Lecithin market. Demand is higher than supply

20.07.2016

Every year the size of world lecithin market is growing and according to the forecasts this tendency will last till 2020. Before 2014 main consumers of lecithin were European countries, but currently Asian countries are steadily increasing purchases. This happens due to the higher demand for high quality food products as well as for biologically active additives (BAAs). Growing demand and prices at the background of low supply – these are the main characteristics of this market.

Ukraine has all the opportunities to become a top supplier of non-GM liquid and dry sunflower lecithin. If there are about 10 companies dealing with liquid lecithin (phosphatide concentrate) in Ukraine, the number of companies producing dry lecithin is only 2.

Currently, the demand for such products is three times higher than supply and the produced volumes are sold least 3-4 months ahead. Some companies have delivery contracts for a year concluded with Spanish, Dutch and German consumers. Main buyers of Ukrainian products are USA and Israel.

There are optimal conditions for further price growth in Ukraine. Thus, export price for phosphatide concentrate in the last 6 month grew from USD 620/MT to USD 1200/MT. Dry lecithin price increased to USD 5500/MT. Considering the raw material availability and crushing capacities, Ukrainian producers should take advantage of the favorable conditions and find their niche on the world market of lecithin.

Further information on world lecithin market will be discussed at the IV International Conference “Black Sea Oil Trade-2016, September 7, 2016, Kyiv, Ukraine. Organizer - consulting agency UkrAgroConsult.

 

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