Lecithin Market Size, Share, Industry, Forecast and outlook (2024-2031)

Lecithin Market Overview

The Lecithin Market analysis report presents a comprehensive assessment of the market shares, size, recent trends, future market outlook, and competitive intelligence. The market for lecithin is witnessing significant growth due to its increasing demand in various industries, including food and beverage, and cosmetics. The market is expected to witness strong growth in the Asia-Pacific region owing to the growing population and rising disposable income. Major players in the lecithin market such as Cargill, Inc., Archer Daniels Midland Company, and others are actively operating in the market, intensifying the competitive rivalry.

Market Summary

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Lecithin is a group of fatty substances found in animal and plant tissues. The emulsification property of lecithin made it a key additive in several medical and commercial applications. Lecithin is also used as a lubricant, stabilizer, wetting, and dispersing agent. Lecithin is also rich in choline, a vitamin-like essential nutrient that reduces the levels of bad cholesterol, thus making it the dietary supplement of choice for the heart-health-savvy population. Lecithin also finds applications in cosmetics and pharmaceutical industries owing to its antioxidant properties. Lecithin is used in the treatment of Alzheimer’s disease, dementia, and other memory disorders.

Market Dynamics

Increasing application in nutrition and supplements

Population in the United States, Europe, and Japan is aging, prompting consumers to seek a variety of dietary supplements for maintaining and enhancing overall health and well-being. Thus, the intense focus on the preventive healthcare system, coupled with robust endorsements and marketing efforts of lifestyle enhancement products, is driving the market for lecithin in the dietary supplement industry. Moreover, lecithin is extensively in use as an emulsifier and stabilizer in a broad spectrum of food products. Emulsifiers are finding new applications in various food categories such as protein powders, desserts, bakery products, and functional beverages. Furthermore, the need for emulsifying agents is also increasing in the production of animal feed and pet food, thus supporting the growth of lecithin. The rise of vegan and vegetarianism is motivating food processors towards utilization of plant-derived food additives such as soy lecithin and sunflower lecithin and this is likely to provide immense growth potential to the global lecithin market.

However, genetically modified (GM) concerns about plant sources and the allergic nature of soy are hindering the growth of the lecithin market. Organic lecithin evolved as the new growth segment of the global lecithin market owing to tightening organic food regulations. Organic lecithin is produced without the use of chemical solvents during the production process.

Market Segmentation Analysis

Soybean lecithin is the largest lecithin segment by source holding a share of nearly YY% in terms of sales value

The rising demand for soy lecithin from various industries including food, feed, pharmaceuticals, and cosmetics owing to its emulsification properties is the major factor driving the growth of the global soy lecithin market. The growing production of soy production is also supporting the growth of the soy lecithin market. According to the statistics of The Soybean Processors Association of India (SOPA), the global production of soybean increased from 320 million metric tons in 2014 to 360 million metric tons in 2018. The inexpensive process of soy lecithin production is motivating the use of soy as a preferred source for lecithin over other counterparts. Sunflower, egg, and rapeseed are other key sources of lecithin considered in the report. The sunflower lecithin market is expected to progress rapidly as it is considered as a preferred substitute for soy-based products. The major advantage of solventless extraction provided by this product is expected to boost the market demand.

By end-use industry food and beverages dominated the global lecithin market in 2020. Lecithin is used in the manufacture of a large number of confectionery products such as chocolates, caramels, fudge, toffee, and brittles. The demand is driven by its ability to act as a natural emulsifier, antioxidant, and flavor protector. The rapidly growing sugar-free confectionery industry is expected to have a positive impact on market growth over the forecast period. Animal feed, cosmetics, pharmaceuticals, and some other industries also constitute a considerable share of the market. Lecithin is employed as an emulsifier in the manufacturing of animal feed. The addition of lecithin not only improves the feed obtained for domestic animals but also plays an important role in maintaining their health.

Market Geographical Share

Asia Pacific is expected to dominate the global lecithin market during the forecast period

The rising demand for natural ingredients is witnessing a rise in the usage of lecithin in bakery and confectionery, dairy, and meat products in the region. China is expected to dominate the global lecithin market, The increasing number of food outlets and food service joints seem to be driving the demand for lecithin as a food additive in the Chinese food and beverage industry. China is also a fast-growing market, due to rising cases of obesity and more attention being paid to the nutrition in food products, which drives the market studied. On the other hand, increased demand for personal care products and cosmetics uses in the countries are expected to boost the demand for de-oiled lecithin. Additionally, the booming aquaculture industry in China is expected to boost the demand for lecithin in the animal feed segment. Europe is expected to grow with a CAGR of YY% during the forecast period. The growing consumption of healthy foods and nutritional supplements is driving the market demand. The growing research on non-GMO soy lecithin is expected to further boost the demand.

Companies and Competitive Landscape

The global lecithin market is highly fragmented with the foothold of a large number of companies. The market is highly competitive with the likes of new product launches in the fields of organic soy and sunflower lecithins. Several companies dedicated to the production of organic lecithin have entered the market in recent times to cater to this growing demand from the food industry. Most of the key market players including The Archer Daniels Midland Company, DuPont, and Cargill, Incorporated are focusing on widening their portfolio of non-GMO soy lecithins to cater to the growing demand from organic food processors across the globe. Additionally, manufacturers have been developing new technologies for producing lecithin in recent years. Novel products, such as fast-dissolving ready-to-mix lecithin powders, are being introduced to the market. In March 2021, Lecico announced a distribution partnership with Ciranda for lecithin and phospholipids across North America with a focus on clean-label food trends in addition to local commercial and technical support. In February 2021, Sternchemie announced the release of soy lecithin dairy alternatives for the European market. The company also received a GRAS no-objection letter from the FDA for its range of sunflower-based lecithin in April 2021. In November 2020, Lactalis Ingredients are offering a range of instant whey protein products based on sunflower lecithin, which aims to be minimally processed with sunflower lecithin.

COVID-19 Impact on Market

The COVID-19 pandemic has resulted in a devastating impact on the lecithin market in two main ways: by directly affecting production and demand, and by creating supply chain and market disruption. Due to the restrictions imposed on global trade, the supply and demand chain of the market specifically has been disrupted. However, the Food and Drug Administration (FDA) has relaxed labeling requirements under COVID-19 on a few ingredients including soy lecithin. The FDA exempted soy lecithin from the allergen list, stating that the product was never required to be labeled as an allergen. Such initiatives by the regulatory bodies have created ample room to rebalance the lecithin industry even in the face of persistent COVID-19 restrictions.