Gelatin is obtained either by the acid manufacturing process or alkali manufacturing process. The acid manufacturing process is generally used on pig skin, while the alkali manufacturing process is used on bovine hides or collagen sources, where the animals are old at the time of slaughtering. The principal raw materials utilized in gelatin production include pig skin, bovine hides, cattle bones (ossein), and fish skins. Gelatin is used in numerous applications, including food and beverages, pharmaceuticals, nutraceuticals, and the photography industry. As a food ingredient, it is commonly used as a gelling, stabilizing, foaming, and an emulsifying agent. Gelatin is commonly found in most gummy candies and other products such as gelatin dessert, marshmallows, etc. Pharmaceuticals, nutraceuticals, food and photographic industries together consume over 85% of the global production while the rest finds application in textile production, abrasive paper, rollers, printers and other industries. It is one of the key excipients utilized in pharmaceutical and medical applications.
The growing use of gelatin in applications such as food and beverage, pharmaceuticals and nutraceuticals is expected to drive the demand for gelatin over the forecast period. Gelatin is mainly used on account of its unique characteristics such as stabilization, binding, emulsification, and gelling. With the increase in awareness among people regarding healthy and nutritious diet and increasing disposable income, the demand for energy drinks and processed food is expanding, which in turn is fueling the demand for gelatin as a supplement. Pricing is one of the important factors that impact the market on a global as well as regional level. High import duty taxes levied by the government, coupled with rise in demand for sports and energy drinks are likely to impact the gelatin prices.
Raw Material Insights
Common raw materials for gelatin include pig skins, bovine hides and bones. It is also extracted from fish bones and skins and from sheep. In addition to the collagen which produces gelatin, these raw materials contain other proteins, fats and mineral salts. The quality of the end-product depends largely on their selection, transport and preservation. Food grade gelatin is produced mainly from beef skin and pig hides. Pig skin was the largest used raw material for the manufacturing of gelatin accounting for 40% of the global gelatin production in 2013. The low cost of production coupled with short manufacturing cycle is primarily responsible for the high use of pig skin in gelatin manufacturing. Pig skin gelatin is used as a capsules, stabilizer, binder, thickener and texturizer. Bones were the second most used raw material for gelatin manufacturing accounting for 29.5% of global production in 2013. It is also expected to be the fastest growing segment, at an estimated CAGR of 4% from 2014 to 2020 owing to the high use of bone gelatin pharmaceutical and food industry.
Food and beverage was the largest application segment for the gelatin market accounting for 28% of global demand in 2013. This is largely due to the increase in demand for healthy, low fat and high protein food among people. Gelatin used sport drinks are preferred over conventional sports drinks as they provide proteins as well in addition to carbohydrates & electrolytes. Nutraceuticals followed food and beverage application in terms of volume of gelatin consumed accounting for 25% of the global demand in 2013. Its excellent solubility, neutral taste and odor make it easy to integrate in drinks. It is also use in dietary supplements, genetically modified and processed foods such as cereals, soups, and beverages due to their rich protein content. The other key applications of gelatin included in the study are pharmaceuticals, photography and cosmetics among others.
Gelatin market volume share, by application, 2013
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Europe was the largest regional market for gelatin accounting for nearly 40% of global demand in 2013. The growing demand in countries such as Germany, France, Italy, Belgium and UK from food and beverage industry is primarily responsible for the large share. In addition, addition, the growing consumption of fortified sports drink is expected to boost the demand for gelatin in the region. The demand in North America is expected to be driven by demand in applications such as nutraceuticals, cosmetics and photography. Asia Pacific is expected to be the fastest growing regional market, at an estimated CAGR of 4.30% from 2014 to 2020. The health awareness among consumers coupled with growing application industries in the region is expected to boost the demand for gelatin over the next six years.
The global gelatin market is moderately concentrated with the top three companies accounting for 60% of the share in 2013. The key participants in the market include Rousselot, Gelita AG, PB Gelatin (Tessenderlo), Sterling Gelatin and Weishardt Group among others.