Gelatin Market

Gelatin Market Size and Forecast (2023-2028):

The Global Gelatin Market size is expected to grow at a CAGR of 6.7% during the forecast period 2023-2028 to reach USD 5.35 billion by 2028.

Market Overview:

Gelatin is a natural protein and widely used food ingredient. It is transparent, colorless, and odorless, which is easily dissolved in hot water and solidifies after cooling. Gelatin is derived from connective tissues, like bones and skin, of animals, and nowadays, it is also getting derived from plant sources. It is widely used in the food industry to enhance texture, thicken, and stabilize various food products. Other than this, it is frequently used as a gelling agent in pharmaceuticals, beverages, cosmetics, and photography. Gelatin can have in various forms like powder, granules, and sheets. Dry gelatin contains almost 98% proteins, which makes it nutritionally valuable in various products. So, it finds numerous applications in desserts, candies, dairy items, and also in certain savory dishes.

Recent Developments in Gelatin Industry:

• In October 2022, A new gelatin product called Quali-Pure was introduced by Darling Ingredients for use in pharmaceutical applications like embolization, wound healing, drug delivery, hemostatic, and vaccines. To fully support medical device compliance with ISO 22442 and the new EU Medical Device Regulation (MDR) standards, Quali-Pure offers regulated endotoxin levels, batch-to-batch uniformity, biocompatibility, and biodegradability.
• In January 2022, According to a report from Darling Ingredients Inc., the Terasaki Institute for Biomedical Innovation (TIBI), a regenerative medicine research center with a Californian base, teamed with the company's global brand, Rousselot Health. With this agreement, businesses are concentrating on developing gelatin-based medicines that will eventually find use in clinical applications.

REPORT COVERAGE:

Drivers:

The expansion of the food and beverages industry is driving the market growth. As the food and beverages industry is expanding rapidly, there is a greater demand for gelatin. To satisfy consumers with their preferences for easy-to-eat or convenience food, these industries are highly using gelatin in their production. It is used in making various food products like sweets, jelly desserts, creamy dairy treats, and beverages. It also provides several health benefits as it contains proteins and amino acids. It is available in different forms, and it gives food products a nice texture and shape. These attributes are contributing to an increase in the gelatin market size.

The increasing demand for gelatin in the pharmaceutical and healthcare industry is influencing market shares. Gelatin founds numerous applications in these sectors as it is used in encapsulating medications, creating drug delivery systems, and stabilizing vaccines and blood plasma substitutes. It helps in the safe delivery of medicines to a patient and maintains the effectiveness of vaccines and any blood-related products. As it plays a crucial role in ensuring the efficiency, stability, and safety of drugs and healthcare products, it is in very high demand in these sectors, and that is propelling the gelatin market growth.

Also, the rising demand for functional and convenient food and beverages is majorly driving market growth. As more and more people are becoming health conscious and prefer to consume food that is easily available and ready to eat. Gelatin has numerous health benefits; hence it is used in the production of functional foods. The food, which includes gelatin, can supply essential proteins, vitamins, and minerals, which are crucial for a healthy body. Highly processed food and beverages may lack the essential nutrients, but the food and beverages become nutritious by adding gelatin. Hence this attribute significantly propels the market demand.

Restraints:

One of the major restraints to the market size expansion is cultural and religious restrictions. Gelatin is obtained from the collagen of animals, and this makes it unsuitable for certain dietary restrictions, like halal or kosher requirements. The animal-derived products are illegal or inappropriate for specific religions or communities as they follow their cultural beliefs. Hence, these people prefer other alternative food products that meet their specific requirements. This can restrict the growth of the gelatin market among these regions or communities.

The emerging alternatives and plant-based products are restraining the market demand. The number of vegetarian and vegan food consumers is increasing, and that leads to people seeking more plant-based and other synthetic ingredients in their food and products as they do not prefer consuming animal-based products. As a result, the demand for gelatin which is derived from animals, can be restricted among those consumers. So, these changing consumer preferences pose challenges to the manufacturers of the market to meet the consumer requirements, and somehow this restricts the market demand.

Opportunities:

The increasing demand for clean-label products without artificial additives offers significant growth opportunities to the market. Gelatin is a naturally derived ingredient, so it satisfies consumer requirements. As more people prefer natural and pure products, there is wide use of gelatin in such products, and they also add nutritional value to them. This attribute is majorly contributing to an increase in the demand for the market.

Also, the advancement in technology creates several opportunities for market size expansion. The improvements and innovations in the technology used to produce gelatin are widely capturing the market. Such technologies enhance efficiency and make the production processes easy and fast. Also, improves the quality of the gelatin, and advancements enable the customization of gelatin. This helps to expand the gelatin market.

COVID-19 Impact on Gelatin Market:

COVID-19 significantly impacted the market. The supply chain disruptions, lockdown, and social distancing measures affected the market severely. Because the food industries were closed and restrictions on transportation, the market faced several challenges to capture the market or maintain the market shares. However, the pandemic enhanced the focus on wellness. This caused an increase in the demand for natural and healthy products, and gelatin was the best fit for this and supported the demand for gelatin-based supplements. This attribute helped the gelatin market to gain significant shares of the market during the pandemic.

Gelatin Market Segmentation Analysis:

By Source:

• Plants
• Animals

The plant segment is anticipated to dominate the market in the coming years. The plant-based gelatin is mainly obtained from seaweed, agar-agar, pectin, etc. As the number of vegan and vegetarian people is increasing, there is a great demand for this segment, influencing the gelatin market growth. However, the animal segment is expected to grow continuously in the upcoming years, owing to its wide application in various industries such as food & beverages, pharmaceuticals, photography, cosmetics, etc. This leads to an increase in the demand for this segment.

By Application:

• Food & Beverages
• Pharmaceuticals
• Health & Nutrition
• Cosmetics & Personal Care

The food and beverages segment is leading the market with the largest shares, owing to the wide use of gelatin as a thickener, stabilizer, and gelling agent in various food and beverage products. It is used in confectionery products, dairy products, beverages, etc., and that is contributing to boosting the demand for gelatin in this segment. At the same time, the pharmaceutical sector is expected to grow at the fastest rate during the projected period. It helps in the safe delivery of medicines to a patient and maintains the effectiveness of vaccines and any blood-related products. Also, gelatin capsules are consumed widely. This helps the market to boost growth.

By Type:

• Type A
• Type B

The type A segment is anticipated to dominate the market in the coming years with the largest shares. As it is derived from acid hydrolysis, it forms a stronger gel in acidic conditions. Hence type A gelatin is commonly used in the production of gummy candies and other confectionery products. This demand is influencing the shares of the market. However, the Type B segment is expected to grow at the fastest rate during the forecast period. As it is obtained from the alkaline hydrolysis of collagen, it performs better in neutral or alkaline solutions. Type B gelatin is majorly used in desserts, some dairy products, and pharmaceuticals. So the increasing demand for gelatin in these sectors is driving the market growth.

By Function:

• Thickener
• Stabilizer
• Gelling Agent

The stabilizer segment is anticipated to rule the market with the largest shares, owing to its vast use in food and beverage products. It helps to maintain the texture and improves shelf life by providing structural support to the products. This attribute is significantly influencing the shares of the market. At the same time, the thickener segment is expected to grow at the fastest CAGR during the projected period. Gelatin thickens liquid preparations, such as sauces, soups, desserts, etc., and provides them with the required consistency. As demand for these products is increasing immensely, the demand for this segment is also increasing.

Geographical Segmentation Analysis:

• North America - the United States and Canada
• Europe - United Kingdom, Spain, Germany, Italy, and France
• The Asia Pacific - India, Japan, China, Australia, Singapore, Malaysia, South Korea, New Zealand, and Southeast Asia
• Latin America  - Brazil, Argentina, Mexico, and Rest of LATAM
• The Middle East and Africa - Africa and Middle East (Saudi Arabia, UAE, Lebanon, Jordan, Cyprus)

By Region Analysis:

Europe region is leading the market by holding the largest market share, whereas North America is expected to grow at the fastest CAGR during the projected period. Europe has a significant presence in various industries like food & beverage, pharmaceuticals, cosmetics, etc., with a strong demand for gelatin. Countries including Germany, France, and the UK are ruling the gelatin market in Europe. The high consumption of gelatin-based products in the food and beverage industry, especially in confectionery and dairy, contributes to the expansion of the gelatin market size.

Key Players in the Market:

Major Key Players in the Global Gelatin Market are

• Darling Ingredients
• Tessenderlo Group
• Nitta Gelatin, Inc.
• Gelita AG
• Weishardt
• Lapi Gelatine Spa
• India Gelatine & Chemicals Ltd.