Ingredient impact on jelly and gum pricing
Recent reports in the British national media have focused on the rise in gelatine cost and its possible impact on the price of sweets.
Gelatine is obviously not the first ingredient to have an impact on the confectionery market. Sugar and cocoa costs have generally hit chocolate products hardest. This time, gums and jellies may face price increases.
Industry analysts at Mintec have warning that gelatine is the latest raw material that is going up in price. The price of gelatine has risen 20 per cent since the start of the year, while EU food grade maize starch is up 34 per cent year on year.
It was reported that suppliers are renegotiating prices with retailers in the face of further increases. These are likely as the demand from China for gelatine is growing.
Hence, it looks like the push for sharing bags and changes in pack sizes, which have been seen in the chocolate industry, may expand to gums and jellies in 2012.
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Katrine Kjoeller, Editor
Sweets & Snacks Europe
