ORGANIC SOY LECITHIN MARKET challenges and opportunities

One of the key challenges for the market is the fluctuating prices of raw soybeans which affect the production cost of organic soy lecithin. Soybean prices have been highly volatile in the past few years due to various factors like changing weather conditions, increased demand from emerging economies, and global supply chain disruptions. As organic soy lecithin is extracted from organic soybeans, rise in soybean prices directly impacts the manufacturing cost of organic soy lecithin. With margins already being thin in the price-sensitive organic food industry, manufacturers often find it difficult to pass on the high procurement costs to customers.

Organic Soy Lecithin Market Opportunity - Expansion of the vegan and plant-based food sector

One of the major opportunities for the market is the rising demand due to the expansion of the vegan and plant-based food industry. In the recent years, there has been a significant surge in the number of people adopting vegan and flexitarian diets across the globe. The primary reasons include health, ethical, and environmental concerns related to animal-based food products. As a result, numerous food brands such as  Annie’s Homegrown have launched a wide variety of vegan substitutes for meat, dairy, and other animal derived products.