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Lecithin Market

Lecithin Market: Information by Source (Soy, Sunflower), End-Use (Convenience Food, Bakery), and Region- Forecast till 2030

Published On : 23 Sep, 2022
Updated On : 26 Sep, 2022
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Market Snapshot

Base Year:
2021
Study Period:
2020-2030
CAGR:
7.82 %
Fastest Growing Market:
Asia-Pacific
Largest Market:
Europe

The global lecithin market size was valued at USD 546.90 million in 2021 and is predicted to reach at USD 1076.97 million by 2030, increasing at a CAGR of 7.82% from 2022 to 2030. Tissue growth in the body is dependent on the presence of lecithin, a lipid. It's a critical part of biological membranes because of its role in water transport. Stabilizing the structure of the tissue, transporting fat molecules, conveying signals, and powering cellular operations all require lecithin, and it is essential for all these functions to occur. There are numerous applications for lecithin in medicine and industry. It is also used to treat Alzheimer's disease and other forms of dementia. Eczema, depression, excessive cholesterol, and gallbladder issues are among the other conditions for which it is prescribed. Lecithin can also be used to hydrate the skin. When applied to vision treatments, lecithin may serve as a vehicle for delivering medication to the eye's cornea. There are numerous industrial and pharmacological uses for commercial lecithin.

Increasing numbers of individuals throughout the world are incorporating healthy and nutritious meals into their diets on a daily basis. Even more importantly, the growing popularity of lecithin-enriched products is helping to fuel the industry's expansion. Alzheimer's and dementia have been treated using lecithin. Eczema, gallbladder illness, liver disease, depression, excessive cholesterol, and anxiety are all treated with it. It's also used for other things. Throughout the foreseeable term, these wide-ranging uses are necessary.

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Market Dynamics

Market Driving Factors

Inclination Is Driven by The Organic Nature of Lecithin

A naturally occurring ingredient, lecithin can be found in a wide variety of foods. The liver, nerves, brain, and other key organs all depend on Lecithin for proper functioning, according to research. A valuable dietary supplement, lecithin is also used to make food emulsifiers, eye drops and moisturizers for the skin. When consumed as dietary supplements, these substances lift one's spirits and lift one's health. As a result, the lecithin market is set to rise to the top of the heap in both the present and future.

People who lead a healthy lifestyle are more likely to turn to dietary supplements to help them stay healthy and feel better. Because of this, the market for lecithin in the dietary supplement business has been driven by an obsession with preventative healthcare and powerful endorsement partnerships for lifestyle-enhancing products. Increasing consumer demand for food ingredients produced from a variety of dietary sources is the most significant influence on the market.

Lecithin's Uses in Cosmetics and Pharmaceuticals to Drive Market Growth

High lecithin diets improve HDL cholesterol levels and lower LDL cholesterol. People with diabetes are also thought to benefit from taking lecithin supplements. Lecithin has been deemed "generally recognized as safe" by the US Food and Drug Administration. There are no known side effects when taken in the recommended dosage. As a result, more people are aware of the benefits of using lecithin supplements.

In the cosmetics industry, lecithin is making inroads, especially in the area of skin care. Emulsions can also benefit from lecithin's ability to reduce the surface tension of the ingredients. Leading cosmetics companies are launching a wide range of new skincare and personal care products. Nearly 500+ certified sustainable and conventional organic products for personal care product manufacture are now available from Praan Naturals, including Organic Sunflower and Soy Lecithin Powder and Liquid. Soy-based lecithin's global demand is being fueled by the increased need for organic products in the cosmetic and personal care industries.

Market Restraining Factors

The Instability in The Prices of Raw Materials Will Be a Hindrance

Since the prices of the raw materials are liable to change, it may be difficult for the main players to prepare their budgets for the future strategies. In addition, several locations have strict government rules, which has resulted in a lack of uniformity among the items in terms of their quality and their adherence to the standards. The economies that are less developed have not yet reached a point where they are aware of the issue. In addition, it is impossible to overlook the fact that certain individuals suffer from an allergy to soybeans. In addition, parents are cautioned to keep lecithin away from their children because there is a lack of evidence on its safety.

Key Market Opportunities

More R&D And New Innovations Will Open Up New Opportunities

The need for lecithin is being driven by an increase in the manufacturing of processed foods and foods including meat, dairy, plus bakery or confectionery items. The processed grocery store in the world is currently witnessing a huge shift in response to the rising urbanization and a rise inside the tendency of the consumers towards food goods with reduced fat and natural ingredients. Because of its potential as a natural ingredient with multiple functions in food items, lecithin is projected to benefit from these opportunities.

The worldwide lecithin market gives opportunities to the producers and the supply chain partners of the lecithin. As a result of rising R&D spending and expanding processing facilities, the market is expanding rapidly. Long-term demand for lecithin may be helped by an increase in manufacturers' research and development efforts in sustainable manufacturing and growth. Due to the significantly larger investments, the market for lecithin is likely to expand during the projected timeframe.

Segment Overview

The Global Lecithin Market is divided into different segments according to the Source, End-use, Form, and Region (Geography).

By Source, the Global Lecithin Market is segmented into Soy, Sunflower, Rapeseed, and Others. More than 80% of the lecithin market's revenues were generated by the soy sector in the year 2021. This is due to the rising food business in Europe and Asia-Pacific regions, where large swaths of land are dedicated to soybean cultivation and production. Among its most common applications are the production of dairy goods such as ice cream and milk, as well as nutritional supplements and newborn formulae. As a result, demand for soybeans is likely to decline over the next few years due to worries about its high cholesterol content and potential to cause allergic reactions.

It is projected that demand for lecithin extracted using sunflower seeds would expand as a nutritious food product as a result of the product's numerous health benefits. It's also projected that the requirement for sunflower lecithin will continue to rise because of its rising use in supplement manufacturing.

By End-use, the Global Lecithin Market is segmented into Convenience Food, Bakery, Confectionary, Pharmaceutical, Personal Care and Cosmetics, Animal Feed, Other Industrial, and Others. In 2021, the animal feed industry held a commanding 42% revenue share of the global lecithin market. Most of the world's population is eating more meat than ever before, which is to blame for this. In addition, the well-developed animal husbandry business has had a good effect on the overall expansion of the industry.

To save time and energy whether cooking at home or in a restaurant, convenience foods are a good option. Helps retain fat in suspension, improves hydration of protein components, lowers the fat cap during processing, and enhances dispersion of high-fat powders in convenience food products that include lecithin. For these reasons, as well as the fact that it aids in even ingredient dispersion in the final product, it is predicted to be included in convenience food products as an ingredient.

This category includes a variety of sugary treats such as chocolates and ice cream as well as other gums and candies. Due to lecithin's improved surface qualities, the confectionery industry is seeing an increase in its use. It also helps to reduce the moisture content of food, which is expected to keep its demand high in the end-use segment during the forecast period.

By Form, the Global Lecithin Market is segmented into Liquid, Powder, and Granules. In the year 2021, liquid lecithin segment held a revenue share of over 80% of the global lecithin market. Several end-use industries, like industrial coatings, beauty products, food processing, and confectionaries, are driving up demand for liquids, which is why this product has such a large market share.

Liquid form is used as a nutritional supplement as well as a food component in numerous food products. Dietary supplements often contain a mixture of choline, inositol and phosphatide, as well as other chemicals, rather than just phosphatidylcholine in the form of liquid lecithin. In addition, the liquid form is more easily dispersed in oil than in other forms of the substance.

Several end-use sectors, including feed, food and beverage, cosmetics and medicines, employ lecithin powder as an ingredient. The ingredient is typically found in baked goods and sweets. To keep baked goods from adhering to pans, this powder is mixed into cooking sprays. Non-lipid and lipid-binding properties make it an excellent choice for bringing water and oil-based substances together. Butter and candy manufacturers also prefer powder over liquid for the same reason.

By Region or Geography, the Global Lecithin Market is segmented into North America, Europe, Asia Pacific, Latin America, and the Middle East & Africa. More than 35% of the lecithin market's revenue came from Europe in 2021. This is due to the fact that the area has a large number of lecithin manufacturers. In North America, the presence of major end customers and ready access to raw materials fuel demand. Large-scale soy and canola farms in the United States and Canada are fueling this region's economic expansion.

Regional Overview

The Global Lecithin Market is segmented by geography into North America, Europe, Asia Pacific, Latin America, and the Middle East & Africa.

Lecithin Market Regional Analysis

Regional Growth Insights Request Sample Pages

In 2021, Europe held a dominant position in the lecithin market, with the biggest revenue share, which was greater than 35%. This is because the region is home to a substantial population of lecithin manufacturers, which is the cause of this phenomenon. A plentiful supply of raw materials and an increasing awareness of the importance of health amongst customers in the region are also helping to drive demand.

The presence of significant end-users and the ease with which raw materials may be obtained are the primary factors driving demand throughout the North American region. The market expansion in this region is being driven in large part by the existence of enormous soy fields in the United States and canola farms in Canada. When it comes to the production of lecithin, soybeans are among the most important materials that are utilized. The output of soybeans in North America is increasing as a result of a number of factors, including the growing prevalence of small-scale crushing plants and the large-scale cultivation of soybeans.

The Asia-Pacific area has quickly become an important regional market. Growth of the market in India and China, both of which are witnessing a rapid increase in population, as well as shifting demographic trends, can be ascribed to the growth that has been observed in the region. It is anticipated that the presence of significant expanses of land for the cultivation of oilseeds would further enhance the expansion of the industry. It is anticipated that an increase in the number of small-scale food makers will drive demand for lecithin in application areas like convenience foods, bakeries, and confectionaries. Demand in the food and beverage industry is anticipated to increase even more as a result of the rapid development of new products for use in the aforementioned application niches.

List of Major Key Players

  • Cargill, Inc.
  • Global River Food Ingredients
  • DuPont de Nemours, Inc.
  • Stern-Wywiol Gruppe GmbH & Co. KG
  • ADM
  • Bunge Limited
  • Orison Chemicals Limited
  • American Lecithin Company
  • Sun Nutrafoods
  • Lasenor EMUL., S.L.
  • Thew Arnott & Co. Ltd.
  • Imcopo Food Ingredients B.V.
  • LECICO GmbH
  • Wilmar International Ltd.
  • Yugen Chemicals

Recent Developments

  • June 2022 - Consumers favour natural food and animal-based products. Plant-based animal feed additives offer significant growth potential. Cargill reached a formal agreement to purchase Delacon, the global leader in plant-based phytogenic additives, to serve feed customers in this developing market.
  • June 2022 - The completion of the sale of DuPont's Biomaterials business unit, which was originally scheduled to take place on May 31, 2022, to the Huafon Group for an estimated acquisition price of about $240 million was announced by DuPont on June 1, 2022.

Global Lecithin Market: Segmentation

By Source

  • Soy
  • Sunflower
  • Rapeseed
  • Others

By End-Use

  • Convenience Food
  • Bakery
  • Confectionary
  • Pharmaceutical
  • Personal Care and Cosmetics
  • Animal Feed
  • Other Industrial
  • Others

By Form

  • Liquid
  • Powder
  • Granules

By Geography

  • North America
  • Europe
  • Asia Pacific (APAC)
  • Latin America
  • Middle East and Africa (MEA)
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