Global Lecithin and Phospholipids Market Analysis by Source, Type, Nature, Application and Region and segments forecast till 2033

Market Overview

The global Lecithin and Phospholipids market was worth USD 1,370 million in 2022 and is anticipated to amplify at a CAGR of 6.91% over 2023-2033, thereby accumulating USD 2,500 million by end of the analysis timeline.

Phospholipids are predominantly referred to as a class of lipids having hydrophilic phosphate heads and hydrophobic lipid tails. They are regarded as one of the major components of cellular membranes that play significant roles in the human body. Phospholipids facilitate the transportation and absorption of Omega-3 fats and also aid in drug delivery.

Lecithin is a term given to a group of yellow-brownish fatty substances found in various plant and animal tissues. It is generally a mixture of fats that are vital to cells in the human body. Lecithin is found in numerous food sources including egg yolks and soybeans. Due to its amphiphilic nature, it is also used as a lubricant or emulsifier in a number of edible items. It also acts as an antioxidant or flavor protector at times. Escalating demand for nutrient-dense meals driven by rising health consciousness of the masses is primarily aiding the growth of this industry vertical. Alongside, surge in disposable incomes, shifting customer inclination towards naturally derived products, and lifestyle improvements are positively swaying Lecithin and Phospholipids Market dynamics.

Further, growing prevalence of lifestyle disorders like obesity and surging demand for sunflower based lecithin due to its neutral flavor are adding traction to Lecithin and Phospholipids Market expansion. However, volatility in the prices of raw materials and the presence of synthetic alternatives are likely to obstruct Lecithin and Phospholipids Market development in ensuing years.

There has been a surging preference for organic consumables due to the growing trends of veganism and vegetarianism. Moreover, increasing burdens of chronic disorders including diabetes, heart and respiratory ailments, and hypertension, among others, are also accelerating the demand for naturally derived food products. All these factors in turn are fueling the expansion of lecithin and phospholipids industry.

Report Scope

Impact of COVID

The outbreak of the COVID-19 pandemic had a positive impact on the growth of this market sphere. Due to surge in infection rates across the globe, people started adopting all the preventive measures to keep the infection at bay. As per the health experts, the primary way to prevent severe infection is to maintain a good immunity level. This in turn shifted the preference of the masses towards the consumption of food comprising of immunity boosting elements like lecithin and phospholipids. The COVID-19 pandemic has had a mixed impact on the Lecithin and Phospholipids market. On the one hand, there has been a surge in demand for lecithin and phospholipids as they are used in various food and pharmaceutical applications, which have seen increased demand during the pandemic. For example, lecithin is used as an emulsifier in various food products, including baked goods, chocolates, and margarine, which have seen increased demand due to the pandemic-induced lockdowns and people spending more time at home.

Overall, while the pandemic has created both challenges and opportunities for the Lecithin and Phospholipids market, the long-term impact is expected to be positive due to the increasing demand for these products in various industries.

Source Insights

The soy segment is anticipated to capture a high Lecithin and Phospholipids Market share over the assessment period owing to the ample availability of soy crop and easy lecithin extraction process. Soy lecithin is a commonly used emulsifier in the food industry and is extracted from soybeans, which are widely cultivated and readily available in many parts of the world. Soy lecithin is a byproduct of soybean oil production and can be easily extracted using a simple process that involves separating the oil from the bean and then purifying the lecithin. As soy lecithin is widely used in various food applications such as confectionery, bakery, and dairy products, among others, the availability of soy crop and easy lecithin extraction process make soy a preferred source of lecithin for many manufacturers. This is expected to drive the growth of the soy segment in the lecithin and phospholipids market over the assessment period.

In addition to the availability and ease of extraction, soy lecithin is also a cost-effective alternative to other types of lecithin, which makes it more appealing to manufacturers looking for affordable and functional ingredients. The versatility of soy lecithin, which can be used as an emulsifier, stabilizer, and texturizer, further adds to its popularity in the food industry. Overall, the combination of ample availability, ease of extraction, and cost-effectiveness make soy a dominant source of lecithin in the Lecithin and Phospholipids Market.

Type Insights

The de-oiled segment is slated to register notable gains over 2023-2033 due to the high nutritional benefits offered by de-oiled lecithin products. De-oiled lecithin is a byproduct of the soybean oil refining process, which is produced by removing the oil from raw soybean material using a mechanical or chemical extraction process. De-oiled lecithin is a highly functional food ingredient that has numerous benefits, such as emulsification, stabilization, and dispersibility. Additionally, it is low in fat and has high nutritional value, making it a preferred choice among health-conscious consumers.

As a result, the de-oiled lecithin segment is expected to witness significant growth over the forecast period. The increasing demand for healthier food products with functional ingredients is one of the key factors driving the growth of the de-oiled lecithin market. Moreover, the increasing use of de-oiled lecithin in the production of animal feed and pet food is further driving the growth of the market. Additionally, the rising demand for natural ingredients in the food and beverage industry is expected to boost the growth of the de-oiled lecithin market.

Nature Insights

The GMO segment is poised to garner significant returns over the stipulated timeline ascribing to the dual function of lecithin as a healthy and emulsifying food additive. Genetically Modified Organism (GMO) lecithin is produced through the modification of the soybean plant using biotechnology methods. This modification aims to enhance the quantity and quality of lecithin production, making it a cost-effective and sustainable source for various industrial applications. GMO lecithin offers several benefits, such as improved texture, increased shelf life, and better emulsifying properties, making it suitable for use in food and beverage industries. The use of GMO lecithin has been a topic of debate due to concerns about its potential impact on human health and the environment. However, regulatory bodies such as the Food and Drug Administration (FDA) have declared GMO lecithin as safe for human consumption, leading to its widespread adoption in the food and beverage industry.

Application Insights

The feed segment is expected to showcase substantial progression trends over the estimated timeframe attributing to the ability of lecithin to improve palletization in animal feed. Lecithin is a natural emulsifier that is used in animal feed to enhance the quality of feed pellets. It improves pelletization by reducing friction between feed particles, which results in a smoother surface and better texture of pellets. This, in turn, increases the palatability of animal feed, making it more appealing to animals and thereby increasing their consumption.

The feed segment is expected to grow due to the increasing demand for meat and dairy products, particularly in developing countries. The rising population and increasing disposable income are leading to an increase in demand for animal products. This, in turn, is driving the demand for animal feed, thereby boosting the growth of the lecithin and phospholipids market.

Regional Insights

Considering the geographical ambit, the Lecithin and Phospholipids Market is divided into North America, Middle East & Africa, Europe, Latin America, and Asia Pacific. Among these, Asia Pacific is projected to expand with a high CAGR over 2023-2033 owing to the rising adoption of food trends like veganism, growing health consciousness, and surge in per capita income of individuals. North America is expected to dominate the global Lecithin and Phospholipids Market over the forecast period, owing to the presence of major market players and increasing demand for natural food additives. Europe is projected to witness significant growth in the Lecithin and Phospholipids Market, attributed to the increasing demand for organic food and rising consumer awareness about the benefits of natural food additives.

Competitive Analysis

Key players operating in the worldwide Lecithin and Phospholipids Market are Cargill, Inc., DuPont de Nemours, Inc., IMCD Group B.V., Bunge Limited, ADM, Wilmar International, Ltd., VAV Life Sciences Pvt. Ltd., Lipoid GmbH, Lecilite Ingredients Pvt. Ltd., Fismer Lecithin, Sonic Biochem, The Hain Celestial Group Inc., Avril Group, Lasernor Emul, S.L., Kewpie Corporation, Sime Darby Oils, STERN-WYWOIL GRUPPE, Sun Nutrafoods, American Lecithin Company, and Sodrugestvo Group, Novastell, Sojaprotein, American Lecithin Company.

Recent News

·         In March 2022, The Archer Daniels Midland Company announced that it has expanded its non-GMO soy lecithin production capacity at its facility in Germany to meet the growing demand for non-GMO lecithin in Europe.

·         In December 2021, Cargill announced that it has acquired the lecithin business of a leading European supplier, which will enable Cargill to expand its presence in the European market for lecithin and phospholipids.

·         In October 2021, Lecico GmbH, a leading German supplier of lecithin and phospholipids, announced that it has entered into a strategic partnership with a leading supplier of plant-based ingredients to develop new lecithin-based products for the food and beverage industry.

·         In August 2021, DuPont Nutrition & Biosciences announced the launch of a new non-GMO lecithin product for the food and beverage industry. The product is designed to improve the texture and stability of food and beverage products while also providing a clean label solution.

·    In June 2021, Lipoid LLC announced that it has received organic certification for its lecithin and phospholipid products, which will enable the company to meet the growing demand for organic lecithin in the food and beverage industry.