Gelatin costs in the United States are projected to increase in the second quarter of 2025, powered by a combination of supply limitation and stable demand. Consistent gelatin demand from the key industries, such as food and drinks, drugs and nutraceuticals, strengthens the optimistic scenario. Industry participants also predict increased seasonal demand during warmer months and provide further support for the price.

In addition, the pharmaceutical sector remains a reliable user of gelatin, especially in the production of capsules, where the quality and reliability of the supply is necessary. As the demand for gelatin in health care likely to remain stable, this will have a positive impact on the prices of gelatin.

President Trump announced tariffs on April 20, 2025 as part of a wider strategy for impressive measures against several traders, which included 20% of EU products. Although the tariffs were originally planned immediately, the president postponed them for 90 days, with the exception of China, which allowed businesses a short chance to adapt to change.

This increase in purchase is expected to cause short-term demand spikes, especially in the cosmetics and food industry, where gelatin plays a basic role. With the possibility of tariffs on EU goods that are approaching, US importers are expected to speed up their shopping approaches to avoid higher gelatin costs. The extension offers businesses the opportunity to collect resources at current prices, further supporting the upward trajectory of gelatin.

In another case, President Trump threatened to implement another 50% tariff on products from China, as the tension of the trade escalates. American buyers are reportedly moving commands forward to obtain goods ahead of any upcoming tariffs or restrictions. This extra phase of stockpiling may cause more pressure on port activities, storage equipment and inventory amounts, especially in industries that are already facing supply constraints.

In addition, this frontloading endeavor likely lead to an increase in ocean cargo demand on these shipping routes. As businesses acquire more volumes of products, they may be more dependent on shipping routes, leading to an increase in the demand for logistics services. This may also have an impact on global transport rates, especially in the short term when companies try to respond to the expected demand spikes and lock their supplies.

ChemAnalyst's evaluation suggests that the US gelatin market is expected to experience a continuous increase in prices due to multiple factors. It is expected that the shift in trade regulations, geopolitical tension and increased demand from key markets will cause continuous increase in gelatin prices.