Global Gelatin Market is Expected to Grow by 2020, Asia Pacific is Estimated to Grow at Around 4% from 2014 to 2020: Hexa Research

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Growth of pharmaceutical industries owing to increasing healthcare spending coupled with approvals from FDA & IMA for gelatin to be used in medical drugs and food additive has fuelled the “gelatin market” growth.

Increasing healthcare spending coupled with growing demand from various end-use applications is expected to drive gelatin market growth. The market is characterized by high demand from food processing and pharmaceutical industries. Growing food processing industry coupled with increasing gelatinous food products demand including candies, ice creams, yogurts are major factors responsible for market growth. Growth of pharmaceutical industries owing to increasing healthcare spending coupled with approvals from FDA & IMA for gelatin to be used in medical drugs and food additive has fuelled the market growth. Increasing awareness for naturopathy and dietary supplements has a positive impact on the market growth. Growing disposable income among the urban as well as suburban populations of emerging economies such as China, India, Brazil and South Africa have also led to the rise in demand for high end products.

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High food grades price of and high energy supplements importing cost may restraint gelatin market growth. However, development of niche applications such as photography along with easier extraction techniques is expected to provide future opportunities for market participants. 

Raw Material Insights

On the basis of raw materials the market may be segmented into pig skins, bovine hides and animal bones. Gelatin may also be extracted from fish skins and bones as well as from sheep fats. Pig skin emerged as the largest raw material segment and accounted for over 40% of the global market share in 2013. Low production cost along with short production cycle has been the major factor responsible for high preference for pig skin as a raw material in the global market. End products produced from pig hides are used in capsules, binders, thickeners, stabilizers and texturizers. In terms of market share, pig hide was followed by animal bone extracts. Bone gelatin market is expected to have high growth owing to increasing application in food and pharmaceutical industries. Fish skins and bones is gaining popularity in the global market owing to the cultural and religious concerns associated with other raw materials.

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Application Insights

Food & beverage was the largest application segment and accounted for over 28% of the global market demand in 2013. Increasing demand for gelatinous sports drinks, desserts such as ice creams, candies and yogurts have also fuelled the market demand for food & beverage applications. Demand from nutraceuticals also had a major share in the global market. Increasing demand for high protein and low fat food supplements owing to growing health awareness has fuelled gelatin market demand over the last few years. The market is expected to have a positive outlook for other niche applications such as photography and cosmetics.

Regional Insights

Europe accounted for over 40% of the market share hence dominating the global gelatin market in 2013. Major demand was from countries such as UK, Germany, France, Netherlands and Italy owing to the expanding food industry in these regions. Additionally, the market in this region is characterized by high demand for gelatinous nutraceuticals. The trend is anticipated to continue over the next few years. North America and Europe are moderately mature markets and are expected to project fairly low growth rates over the next six years. Asia Pacific is anticipated to have the fastest growth rates, estimated to grow at around 4% from 2014 to 2020. Increasing disposable income of consumers coupled with growing end-use industries is expected to drive the market in this region over the forecast period.

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