Demand for immunity, wellness products boosts Nitta Gelatin India’s business

V Sajeev Kumar Kochi | Updated on September 16, 2020 Published on September 16, 2020

Even as Covid-19 hits industries across the spectrum, Nitta Gelatin India Ltd has been witnessing a robust demand for its gelatin and collagen peptide products after the pandemic broke out.

The uptick was a result of the rising demand for immunity and wellness products, in which gelatin and collagen peptides are key ingredients in the domestic as well as overseas markets, said Sajiv K Menon, Managing Director, Nitta Gelatin India, a JV between Nitta Gelatin Inc, Japan and KSIDC.

“As the Indian gelatin industry caters to the pharmaceutical and neutraceutical sectors, there is a strong demand for our products. The growth in demand globally is expected to be more than 5 per cent,” he said.

The demand for gelatin in India has grown at a higher rate due to the drop in production in some countries impacted by Covid. The increase in demand for many immunity-building products like nutritional supplements are one of the growth drivers for the surging demand, he added.

Health focus

Menon felt that the new found demand is expected to sustain in the near future. With a second wave of the disease being speculated, players are gearing up their supply chain and inventories to meet the demand for immunity-enhancing products. A greater focus on health consciousness is leading to an increase in consumer spend on nutritional supplements to boost immunity and support their overall health, he said.

However, the company has been hit by the shortage of bovine bones, a raw material due to lockdown and social distancing norms. The availability has declined by 30 per cent, which in turn resulted in 25 per cent increase in its cost. But the company ensured that the gelatin plant is operated to its full capacity, even at the cost compromising on the sales of some of the other highly profitable product lines so that the availability of medicines in the form of capsules to end consumers are not adversely affected, he added.

The company is in discussion with nutritional supplements and convenience food manufacturers offering products for conditions like joint and skin health and lifestyle enhancement. These sectors are looking for innovative products with novel delivery formats. Quoting a recent study by London-based Technavio, Menon said the growing demand for convenience foods and beverages are expected to boost the growth of gelatin industry.

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Published on September 16, 2020
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