Market Trends of gelatin Industry
Strong hold of the retail sector is supporting market growth
- Europe is the major consumer of bakery products worldwide, holding around 28.1% share in 2022. Bread is the most consumed bakery product in the region. Its production is relatively stable in most countries. However, some countries, like the United Kingdom and Germany, are still showing a long-term trend of a slow decline, i.e., 1-2% per year, thereby affecting the market's growth.
- Products with natural and clean label claims are gradually gaining popularity in North America. To consume healthier, almost 45% of American consumers seek clean-label ingredients in their products. A similar demand has sparked innovation in the local bakery industry. For instance, manufacturers like Greater Goods Snacking Co., Home Dough, and Hydrox® Cookies launched clean-labeled cookies or crackers between 2016 and 2022. At the same time, other players added superfoods, protein, good fats, etc., to their portfolios.
- The bread industry experienced price inflation in 2022 as a result of the Russia-Ukraine war. In the past year, bread prices increased significantly across Europe, with the surge especially evident after Russia's invasion of Ukraine. In August 2022, prices were generally 18% higher compared to 3% in August 2021. In Italy, the average price of bread grew by 13.5% between August 2021 and August 2022. Germany also witnessed a 17.5% increase in the average price of bread during the same time.
- The organized bakery segment is projected to increase by 3.08% during the forecast period, owing to the growing demand for cookies/biscuits and pastries. Asia-Pacific is projected to witness the fastest growth rate of 4.60% during the forecast period, owing to the introduction of western bakery items by regional and international manufacturers to cater to a wider audience.
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Meat production contributes majorly as raw material for gelatin manufacturers
- The gelatin industry's raw materials differ depending on the source. Animal-based gelatin uses bones, tissues, and other animal parts as raw materials, whereas marine-based gelatin uses fish as the primary raw material. As a result, companies rely significantly on raw materials from slaughterhouses and cattle, pigs, and fish farms. India had 72 government-approved abattoirs in 2017, making it one of the largest meat-producing countries globally. However, most abattoirs in India dispose of their waste, including skin, bones, and hooves. Most of the country's slaughterhouses are either very old or significantly smaller and dispersed. Therefore, abattoirs must understand the importance of hooves, hides, bones, and joints in producing gelatin, which may benefit the market economically and environmentally.
- However, the production of bovine, porcine, and fish meat declined due to the shutdown of slaughterhouses during the pandemic across all regions. Despite the COVID-19 pandemic, the EU swine sector started the year 2020 with a larger sow herd than the previous year, anticipating strong export demand from China. However, many challenging developments occurred in the market, such as slaughter restrictions in Northwestern Europe due to the COVID-19 pandemic. German pig prices are also rising despite lost Chinese sales (about 10 cents to EUR 1.54 per kg slaughter weight in May 2021).
- Countries like China are demonstrating a desire for self-sufficiency in animal protein production. For instance, in December 2021, China's National Conference of Agricultural and Rural Affairs set an annual pork production target as part of the country's five-year plan at 55 million ton, approximately 35% above the current production rate.
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OTHER KEY INDUSTRY TRENDS COVERED IN THE REPORT
- Asia-pacific held major market share
- Growing preference for convenient breakfast options
- Rising at-home consumption and demand for healthy confectionery products
- Growing nutritional concerns for aging populations
- Ready-to-cook and frozen foods witnessed a surge in sales
- Rising health awareness and growing demand from millennials
- Natural ingredients highly driving the segmental sales
- Healthy trends in beverages impacting market growth
- Hike in the demand for single-serve packets may augment production
- Dairy alternative to witness significant growth
- Meat protein alternatives are revolutionizing the meat segment
- Healthy snacking preference to support market growth
- Growing demand for compound feed
- Animal protein consumption growth fuels opportunities for key players in the ingredients sector
