For the Quarter Ending June 2025
North America
• The Gelatin Price Index in the USA declined steadily through Q2 2025, with BS-150 spot prices falling from April to USD 3900/MT in June, while BS-220 spot prices dropped to USD 4390/MT.
• In April, elevated inventories and pre-emptive frontloading of imports ahead of tariff implementation led to reduced market urgency, placing downward pressure on the product spot price.
• Despite a 145% tariff on Chinese gelatin, U.S. importers absorbed costs to avoid full pass-through to buyers, contributing to a subdued product price forecast for April.
• High inventory levels among buyers in April discouraged new procurement, as many adopted a wait-and-see approach. This softened the product demand outlook across sectors like food and nutraceuticals.
• In May, Chinese gelatin imports into the USA dropped noticeably, forcing buyers to reassess sourcing strategies. However, ongoing policy uncertainty limited fresh ordering activity, keeping the price index on a downward path.
• Temporary easing of tariffs mid-May had minimal impact as conservative demand persisted. Major end-users focused on inventory drawdowns due to cost caution and weak retail signals.
• By June, further declines in global logistics costs supported a more favorable product production cost trend, yet demand remained soft due to economic unease and inventory overhangs.
• Seasonally, June usually sees stronger gelatin uptake in dairy and confectionery applications, but this year demand remained sluggish. Buyers delayed restocking, impacting the near-term product price forecast.
• Distributors used June to liquidate existing stock in preparation for fiscal mid-year closings. This low turnover environment further strained the product demand outlook.
• In July 2025, prices are expected to rise modestly. Suppliers are restocking cautiously, causing local tightness in supply. Distributors are also moving away from heavy discounting to restore margins, adding slight upward momentum to the product spot price.
APAC
• The Price Index for Gelatin (BS-150) in South Korea declined steadily across Q2, with spot prices falling from USD 4365/MT in April to USD 3760/MT by June, primarily due to increased availability of low-cost Chinese imports and weak demand conditions.
• Similarly, Gelatin (BS-220) Spot Price dropped from USD 5035/MT to USD 4190/MT between April and June, as South Korean buyers leveraged a stronger won to negotiate cheaper CFR Busan shipments.
• In April, importers capitalized on currency gains to purchase discounted Chinese-origin gelatin, triggering a market oversupply and causing the Price Index to fall further as inventories built up.
• Despite lower costs, the gelatin demand outlook remained weak as end-use sectors—especially food, pharmaceuticals, and nutraceuticals—held back procurement due to soft consumption trends.
• By late April, the local market had become oversupplied, with port congestion and delivery mismatches from China adding to inventory pressure and further weakening spot market activity.
• In May, Chinese suppliers continued to lower export prices to clear excess stock, and South Korean traders avoided long-term commitments, focusing instead on short-term, tactical purchasing.
• The product production cost trend in China continued to favor aggressive price cuts, but this failed to lift South Korean demand, which remained sluggish across personal care and pharmaceutical segments.
• June witnessed cautious market behavior with no clear rebound in consumption, and the Price Index remained soft amid ample inventories and widespread buyer hesitancy.
• Looking ahead to July 2025, the gelatin price forecast suggests prices may either stabilize or show marginal softness as some distributors begin to cautiously rebuild inventories at low cost.
• However, a meaningful recovery depends on improvement in consumer-facing sectors like food and personal care; without that, product spot price gains are likely to remain limited and sentiment subdued.
Europe
• The Gelatin Price Index in Germany rose in April due to a surge in US import demand, closing at USD 6220/MT, up from March.
• A temporary 90-day tariff suspension in the US led to a spike in German gelatin export volumes, especially for the food and cosmetics sectors.
• Supply-side challenges—including Easter-related public holidays and North European port congestion—contributed to higher logistics costs and upward price movement.
• In May, the Price Index declined to USD 6080/MT, driven by subdued orders from previously frontloaded buyers and elevated stocks.
• Despite steady production, German suppliers faced falling procurement as European buyers dealt with inventory saturation and transport bottlenecks.
• June continued the softening trend; the Price Index dipped to USD 6045/MT amid persistent logistical strain and quarter-end stock clearance.
• Across Q2, the product spot price weakened overall, pressured by cautious restocking and high inventory levels across key downstream segments.
• The product demand outlook remained muted, especially from the pharmaceutical and food processing sectors, with buyers focusing on stock management.
• July 2025 is expected to witness a short-term increase in demand, as some downstream players resume purchasing to replenish stocks after the June dip.
• However, product price forecast suggests only a modest recovery, as product production cost trend remains steady and inventory pressure continues.
South America
• The Gelatin (BS - 220) Spot Price in Brazil increased to USD 6365/MT in April before falling in June, while the Gelatin (BS - 250) Spot Price declined to USD 6180/MT over the same period.
• April’s Price Index rose slightly due to constrained raw material availability caused by record-high beef exports, which limited collagen-rich byproducts for gelatin manufacturing.
• The gelatin production cost trend saw upward pressure in April as production volumes declined, despite softer U.S. demand and export hesitancy.
• Despite weak American buying activity, stable demand from Europe, Asia, and Latin America supported higher export prices.
• May saw a reversal, with Brazil’s Price Index declining due to contracting domestic economic activity and soft international demand, overshadowing tight upstream supply.
• Brazil’s gelatin industry continued to face input constraints from sustained beef exports in May, but weakening global demand reduced pricing power.
• A sharp drop in domestic and international consumption drove prices lower in June, with the Price Index for both gelatin grades falling modestly.
• Weak manufacturing performance, excess inventories, and shrinking new orders worsened Brazil’s gelatin demand outlook in June.
• Buyers, particularly in the U.S., held back orders in June amid tariff-related uncertainty and sufficient pre-built inventories.
• Gelatin price forecast for July 2025 suggests a slight increase as business sentiment improves and sellers cautiously raise prices in response to order stabilization.
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.
FAQs
1. What caused the continued decline in Gelatin prices in the USA during Q2 2025?
Gelatin prices in the U.S. dropped steadily through Q2, with BS-150 and BS-220 spot prices falling by over 900 USD/MT. This decline was largely driven by high inventory levels built up from pre-emptive importing before the 145% tariff on Chinese gelatin took effect. Despite the tariff, importers absorbed much of the cost to stay competitive, which kept overall prices subdued. Conservative buying behavior, driven by cost caution and soft demand from food and nutraceutical sectors, also contributed to the sustained price weakness through June.
2. Why did South Korea’s Gelatin prices drop throughout the quarter despite favorable import costs?
South Korean gelatin prices fell sharply from April to June 2025, driven by abundant low-cost imports from China and weak domestic consumption. A stronger Korean won allowed importers to secure cheaper deals, leading to market oversupply. Even with continued price cuts from Chinese exporters and favorable production cost trends, local demand from personal care and pharmaceutical sectors remained muted. Buyers avoided long-term commitments, favoring tactical spot purchases amid sluggish end-user consumption.
3. How did European Gelatin prices behave during Q2, and what were the key market drivers?
Germany’s Gelatin Price Index rose in April due to strong U.S. demand following a temporary tariff suspension, combined with supply-side strain from Easter holidays and port congestion. However, by May and June, prices fell gradually as previously frontloaded buyers cut back on orders and inventories remained high. Quarter-end stock clearance and persistent logistical challenges kept restocking cautious. Although July may see a short-term recovery in demand, price gains are expected to be modest due to steady production costs and ongoing inventory pressure.
4. What were the major factors influencing Gelatin pricing in Brazil during Q2 2025?
Brazilian gelatin prices fluctuated, initially rising in April due to tight raw material availability linked to record beef exports that limited collagen-rich input supply. However, demand weakness both domestically and internationally, particularly from the U.S., began to outweigh supply-side constraints. By June, sluggish manufacturing activity and reduced export orders led to a steady drop in the Price Index for BS-220 and BS-250 grades. While a slight rebound is anticipated in July, recovery will depend on improved global demand and more stable order volumes.
