After a sharp decline in May due to oversupply and weak demand, German gelatin prices are expected to rise in June, driven by seasonal demand from the food and personal care sectors, easing logistics bottlenecks, and inventory normalization. Producers are reducing output to avoid overstocking, while improving freight conditions and restocking needs support a steady price recovery, with further strengthening anticipated in July and August.
Following a steep drop in May, German gelatin prices likely to rise during June as market dynamics favor a steady but sure recovery. Oversupplied inventories and muted procurement sentiments had been the anticipated forces behind May's downturn, but a recovery phase is imminent, with the support of seasonal trends of gelatin demand coupled with the mitigation of logistics bottlenecks.
German gelatin producers entered May with elevated inventory levels after ramping up production in April to meet a brief export surge. However, by mid-May, the export momentum sharply declined. Well-stocked buyers across key European destinations adopted a wait-and-see approach, resulting in soft order flows. Suppliers were forced to lower offers in a bid to sustain shipment volumes, pushing gelatin prices downward.
Now, as June progresses, suppliers are witnessing a narrowing of the inventory surplus. While trade volumes remain below the highs of April, incremental outbound movement has resumed, especially to southern and eastern European markets. Some producers have started to scale back production slightly to avoid further stockpiling, aligning output with realistic short-term demand. This rebalancing is expected to lend upward support to gelatin prices as sellers regain pricing power.
Apart from that, while northern European bottlenecks in logistics put a weighty burden on the confidence of buyers in May, initial indications are for continued relaxation in congestion at the major ports such as Hamburg. Lowered backlogs of containers and enhanced inland flows are giving renewed optimism to delivery lead times, fostering a modest uptick in procurement activity.
On the demand front, June typically marks a turning point for gelatin consumption in Germany and surrounding regions, driven by heightened seasonal demand from food, confectionery, and personal care industries. While many buyers had frontloaded their gelatin purchases in April, inventory drawdowns are now beginning to surface, particularly among mid-sized and specialty users.
The initiation of warm-season production runs, particularly for desserts, gummies, and supplements, will continue to drive the need for restocking in the next few weeks. Both cosmetic and nutraceutical markets that depend on gelatin are also experiencing new interest, adding to the positive momentum of gelatin.
In addition, greater visibility of freight schedules and better inventory turnover ratios are persuading some buyers to return to the market after a pause in May. The demand backlog will lead to a modest but consistent price rally as sellers reduce the offer range with better order visibility.
According to the ChemAnalyst analysis, German gelatin prices are likely to show a gradual upward trend in summer months due to strong seasonal demand and logistics coming back on track. July and August can expect price strengthening further as food and nutraceutical manufacturing is at its most active time, with improved export flow potentially slowly reviving suppliers' margins.
