Lecithin Market Size, Share, Growth, Trends, and Forecast 2030

Industry Prospective:

The global lecithin market size was worth around USD 550 Billion in 2021 and is predicted to grow to around USD 912 Billion by 2028 with a compound annual growth rate (CAGR) of roughly 7.5% between 2022 and 2028. The report analyzes the global lecithin market’s drivers, restraints/challenges, and the effect they have on the demands during the projection period. In addition, the report explores emerging opportunities in the lecithin market.

Lecithin Market: Overview

Lecithin is derived from various commercial sources such as sunflower, egg yolks, soybeans, and many others. It is used in numerous industrial applications, which includes cosmetic, food and beverage, and pharmaceutical. It possesses several unique characteristics such as repelling sticky material, smoothening textures of food, homogenizing mixtures in liquid, stabilizing agent, for dissolving powders, and emulsifier.

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Different types of lecithin available in the market are refined lecithin and unrefined lecithin. Refined lecithin is unified with alcohol, phospholipids, and others. Unrefined lecithin is natural lecithin which is obtained from natural sources. They are extracted from sunflowers, soybeans, and others. However, chemically modified lecithin is generally modified through chemical treatments.

Key Insights

• As per the analysis shared by our research analyst, the global lecithin market is estimated to grow annually at a CAGR of around 7.5% over the forecast period (2022-2028).
• In terms of revenue, the global lecithin market size was valued at around USD 550 million in 2021 and is projected to reach USD 912 million, by 2028.
• Due to a variety of driving factors, the market is predicted to rise at a significant rate. The global lecithin market is projected to grow owing to the increasing application of lecithin in the cosmetics and pharmaceutical industry.
• Based on the source, the soy segment accounted for the largest market share in 2021.
• Based on form, the liquid segment accounted for the largest revenue share in 2021.
• Based on the end-use, the animal feed segment is expected to dominate the market during the forecast period.
• Based on region, the Asia Pacific is expected to hold the largest market share during the forecast period.

Lecithin Market: Growth Drivers

The organic nature of lecithin drives the market

Lecithin is a naturally occurring ingredient that appears in a range of foods. According to studies, lecithin is necessary for the healthy operation of the liver, nerves, brain, and other important organs. Lecithin is a beneficial dietary supplement that's also utilized to create eye drops, skin moisturizers, and food emulsifiers.

These ingredients improve one's health and spirit when taken as dietary supplements. As a result, the global lecithin market is anticipated to grow significantly during the coming years. Healthy-living individuals are more prone to use dietary supplements to maintain their health and enhance their mood. As a result, a preoccupation with preventative healthcare and potent endorsement partnerships for lifestyle-improving products have propelled the demand for lecithin in the dietary supplement industry. The main factor affecting the market is the rising consumer demand for food ingredients made from various dietary sources. Thus, the organic nature of lecithin along with rising awareness among individuals is expected to propel the market during the forecast period.

Lecithin Market: Restraints

Volatility in the price of the raw material is expected to impede the market growth

It can be challenging for the major players to plan their budgets for the upcoming initiatives because the costs of the raw materials are subject to fluctuation. Additionally, there are stringent government regulations in many places, which has led to a lack of consistency in the products' standards compliance and level of quality. The less developed economies have not yet reached the point where they are cognizant of the problem. Additionally, it is impossible to ignore the fact that certain people have a soybean allergy. Parents are also advised to keep lecithin out of the reach of their kids because there is insufficient data to support its safety.  

Lecithin Market: Opportunities

Increasing uses of lecithin in cosmetics and pharmaceuticals provide lucrative opportunity for the market growth

The increasing use of lecithin in cosmetics and pharmaceuticals is expected to provide a lucrative opportunity for the global lecithin market expansion during the forecast period. Diets high in lecithin increase HDL cholesterol levels while reducing LDL cholesterol. Lecithin supplements are also regarded to be advantageous for diabetics. Lecithin has received the US Food and Drug Administration's designation of "generally regarded as safe." When taken as prescribed, there are no known negative effects. More people are therefore aware of the advantages of using lecithin supplements.

In the cosmetics industry, Lecithin is becoming more popular, particularly in the field of skincare. Lecithin's capacity to lower the surface tension of the constituents is useful for emulsions as well. New skincare and personal care products are being introduced by top cosmetics brands in a variety of categories. Praan Naturals currently offers more than 500 certified organic and conventionally sustainable materials for the production of personal care items, including Organic Sunflower and Soy Lecithin Powder and Liquid. The growing demand for organic products in the cosmetic and personal care industries is driving up the price of soy-based lecithin.

Lecithin Market: Segmentation

The global lecithin market is segmented based on the source, form, end-use, and region

Based on the source, the global market is bifurcated into soy, sunflower, rapeseed, and others. The soy segment accounted for the largest revenue share of more than 70% in 2021 and is expected to show its dominance during the forecast period. This can be attributed to the expanding food business in regions of Europe and Asia-Pacific, where large tracts of land are used for soybean production and cultivation. It is mostly employed in the production of dairy goods, ice cream, nutritional supplements, newborn formulae, bread, margarine, and other ready-to-eat meals.

However, it is anticipated that during the projected period, demand would decline due to growing concern about rising cholesterol levels and the allergenic qualities of soybean. Besides, the sunflower segment is expected to grow at a significant rate during the forecast period owing to the wide range of benefits provided by sunflowers. Additionally, due to its rising use in the production of supplements, the demand for sunflower lecithin is anticipated to remain high.

Based on form, the market is segmented into liquid, powder, and granules. The liquid segment accounted for the largest revenue share of over 80% in 2021 and is expected to maintain its dominance during the forecast period. A significant increase in the demand for liquid form across a variety of end-use application industries, including industrial coatings, cosmetics, food processing, and confectioneries, is responsible for this high share.

While it is ingested as a dietary supplement in addition to being utilized in liquid form as a food additive or naturally in many food products. Instead of being pure phosphatidylcholine, liquid lecithin in dietary supplements is typically a blend of choline, inositol, phosphatidylcholine, phosphatide, and other substances. Additionally, compared to its other forms, the liquid form permeates in oil more easily. On the other hand, the powder segment is expected to grow at a significant rate over the forecast period.

Several end-use sectors, including feed, food & beverage, cosmetics, and pharmaceuticals, among others, employ lecithin powder as an ingredient. Products for bakeries and confectioneries typically contain the ingredient. To stop baked goods from adhering to the pans, the powder form is added to cooking sprays. Additionally, it has the remarkable ability to bind with both lipids and non-lipids, keeping substances containing both water and oil together. Key manufacturers favor powder over liquid in food items such as butter and confectionery for the same reason.

Based on end-use, the global lecithin market is bifurcated into convenience food, bakery, confectionary, pharmaceutical, personal care & cosmetics, animal feed, and others. The animal feed segment is projected to dominate the market during the forecast period owing to the ever-rising meat consumption by the majority of the population across the globe.

Moreover, the highly developed animal husbandry sector has contributed favorably to the industry's expansion. On the other hand, the convenience food segment is expected to hold a significant market share throughout the forecast period. When making food at home or in a restaurant, convenience foods save time and energy.

Lecithin helps to bind fat and keep it suspended in convenience food products, improve the hydration of high-protein components, lower the fat cap during the retort process, and improve the dispersion of high-fat powders. Additionally, its outstanding abilities to enhance mouthfeel and texture and make it easier for ingredients to be distributed evenly are anticipated to support its inclusion in the convenience food segment.

Recent Developments:

• In March 2021, for lecithin and phospholipids in North America, Lecico and Ciranda announced a distribution collaboration with a focus on clean-label food trends and regional commercial and technical support.
• In February 2021, for the European market, Strenchemie introduced soy lecithin dairy substitutes. Additionally, the FDA issued a GRAS no-objection notice to the company in April 2021 for its assortment of sunflower-based lecithin.

Lecithin Market Report Scope:

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Lecithin Market: Regional Analysis

The Asia Pacific is expected to hold the largest market share during the forecast period

A significant regional market has arisen in Asia-Pacific. The region has seen growth as a result of rising demand from China and India, whose populations are expanding quickly, as well as shifting demographic trends. Large tracts of land available for the cultivation of oilseeds are anticipated to further accelerate market expansion. The demand for lecithin in application categories such as convenience foods, bakery, and confectionery is anticipated to be driven by the rising number of small-scale food makers. Demand in the food and beverage industry is anticipated to increase even more as a result of the rapid new product development in these application segments.

Lecithin Market: Competitive Analysis

The global lecithin market is dominated by players like Cargill, ADM, Lucas Meyer GmbH., Thew Arnott Group, NOW Foods, DuPont, Sodrugestvo Group of Companies, Swanson Health Products, American Lecithin Company, Bunge Limited, Lipoid GmbH among others.

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The global lecithin market is segmented as follows:

By Source

• Soy
• Sunflower
• Rapeseed
• Others

By Form

• Liquid
• Powder
• Granules

By End-use

• Convenience Food
• Bakery
• Confectionary
• Pharmaceutical
• Personal Care & Cosmetics
• Animal Feed
• Others

By Region

• North America
  • The U.S.
  • Canada
• Europe
  • France 
  • The UK
  • Spain
  • Germany
  • Italy
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Southeast Asia
  • Rest of Asia Pacific
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• Middle East & Africa
  • GCC
  • South Africa
  • Rest of Middle East & Africa