Gelatin Prices Surge in US and Asian Markets in October 2023, While Europe Faces Decline Trend

In October 2023, the global Gelatin market experienced a diverse trajectory in terms of pricing. Notably, Gelatin prices witnessed an upward surge in the Asian and USA markets, driven by heightened food and pharmaceutical demand and limited stock reserves. Conversely, the German market witnessed a substantial decline in prices owing to a confluence of factors, including the prevailing lackluster consumer sentiments, elevated interest rates, and an abundant supply in the market.

As per the latest data from China's National Bureau of Statistics (NBS), the country's official Manufacturing Purchasing Managers' Index (PMI) declined unexpectedly in October 2023, dropping from 50.2 in September to 49.5. Despite the weak economic momentum, China has witnessed a noteworthy surge in consumer spending during the national holidays, offering positive signals for the Chinese economy amid recent slowdowns. The Chinese food sector experienced increased consumption due to heightened domestic travel during the Golden Week vacation, leading to greater demand for Gelatin in October and resulting in a price increase.

The price of Gelatin increased in India due to heightened demand in the food industry, driven by upcoming festivals like Diwali. Exports exhibited notable strength in October, with new business gains reported from Asia, Europe, and the US. Additionally, the ongoing Israel-Hamas conflict posed a significant threat to the Indian economy, leading to a surge in crude prices and inflation. Consequently, manufacturing costs and business expenses have risen, contributing to higher prices for Gelatin.

The resilience of the US economy in October has sparked optimism for a smooth economic transition, bolstered by positive developments. Additionally, business activity saw an uptick during the month, with a noticeable increase in new orders and sales, accompanied by indications of easing inflationary pressures and positively impacting the Gelatin market. Moreover, approaching holidays in the United States, like Halloween and Thanksgiving, have driven up the demand for Gelatin in the food industry, contributing to a further uptick in prices.

The manufacturing activities for the Eurozone dropped to a three-month low in October 2023, signaling a significant decline in the health of the region's goods-producing sector compared to September. Meanwhile, deflation remained a prominent aspect of the manufacturing sector downturn in October, as both input costs and output prices fell. According to the Federal Statistics Office, Germany, a key contributor to the Eurozone, witnessed a noticeable drop in inflation to 3.0% in October. This suggests a considerable slowdown in headline inflation across the Eurozone, reinforcing the downward trend in Gelatin prices.

According to ChemAnalyst's analysis, Gelatin prices are expected to decrease in the coming months due to a slight wane in demand from end-users and abundant inventory within the market. However, Gelatin prices may stay elevated next month in India as the festive season approaches in November. Additionally, global prices are anticipated to rise at the start of FY24, driven by a rebound in consumer confidence, maintaining a favorable market outlook.