In this case study, a hydrocolloids company engaged CPL Business Consultants to conduct a market due diligence study, which addressed the use of gelatine and threats to its use from substitution, for example, by plant-based products. CPL used its combined commercial and technical expertise to draw conclusions on how the market for would evolve.
Objective and Background
The objective of this study was to assist a client in conducting due diligence on the gelatine market, specifically addressing its use and the threat of substitution.
Gelatine is an animal-derived product competing against other products in the hydrocolloid market, for instance, plant-based hydrocolloids like carrageenan, modified starches, pectins, alginates and blends. It is commonly used in the food industry, pharmaceutical industry (mainly hard and soft capsules) and also the photographic industry. There have been many attempts and research to replace the ingredient, especially in the food and pharmaceutical industries. This replacement has, for example, been driven by BSE, vegetarian and Kosher/Halal issues. Consequently, several companies are working on gelatine substitution.
Therefore the most important questions to address in this market due diligence were:
- What are the risks for the industry, and how big are these risks?
- What is the actual status in the industry (especially food and capsules in the food supplement industry) regarding the use of gelatine and alternatives?
- What are the developments in the industry, and what are the prospects for gelatine?
Threats to Gelatine Use
This study contained the following:
- Structure and Properties
Uses & Gelatine Substitution
- Applications of in Food and Beverages
- Use in Pharmaceuticals and Health Supplements
- Replacement and Substitution
Consumer Issues and Safety Concerns
Gelatine Market Trends
- Hydrocolloid Market Trends
- Market Trends
Manufacturers of Gelatine Replacers/Substitutes
- Confectionery Manufacturers
- Dairy and Desserts Producers
- Meat Products Manufacturers
- Pharmaceutical Users
- Gelatine Substitute/Replacer Manufacturers