Global gelatin producer Rousselot has announced a price increase for its North American portfolio of Pig Skin Gelatin products, due to reduced availability of pig herds. The increase will be effective from 1 July 2014.
In 2013, the incidence of the Porcine Epidemic Diarrhea virus (PEDv) in North America increased and continued expanding further into 2014. Consequently, by the second quarter of 2014 the size of the available hogs herd in North America is already reduced and purchasing prices of pork-based raw materials (used in the gelatin manufacturing process) have increased.
As a result, prices of Pig Skin Gelatin products in North America will increase during the remainder of 2014, the company said. This development may also have an effect on the duration of gelatin pricing agreements in sales contracts.
Additional information can be found on the websites of the U.S. Department of Agriculture and on the Economic Research Service branch of the USDA website.
Specific adjusted price levels will be communicated via the local Rousselot North American sales representatives. Individual price increases may vary due to local market situations and will also depend on the validity period of the last agreed price.
It should be noted that Rousselot has taken steps to secure appropriate supply for customers’ volume commitments and will keep on focusing on supporting customer growth.
Meanwhile, according to a market research report called Global Gelatin Market Analysis by GrandViewResearch, the global market for gelatin is expected to reach $3.18bn by 2020. Growing consumption in applications such as food and beverage, nutraceuticals and pharmaceuticals, is expected to be critical for market development over the next six years, according to the report. In addition, improved demand in novel applications such as photography and cosmetics is also expected to boost sales.
Pig skin was the largest commercial source of gelatin in 2013, accounting for nearly 40% of global production. Food and beverage is the largest application market, accounting for 28% of global gelatin demand in 2013. Growing preference towards sports drinks couple with gelatin as a protein source is expected to be responsible for enhanced penetration in these applications.
The top five companies, including Rousselot, accounted for more than 70% of the gelatin market in 2013.
