For the Quarter Ending March 2025
North America
In Q1 2025, the USA gelatin market experienced significant price declines, driven by a mix of economic and market factors. In January, weakening consumer confidence and growing labor market concerns led to weaker demand, particularly in food and pharmaceuticals. Severe winter weather disruptions, including snowstorms and freezing temperatures, also impacted transportation and logistics, further slowing purchasing activity. Additionally, preemptive stockpiling in anticipation of potential tariff hikes on Chinese imports led to oversupply, pushing prices down.
In February, the market saw continued price declines due to increased supply from key producers like China and Brazil, along with lower shipping costs from reduced container rates. However, demand remained weak due to economic uncertainty and rising inflation, causing cautious buying behavior. The Federal Reserve's decision to hold interest rates contributed to a slowdown in purchasing.
By March, escalating trade tensions, including the U.S. decision to double tariffs on Chinese imports, added to market uncertainty. This led to further inventory accumulation and cautious procurement strategies, resulting in continued price drops as sellers sought to move excess stock.
Asia Pacific
In the first quarter of 2025, the South Korean market for Gelatin experienced a significant decline in prices, driven by a combination of factors. Weak demand from key sectors, such as food, pharmaceuticals, and healthcare, coupled with excessive stock levels, led to downward pressure on prices. The market was also impacted by pre-Lunar New Year stockpiling, which resulted in subdued fresh orders. Rising inflation and reduced consumer purchasing power further exacerbated the price decline. The strengthening of the South Korean won against the US dollar made imports cheaper, increasing supply and contributing to lower domestic prices. Additionally, political instability following the impeachment of President Yoon Suk-yeol dampened consumer confidence, while high inflation continued to constrain demand. The imposition of U.S. tariffs on Chinese goods caused China to redirect exports to South Korea, flooding the market with additional supply. These factors led to a further decline in Gelatin prices through March, as market participants sought to remain competitive amidst challenging economic conditions.
Europe
In Q1 2025, the German Gelatin market saw a significant price decline due to various economic and geopolitical factors. In January, prices dropped sharply as consumer sentiment weakened amid declining economic expectations, inflationary pressures, and reduced spending in sectors like food, cosmetics, and pharmaceuticals. The Euro's appreciation against the US Dollar also made Gelatin more expensive for international buyers, further contributing to the price decline. In February, Gelatin prices continued to fall, driven by weak demand and ample supply. Despite reduced production levels, inventory levels increased as downstream industries, including food and healthcare, scaled back procurement in response to political uncertainty surrounding national elections. The ongoing political instability, coupled with high inflation, dampened domestic demand. March saw continued price erosion, with export activity sluggish due to global trade tensions and inflation concerns. The Euro's strength made German exports less attractive, compounding the price decline. With reduced international interest and a glut in the European market, suppliers were forced to lower prices to maintain competitiveness, reinforcing the downward trend throughout Q1.
South America
In Q1 2025, the Gelatin market in Brazil saw a consistent decline in prices due to weak demand and oversupply. In January, sluggish consumption from key sectors like food, pharmaceuticals, and healthcare, coupled with excess stock, exerted downward pressure on prices. Tightened monetary policy, higher borrowing costs, and economic uncertainty further dampened consumer spending, contributing to the decline. February saw continued price reductions, as inflationary pressures prompted the central bank to raise the Selic rate, leading to more cautious consumer behavior. Despite this, Brazil’s manufacturing sector experienced its strongest improvement since September, driving increased production and ensuring ample supply, which weighed further on prices. Although demand from downstream industries remained weak, market participants lowered prices in an effort to stimulate sales. In March, the price decline continued as cautious consumer behavior and weak industrial demand persisted. Overall, the Brazilian Gelatin market in Q1 2025 faced significant pricing pressures due to a combination of economic factors, oversupply, and reduced consumption, with businesses adjusting strategies to remain competitive in a challenging environment.
For the Quarter Ending December 2024
North America
In Q4 2024, Gelatin prices in the USA experienced a steady decline, driven by a mix of economic uncertainty, softening demand, and market disruptions. In October, inflation concerns and the political uncertainty surrounding the upcoming presidential election contributed to a drop in consumer confidence, weakening demand across various sectors. This cautious market environment prompted companies to lower prices to stay competitive.
In November, the softening demand from food, healthcare, and pharmaceutical industries, along with the stronger US dollar, further pressured prices downward. The resolution of supply chain issues, including the ILA strike, helped smooth logistics and reduce shipping costs, enabling suppliers to pass on savings to consumers. By December, reduced consumer confidence and a slowdown in business activity, particularly in food and pharmaceuticals during the holiday season, kept prices low. Proactive inventory management and fears of future tariffs contributed to a more competitive market, reinforcing the downward price trend.
Overall, the combination of economic challenges, soft demand, and logistical improvements led to a consistent decline in Gelatin prices throughout the quarter.
Asia Pacific
In Q4 2024, Gelatin prices in China showed a consistent decline, driven by a combination of domestic and international factors. October saw reduced consumer demand and excess supply, intensifying competition among suppliers who lowered prices to retain market share. This was compounded by global geopolitical uncertainties, particularly around the U.S. elections, leading to weaker external demand and cautious purchasing behavior from international buyers. In November, domestic demand continued to slow, and high distributor inventories created an oversupply, further pushing prices down. Global economic uncertainties and weak international demand, notably from the U.S. and Europe, also dampened export activity. Falling crude oil prices helped reduce operational costs, enabling manufacturers to pass on savings through lower prices. By December, disinflation and subdued consumer demand, alongside the seasonal downturn in international markets due to the holidays, contributed to a softening of both domestic and foreign orders. This left suppliers with excess stock, prompting further price reductions to clear inventories, culminating in a downward trend in Gelatin prices for the quarter.
Europe
In Q4 2024, Gelatin prices in Germany experienced a consistent downward trend, influenced by a range of interconnected factors. In October, prices dropped due to soft demand, driven by inflation concerns that led to reduced consumer spending. Additionally, a significant drop in container prices on Asia-Europe shipping routes, coupled with proactive import strategies by retailers, exerted additional downward pressure on prices. The price decline continued into November, as weak demand from key sectors such as food, healthcare, and pharmaceuticals persisted. Easing inflation concerns and a drop in energy prices further contributed to the price reduction. Germany’s broader economic slowdown and continued weak consumer spending exacerbated the downward trend. By December, the price decline was further reinforced by reduced purchasing activity, particularly from the cosmetics, food & beverage, and pharmaceutical sectors. Cautious market sentiment, coupled with well-stocked inventories and logistical disruptions caused by harsh winter weather, added to the downward trajectory. Overall, Q4 2024 saw a combination of economic uncertainty, weak demand, and logistical challenges contributing to lower Gelatin prices in Germany.
For the Quarter Ending September 2024
North America
The North American Gelatin market exhibited remarkable stability during the third quarter of 2024, characterized by consistent price levels across the region. This stability was underpinned by a well-balanced market environment where multiple factors worked in harmony. The supply chain demonstrated resilience, operating without significant disruptions, while production facilities maintained steady output levels throughout the quarter.
The USA market, typically the most dynamic in the region, reflected this broader stability, with Gelatin prices showing minimal fluctuation. The market's steadiness was particularly evident in the price correlation between the first and second halves of the quarter, which remained at 0%, indicating a highly consistent pricing pattern. The quarter-end price for Gelatin (BS - 150) Food grade CFR Houston settled at USD 7435/MT, representing a modest 2% decline from the previous quarter.
This stability was further supported by moderate demand from end-users, which aligned well with available supply. The economic conditions remained favorable, contributing to the market's equilibrium. When compared to the same period in the previous year, prices maintained their stability, reinforcing the market's steady nature.
APAC
Throughout Q3 2024, the Gelatin market in the APAC region witnessed a notable decrease in prices, largely influenced by several key factors. The market sentiment was predominantly negative, with significant downward pressure on prices. Factors such as weakening consumer demand, global shipping disruptions, and economic uncertainties played a pivotal role in driving prices lower. The overall trend in Q3 indicated a bearish market outlook, with prices consistently on a downward trajectory.
In China, the market experienced the most substantial price changes during the quarter. The pricing environment was characterized by high supply levels, low demand, and logistical challenges due to the Red Sea crisis. These factors led to a significant decrease in Gelatin prices in China, aligning with the overall downward trend in the APAC region.
The quarter saw a significant -7% decrease from the previous quarter, with prices dropping by -4% between the first and second half of Q3. The quarter-ending price for Gelatin (BS - 150) Food grade FOB Shanghai in China was recorded at USD 6680/MT, reflecting the prevailing negative pricing environment.
Europe
In Q3 2024, the Gelatin market in Europe experienced a significant downturn in prices, influenced by several key factors. Economic uncertainties, weakening consumer sentiment, and logistical disruptions played pivotal roles in driving market prices downward. The persistent economic challenges across the region led to subdued demand, exacerbating the pricing decline. Additionally, disruptions in supply chains, coupled with rising shipping costs, further complicated the market landscape, impacting both buyers and suppliers. In France, the most notable price changes were observed, reflecting the broader European trend. The quarter recorded a substantial -5% decrease from the previous quarter, underscoring the challenging market conditions. The comparison between the first and second half of the quarter revealed a -2% decline, highlighting the sustained negative trajectory in prices. Ending the quarter at USD 9730/MT of Gelatin (BS - 200) Pharma Grade FOB Fos-sur-Mer in France, the pricing environment remained predominantly negative, characterized by a consistent decrease in market sentiment. Notable disruptions during the quarter included plant shutdowns at Nitta Gelatin USA, Inc. and Bamni Proteins Ltd.
For the Quarter Ending June 2024
North America
The second quarter of 2024 witnessed a noticeable decline in Gelatin prices within the North American market, driven primarily by a confluence of factors that exerted downward pressure on market dynamics. The quarter saw a significant contraction in business activity, characterized by a marked reduction in new orders and a shrinking backlog, indicative of a broader economic slowdown. Weaker-than-expected demand, combined with persistent inflationary pressures, further eroded consumer spending power, contributing to a softening in Gelatin prices.
Additionally, strategic decisions by importers to frontload imports in anticipation of the peak season led to an oversupply, exacerbating the price decline. This oversupply was compounded by challenges such as port congestion and geopolitical tensions, which disrupted supply chains and prompted bulk shipping at reduced rates. In the USA, the most pronounced price changes were observed, reflecting overall trends of declining demand and ample supply. The seasonal spike in demand typically associated with mid-year preparations was subdued, reflecting a cautious economic outlook. Compared to the previous quarter, prices decreased by -1%, and a further -1% drop was noted between the first and second halves of the quarter.
The latest quarter-ending price for Gelatin (BS - 150) Food grade CFR Houston was recorded at USD 7510/MT, underscoring a persistently negative pricing environment. The absence of reported plant shutdowns or significant disruptions adds clarity to the supply glut observed. Overall, the quarter has been characterized by a negative pricing sentiment, driven by a complex interplay of subdued economic activity, strategic market maneuvers, and overarching inflationary constraints.
APAC
In Q2 2024, the Gelatin market in the APAC region experienced a pronounced decline in prices, driven by a confluence of factors. Economic challenges, including subdued consumer confidence, persistently high interest rates, and inflationary pressures, significantly dampened demand. Persistent deflationary pressures led to reduced operational expenses, which were passed on to consumers, thereby lowering product prices. Market participants, grappling with oversupply, sought to clear inventories at lower quotations, compounded by insufficient new orders both domestically and internationally. Additionally, geopolitical tensions and logistical disruptions added layers of uncertainty, further reducing market activity. In South Korea, which experienced the most significant price changes, the market witnessed a clear downward trajectory. The manufacturing sector faced stagnant consumer confidence due to elevated interest rates and ongoing inflation, leading to cautious spending patterns. Geopolitical tensions, particularly those stemming from Middle Eastern conflicts, exacerbated market instability, prompting buyers to delay or reduce orders. The overall market sentiment remained bearish, with suppliers adjusting prices downward to manage excess inventory. Compared to the previous quarter in 2024, prices dropped by 1%, showcasing a discernible decline. The notable price difference between the first and second half of the quarter was recorded at -2%, reflecting the accelerating negative sentiment. The quarter concluded with the price of Gelatin (BS - 150) Food grade CFR Busan settling at USD 7350/MT, underlining a consistently negative pricing environment throughout Q2. The prevalent factors collectively signified a challenging quarter for the Gelatin market in South Korea, driven by both demand-side weaknesses and supply-side adjustments, reinforcing a distinctly negative market outlook.
Europe
The second quarter of 2024 has seen a notable decline in Gelatin prices across the Europe region, influenced by multiple intricate factors. A sluggish economic recovery, coupled with subdued consumer demand, has significantly impacted market dynamics. Inflationary pressures, though easing, have continued to suppress consumer spending, while geopolitical uncertainties, especially the escalating conflict in the Middle East, have exacerbated market apprehensions. Furthermore, logistical bottlenecks and prolonged lead times have strained supply chains, resulting in increased operational costs. Additionally, the European Central Bank's decision to maintain high-interest rates has further curtailed consumer expenditure, reducing overall market demand. This cautious economic environment has compelled businesses to adopt more conservative pricing strategies, contributing to a persistent decline in Gelatin prices. Focusing on Germany, the nation experienced the most pronounced price changes during this quarter. The economic downturn, marked by weak industrial orders and consumer sentiment, has led to a surplus of Gelatin inventories, driving prices downward. Seasonal demand fluctuations and a cautious approach by consumers have further intensified these trends. The price decline from the preceding quarter is recorded at 0%, with a marked -1% difference between the first and second halves of the quarter, underscoring the consistent downward trajectory. This quarter concluded with Gelatin (BS - 160) Pharma Grade FOB Hamburg priced at USD 8750/MT, reflecting an overall negative pricing environment.
