Recently the gelatin market changes a lot, and the price has risen very much! The price of bovine skin changes every day, and it is very crazy in the past 10 years! The reasons are as below:
1) The impact of the COVID-19 of the global economy and consumption
You know the main material of gelatin is bovine skin. As you know that China is the mainly leather goods processing factory, but in 2022, owing to the COVID-19, the orders of leather goods decreased a lot, especially after the recovery of Vietnam factory, which caused the decreased demands of bovine skin processing factory. Such vicious circle caused farmer not raise many cows, and finally lead to the shortage of bovine skin. Owing to the demands exceed supply caused the cost of material keep increasing.
2) The increasing demands of Gelatin
The gelatin industry has a large population coverage, a high compound growth rate, and a very large market demand although in such hard situation .especially, gelatin is mainly raw materials for gelatin empty capsule and soft capsule. During the Virus situation,the pharmaceutical field with very big demand of it.
In China, normally, in summer season, production line will stop running owing to high temperature, so the demands of bovine skin will increase thus price of material will decrease. but in 2022, all factories keep production line running as the increasing of gelatin and is the 1st time that cost of material keeps increasing in summer season during 10 years.
3) The increasing cost of chemical products and freight because of Energy crisis
As you know that the gas shortage and electricity supply crises happened in European. Global energy shortage and soaring prices affect the increase of China’s energy import cost which influence the cost increasing of downstream industry.
It’s a big challenge for all of us. and we sincerely hope the situation can be well controlled into a normal level. but seems that the trend will keep for a period of time. As we are good Strategic partner, everything we can do, we’ll do for you. For the last time quotation, we are afraid we cannot keep for you any more. We tried our best to absorb the rising cost by other aspects but the raw materials rising sharply this days, based on the situation, if keep same price of last quotation will get loss. so sincerely hope you can advice us your purchase plan with quantities that we here can collect all demands and negotiate with our material supplier to get a better price.
Post time: Sep-07-2022
