Market Trends of North America Gelatin Industry
Consumer Inclination Toward Functional Food and Beverages
- The rise in various health and personal care concerns in the region is driving consumers to focus on opting for functional food products. Functional foods offer specific health benefits that are beyond the regular daily intake of nutrients, such as improved bone health, cholesterol management, improved heart health, and other benefits associated with eye health and vision. The increasing demand for such nutritional and fortified foods is raising the demand for gelatin across the region.
- Additionally, consumers are looking for products that can enhance their well-being along with convenience. Hectic routines and lifestyles in the region have been raising stress levels, which has led to a rise in lifestyle diseases such as obesity, high blood pressure, hair loss, early aging, and diabetes. Such factors have been driving the demand for functional food and beverages, thus driving the market's growth.
- For instance, according to StatCan, sales of vitamins, minerals, and other health supplements amounted to approximately CAD 1.17 billion (USD 922.3 million) in the fourth quarter of 2021, which increased from CAD 1.13 billion (USD 890.27 million) in the fourth quarter of 2020.
- As gelatin contains proteins and antioxidants, which help protect the cells in the body that can support the health of the digestive system, bones, skin, joints, and more, it is attracting manufacturers to incorporate the majority of functional supplements and products. Moreover, many manufacturers are also developing personal care and health care products with enough gelatin content to enhance the product's performance and attract consumers with beneficial claims. Thus, with the growing demand for such products in the studied region coupled with the growing developments in the market, the gelatin market is expected to grow during the forecast period.
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United States Holds the Largest Share in the Market
- The United States remained the largest consumer of gelatin in the region, majorly owing to the increasing personal care and cosmetic products that support skin and hair health. The changing and hectic lifestyles of the consumers in the region have led to a rise in demand for multifunctional beauty and personal care products.
- The consumers are following holistic approaches to beauty and health care rather than treating each as a separate segment. Gelatin is applied as a gelling ingredient in many cosmetic products, including face creams, body lotions, shampoos, hair sprays, sunscreens, bath salts, and bubbles. Hence, the growing demand for such products with significant gelatin content is expected to eventually drive the market's growth gelatin in the country.
- Additionally, the increased consumption of bakery and confectionery products, among which gelatin is majorly used, is also one of the prominent drivers of the market in the country. Similarly, respective manufacturers are also keen on using gelatin as an ingredient owing to its processing benefits. Gelatin enhances the strength and gas-retention capacity of dough/bread. It also improves the porosity and cell size of crumbs and the specific volume of bread. Such factors, coupled with the increased consumption of such products, are driving its demand. For instance, according to Agriculture and Agri-Food Canada, in the United States in 2021, bread generated sales amounting to approximately USD 2.66 billion. Retail sales of cakes were about USD 2 billion.
- With the rising trend of clean-label products, manufacturers in the region are focused on developing gelatin ingredients with clean-label claims that support manufacturers to pitch their products with significant claims in the market.
- For instance, in October 2021, Shiru, an Emeryville, California-based startup producing proteins via microbial fermentation to create label-friendly alternatives to everything from methylcellulose to gelatin and casein, has raised a USD 17 million to launch a bio-fermentation platform producing label-friendly alternatives to everything from methylcellulose to gelatin. Such developments are supporting the market's growth in the country and are expected to drive the market during the forecast period.
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