Nitta Gelatin Inc.
4977・Standard Market・Chemicals
Business
Founded in 1918, Nitta Gelatin is a specialty manufacturer of gelatin and collagen, operating globally across four product categories: gelatin for food and capsule applications, Collagen Peptide for health foods and cosmetics, food materials, and Biomedical products for medical use. The company has 9 consolidated subsidiaries and 3 affiliated companies, with manufacturing and sales sites in Japan, North America, India, China, Vietnam, and Canada. Its major customers span a wide range, including confectionery and food manufacturers, pharmaceutical and capsule manufacturers, health food manufacturers, and medical device manufacturers. In FY2026 (ending March 2026), net sales are projected to reach ¥38,048 million with an operating margin of 12.3%, as the company aims to become No.1 in Asia under its long-term management vision "Lead in Asia. Challenge the World."
Business Model
The company manufactures Gelatin and Collagen using proprietary technology from livestock byproducts (bones and hides) as raw materials, and sells them for food, pharmaceutical, medical, and health food applications. Through a multi-site production network spanning Japan, India, North America, China, and Vietnam, it maintains cost competitiveness while responding to demand in each region. By adopting a build-to-forecast production approach and integrating R&D, manufacturing, and sales operations, it offers a lineup of high-value-added products aimed at improving gross profit margin.
Company Strengths
Since its founding in 1918, the company has accumulated gelatin and collagen manufacturing technology for over 100 years, and operates production facilities in Japan, North America, India, China, Vietnam, and Canada. R&D expenses, including those related to the "Mirai-kan" research and development/manufacturing building completed in December 2022, reached ¥1,206 million in FY2026 (ending March 2026), and the company actively promotes joint research with external research institutions and universities.
Nitta Gelatin India Ltd. has seen strong sales of gelatin for soft capsules and hard capsules, driving sales growth. Collagen Peptide production capacity has been expanded since July 2025 (from 1,150 t/year to 1,800 t/year, with further expansion planned), and gelatin production capacity expansion construction is also underway, from 4,500 t/year to 7,500 t/year (scheduled to commence operation in July 2027), with concrete capital investment track records underpinning the company's competitive advantage.
Following the completion of the liquidation of Nitta Gelatin U.S.A., Inc. in July 2025, eliminating the unprofitable North American production base, gross profit in FY2026 (ending March 2026) increased by ¥1,020 million year on year (to ¥10,980 million), and the operating margin improved to 12.3%. The equity ratio also rose to 56.6% (from 51.2% in the previous fiscal year), strengthening the company's financial foundation.
ENVALITH's Perspective
Performance Trend
Revenue peaked at ¥40,420 million in FY2024 (ended March 2024) before declining for two consecutive periods, reaching ¥38,048 million in FY2026 (ended March 2026), down 1.8% year on year. The main cause was a decline in Gelatin sales in Japan and North America. On the other hand, cost of sales fell from ¥28,785 million to ¥27,068 million, improving the gross profit margin from 25.7% to 28.9%; the elimination of unprofitable operations through the liquidation of the North American manufacturing subsidiary and robust protein demand for North American Collagen Peptide pushed up profitability. Operating profit came to ¥4,664 million, up 18.7% year on year, and the equity ratio strengthened to 56.6% (from 51.2% in the prior period), reinforcing the financial base. For FY2027 (ending March 2027), revenue is projected at ¥43,000 million (up 13.0%), while profit attributable to owners of parent is forecast to decline sharply to ¥2,400 million, down 26.9%, as cost increases associated with capacity expansion investment in India are expected to weigh on profit.
Growth Strategy
Aiming to become No.1 in Asia through capacity expansion in India and increased sales of Collagen Peptide
Expanding Gelatin production capacity at Nitta Gelatin India Ltd. from 4,500t/year to 7,500t/year. Aims to capture robust global demand for capsule applications and expand sales in the Indian and Asian markets.
Expanded Collagen Peptide production capacity at the India site starting July 2025. In addition to responding to strong protein demand in North America, further expansion is being planned to grow sales in Asia and other growth markets.
Protein demand in North America remains robust, and Collagen Peptide sales are expected to grow 12.0% year on year to ¥7,265 million in FY2026 (ending March 2026). Even after the liquidation of Nitta Gelatin U.S.A., Inc., the sales function will be maintained, continuing growth under a highly profitable structure.
Aiming for early profitability through deeper penetration into the Chinese market, where the medical-use Collagen and Gelatin market is expanding. Biomedical sales in FY2026 (ending March 2026) are growing to ¥369 million (up 5.8% year on year) driven by growth in overseas sales, but the specific timing of profitability has not been disclosed.
Focusing on the early commercialization of Collagen microfiber, positioned as a mid- to long-term growth driver. Envisioned for deployment as a new material in the medical and functional materials fields, but a specific commercialization schedule has not yet been disclosed.
Strengthening the manufacturing and sales structure for Food Materials in Vietnam, where Japanese food manufacturers continue to expand. While continuing to review product mix in Japan to improve profitability, the company aims to develop sales channels in new markets.
Last updated: July 19, 2026