- The onset of recession in the second half of 2022-23 impacted the global Collagen Peptide market, leading to a drop in demand in overseas markets, especially in North America and Asia. However, domestic and African markets remained favorable.
- The lower sales realization in North America and Asia caused a decrease in overall sales quantity during the 2022-23 period.
- The Company is trying to control the cost of production and tap into new markets with its new innovative manufacturing process to increase sales. Major market segments targeted include beauty from within, joint health, sports nutrition, general wellness, and other new functionalities. High functional Collagen Peptide and Diabetes management Peptides are new products under development.
- The Company couldn’t operate the Collagen Peptide plant at full capacity, especially in the second half of 2022-23, due to the recession’s impact on health supplement demand in North America and Asian markets, resulting in a more than 60% reduction in demand.
- To revive Collagen Peptide sales, the Company plans to enter new markets in South East Asia, Asia Pacific, and Europe by offering improved high-functional products.
- The Company initiated a partnership with Crushed Bone suppliers to improve the quality of the material, reducing impurity and other unwanted content, thereby reinforcing the supply chain. This partnership’s success will be replicated with other potential suppliers to enhance overall productivity and reduce costs.
- There are two contradictory statements regarding the price of fish protein, the raw material for Fish Collagen Peptide manufacture. One statement mentions a 20% decrease in fish protein price due to low Collagen Peptide demand worldwide, while the other states a 7% increase in Fish Collagen Peptide prices, with raw material (fish protein) prices recording a 14% increase, impacting margins for Collagen Peptide sales.
- The global Collagen Peptide market size was valued at USD 897 Million in 2022, with an anticipated CAGR of 5.7% from 2023 to 2028.
- The Company has fully absorbed and improved upon the technology transferred by overseas collaborators for the manufacture of Ossein, Di Calcium Phosphate, Limed Ossein, Gelatin, and Collagen Peptide. Continuous efforts are being made to further improve technology, economize on utilities, and enhance product quality and productivity.
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