The industrial use of lecithin has increased exponentially over the years. And, that increase in demand created countless procurement problems. While struggling with the procurement of raw materials isn’t something new for manufacturers, the struggles of lecithin procurement are an entirely different story.
One of the major problems of acquiring lecithin was its limited global availability. Increasing demand for convenience meals, functional foods, and drinks is geometrically expanding the lecithin industry. The increased demand for green and organic food items is anticipated to increase the demand for lecithin even more.
To eradicate that problem the manufacturers even utilised genetic modification of soybeans, one of the biggest sources of plant-based lecithin. Unfortunately, genetic modification created new problems. Lecithin from genetically modified soybeans increased the demand for identity-preserved non-GMO lecithin derived from other sources. And, while the high harvest ratio of soy still meets the major lecithin demand, businesses still struggle with its procurement.
With all our years in the business, we have compiled this list highlighting the most common lecithin procurement problems that we witnessed our customers struggle with before joining hands with us.
When the COVID-19 pandemic first hit, it disturbed the entire global logistics and supply chain cycle. And logistics are far from normal yet. The consistently increasing fuel prices, lack of truck drivers, and noticeable shifts in global politics are only creating further obstacles for the transportation sector.
Another problem that businesses struggle with is consistency in the cost of lecithin. Although this problem directly correlates with the disrupted supply chain and logistics. Nevertheless, the constant fluctuations in the price of lecithin have made it difficult for many businesses to maintain the prices of their products.
As a result, the market becomes filled with consumer discontentment and companies lose a good margin on their profits. To fight this uncertainty, manufacturers try to procure as much lecithin as they can at once. Subsequently creating not only its shortage but also, procurement problems for other manufacturers.
The rising usage of genetically modified or GMO soybeans for the extraction of lecithin is also a reason why procurement of lecithin has become an issue. There is a growing concern among consumers about the use of GMO substances in products, especially if the said products are edibles.
It’s only fair to say that unless sunflower lecithin or lecithin from other organic sources is mass-produced, the high demand for it will continue to make its procurement a problem for many years to come.
The Russia-Ukraine conflict is also causing lecithin procurement problems. To date, Ukraine remains the largest European producer of soybean. In turn, soybean is the most used source to acquire lecithin. And, that’s not all. The conflict between Russia and Ukraine is expected to have a multifaceted effect on global markets, signs of which have already started to emerge with many enterprises already experiencing shortages of raw material and packaging supplies, lecithin being one of them.
Manufacturers of lecithin are accelerating the development of a broader range of lecithin formulations for inclusion in consumer products such as baked goods, confectioneries, cosmetics, pharmaceuticals, nutraceuticals, and animal feed, appealing to broader end-user demography.
In emerging nations, the lecithin market is anticipated to expand rapidly, as consumers seek food options with balanced nutrition that assist in weight reduction and address calorie issues.
In addition, functional and natural components in food and beverage items contribute to the maintenance of healthy lifestyles via their nutritional value. Consequently, the demand for de-oiled lecithin is anticipated to increase over the evaluation period.
Many manufacturers are seeking long-term partnerships with lecithin suppliers who can guarantee a sustainable supply so they can generate the maximum return on investment (ROI) without any hiccups, and foster an atmosphere of trust and cooperation that permits the development of innovative optimization tactics.
Outsourcing of Lecithin currently accounts for a considerable portion of worldwide spending in the industrial sector. Lecithin purchasers want clear proof to justify cost reduction claims.
Unfortunately, finding suppliers that can fulfil their commitments is yet another procurement challenge that businesses face. While countries like China and India have stepped forward to offer the world its lecithin fill, their product qualities are far from what the European manufacturers desire.
The increase in lecithin demand contributes to China’s large production of the substance. But, it has only managed to eradicate the demand of manufacturers willing to sacrifice the quality of their final product.
However, those not willing to make that sacrifice can connect with LECITEIN. We are a UK-based global lecithin supplier. What sets us apart from other suppliers is that we only supply lecithin that has been degummed in the top degumming plants in Europe.
We have a wide range of lecithin products and our entire range is certified according to the highest European Union standards. For more details, drop us an email or call us.