India Gelatin Market Outlook 2028

India Gelatin Market Overview

The India Gelatin market is valued at approximately USD 348.5 million. This growth is primarily driven by the increasing application of gelatin in the food and beverage sector, particularly in dairy products, confectioneries, and bakery items. Gelatin's versatility as a gelling, stabilizing, and thickening agent has led to its widespread use across various food products, boosting demand in India. Additionally, the pharmaceutical and nutraceutical sectors are fueling the market by utilizing gelatin for capsules and tablet coatings.

In India, the cities of Mumbai, Pune, and Ahmedabad dominate the gelatin market. These regions are home to large-scale pharmaceutical, food, and cosmetic manufacturers, which make substantial use of gelatin. The proximity to major ports and strong industrial infrastructure also support distribution and exports from these regions.

The Food Safety and Standards Authority of India (FSSAI) has stringent guidelines for the use of gelatin in food products. As per the FSSAIs 2023 update, gelatin used in food applications must comply with the specified purity standards to ensure it is safe for consumption. In addition, FSSAI mandates that gelatin manufacturers clearly label the source of gelatin (whether animal or plant-based) to cater to dietary preferences. This has encouraged manufacturers to maintain high standards of quality and transparency in their product labeling and sourcing.

India Gelatin Market Segmentation

By Source: The Indias gelatin market is segmented by source into animal-based and plant-based gelatin. The animal-based segment is currently dominating due to the higher availability of bovine and porcine gelatin. This type of gelatin is widely used in pharmaceuticals for soft gel capsules and food products like marshmallows and jellies, due to its superior gelling properties.

By Application: The India's gelatin market is segmented by application into food and beverages, pharmaceuticals, personal care & cosmetics, and photography & arts. The food and beverage segment dominates due to gelatin's extensive use in products like confectioneries, dairy, and bakery items. Its role as a gelling and stabilizing agent makes it essential in many processed foods.

India Gelatin Market Competitive Landscape

The India gelatin market is characterized by a few dominant players who have established extensive networks for raw material procurement and distribution. The market is fragmented, with key players focusing on expanding their product portfolios, especially in clean-label gelatin and plant-based alternatives.

Company Name

Established Year

Headquarters

Revenue (2023)

R&D Spending

Product Range

Gelatin Type

Manufacturing Facilities

Key Markets

Nitta Gelatin India Ltd

1975

Kerala, India

USD 120 Mn

India Gelatine & Chemicals Ltd

1973

Gujarat, India

USD 80 Mn

Sterling Gelatin Pvt. Ltd.

1985

Gujarat, India

USD 95 Mn

Rousselot India Pvt. Ltd.

1891 (Global)

Maharashtra, India

USD 100 Mn

Geltech India

1995

Karnataka, India

USD 60 Mn

India Gelatin Market Analysis

Market Growth Drivers

Increasing Demand in the Food & Beverage Industry (Application in Dairy, Confectionery, Bakery): Gelatin is widely used in the food and beverage industry, particularly in the production of dairy products, confectionery, and baked goods. Indias food processing industry plays a crucial role in the country's manufacturing sector. Gelatin, primarily derived from animal collagen, is utilized for its gelling, stabilizing, and thickening properties, which enhance the texture and shelf life of these products. The dairy industry alone, which includes yogurt, ice cream, and cheese, saw significant growth, with milk production reaching 225.2 million tons in 2023

Expanding Pharmaceutical Use (Soft Capsules, Tablet Coatings): Indias pharmaceutical sector is one of the largest in the world, with exports exceeding $25 billion in 2023. Gelatin plays a crucial role in drug manufacturing, particularly in the production of soft capsules and tablet coatings, which are essential for drug stability and controlled release. In 2022, the global softgel capsules used in over-the-counter drugs and supplements were made using gelatin, further driving its demand. Additionally, the increasing trend of pharmaceutical outsourcing from India, valued at $38 billion in 2024, has bolstered gelatin consumption for medical applications.

Rising Use in Nutraceuticals (Dietary Supplements): Gelatin's use in the nutraceutical sector, particularly in dietary supplements, has expanded significantly in India. With a rise in consumer awareness about health and wellness, the demand for collagen-based supplements and protein-enriched gelatin has increased. India's nutraceutical market was valued at $7.3 billion in 2023, with a focus on gelatin as a key ingredient in capsules, gummies, and protein supplements. Nutraceutical manufacturers are increasingly sourcing gelatin to meet the growing demand for supplements that support joint health, skin elasticity, and muscle recovery.

Market Challenges:

Supply Chain Disruptions (Raw Material Sourcing): Indias gelatin industry faces supply chain challenges due to the dependency on animal-derived raw materials such as bones and skins. Global supply disruptions, particularly in 2022, led to raw material shortages affecting gelatin production. Import restrictions from major suppliers like Brazil and China, combined with logistical challenges during the pandemic, impacted gelatin supply lines. India imported around 20,000 tons of animal-based collagen material in 2023, but delays in shipments caused a slowdown in production.

Price Fluctuations (Impact of Raw Material Costs): The gelatin industry in India is susceptible to price fluctuations, driven by the variable cost of raw materials like animal skins and bones. In 2023, the prices for animal-derived collagen materials saw significant increases due to supply chain disruptions and higher feed costs for livestock. This has put pressure on manufacturers, who have had to absorb or pass on these costs to end consumers. Additionally, increased environmental regulations around animal waste disposal have raised operational costs for gelatin manufacturers, further impacting the industry's profitability.

India Gelatin Market Future Outlook

Over the next few years, the India Gelatin market is expected to show substantial growth, driven by the increasing demand in the nutraceutical and pharmaceutical sectors. Continuous innovation in product formulations, especially clean-label and plant-based alternatives, will also boost market expansion. Gelatins application in the cosmetics industry is likely to grow as demand for personal care products rises across urban centers

Market Opportunities:

Clean- Label Ingredients: Consumers in India are increasingly favoring products with clean-label ingredients, particularly in the food and beverage industry. Gelatin, being a natural and minimally processed ingredient, aligns well with this trend. In 2023, there was a growing preference among Indian consumers for clean-label products, as reported by the Food Safety and Standards Authority of India (FSSAI). Gelatins use in clean-label dairy products, snacks, and confectionery items has increased as manufacturers strive to meet consumer demand for transparency and simplicity in food formulations.

Increasing Focus on Sustainability (Gelatin Sourcing): The gelatin industry is under pressure to adopt more sustainable practices, particularly concerning the sourcing of animal-based raw materials. The Indian government has implemented stricter environmental regulations to reduce waste and improve the sustainability of animal farming practices, impacting gelatin producers. In 2023, the Indian Ministry of Environment mandated new guidelines for waste management in slaughterhouses, which provide the primary source of raw materials for gelatin. This regulatory push towards sustainability is prompting manufacturers to adopt more eco-friendly production methods.
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