Food Grade Gelatin Market to Grow Steadily at a CAGR OF 4.3% by 2030

Introduction

Gelatin is a naturally occurring protein formed from the partial hydrolysis of collagen found in animal skin and bones. It possesses unique properties that make it ideal for use as a gelling agent, binder, emulsifier, and thickening. It is used in the food business in various ways, mostly to add flexibility, uniformity, and strength to food items.

Market Dynamics

Demand for Fat-Free and Functional Food Products Propels Market Expansion

People are moving toward low-calorie, fat-free foods because they are more worried about health problems like obesity, diabetes, and heart disease. Gelatin is an integral part of making meals with less or no fat. Since it can mix oil and water, it can be used to replace some of the high-fat content in many products. Gelatin cuts down fat without sacrificing flavor in products like half-fat butter, reduced-fat cheese, and fat-free ice cream.

Gelatin also makes it easier for air to get into the ice cream, stabilizes it, makes it last longer at low temperatures, and keeps ice crystals from forming over time. When mixed with other texture-changing ingredients, it gives the ice cream a unique texture and slows the melting in the mouth. It also makes a fat-like matrix in emulsions that make them less thick when sheared and a fat-like creaminess. Therefore, the growing demand for low-fat and fat-free foods is creating a potential market for food grade gelatin, which is often used to replace fat without changing the texture, taste, or causing any side effects.

Gelatin is a mix of proteins and peptides that come from collagen that has been partially broken down. Gelatin is added to foods and drinks to make them healthier. Gelatin has amino acids like glycine, proline, and valine, and it is often used to make foams with herbs and spices that smell good. Gelatin has glutamic acid, which helps keep the stomach lining healthy and helps with digestion. It also aids digestion by making gastric juices come out more quickly.

Gelatin is perfect for modern sports nutrition and has no taste, so it doesn't leave a bitter aftertaste that needs to be covered up in the end product. Since it is so similar to the proteins in the human body, it is very easy for the body to absorb. Gelatin increases the protein fraction, making you feel full longer and easier to stay at a healthy weight. It also helps the body build muscles and heals and protects the cartilage in your joints. The market has a lot of room to grow because more and more people want functional food and drinks with gelatin.

Demand for Clean Green Gelatin and Functional Gummies Provides New Opportunities

Growing customer preference for food products with clean and transparent labels is a growing market trend. Gelatins with a clean label contain recognized, sustainably sourced, and organically derived ingredients and no artificial additives (no e-numbers) or chemicals. Regional players have begun to emerge and establish their position by introducing beef gelatin with a clean label to fulfill the increased consumer demand for gelatin with a clean label. For example, Rousselot Functional Ingredients is a Malaysian company that offers pure label beef gelatin created by nature with no e-number and no chemical ingredients.

It has been demonstrated that gummy products appeal to 65% of adults, showing their potential as a delivery vehicle for nutraceuticals and active pharmaceutical ingredients (APIs) across a wide range of ages and demands. Adding a liquid filling can also enhance the palate experience and expand the dosing options of these products, resulting in an increase in consumer demand for functional gummies, which is creating a vast opportunity for market participants to invest in and introduce new products, thereby boosting the market growth.

Impact of COVID-19

COVID-19 had a substantial impact on businesses and the economy. It also caused a shift in consumer buying behavior, with a preference for alternative channels. Since most gelatin is sold through convenience stores and supermarkets, the retail channels were hit drastically. Nonetheless, the pandemic increased the demand for health and nutrition products among consumers. There was an increase in demand for items that promote immunity and wellbeing, which had a favorable effect on the market. Growing demand for immunity-enhancing products such as dietary supplements is one of the significant growth drivers behind the surge in demand.

Regional Analysis of the Global Food Grade Gelatin Market

Europe is anticipated to hold the largest market share of USD 721 million by 2030 at a CAGR of 3.6% during the forecast period. The increasing use of gelatin in foods and beverages, particularly dairy products such as milk, cheese, yogurt, and sour cream, and its nutraceutical applications for its excellent stabilizing and binding properties increase demand for the product.

Asia-Pacific is the second-largest contributor to the food grade gelatin market, with revenue of USD 488 million in 2021. Demand for gelatin-based dietary supplements and functional foods and beverages is anticipated to increase as consumer tastes shift toward proper weight management and muscular strength enhancement.

North American food grade gelatin market is expected to witness steady growth as the demand for low fat and fat-free products to tackle obesity and associated ailments with the value of USD 395 million in 2021. South America and the Middle East and Africa have the lowest market owing to developing economies.

Key Highlights

• The global food grade gelatin market was valued at USD 1,638 million in 2021 and is anticipated to generate USD 2,389 million by 2030, growing at a CAGR of 4.3% during the forecast period (2022–2030).
• Pigskin is the major shareholder in the global food grade gelatin market based on the available gelatin source. It is projected to generate USD 865 million in 2030 and grow at a CAGR of 3.8%.
• Application-wise, nutraceuticals is the largest market holder. It is projected to generate USD 875 million in 2030 and grow at a CAGR of 3.8%.
• Geographically, the market is divided into North America, Europe, Asia-Pacific, South America, and the Middle East and Africa. The market in Europe is expected to be valued at USD 721 million by 2030 at a CAGR of 3.6% during the forecast period.

Competitive Players

Competitive Players in the Global Food Grade Gelatin Market:

The key players in the global food grade gelatin market are Darling Ingredients Inc., Gelita AG, Tessenderlo Group NV, Foodchem International Corporation, Nitta Gelatin Company, Sterling Gelatin, Weishardt Holding SA, Luohe Wulong Gelatin Co. Ltd, Gelnex, Trobas Gelatine BV, Ajinomoto Co. Inc. and Italgelatine SpA among these.

Recent Developments

Market News

• In June 2021, Nitta Gelatin introduced XactSet and Rapid set gelatin, a line of specialty gelatin explicitly developed to formulate starchless gummies.
• In December 2020, Gelita, one of the world's leading providers of collagens and proteins, invested USD 10.97 million for expansion in its Eberbach plant. 
• In November 2020, Rousselot BV, part of Darling Ingredients and Giusto Faravelli Spa, announced a new distribution partnership in Italy.
• In September 2019, Gelnex constructed two new facilities to process gelatin and hydrolyzed collagen. 
• In April 2019, Nova Scotia Business Inc. (NSBI) approved a business development incentive in the form of an innovation rebate for Kenney and Ross Limited.

Segmentation

Global Food Grade Gelatin Market: Segmentation

By Source

• Bovine Hides
• Pig Skin
• Cattle Bones
• Other Sources

By Application

• Confectionery
• Dairy and Desserts
• Bakery
• Meat and Meat Products
• Beverages
• Nutraceuticals
• Other Applications

By Regions

• North America
• Europe
• Asia-Pacific
• South America
• The Middle East and Africa