29th Edition of Foodcom PLANT-BASED Newsletter
The situation in the market for plant-based commodities is relatively stable compared to other sectors. This is mainly due to its strong seasonality, which means that most major changes occur in connection with the following harvest.
Some say that the golden era of popularity for plant-based meat substitutes is coming to an end. Nonetheless, their popularity remains high in many regions, especially among young people, as reflected in the demand for the food grade of Vital Wheat Gluten, Hydrolyzed Wheat Gluten and Pea Protein. At the same time, demand for feed commodities is down for the same reason.
Seasonality and a relatively stable situation do not mean that nothing is happening in the market. On the contrary, you can even say that for many products we are just in the phase of waking up from hibernation. As always, everything you need to know about current events can be found in our newsletter.
Of all native starches, Native Potato Starch has the greatest potential. Demand for it remains high, while availability is still extremely low. For Native Corn Starch and Native Wheat Starch, a major challenge is that much of the corn and wheat is imported from Ukraine. Due to transportation problems, there could be difficulties in availability at any time.
Thanks to their wide range of applications, all modified starches are in high demand. It is due to shortages in market availability felt in Q4 2022, among other reasons. Although availability is now slightly better than in previous months, it is still not sufficient to meet market needs. We observe that more and more people are convinced of using Modified Tapioca Starch or seriously consider using it as an alternative to previously used raw materials.
All types of sugar and sweeteners are currently enjoying high demand. At the same time, their availability is very limited. The market for feed-grade Dextrose is slowly awakening, but many buyers are still waiting for more favorable offers. Demand for the commodity, both food and feed, from India and China is high. In the near future, prices will drop due to the influx of Asian raw material. When reaching for Dextrose from a new producer or supplier, pay special attention to heavy metal content. Maltodextrin prices are falling, in part due to the influx of commodities from Asia. One from other regions is also available, putting price pressure on the market. There is a demand for Fructose. There are offers on the market, some traders are waiting for prices to fall.
There are inquiries for large quantities of Vital Wheat Gluten, including from manufacturers of plant-based meat substitutes. For Corn Gluten Meal, there is strong interest from the Asian market, with many inquiries for huge quantities. The market for Potato Protein is slowly but noticeably awakening. Its situation is primarily determined by the poor harvest. There will be no significant change in the situation until September at the earliest, after the next harvest.