Lecithin Market- Latest Industry And Opportunity Analysis

Lecithin Market Overview

Lecithin Market size is projected to reach USD 2.07 Billion by 2032 from an estimated USD 1.24 Billion in 2023, growing at a CAGR of 5.86% globally.

Lecithin is a fat that is required in the cells of the body. It can be discovered in various foods, including egg yolk, soy, sunflower, rapeseed, cottonseed, and others. Lecithin has properties such as emulsifiers, lubricants, and surfactants. Lecithin is an emulsifier which are usually phospholipids produced from phosphoric acid, choline, glycerol, and another type of fatty acids and which is extensively used in the bakery sector. The product is utilized in commercial baking operations as it offers improved workability of doughs and batters. Therefore, the increase in the bakery industry is projected to directly influence the market demand for lecithin over the forecast period. Lecithin is generally used owing to its prominent features such as smoothening textures of food, softening powders, for homogenizing mixtures in liquid, to push back the sticky material, and also as a stabilizing agent. Furthermore, the application of lecithin to treat several health disorders including Alzheimer's and dementia. Additionally, it is used for the treatment of eczema, liver disease, gallbladder disease, high cholesterol, depression, and anxiety which leads to the lecithin market growth during the forecast period.

Market Dynamics And Factors:

Drivers:

• The packaged food sector has witnessed crucial growth on account of shifting consumer perception toward their eating habits. The shift in preference is especially turned by changing the lifestyle of consumers such as long working hours, rising number of women workforces, and quick availability to packaged food items that are accessible in a broad range of cuisines. Lecithin plays a role as an emulsifier at the time of processing of packaged food, which is applied in the production of processed meat such as ready-to-eat meals sausages, liver sausages, and salami.
• Rising R&D achievements by manufacturers to achieve profitable production and higher product development may hasten the market statistics. Additionally, government regulations and protocols for phospholipids act as a critical role in food application in the European region may boost the product demand. Global phospholipids business may exceed USD 4 billion by the end of the projected period. These are the compounds that are blended from a source such as lecithin which includes egg and soy and present various functional characteristics in pharmaceutical, nutrition & supplement application, which in turn foster lecithin industry growth.
• Most of the demand for lecithin is from the food and pharmaceutical sector as in the food industry it is used as a food additive due to its functional characteristics of anti-spatter and emulsifier. On the other hand, in the pharmaceutical industry it is utilized as a scattering agent and also supports encapsulation, thus it has been applied in form of nutritional supplement. In addition, lecithin also has been demanded as an industrial element where it is utilized as a release agent, anti-sludge additive, emulsifier, spreading agent, and other purposes. Plastic, textile, rubber, and paint are some of the other industries where lecithin is applied for industrial purposes. On scrutinizing all demands of lecithin in the global industry, it is evaluated that the food industry registers to the majority of share in terms of value and volume followed by the pharmaceutical industry and industrial purpose.

Restraints:

• Rising price variations of oilseeds on account of drought and political instability in major manufacturing economies along with the supply-demand gap are likely to act as a hamper for market growth. The production method of lecithin is capital intensive along with the application of harmful chemicals such as acetone and hexane in the blended of soy is probable to restrain the market growth.
• Additionally, the presence of a remarkably high number of players in the market is producing extensive competition. Lecithin is blended from soy, sunflower, canola, rapeseed, egg, and sometimes shrimps. Lecithin percentage in all raw materials is very low, differing from 0.3 – 1.0%, and thus requires attentive processing and high volumes of raw material, which leads to high production costs. These are major factors hampering the global lecithin market.

Opportunities:

Research and development activities and product advancements are expected to create lucrative opportunities for the lecithin market in the upcoming years.

Market Segmentation

Segmentation Analysis of Lecithin Market:

• Based on Source, the soy segment accounted for the largest market share during the forecast period. Soy is prominently used as an emulsifier in different commercial and industrial applications such as food, animal feed, personal care & cosmetics, and pharmaceutical. Furthermore, these are consisting of choline, glycerol, fatty acids, glycolipids and phospholipids these are usually utilized as a liquid, but can also be purchased as granules, which is probably to facilitate product demand in various economies.
• Based on the Application, the food and beverages segment are projected to account for the maximum market share over the forecast period. In food processing, lecithin provides an emulsifier, a viscosity reducer, a wetting agent, a crystallization control agent, and a release agent, and other things. Lecithin can also be utilized in a variation of industrial applications.

Regional Insights

• North America region is projected to dominate the market during the forecast period. Increasing demand for cosmetic products and growing disposable income followed by skincare and haircare products demand will boost the regional market growth. These products in cosmetics are used for skin care as they are moisturizing which is performed as a softening and soothing agent for all skin types. The powerful moisturizing characteristics help to keep the skin hydrated and make it an additive for restorative creams. It enhances the appearance of the damaged hair and supports straightening procedures as they avert fly-away hair, which are the key attributes favoring regional development.
• Asia Pacific region led by countries such as South Korea, Japan, India, and China lecithin market is probable to record remarkedly significant gains during the forecast period. Rising R&D investments in pharmaceuticals and the increasing trend towards generic drug production in the region are expected to accelerate market trends. In addition, the increasing population along with growing health standards has led to a rise in medical service spending. Rapid development in active pharmaceutical ingredients and health tourism market for various economies such as Malaysia, Thailand, and India may hasten the market growth.
• In the European region, the increasing utilization of healthy foods and nutritional supplements is turning the market demand. The rising research on non-GMO soy lecithin is likely to further trigger the demand and regional growth.
• Latin America is one of the significantly growing regions due to the presence of a large area of land under soybean cultivations. The demand is driven by prime economies, such as Brazil and Argentina, which are responsible for the major soybean cultivation. The switching consumer habits and growing disposable incomes are likely to foster the utilization in end-use industries.

Players Covered In Lecithin Market are:

•  Sun Nutrafoods (SNF)/Ago Solvent Products
•  Cargill Incorporated
•  Sternchemie
•  Archer Daniels Midland (ADM)
•  Avanti Polar Lipids
•  American Natural Processors
•  Danisco/DuPont Nutrition & Health
•  Ruchi Soya
•  AGD
•  Lasenor
•  Lecico
•  Lipoid
•  VAV Life Sciences
•  Sime Darby Unimills
•  The Lecithin Company
•  IMCOPA
•  FoodChem
•  Gauri Agrotech Products
•  Keshav Industries
•  Leci-Impex
•  Bunge Argentina and others major key players.

Key Industry Developments In Lecithin Market

• In July 2023, Bunge and Chevron’s Renewable Energy Group Inc., a subsidiary of Chevron Corporation acquired Chacraservicios S.r.l., based in Argentina from the Italian-based Adamant Group. This latest investment in novel seeds adds a new oil source to Bunge and Chevron’s global supply chains and will help both companies meet the growing demand for lower-carbon renewable feedstocks. Terms of the transaction were not disclosed.
• In March 2024, Sime Darby Berhad proudly announced the successful acquisition of UMW Holdings Berhad (UMW), securing a 100% stake in the company. This strategic move positions UMW as a wholly-owned subsidiary of Sime Darby Berhad, marking a significant milestone in the company's expansion and diversification strategy.