There is a noticeable surge in demand for plant-based ingredients as more consumers become conscious of their health and environmental impact. The increase in the demand for sunflower lecithin has been no different, with it being a viable alternative to soy lecithin.
Since sunflower lecithin is integral to the production of many food products, manufacturers, sourcing managers, and industry experts have been especially concerned about the impact this surge in demand will have on its supply chain and pricing trends.
While there’s no viable way to predict the future, developing an understanding of the current state of the market can provide businesses with an insight into the prevailing supply chain issues and pricing trends and help make informed decisions about their ingredient procurement strategy, and better anticipate and manage their risks and costs.
Sunflower lecithin has been used as a natural emulsifier and stabiliser in the food industry since the early 2000s. Before that, soy lecithin ruled over the food manufacturing industry. Its downfall began when the concerns over soy allergies and genetic modification surfaced, creating the demand for a more natural and allergen-free alternative.
Over the years, that demand has witnessed a steady rise putting sunflower lecithin at the top of the food chain. It seems that this demand will continue to grow over the next few years as well, with people now more conscious about using clean-label products than ever before. According to a recent report by Future Market Insights, the global sunflower lecithin market is projected to grow at a CAGR of 7.1% between 2023 and 2033.
The sunflower lecithin market is segmented by geography, application, and product type. North America and Europe are the leading markets for sunflower lecithin, followed by Asia Pacific. The Middle East and Africa also hold a significant share of the market.
The food and beverage industry is the largest end-user of sunflower lecithin and accounts for over 50% of the market share. While cosmetics and pharmaceutical industries also have a significant demand for sunflower lecithin, their share is significantly smaller.
Further segmentation of the market is based on product type and application. Product type includes liquid, granule and powder form. Application, on the other hand, includes food and beverage, dietary supplements, and cosmetics.
Depending on where the supplier is located and the industry they cater to, their supply chain can involve multiple stakeholders, like farmers, processors, standardisers, and distributors. Certain countries don’t cultivate sunflower seeds but are experts at degumming and standardising.
Meaning, if a sunflower lecithin supplier acquires the seeds from one country, processes them in another, and warehouses them in a third, they can take quite a while to fulfil their orders. However, businesses must also understand that some suppliers might do this to provide a higher-quality product.
LECITEIN has all its lecithin processed in the Netherlands because its standardisation plants are among the best in the world. Not to mention, the lecithin produced by them meets all of the European quality standards.
If you would like to learn more about the lecithin extraction process, you can check out one of our old posts titled ‘All You Need to Know About Degumming of Soy Lecithin’.
Sunflower lecithin is subject to various quality standards and certifications to ensure its safety and efficacy. The leading certifications include USDA organic, EFSA, Non-GMO Project Verified, Pro Terra, Halaal and Kosher certifications. Additionally, manufacturers follow good manufacturing practices (GMP) to ensure the highest quality and safety standards for their products.
Like everything, the sunflower lecithin market is also subject to price fluctuations influenced by factors such as supply and demand, production costs, and market competition. Understanding each will empower businesses in the food and beverage industry to make informed decisions.
The pricing of sunflower lecithin is affected by the balance between supply and demand. There’s no science behind understanding this. We have already established that the demand for sunflower lecithin is on a constant rise in the food and beverage industry because of the consumer demand for plant-based clean-label products.
But, it’s only one factor behind the increasing price of the emulsifier. The other is the shortage of sunflower seeds. The supply can often be affected by various factors such as weather conditions, pests, disease outbreaks, and political uncertainties which can impact the availability of sunflower lecithin, causing the price to hike.
We also have to take into account production costs. Unfortunately, sunflower lecithin production costs don’t remain constant year in and year out. It’s often impacted by seed quality, varying labour costs in different countries, and processing costs, also varying from country to country.
It’s no secret that the sunflower lecithin market is highly competitive. More often than not, competition can influence pricing, especially in crowded markets like China and India.
Though, some suppliers may be immune to this as they are more focused on providing quality. Additionally, the pricing of other emulsifiers and stabilisers, such as soy lecithin and palm oil, can also impact the pricing of sunflower lecithin.
Despite the Russia-Ukraine war, the pricing of sunflower lecithin seems relatively stable, with slight fluctuations due to supply and demand dynamics. It’s possibly a good time for most food and beverage manufacturers to generate orders for at least the next quarter if not the entire year.
Through this article, we have tried our best to provide an overview of the sunflower lecithin market, the factors that disrupt its supply, and the circumstances that influence its prices.
Looking ahead, the sunflower lecithin market is expected to grow even more and the prices will hopefully remain stable for the foreseeable future. For businesses in the food and beverage industry, now should be considered the right time to make an informed decision about procurement of the emulsifier and acquire a competitive edge.
If you’re struggling to find a reliable supplier with a sustainable supply chain, LECITEIN is the solution you are searching for. Contact us for more details.