Gelatin Manufacturing Plant

Report Overview:

IMARC Group’s report, titled “Gelatin Manufacturing Plant Project Report 2025: Industry Trends, Plant Setup, Machinery, Raw Materials, Investment Opportunities, Cost and Revenue,” provides a complete roadmap for setting up a gelatin manufacturing plant. It covers a comprehensive market overview to micro-level information such as unit operations involved, raw material requirements, utility requirements, infrastructure requirements, machinery and technology requirements, manpower requirements, packaging requirements, transportation requirements, etc. The gelatin project report provides detailed insights into project economics, including capital investments, project funding, operating expenses, income and expenditure projections, fixed costs vs. variable costs, direct and indirect costs, expected ROI and net present value (NPV), profit and loss account, financial analysis, etc.

What is Gelatin?

Gelatin is a natural, protein-based substance derived from the collagen found in animal bones, skin, and connective tissues. It is typically obtained through the partial hydrolysis of collagen, resulting in a translucent, flavorless, and odorless material. Gelatin is widely used for its gelling, thickening, stabilizing, and binding properties across various industries. It plays a key role in food products like gummies and desserts, as well as in pharmaceuticals, cosmetics, and nutraceuticals. Its biocompatibility and digestibility also make it suitable for medical and biomedical applications.

Gelatin Manufacturing Plant: Key Highlights

• Process Used: Collagen hydrolysis process
• End-use Industries: Pharmaceuticals, food and beverage, nutraceuticals, cosmetics and personal care, biomedical, and industrial applications
• Applications: Used in capsule manufacturing, gelling agent, thickener, stabilizer, emulsifier, film former, binder, and scaffolding material

A gelatin manufacturing plant is a specialized facility designed to extract and process collagen from animal by-products such as bones, skin, and connective tissues through partial hydrolysis. The process involves several key stages including degreasing, acid or alkali pre-treatment, extraction, filtration, evaporation, sterilization, and drying. These plants are equipped with stainless steel reactors, extractors, vacuum dryers, filtration systems, and quality control laboratories to ensure high purity and consistency. Given the use of biological raw materials, strict hygiene, environmental compliance, and waste management systems are essential. Gelatin produced in these facilities serves a wide range of industries including food and beverage, pharmaceuticals, nutraceuticals, cosmetics, and biomedical sectors.

Gelatin Industry Outlook 2025:

The market for gelatin is developing strongly due to its multifunctional properties (gelling, thickening, stabilizing, and binding), which make it a fundamental ingredient across many industries. In the food and beverage industry, increased consumption of confectionery, dairy, and protein-based functional foods continues to drive demand. The pharmaceutical and nutraceutical markets are also key markets for gelatin due to its usage in capsules, supplements, and drug delivery, which is attributed to greater health awareness and the aging global population. Growing presence in cosmetics, biomedical, and personal care application further supports the development of the gelatin sector. There is also a global trend towards including clean-label and natural ingredients, which is creating opportunities for gelatin, as a safe food additive and functional ingredient familiar to consumers. In December 2021, Juncà Gelatines was acquired by Lapi Gelatine and Dispro Invest to create a new European hub for gelatin and collagen applications. The goal was to combine product development capabilities to expand across Europe and internationally.

Gelatin Market Trends and Growth Drivers:

Rising pharmaceutical production

Growing demand for pharmaceuticals will serve as a massive catalyst and only increase the demand for gelatin for use in pharmaceutical grade gelatin. The Indian pharmaceutical industry is currently one of the fastest growing industries projected to be valued at US$ 130 billion by the year 2030 by the India Brand Equity Foundation (IBEF) and attaining a compound annual growth rate of over 10% in the same period. As gelatin is a main component in the production of capsules, tablets, and drug delivery systems, this growth will lead to substantial growth in demand for pharmaceutical grade gelatin. Also, India's recent emergence as a leading global producer of generic drugs and active pharmaceutical ingredients (API) can only further impact the global gelatin supply chain in an increasingly positive way, as rising healthcare needs lead to more research and development (R&D) investments and exports from India continue to increase. The growing healthcare needs, R&D investments and evolving Indian pharma market, allow for India to be a robust contributor to sustained growth in gelatin consumption globally.

Growth of India’s beauty and personal care sector

The beauty and personal care market in India, currently being valued at US$ 28 billion, is projected to reach US$ 34 billion by 2028, with an annual growth rate of 10–11%, according to the India Brand Equity Foundation (IBEF). This growth will lead to an increase in demand for ingredients that are sourced from gelatin for uninhibited use in skincare, haircare and cosmetics. The film and moisture forming and anti-aging properties of gelatin make it a desirable component in beauty and personal care products. With preferences shifting to natural, clean-label, and collagen-rich offerings, growth in India's beauty sector is expected to increase demand for gelatin ingredients regionally in India and globally across supply chains.

Latest Industry Developments:

• August 2024: Zydus Lifesciences has purchased a 50% stake in Sterling Biotech from Perfect Day Inc., resulting in the establishment of a 50:50 joint venture. The collaboration is focused on transitioning Sterling Biotech’s operations toward producing fermented, animal-free proteins, aligning with the global shift toward sustainable and ethically sourced nutrition.
• May 2024: GELITA introduced OptiBar, a collagen peptide-based ingredient tailored for high-protein, sugar-free cereal and protein bars. It allows for protein content of up to 60% while ensuring a soft texture and indulgent mouthfeel. OptiBar also functions as a sugar-free binder, enabling clean-label claims such as “low sugar” and “sugar-free.”
• December 2023: Darling Ingredients Inc. secured a patent for its innovative gelatin formulation StabiCaps. Designed to enhance the stability of soft gel capsules, StabiCaps supports the production of a wide array of pharmaceutical products with improved shelf-life and performance.

Leading Gelatin Manufacturers:

Leading manufacturers in the global gelatin industry include specialized life sciences and ingredients companies with large-scale, vertically integrated production systems and diversified application expertise. Key players include

• GELITA AG
• Rousselot
• PB Leiner
• STERLING GELATIN
• Weishardt Holding SA
• Junca Gelatines SL

all of which operate large-scale facilities and serve end-use sectors such as pharmaceuticals, food and beverage, nutraceuticals, cosmetics and personal care, biomedical, and industrial applications.

Gelatin Plant Setup Requirements

Detailed Process Flow:

The manufacturing process is a multi-step operation that involves several unit operations, material handling, and quality checks. Below are the main stages involved in the gelatin manufacturing process flow:

• Unit Operations Involved
• Mass Balance and Raw Material Requirements
• Quality Assurance Criteria
• Technical Tests

Key Considerations for Establishing a Gelatin Manufacturing Plant:

Setting up a gelatin manufacturing plant requires evaluating several key factors, including technological requirements and quality assurance. Some of the critical considerations include:

• Site Selection: The location must offer easy access to key raw materials such as animal bones, hides, skins, tendons, ligaments, and pigskin. Proximity to target markets will help minimize distribution costs. The site must have robust infrastructure, including reliable transportation, utilities, and waste management systems. Compliance with local zoning laws and environmental regulations must also be ensured.​
• Plant Layout Optimization: The layout should be optimized to enhance workflow efficiency, safety, and minimize material handling. Separate areas for raw material storage, production, quality control, and finished goods storage must be designated. Space for future expansion should be incorporated to accommodate business growth.​
• Equipment Selection: High-quality, corrosion-resistant machinery tailored for gelatin production must be selected. Essential equipment includes boilers, digesters, washing units, extraction tanks, filtration systems, evaporators, dryers, grinders, and sterilizers. All machinery must comply with industry standards for safety, efficiency, and reliability.​
• Raw Material Sourcing: Reliable suppliers must be secured for raw materials like animal bones, hides, skins, tendons, ligaments, and pigskins to ensure consistent production quality. Minimizing transportation costs by selecting nearby suppliers is essential. Sustainability and supply chain risks must be assessed, and long-term contracts should be negotiated to stabilize pricing and ensure a steady supply.
• Safety and Environmental Compliance: Safety protocols must be implemented throughout the manufacturing process of gelatin. Advanced monitoring systems should be installed to detect leaks or deviations in the process. Effluent treatment systems are necessary to minimize environmental impact and ensure compliance with emission standards.​
• Quality Assurance Systems: A comprehensive quality control system should be established throughout production. Analytical instruments must be used to monitor product concentration, purity, and stability. Documentation for traceability and regulatory compliance must be maintained.

Project Economics:

​Establishing and operating a gelatin manufacturing plant involves various cost components, including:​

• Capital Investment: The total capital investment depends on plant capacity, technology, and location. This investment covers land acquisition, site preparation, and necessary infrastructure.
• Equipment Costs: Equipment costs, such as those for boilers, digesters, washing units, extraction tanks, filtration systems, evaporators, dryers, grinders, and sterilizers, represent a significant portion of capital expenditure. The scale of production and automation level will determine the total cost of machinery.​
• Raw Material Expenses: Raw materials, including animal bones, hides, skins, tendons, ligaments, and pigskin, are a major part of operating costs. Long-term contracts with reliable suppliers will help mitigate price volatility and ensure a consistent supply of materials.​
• Infrastructure and Utilities: Costs associated with land acquisition, construction, and utilities (electricity, water, steam) must be considered in the financial plan.
• Operational Costs: Ongoing expenses for labor, maintenance, quality control, and environmental compliance must be accounted for. Optimizing processes and providing staff training can help control these operational costs.​
• Financial Planning: A detailed financial analysis, including income projections, expenditures, and break-even points, must be conducted. This analysis aids in securing funding and formulating a clear financial strategy. 

Capital Expenditure (CapEx) and Operational Expenditure (OpEx) Analysis:

Capital Investment (CapEx): Machinery costs account for the largest portion of the total capital expenditure. The cost of land and site development, including charges for land registration, boundary development, and other related expenses, forms a substantial part of the overall investment. This allocation ensures a solid foundation for safe and efficient plant operations.

Operating Expenditure (OpEx): In the first year of operations, the operating cost for the gelatin manufacturing plant is projected to be significant, covering raw materials, utilities, depreciation, taxes, packing, transportation, and repairs and maintenance. By the fifth year, the total operational cost is expected to increase substantially due to factors such as inflation, market fluctuations, and potential rises in the cost of key materials. Additional factors, including supply chain disruptions, rising consumer demand, and shifts in the global economy, are expected to contribute to this increase.

Capital Expenditure Breakdown:

Operational Expenditure Breakdown:

Profitability Analysis:

Report Coverage:

Key Questions Answered in This Report:

• How has the gelatin market performed so far and how will it perform in the coming years?
• What is the market segmentation of the global gelatin market?
• What is the regional breakup of the global gelatin market?
• What are the price trends of various feedstocks in the gelatin industry?
• What is the structure of the gelatin industry and who are the key players?
• What are the various unit operations involved in a gelatin manufacturing plant?
• What is the total size of land required for setting up a gelatin manufacturing plant?
• What is the layout of a gelatin manufacturing plant?
• What are the machinery requirements for setting up a gelatin manufacturing plant?
• What are the raw material requirements for setting up a gelatin manufacturing plant?
• What are the packaging requirements for setting up a gelatin manufacturing plant?
• What are the transportation requirements for setting up a gelatin manufacturing plant?
• What are the utility requirements for setting up a gelatin manufacturing plant?
• What are the human resource requirements for setting up a gelatin manufacturing plant?
• What are the infrastructure costs for setting up a gelatin manufacturing plant?
• What are the capital costs for setting up a gelatin manufacturing plant?
• What are the operating costs for setting up a gelatin manufacturing plant?
• What should be the pricing mechanism of the final product?
• What will be the income and expenditures for a gelatin manufacturing plant?
• What is the time required to break even?
• What are the profit projections for setting up a gelatin manufacturing plant?
• What are the key success and risk factors in the gelatin industry?
• What are the key regulatory procedures and requirements for setting up a gelatin manufacturing plant?
• What are the key certifications required for setting up a gelatin manufacturing plant?

Report Customization

While we have aimed to create an all-encompassing gelatin plant project report, we acknowledge that individual stakeholders may have unique demands. Thus, we offer customized report options that cater to your specific requirements. Our consultants are available to discuss your business requirements, and we can tailor the report's scope accordingly. Some of the common customizations that we are frequently requested to make by our clients include:

• The report can be customized based on the location (country/region) of your plant.
• The plant’s capacity can be customized based on your requirements.
• Plant machinery and costs can be customized based on your requirements.
• Any additions to the current scope can also be provided based on your requirements.

Why Buy IMARC Reports?

• The insights provided in our reports enable stakeholders to make informed business decisions by assessing the feasibility of a business venture.
• Our extensive network of consultants, raw material suppliers, machinery suppliers and subject matter experts spans over 100+ countries across North America, Europe, Asia Pacific, South America, Africa, and the Middle East.
• Our cost modeling team can assist you in understanding the most complex materials. With domain experts across numerous categories, we can assist you in determining how sensitive each component of the cost model is and how it can affect the final cost and prices.
• We keep a constant track of land costs, construction costs, utility costs, and labor costs across 100+ countries and update them regularly.
• Our client base consists of over 3000 organizations, including prominent corporations, governments, and institutions, who rely on us as their trusted business partners. Our clientele varies from small and start-up businesses to Fortune 500 companies.
• Our strong in-house team of engineers, statisticians, modeling experts, chartered accountants, architects, etc. has played a crucial role in constructing, expanding, and optimizing sustainable manufacturing plants worldwide.