Market Analysis of Edible Gelatin in India
The relevance of research
Gelatin is a pure natural protein, enriched with essential amino acids, vitamins, microelements, obtained from animal raw materials containing collagen. Edible gelatin is intended for retail trade and for use in the food industry for the production of canned meat and fish, jellies, wines, ice cream, for the preparation of jellied dishes, mousses, creams, cakes, confectionery and other products
Purpose of the study
Analysis of the state of the edible gelatin market, assessment of the market size, analysis of competitors, as well as identification of factors affecting the edible gelatin market
Content
Part 1. Overview of the Indian edible gelatin market
1.1. Main characteristics of the market
1.2. Dynamics of the market volume of edible gelatin 2015-2019 Potential market capacity
1.3. Assessment of factors affecting the market
1.4. Life cycle stage of the edible gelatin market
1.5. Competition from substitute products
Part 2: Competitive Analysis in the Edible Gelatin Market
2.1. Major players in the market
2.2. Market shares of the largest competitors
2.3. Profiles of major players
Part 3. Analysis of edible gelatin production
3.1. Volume and dynamics of domestic production of edible gelatin
3.2. Share of exports in the production of edible gelatin
3.3. Segmentation of edible gelatin production by regions
3.3.1. Production by Union Territories
3.3.2. Production by states of India
Part 4. Analysis of foreign trade supplies of edible gelatin
4.1. Volume and dynamics of imports of edible gelatin
4.2. Import structure
4.3. The volume and dynamics of exports of edible gelatin
4.4. Export structure
Part 5: Dietary Gelatin Consumption Analysis
5.1. Dynamics of consumption of edible gelatin
5.2. Analysis of the results of tenders for the purchase
Part 6. Price Analysis
6.1. Average producer prices by union territories
6.2. Average consumer prices by states in India
Part 7. Assessment of factors of investment attractiveness of the market
Part 8. Forecast for the development of the edible gelatin market until 2024
Part 9. Recommendations and conclusions
Research excerpt
Part 1. Overview of the Indian edible gelatin market
1.1. Main characteristics of the market
Gelatin is a pure natural protein, enriched with essential amino acids, vitamins, microelements, obtained from animal raw materials containing collagen.
Edible gelatin is intended for retail trade and for use in the food industry for the production of canned meat and fish, jellies, wines, ice cream, for the preparation of jellied dishes, mousses, creams, cakes, confectionery and other products.
The word ""gelatin"" comes from the Latin word ""gelatus"", which means ""jelly"" or ""freeze"". It is believed that gelatin was first used by the ancient Egyptians, since during archaeological excavations it was found in the tombs of the pharaohs in the form of glue.
In the Middle Ages, the production of gelatin was quite laborious, and its use was a sign that the owner or hostess had the means to maintain a large number of staff who had the ability and time to cook dishes based on gelatin.
The first written mention of gelatin dates back to 1682, when a Frenchman named Denis Papin first described its properties, and in 1898, Englishman Charles Knox invented the world's first granular gelatin, which became widespread throughout the world. Today, gelatin is produced by dissolving the by-products of the meat or leather industry in an alkaline or acidic solution to form dried collagen.
Currently, edible gelatin is present in the Indian and foreign markets, produced from the bones and soft collagen-containing raw materials of cattle (cattle) and pigs.
The varieties of edible gelatin offered in trade organizations differ from each other in the plasticity properties of the formed gelatinous mass. The more indicators expressed by numbers in the labeling of gelatin varieties, the more plastic and elastic the final product should be when adding equal amounts of gelatin.
In EU regulations, gelatin is a food product. In India, it is classified as a food additive (E441).
Edible gelatin has a wide range of applications:
Confectionery industry - for the preparation of creams, jellies, fruits in jelly, marmalade, marshmallows, etc.
Meat and fish processing industry - gelatin is used in the production of sausages, ham, meat rolls, jellies (jellied meat and fish), meat, poultry and fish pate, canned meat and fish.
Dairy industry - added as a thickener for yogurt, processed and cream cheese, ice cream.
Winemaking - gelatin is used to clarify difficult-to-filter wine materials and correct coarse wine materials with increased astringency.
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Gelatin is one of the most used hydrocolloids in the food industry. Consider the TOP 10 main useful properties of gelatin:
Improves elasticity. The ""gluing"" properties of gelatin are involved in the formation of cartilage and connective tissues. And this, in turn, affects the flexibility and mobility of the body. One of the most affordable and powerful sources of natural gelatin is jelly and aspic.
Contains amino acids. The beneficial properties of gelatin are in the content of an amino acid called glycine, which strengthens the intestinal mucosa. This reduces inflammation, leading to the development of dangerous diseases (including colon cancer). Glycine improves digestion and cognitive health, strengthens the cardiovascular and joint systems.
Improves gut health and digestion. Gelatin is involved in the production of stomach acids, which are essential for proper absorption of nutrients. The glycine found in gelatin is important for repairing the lining of the stomach and improving the balance of digestive enzymes and stomach acid. In addition, gelatin is actively involved in the regulation of the absorption of water and other liquids, which prevents water retention and protects against bloating.
Strengthens joints and reduces pain. Osteoarthritis, which occurs in the elderly, is considered the main cause of frequent joint pain. Gelatin and collagen help stop chronic inflammatory reactions. They reduce pain and fight progressive diseases that lead to dysfunction of the joints, such as degenerative joint disease. In clinical trials, people taking gelatin (approximately 2g per day) tended to reduce inflammation and reduce joint and muscle pain.
Improves the quality of sleep. Studies show that the benefits of gelatin are in the ability to improve the quality of sleep. This is especially true for people who have trouble falling asleep. A group of subjects were given 3 g of gelatin at bedtime. At the end of the study, each subject noted a tripod improvement in the quality of sleep. In addition, scientists have found that gelatin enhances cognitive function, reduces the time it takes to fall asleep, and improves non-REM sleep.
Affects mood and cognitive functions. The amino acid glycine is an inhibitory neurotransmitter. This means that it works in a similar way to some antidepressants. And at the same time, this amino acid has no side effects. Glycine is able to reduce the level of ""stress hormones"" (norepinephrine) and improve the production of ""happiness hormones"" (GABA - gamma-aminobutyric acid).
Improves skin health. Gelatin is able to effectively fight the signs of aging, such as wrinkles, stretch marks and deterioration in the appearance of the skin. It is also involved in the process of skin cell renewal, protects it from ultraviolet radiation and damage.
Supports cardiovascular health. Another benefit of gelatin is to neutralize some of the chemical compounds found in animal products. These foods are high in an amino acid called methionine.
Improves the feeling of satiety. Some studies show that regular consumption of gelatin supplements (up to 20g) helps control satiety (improves leptin production) and reduces the production of hunger hormones (ghrelin). It plays an important role in weight loss.
Strengthens bones. Strong and healthy bones require a constant supply of nutrients. Gelatin is rich in calcium, magnesium, phosphorus, silicon and sulfur, which help form bones, prevent fractures and bone loss. These nutrients are also involved in bone healing.
Food gelatin of foreign origin is represented on the Indian market, the share of imported products is more than ...% in 2015-2019.
In India, food gelatin is practically not produced: there are products of meat processing plants that are consumed for the own needs of enterprises and are not represented on the market. Production is considered in the context of companies that pack gelatin in consumer packaging. In this case, the share of domestic production for the entire period under review is estimated at less than ...%.
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1.2. Dynamics of the market volume of edible gelatin 2015-2019 Potential market capacity
Consider the dynamics of the volume of the edible gelatin market in India in physical terms for the period from 2015 to 2019.
Diagram 2. Dynamics of the market volume of edible gelatin, 2015-2019, tons
During the period under review, the dynamics of the edible gelatin market in physical terms is growing, with the exception of the fall in 2018 by ...% compared to the previous period, which is associated with a decrease in imports as a result of a decrease in the import of edible gelatin, mainly from Belgium and France.
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The calculation of the distribution of revenue across the union territories was made by GidMarket on the basis of data on imports and exports of edible gelatin from / to the federal districts.
In revenue from the sale of edible gelatin, the Central Federal District is traditionally the leader, whose share in 2019 amounted to ...%. For the period 2015-2019. there is a decrease in the share of the Central Union Territories, however, it is traditionally the most promising and concentrated sales market.
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The distribution and dynamics of the shares of federal districts in terms of sales proceeds can be explained by the concentration of Indian edible gelatin suppliers, food industry enterprises and importers.
1.3. Assessment of factors affecting the market
Let's consider the main factors influencing the market and, accordingly, the demand in the edible gelatin market: economic, social, political and technological factors.
Economic forces
The dynamics of the dollar and the devaluation of the rupee
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Production index. Demand for edible gelatin directly depends on the development of the food industry in India, since food manufacturers are the main buyers of the product. Gelatin is widely used in the composition of various products: confectionery, sour-milk, meat and fish.
The food industry production index shows a positive trend, which contributes to the development of the edible gelatin market.
During the period under review, there is a stable growth in the production of the food industry in India.
Satisfying the ever-increasing needs of the population in a wide range of food products requires a very extensive network of food industries, the development of these industries plays a significant role in the economy of the state.
Production of main products
Food gelatin is used in many branches of the food industry: it is used in the production of ice cream so that large ice lumps do not form in it; it gives viscosity to various products - jelly, canned food, jam; it is used as a gelling agent to preserve the shape of marshmallows, marshmallows, marmalade; it is used in the production of cakes and desserts, which contain jelly; used in the manufacture of sauces, creams and mousses; gelatin is added as a thickener to fermented milk and canned foods.
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In general, the market for the dairy, meat and fish processing industries has a growing trend, which has a positive effect on the development of the edible gelatin market.
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Since the main raw materials for the production of gelatin are some types of bones, tendons, trimmings of the skins of cattle and pigs, the overall increase in the number of livestock is a positive factor for the development of the production of edible gelatin in India. Also, an increase in this indicator has a positive effect on the market for meat processing products, which is confirmed by the dynamics of the production of sausages, canned meat, pate, etc. But at the same time, the increase in imports indicates the dependence of the market for raw materials for the production of gelatin on foreign companies (to a greater extent in terms of cattle), which is a negative factor for the market.
Pandemic COVID-2019
The spread of coronavirus infection in 2020 has led to changes in the Indian market for many products, including the market for edible gelatin.
Due to the fact that food industry enterprises are the key consumer of edible gelatin, let's consider the impact of the crisis on this industry.
The food manufacturing industry is one of the industries that continues to operate at its current volume, while other businesses are shutting down to limit the spread of the coronavirus. However, the realities of production, logistics, distribution channels have changed, which has led to a number of problems that food industry organizations face.
Due to the massive closure of all catering establishments and hotels in March-April 2020, the food industry lost one major distribution channel - demand from the HoReCa segment disappeared. Despite the fact that catering establishments have now resumed their operation, the volume of visitors and, accordingly, demand are still at a low level.
The additional sanitary measures introduced at the enterprises affect the production time of the product. Now, it takes more time to produce the same volume of products, as there is a full check of workers at the enterprise, and social distancing of employees on production lines is organized. The costs of organizations are also increasing due to the purchase of protective suits, masks, thermometers and other necessary goods.
Also, the consequences of the crisis, according to experts, will be stagnation. Enterprises planning to expand, modernize or enter new markets will at least postpone all activities.
The food industry is experiencing a raw material crisis more acutely, since most industries in India do not have their own raw material base. Sellers of raw materials raise prices with every fluctuation in the exchange rate, oil and gas prices.
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Social factors
Population. For the period 2010-2018. there was an increase in the population.
According to the forecast of Rosstat for the period up to 2024, the population will increase only if the high version of the forecast is followed, however, in the light of the developing economic crisis and the coronavirus pandemic, this version of the forecast is unlikely to be realized.
Real disposable money income of the population
The potential capacity of the edible gelatin market depends on the development of its application in the food industry, which in turn depends on the solvency of buyers. Effective demand depends on the economic situation and the level of real disposable incomes of consumers.
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The number of vegetarians. Gelatin is known to be derived from the bones and skin of animals, which means it is not suitable for vegetarians or vegans.
According to a federal sociological survey conducted in March 2019 by independent agencies ZOOM MARKET, there are only 2% of vegetarians in India. The survey was conducted using the method of personal interviews in 34 cities in India. The total sample was 4080 interviews.
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In the coming years, the growth trend in sales of vegan products is expected to continue: the number of vegan consumers will grow along with the promotion of an environmentally friendly and healthy lifestyle, and the volume of food consumption per vegan will also grow. This factor is negative for the edible gelatin market, as vegetarian producers will use plant-derived substitute products.
Technological factors
Development of markets for substitute products
This factor has a negative impact on the edible gelatin industry, as there are many substitute products on the Indian market, one of the main advantages of which is vegetable origin.
Import dependence of equipment for the production of edible gelatin is a factor that negatively affects the market.
Political factors
The policy of import substitution has become one of the priorities of the Indian government since 2014 after the introduction of mutual sanctions by India and Western countries. According to the Decree of the Government of India dated April 15, 2014 No. 328 “On approval of the state program of India “Industrial Development and Improving its Competitiveness”, the Indian economy is expected to reduce the dependence of the Indian economy on imports of critical industries for the sustainable development of products, equipment and technologies.
The course towards import substitution will create a basis for replacing import supplies, its further development will provide the industry with the necessary domestic raw materials, as well as reduce the share of food products produced in other countries in the domestic market.
State support measures for food industry producers
The development of the food industry is a strategically important task in ensuring food security in India.
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Within the framework of the priority project ""Export of agricultural products"", state support is provided to Indian enterprises in the form of reimbursement of part of the costs of transporting agricultural and food products by land, including by rail.
Gelatin Certification
Gelatin certification is a procedure for certifying the quality of food products in accordance with the quality and safety standards used in the Customs Union. Assessment of the quality of gelatin is a mandatory procedure, this is established by the requirements of the Technical Regulations. Being used as a food component, gelatin falls under several technical regulations:
021/2011. It contains general food safety standards;
022/2011. The regulation defines the requirements for labeling products intended for human consumption;
029/2012. Food additives and products containing them are covered by the regulation.
The requirements of the regulations establish the need to confirm the compliance of the product with the safety standards specified in the regulations. The procedure is carried out by declaration.
The declaration can be drawn up according to several schemes that are used for batches of products or serial production.
To obtain a declaration, the goods are tested for compliance with the standards of microbiological contamination, the presence of toxic substances, radionuclides. To declare serial production, production control is additionally carried out. A completed declaration allows you to organize the production, import and sale of products in any of the countries that are part of the EAEU.
The organization of confirmation of the conformity of gelatin to all requirements requires the provision of the following documents:
service requests;
OGRN,
INN;
copies of the charter;
samples of goods (when they are selected, an act is drawn up);
regulatory documents for gelatin;
for imported products contract and invoice.
To obtain permits, you will need to go through the following steps:
Providing an application and a package of documents to the specialists of the Center.
Product identification.
Determination of the scheme by which compliance will be confirmed.
Signing an agreement with the CA.
Sampling. They are sent to the laboratory for testing.
Based on the research results, making a decision on the declaration of conformity.
Registration of the declaration in the unified register and its receipt by the client.
Product Requirements
Requirements for the production of gelatin are regulated by GOST 11293-89 “Gelatin. Specifications (with Amendment No. 1)”. According to the interstate standard:
1) Raw materials for the production of gelatin must be supplied from an area free from especially dangerous and quarantine animal diseases, and be allowed for processing by the state veterinary service.
2) Gelatin must meet certain requirements for organoleptic and physico-chemical parameters.
3) Edible gelatin in terms of sanitary and hygienic indicators must meet the requirements specified in the table.
4) Production facilities where work related to grinding and pouring gelatin is carried out must be equipped with local exhaust ventilation. When working in these rooms, it is necessary to use personal protective equipment (respirators).
5) Consumer labeling should be colorful. The inscriptions are applied directly to consumer packaging indicating the following data:
name of the manufacturer and trademark;
names and brands of gelatin;
net weight;
storage period;
method of application and nutritional value of the product;
production dates and shift numbers;
designations of this standard.
6) Transport marking indicating the following additional data:
name of the manufacturer and trademark;
names and brands of gelatin;
lot numbers;
net and gross weights;
the number of packaging units (bags, packs);
production dates;
shelf life (for edible gelatin);
manipulation sign ""Keep away from moisture"";
designations of this standard.
7) Marking is applied to the label in a typographical way.
8) Gelatine should be stored in a dry, enclosed space at a temperature not exceeding 25°C and a relative air humidity of not more than 70%. Gelatin should not be stored together with substances that are highly hygroscopic and have a strong odor.
9) Gelatin is accepted in batches, tests are carried out on products. If an unsatisfactory result of the analysis is obtained for at least one indicator, a repeated analysis is carried out on a double sample taken from the same batch. The results of the reanalysis are extended to the entire lot.
Thus, the standard imposes a rather strict quality requirement for gelatin, since it is a food ingredient. Its production must be carried out in accordance with all necessary requirements, which can serve as a deterrent to the development of production in India.
Let's present the results of the analysis of factors influencing the market in the form of a STEP-analysis table.
Table 4. STEP Analysis of Factors Affecting the Edible Gelatin Market
Economic factors to a greater extent have a positive impact on the edible gelatin market. The positive dynamics of the food industry in India, in particular, the dynamics of the production of certain types of products has a positive impact on the analyzed market. Demand for edible gelatin will remain at a high level, as food production is an important aspect for the country's economic and food security.
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Technological and social factors are constraining the edible gelatin market in terms of such indicators as: the development of markets for substitute products, import dependence of equipment for the production of gelatin, a decrease in the population, a decrease in the purchasing power of the population, an increase in the number of vegetarians who do not consume animal products.
1.4. Life cycle stage of the edible gelatin market
At present, the edible gelatin market is in the stage of life cycle maturity. The product is represented on the market by a large number of brands, various packaging options for design, weight. The dynamics of the market shows that the volume of the edible gelatin market is stable.
For the B2B segment, this market is characterized by already formed consumers in the food industry, who purchase gelatin on an ongoing basis in order to organize the production of finished food products. As the dynamics of the number of food industry enterprises shows, their number is decreasing, but at the same time, the production of existing manufacturers is increasing annually, so we can conclude that the B2B market forms a constant demand for gelatin.
For the B2C segment, the market, as the dynamics shows, is also at a stable level. According to consumer feedback, the method of applying gelatin seems to many consumers to be a complex or lengthy process, since according to some recipes it must first be heated, but not boiled, with continuous stirring until completely dissolved, then cooled slightly, and according to other recipes, gelatin is pre-soaked for 30 -40 minutes. Given the demands of modern society for the preparation of dishes with a small number of ingredients, a short processing and preparation process, the use of gelatin at home is limited.
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1.5. Competition from substitute products
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Despite this, given that gelatin is a product of animal origin, it is not suitable for vegetarians and fasting people, its use is limited in products that take into account the ethno-cultural characteristics of food production (halal). In addition, there is a problem of increasing the risk of transmission of infectious diseases through the products of processing of collagen-containing raw materials from terrestrial animals to humans.
Gelatin also requires strict adherence to certain rules of use. It must not be boiled, as in doing so it acquires an unpleasant odor and loses a significant part of its gelling properties. This thickener does not work well with foods that contain a large amount of fruit acids (kiwi, pineapple). Gelatin is characterized by a long solidification time, and melts when heated.
In connection with the above, in the modern food industry, in addition to gelatin, many alternative types of natural thickeners are used.
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Thus, the edible gelatin market is experiencing strong competition from substitute products, since the properties of existing types of food additives differ to a small extent and the use of each of them depends on the specific application.
Part 2: Competitive Analysis in the Edible Gelatin Market
2.1. Major players in the market
The edible gelatin market is represented by foreign brands, whose share is more than ...%. The number of foreign manufacturers is more than 25.
Consider the main brands of edible gelatin presented in the Indian market.
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The top three manufacturers of edible gelatin in the Indian market are foreign brands GELNEX, ROUSSELOT, PB LEINER. Each manufacturer usually has its sole or main recipient of products in India (distributor), who makes subsequent deliveries throughout India.
In India, the production of technical gelatin is developed, which is intended for use in the printing and light industry for the manufacture of securities, photographic paper, for processing fabrics and for other needs of the national economy. The production of edible gelatin in India is practically non-existent.
There are Indian companies on the market that package edible gelatin of foreign origin in consumer packaging for retail purposes. At the same time, these companies, according to the law, are considered Indian manufacturers, and on the packaging of the goods they can indicate their own company as the manufacturer. But when interviewing the main packaging companies, it was revealed that edible gelatin is packed from foreign raw materials, therefore, these companies did not participate in assessing the competitive situation in the edible gelatin market.
2.2. Market shares of the largest competitors
The assessment of the shares of foreign manufacturers represented on the market was carried out by GidMarket on the basis of import and export data, since the market is represented by foreign-made products.
The Indian market for edible gelatin is highly competitive and highly fragmented due to the presence of a significant number of overseas manufacturers. The Herfindahl-Hirschman index for the market is HHI=860<1000, the market is low concentrated.
2.3. Profiles of major players
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XXX (Brazil)
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XXX (France)
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XXX (Belgium)
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XXX (Ukraine)
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XXX (Italy)
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Part 3. Analysis of edible gelatin production
3.1. Volume and dynamics of domestic production of edible gelatin
As noted earlier, in India, the manufacture of edible gelatin is practically not carried out, the existing volume of production is accounted for by meat processing plants that use gelatin for their own consumption, and therefore gelatin of Indian origin is not represented on the market. In this regard, further specified production volume will not be considered in the report.
At the same time, Indian companies are represented on the retail market, which carry out packaging of edible gelatin of foreign origin. According to TR TS 022/2011, products packaged outside the place of their manufacture (except for cases when food products are packaged in consumer packaging by retailers) must contain information about the manufacturer and the legal entity or individual entrepreneur that packs food products outside the place of their manufacture. for its subsequent implementation or by order of another legal entity or individual entrepreneur.
According to TR CU 022/2011, since Indian companies pack edible gelatin in consumer packaging, i.e. carry out its packaging, they may not indicate information about the origin of raw materials, and indicate their own address of production. It is this situation that is currently common not only in the market of edible gelatin, but also in the market of many spices, spices and seasonings.
Thus, Indian edible gelatin packaging companies position themselves as product manufacturers and indicate the data of their own company on the packaging in the information about the manufacturer. In this regard, Indian packaging companies are of interest for further market analysis, so further information in the report will be disclosed specifically for these companies.
Diagram 9. Dynamics of production volumes of edible gelatin in India for 2015-2019, million Rs.
The dynamics of the production of packaged food gelatin by Indian companies is positive, which directly depends on the growth of imports...
This volume of production is not included in the assessment of the size of the edible gelatin market, since, as noted earlier, the products of companies are made from raw materials of foreign origin, therefore, in order to avoid double counting, statistics on companies are given only in this section.
The combined revenues of the top five Indian edible gelatin packaging manufacturers are on the rise...
The largest Indian companies that pack gelatin for retail sale are ...
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3.2. Share of exports in the production of edible gelatin
The export of edible gelatin is characterized by two directions: re-export (export of foreign goods) and export of Indian companies that export packaged gelatin of foreign origin for retail trade under their own brand. In this regard, the calculation of the share of exports in production was calculated by GidMarket in relation to Indian companies that pack edible gelatin.
The share of exports in the structure of production is not constant ...
3.3. Segmentation of edible gelatin production by regions
3.3.1. Production by Union Territories
Table 8. Dynamics of the production of edible gelatin in India by union territories, thousand Rs.
The undisputed leader among the federal districts in terms of packaging of edible gelatin is the Central Federal District, whose share is ...% in 2019.
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3.3.2. Production by states of India
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The concentration of food gelatin production in these states is also explained by the geographical location of large Indian food industry producers. So, for example, in the largest volume of production of cakes, ice cream, sausages, etc. was revealed.
Part 4. Analysis of foreign trade supplies of edible gelatin
4.1. Volume and dynamics of imports of edible gelatin
Consider the dynamics of imports of edible gelatin in physical and value terms.
Diagram 12. Volume and dynamics of imports of edible gelatin in physical terms in 2015-2019, tons
Dynamics of imports of edible gelatin in physical terms for the period 2015-2019 had a bubbly personality...
Dynamics of imports of edible gelatin in value terms for the period 2015-2019 repeats the dynamics of imports in physical terms.
4.2. Import structure
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The main importers of edible gelatin are the 10 countries shown in the table. The share of other countries is insignificant and amounts to less than 1%.
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In second place among the recipients of edible gelatin is the company ...
If we consider the structure of imports by origin of edible gelatin, then the Indian market was supplied with gelatin produced from bones and soft collagen-containing raw materials of cattle and pigs. ...
4.3. The volume and dynamics of exports of edible gelatin
Dynamics of export of edible gelatin for the period 2015-2017 in physical and monetary terms, it was growing, the maximum volume of exports for the analyzed period was achieved in 2018 in physical terms, in 2017 - in value terms.
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During the period under review, the trade balance (difference between exports and imports) in the edible gelatin market in India remains...
4.4. Export structure
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In 2019, ...% of edible gelatin was exported to the CIS countries. The leaders among exporting countries are Belarus and Kazakhstan, whose shares are ...% and ...%, respectively.
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Part 5: Dietary Gelatin Consumption Analysis
5.1. Dynamics of consumption of edible gelatin
Diagram 19. Dynamics of consumption of edible gelatin in monetary terms, 2015-2019, million Rs.
The edible gelatin market is represented by the following consumer segments:
B2B (business to business) - consumers are food industry enterprises (gelatin is purchased in batches packed in 20-25 kg).
В2С (business to customer) - the market is characterized by retail sales, consumers are end-users - individuals (gelatin is purchased through retail chains and stores in packages of 10-50 g).
B2G (business to government) - consumers are government institutions that have public catering units in their structure, for example, medical institutions, boarding schools (gelatin is purchased in batches through a tender system).
5.2. Analysis of the results of tenders for the purchase
For the period 01.01.2020/31.10.2020/2019 to 2019/ / , contracts were concluded for the supply of edible gelatin in the amount of ... million Rs., which is ...% less compared to the same period in . Consider large contracts for the purchase of edible gelatin concluded in in the amount of more than ... thousand Rs.
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Based on the analysis of information on competitive procedures available in the public domain, the following conclusions can be drawn:
1. As part of tenders, edible gelatin is purchased in combination with other food products, such as tea, vinegar, cocoa powder, bay leaf, salt, etc.
2. The maximum drop in the contract price from the initial maximum purchase price is ...%. On average, the fall in the contract price is ...%, which may indicate high price competition between suppliers, since the goods are typical. At the same time, due to the fact that purchases are complex with other food products, it is impossible to determine which product is the main product that lowers the price, therefore, the identified trend applies in general to the market for food products purchased through tenders.
3. The main customers of edible gelatin in the framework of government tenders are sanatoriums, boarding schools, rehabilitation centers, clinics, hospitals and dispensaries.
Part 6. Price Analysis
6.1. Average producer prices by union territories
Table 12. Average producer prices in the edible gelatin market across the Union Territories for 2019, Rs./kg
When analyzing producer prices, it is necessary to take into account the influence of such factors as:
- the country of origin of the packaged raw materials (food gelatin from Sweden, Thailand, Germany, Italy and France is considered the most expensive raw material; food gelatin from Ukraine, China, Poland is considered the cheapest raw material),
- the volume of the purchased batch (the larger the batch, the cheaper the price is offered when converted to 1 kg.),
- packaging volume (edible gelatin packed in retail packages of 10-50g per 1 kg is more expensive than food gelatin packed in 20-25 kg bags),
- developed logistics system (deliveries to remote regions are more expensive if the company does not have partners and an established logistics system).
6.2. Average consumer prices by states in India
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The change in consumer prices for edible gelatin across the states of India was uneven over the period 2017-2019.
Part 7. Assessment of factors of investment attractiveness of the market
The most significant positive factors.
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The most significant negative factors.
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A comprehensive assessment of investment attractiveness factors allows us to conclude that entry into the edible gelatin market for Indian manufacturers is attractive, since at present the market does not experience competition from manufacturers of edible gelatin of Indian origin, today all demand for the product is satisfied by foreign brands. The high import dependence of the Indian market of structure-forming agents, including gelatin, emphasizes the relevance and necessity of developing domestic production of these food additives and mixtures based on them, which are not inferior in quality and economic performance to leading foreign samples.
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Part 8. Forecast for the development of the edible gelatin market until 2024
We will analyze the market based on methods based on identifying trends over time, adjusted for expert opinion in the industry.
According to the draft Strategy for the Development of the Food and Processing Industry of India for the period up to 2030, the main directions for the development of the food and processing industry have been determined, providing for a systematic solution to existing problems, resource and financial support. The strategy is designed to create the necessary conditions for the modernization of industry, the formation of an innovative technological structure, the solution of financial, economic and social problems, as well as to contribute to the implementation of the goals of India's socio-economic development until 2036.
To achieve the strategic development goals, the following tasks should be solved:
- development of the raw material base of industries;
- reduction of price volatility for the main types of raw materials;
- import substitution of basic food products, their ingredients and components;
- creating conditions for increasing the physical and economic accessibility of food products for the population through its sustainable production and development of commodity distribution infrastructure;
- increasing the competitiveness of Indian food producers in the domestic and foreign markets by reducing costs.
According to the strategy, three options for the forecast of food and processing products in India are given.
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Formally, the food industry was not included in the list of industries that suffered from the economic crisis caused by the coronavirus, but the pandemic still affected this industry. The coronavirus pandemic is having both positive and negative impacts on the edible gelatin market.
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Thus, the difficult economic situation in the country and the world is forcing food industry enterprises to change the strategy and tactics of doing business, which will entail changes in the market for goods related to the food industry, incl. gelatin.
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In subsequent periods 2021-2024. the market is forecast to stabilize, but growth will be slower than before the pandemic due to the continued dependence of the market on imports, the forced change in the production structure of the food industry as a result of changes in consumer preferences that will be formed as a result of the impact of the coronavirus and the economic crisis.
Part 9. Recommendations and conclusions
Gelatin is a pure natural protein, enriched with essential amino acids, vitamins, microelements, obtained from animal raw materials containing collagen.
Edible gelatin is intended for retail trade and for use in the food industry for the production of canned meat and fish, jellies, wines, ice cream, for the preparation of jellied dishes, mousses, creams, cakes, confectionery and other products.
Currently, edible gelatin is present in the Indian and foreign markets, which is produced from the bones and soft collagen-containing raw materials of cattle and pigs.
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Economic factors to a greater extent have a positive impact on the edible gelatin market. The positive dynamics of the food industry in India, in particular, the dynamics of the production of certain types of products has a positive impact on the analyzed market. Demand for edible gelatin will remain at a high level, as food production is an important aspect for the country's economic and food security.
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For enterprises already operating on the market as packaging enterprises, the following is recommended:
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The following is recommended for enterprises that plan to start an activity for the production of edible gelatin:
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Diagrams
Diagram 1. The ratio of imported and domestic products in the edible gelatin market in physical terms in 2014-2019, %
Diagram 2. Dynamics of the market volume of edible gelatin, 2015-2019, tons
Diagram 3. Revenue (net) from the sale of edible gelatin by union territories for 2015 - 2019, %
Chart 4. Dynamics of the Indian food industry production index, 2014-2020 (Jan.-Sept.), % to the previous year
Diagram 5. Dynamics of the number of cattle and pigs in India in farms of all categories, 2010-2019, million heads
Diagram 6. Population dynamics in India as of January 1, 2010-2020, million people, %
Diagram 7. Dynamics of real incomes of the population of India, 2014-2019, % to the previous year
Diagram 8. Shares of the largest competitors in the edible gelatin market in 2019, %
Diagram 9. Dynamics of production volumes of edible gelatin in India for 2015-2019, million Rs.
Diagram 10. Dynamics of the total revenue of the largest manufacturers (TOP-5) of edible gelatin in India, 2015-2019, million Rs.
Diagram 11. The share of exports in production for 2015–2019, %
Diagram 12. Volume and dynamics of imports of edible gelatin in physical terms in 2015-2019, tons
Diagram 13. Volume and dynamics of imports of edible gelatin in monetary terms in 2015-2019, thousand dollars
Chart 14. Structure of imports by origin of edible gelatin in 2019, %
Diagram 15. Dynamics of export of edible gelatin in physical terms in 2015-2019, tons
Diagram 16. Dynamics of export of edible gelatin in monetary terms in 2015-2019, thousand dollars
Diagram 17. Balance of exports and imports in 2014-2019, tons
Chart 18. Structure of exports by countries in 2019, %
Diagram 19. Dynamics of consumption of edible gelatin in monetary terms, 2015-2019, million Rs.
Diagram 20. Forecast of the Food Production Index in 2021-2025, in % of the previous period
Diagram 21. Forecast of market volume in 2020 - 2024, tons
Tables
Table 1. Main characteristics of edible gelatin
Table 2. Dynamics of production of the main types of products, in the manufacture of which gelatin is used, in physical terms, 2017-2019, units rev.
Table 3. Sanitary and hygienic requirements for products
Table 4. STEP Analysis of Factors Affecting the Edible Gelatin Market
Table 5. Substitute products for edible gelatin
Table 6. Main companies participating in the edible gelatin market in 2019
Table 7. Profiles of companies participating in the edible gelatin market in 2019
Table 8. Dynamics of the production of edible gelatin in India by union territories, thousand Rs.
Table 9. Structure of imports of edible gelatin by importing countries in 2019, units rev.
Table 10. Structure of imports of edible gelatin by recipient companies in 2019, units rev.
Table 11. Contracts for tenders for the purchase of edible gelatin, concluded from 01.01.19 to 31.12.19 in the amount of more than 100 thousand Rs.
Table 12. Average producer prices in the edible gelatin market across the Union Territories for 2019, Rs./kg
Table 13. Average consumer prices in the edible gelatin market by Indian states in 2017-2019, Rs./kg
Table 14. Assessment of factors of investment attractiveness of the edible gelatin market
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