Collagen itself does not burn fat; however, it places our body's metabolism in an optimal state to do so. As we age, our bodies tend to lose their muscle tissue and gain more fat. This is why we are not as toned and firm when we are older, even though we may weigh the same as when we were younger. This also affects our metabolism, since muscle helps regulates the metabolism and the burning of calories, and, thus, fat. Less muscle tissue means a slower metabolism. Greater muscle tissue results in a better or faster metabolism that is able to burn calories and fat. Collagen helps to preserve and build lean muscle, promoting the body's own burning of fat as energy. Collagen sets the stage for burning of calories.
Hence, you will feel muscle firm and thus looks lean.