector

Challenges such as the fluctuating prices of raw materials and concerns regarding the source of gelatin, particularly for vegetarian and vegan consumers, present hurdles for market players. As the demand for plant-based products grows, there is a rising interest in plant-derived alternatives to gelatin. This has led to the development and commercialization of plant-based gelling agents.

Dietary supplement suppliers are keenly aware of the significant influence of consumer preferences favoring plant-based products and embracing vegan philosophies that go beyond abstaining from animal-derived foods. A notable illustration is the escalating worldwide interest in Halal gelatin, strategically adopted to align with consumer dietary choices and market needs in Islamic nations and a substantial portion of Asia.

The dynamics of the gelatin market are shaped by ongoing technological progress, regulatory shifts, and evolving consumer preferences. This necessitates a crucial adaptation and innovation effort among industry participants to sustain a competitive advantage in this ever-changing landscape. Notably, manufacturers aiming to venture into plant-based products may encounter challenges in securing dependable suppliers capable of delivering ingredients and raw materials at a significant scale. This, in turn, contributes to the common observation that new plant-based products often carry a higher price point.

In conclusion, while facing challenges, the raw gelatin market is thriving due to its adaptability and diversification. The industry's resilience lies in its ability to navigate evolving trends, meet consumer demands, and continually innovate in response to a dynamic market landscape.