Market Overview
The global food grade gelatin market size is 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).
Gelatin is a naturally occurring protein formed from the partial hydrolysis of collagen found in animal skin and bones. Gelatin has a unique amino acid sequence with a high glycine, proline, and alanine concentration. The bioactivities of gelatin are due to physiologically active peptide sequences in its central structure. 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. The water or fluid polyhydric alcohols of gelatin are used in the culinary field to prepare sweet, marshmallows, and dessert compositions.
Market Dynamics
Global food grade gelatin market drivers
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Demand for low-fat and fat-free food products
People are moving toward low-calorie, fat-free foods because they are more worried about health problems. 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. Products like half-fat butter, reduced-fat cheese, and fat-free ice cream gelatin help cut down fat without sacrificing flavor. Gelatin makes things more stable, lasts longer, and gives them a creamy texture. Due to its ability to hold things together, gelatin increases the amount of cheese that can be made and saves money.
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. Gelatin also makes a fat-like matrix in emulsions that have properties that make them less thick when sheared and a fat-like creaminess. Therefore, adding gelatin gives the food a smooth, creamy texture and makes it look and taste the same.
Gelatin is also used to make meat products like aspics, sausages, and spreadable products that can be cut into slices and have fewer calories than other meat or sausage products. Spreadable sausages have more fat, but gelatin gives them a better texture and makes them easier to spread while lowering the amount of fat and calories. Hence, the growing demand for low-fat and fat-free foods is creating a potential market for food grade gelatin.
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Inclination toward functional food and beverages
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. 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 helps the body absorb calcium, keeping bones strong and stopping them from breaking down. People eat gelatin to lower their risk of getting osteoporosis, a disease that makes bones weak and brittle. Some studies also show that glycine helps keep type 2 diabetes under control.
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 straightforward for the body to absorb and "process." 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.
Global food grade gelatin market restraint
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Awareness of plant-based gelatin
Gelatin is made from animal parts. People who don't want to eat meat for various reasons can use other kinds of gelatin. A major portion of the world's population is vegetarian, and people who are switching to a vegan diet are likely to avoid ingredients like gelatin that come from animal protein. There are, however, several plant-based ingredients that can be used instead of gelatin. Gelatin from animals or the sea is being replaced by plant-based products like agar-agar, pectin, and carrageenan, which have the same gelling effect. This is affecting the gelatin market.
Jews and Muslims can only eat animal gelatin from halal animals. Further, concerns about the risk of animal-borne diseases like bovine spongiform encephalopathy (BSE) and other skin allergies like rashes, hives, and swelling of the lip, tongue, throat, or face, as well as other health issues like vomiting and diarrhea, cramping, coughing, trouble breathing, dizziness, and loss of consciousness associated with animal gelatin also affect the market. Further, the desire for a plant-based diet is linked to sustainability, health awareness, moral or religious beliefs, and environmental and animal rights concerns. The gelatin market isn't growing as fast as it could because more people aren't able to digest animal protein and want to eat foods with protein in them.
Global food grade gelatin market opportunities
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The trend of halal gelatin and clean green gelatin
Halal Gelatin is a type of gelatin derived from sources that comply with Islamic law. The religious prohibition against the use of pig skin gelatin in food products has increased the demand for halal and kosher-certified products. Increased beef and fish consumption by Jews and Muslims are expected to raise demand for kosher and halal-certified goods manufactured from bovine or fish raw materials. Halal gelatin can also be manufactured from the bones of cows and sheep. Due to the popularity, demand, and health benefits of halal gelatin, market players have started producing halal gelatin specifically. These companies are halal certified, which provides market players with a significant opportunity to grow the gelatin industry.
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.
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Introduction to retail segment and demand for functional gummies
In January 2021, Nitta Gelatin India introduced premium gelatin of world quality for the HoReCa sector. This is the first time a gelatin maker in India has offered its brand of food grade gelatin for the retail market. The premium gelatin is produced using Japanese technology by European GMP and HACCP hygiene regulations (EC). Gelatin derived from natural sources provides all essential amino acids except tryptophan. The culinary explorations of most customers throughout the pandemic have bolstered the demand for premium gelatin of international standard in handy formats, hence generating an opportunity for the market's key players to fuel its expansion.
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. Producing center-filled functional gummies with a range of nutrients or APIs efficiently and cost-effectively might be difficult.
Regional Analysis
Europe to be the largest revenue holder in the global market
Based on regions, the global food grade gelatin market share is segmented into North America, Europe, Asia-Pacific, South America, and the Middle East and Africa.
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 high consumption of sweets and baked goods, such as jellies, in the country, has prompted food manufacturers to include gelatin, thereby driving the gelatin customer base. Additionally, 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 the gelatin demand. Germany and the UK have more market revenue than Italy and France, valued at USD 79 million and USD 65 million.
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. Compared to other countries, China is the most significant contributor to the market, valued at USD 161 million in 2021. Japan and India are expanding their market gradually with market revenue of USD 83 million and USD 40 million, respectively, in 2021.
The 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 increases. The market was valued at USD 395 million in 2021, with the US accounting for the primary market share, valued at USD 303 million.
South America and the Middle East and Africa have the lowest market. In 2021, the market revenue in South America was valued at USD 148 million, with Brazil being their major contributor, whereas the Middle East and Africa market value was USD 80 million in 2021.
Segmental Analysis
The global food grade gelatin market share is categorized by source and application.
Pig skin is the major shareholder in the global food grade gelatin market based on the available gelatin sources, and it is projected to generate USD 865 million by 2030 at a CAGR of 3.8%. The rising demand for functional foods is driving the market for pig skin gelatin. It is also widely used in ice creams, yogurts, and other desserts as a stabilizing agent. Further, ample supply, simple accessibility, and biodegradability contribute to its growing demand. In addition, the rising trend to replace synthetic agents with natural ones and the functional properties of pig skin, such as its antioxidant and antihypertensive properties, are driving the market for pig skin gelatin.
Application-wise, nutraceuticals is the largest market holder. It is projected to generate USD 875 million by 2030, growing at a CAGR of 3.8%. The connection between gelatin and its health benefits has spawned the collagen supplement industry. Gelatin-based dietary supplements provide a variety of health benefits. Hydrolyzed gelatin is increasingly used in dietary supplements because the final product has a low molecular weight, making it easier for the body to digest, absorb, and distribute amino acids throughout the body.
