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June 16th, 2025

Gelatin Prices Index: Trend, Chart, News, Graph, Demand, Forecast

In the first quarter of 2025, the global gelatin market experienced notable fluctuations in pricing, primarily influenced by changing economic conditions, evolving trade policies, and shifting supply-demand dynamics across key regions. Gelatin, widely used in food, pharmaceuticals, cosmetics, and healthcare, saw price pressures intensify amid a combination of subdued demand and rising supply. In the United States, gelatin prices trended downward throughout the quarter, driven by weaker consumption in core sectors such as food processing and pharmaceuticals. The onset of harsh winter weather, including severe snowstorms and freezing temperatures, disrupted transportation and logistics, leading to slower procurement and reduced buying activity. Moreover, concerns over a potential economic slowdown, rising inflation, and uncertain labor market conditions contributed to cautious consumer spending. Many buyers had preemptively stockpiled gelatin in anticipation of new tariff measures targeting imports from China, which led to an oversupplied market and downward pressure on prices as sellers worked to clear excess inventory.

February continued the bearish trend in the North American gelatin market as import volumes from major producers like China and Brazil increased. Lower global shipping costs, due to declining container freight rates, made it more economical for suppliers to export gelatin to the United States, further saturating the market. Despite stable production rates, domestic demand failed to pick up momentum due to macroeconomic concerns, including stagnant wage growth and elevated living costs, prompting downstream industries to minimize inventory accumulation. The Federal Reserve’s decision to hold interest rates steady in response to persistent inflation added to market hesitation, discouraging aggressive purchasing strategies. This cautious sentiment extended to various sectors reliant on gelatin, such as confectionery and nutraceuticals, limiting the potential for a pricing rebound.

Get Real time Prices for Gelatin: https://www.chemanalyst.com/Pricing-data/gelatin-1487

By March, the pricing outlook remained subdued as geopolitical developments added another layer of complexity. The U.S. government’s decision to double tariffs on select Chinese goods, including gelatin derivatives, raised concerns about escalating trade tensions. This move led to increased uncertainty among buyers and encouraged conservative procurement strategies, with many businesses opting to hold off on large orders until market conditions stabilized. With supply remaining robust and demand still lagging, gelatin prices in the United States continued to decline as sellers adjusted pricing to remain competitive. The excess inventory, coupled with limited consumption growth, meant that many suppliers had to offer significant discounts to incentivize purchases.

In the Asia Pacific region, particularly in South Korea, gelatin prices also faced a sharp decline during Q1 2025. The market was significantly impacted by subdued demand from food, healthcare, and pharmaceutical industries, which were affected by high inflation and shrinking consumer spending power. The pre-Lunar New Year period led to temporary restocking in January, but fresh orders dropped afterward, leaving suppliers with excessive stock. The South Korean won strengthened against the U.S. dollar during this period, making imports cheaper and leading to a surge in gelatin supply from countries like China. Moreover, China, facing new U.S. tariffs, redirected much of its gelatin exports toward South Korea, exacerbating the oversupply situation. Political instability following the impeachment of President Yoon Suk-yeol further weakened market confidence, and the combination of high inflation and poor consumer sentiment prevented any significant recovery in gelatin pricing throughout the quarter.

The European gelatin market, especially in Germany, mirrored the global downtrend. Prices began to fall in January due to declining consumer confidence and shrinking demand in sectors like food, cosmetics, and pharmaceuticals. Inflation remained high across the eurozone, discouraging discretionary spending and reducing the consumption of gelatin-based products. The appreciation of the euro against the U.S. dollar during Q1 2025 made German gelatin exports more expensive on the global market, reducing international competitiveness. Despite lower production rates by domestic manufacturers, inventory levels stayed elevated because downstream industries adopted a wait-and-see approach due to political uncertainty related to upcoming national elections. This reluctance to engage in forward buying further weakened demand, causing continued price erosion into February and March. Export activity remained sluggish amid global trade tensions, and as domestic and international demand remained tepid, suppliers were compelled to lower prices in an effort to maintain market share.

In South America, Brazil's gelatin market experienced a consistent downward price trend throughout the first quarter of 2025. The decline began in January as weak demand from key industries such as food and pharmaceuticals, combined with excess supply, exerted significant downward pressure. Brazil's central bank adopted a tightening monetary policy to combat inflation, raising the Selic rate and making borrowing more expensive. This constrained both consumer and industrial spending. Despite this, the country’s manufacturing sector saw improved output, which contributed to rising gelatin production levels and a subsequent supply glut. February and March continued the trend of weak market fundamentals, with subdued industrial demand and cautious consumer behavior dominating. Although production performance remained robust, downstream procurement stayed low, and sellers had little choice but to reduce prices to encourage sales and manage stock levels. The lack of substantial recovery in demand across both domestic and export markets left gelatin producers grappling with persistently low price realizations.

Overall, the global gelatin market in Q1 2025 was marked by declining prices across major regions due to a convergence of economic uncertainty, high inventory levels, and muted demand. Factors such as trade policy changes, fluctuating currency values, inflationary pressures, and geopolitical instability all played a role in shaping market dynamics. Suppliers across the globe were forced to adjust pricing strategies to remain competitive amid unfavorable conditions, with little support from the demand side. Unless there is a significant improvement in economic stability and a rebound in consumption across core sectors, the gelatin market may continue to face pricing challenges in the near term.

Get Real time Prices for Gelatin: https://www.chemanalyst.com/Pricing-data/gelatin-1487

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