Collagen Market Trends

Growth Drivers

• Healthcare applications: Increasing medical applications are anticipated to drive growth in the demand for medical-grade collagen due to its adoption in regenerative medicine, wound healing, and surgery. For example, Nitta Gelatin finished constructing the Mirai-can facility in December 2022, offering biomedical-grade collagen solutions for advanced medicine. This corresponds to the increased prevalence of chronic diseases and growth in demand for new medical solutions worldwide, placing collagen as one of the vital raw materials within modern medical advancement.

• Growing demand for functional foods and beverages: Another growth driver is the rising demand for functional foods and beverages incorporating collagen since it imparts health benefits related to skin elasticity and joint health. In September 2024, Vital Proteins launched an ad campaign featuring Jennifer Aniston for its collagen bars, positioning the product for wellness and beauty. Furthermore, this surge in demand reflects a wider consumer move toward health-focused, clean-label offerings that tap into a higher interest in preventive health and active lifestyles.

• Rising adoption in the cosmetics industry: A number of anti-aging and skin-rejuvenating properties have established collagen as an important material for the cosmetics industry. In March 2024, Evonik entered into a partnership with Jland Biotech in order to develop vegan collagen for personal care products, marking a paradigm shift toward environmental sustainability with plant-based alternatives. Such partnerships portray an uptick in focus on eco-friendly innovative solutions that can meet ethical consumer demand without reducing the high-performance expectations of beauty care.

Challenges

• Regulatory challenges in international markets: Most collagen-based products face rigid regulatory barriers, particularly for medical and food applications. For instance, regulatory authorities often require a manufacturer to carry out extensive tests and provide voluminous documentation, which may delay product approval and increase the cost of development. Besides, these challenges slow market entry and make it difficult for small companies to compete effectively in such markets. Additionally, regional differences in regulations further add to complications in global market strategies, therefore making compliance with various regulations a very time-consuming and costly affair.

• Supply chain constraints in raw materials: The collagen industry relies heavily on animal-derived sources such as bovine and porcine tissues, leading to supply chain challenges. Furthermore, these raw materials are subject to a lot of fluctuations based on various factors, such as outbreaks of diseases or changes in production levels of livestock. In addition, the diversity in sourcing has raised ethical concerns related to animal welfare and environmental sustainability. On the other hand, increasing demand for collagen raises pressures regarding the supply chains and prices.