The global lecithin and phospholipids market appears set to cross a valuation of USD 3.3 billion by 2033. The market is projected to grow at a CAGR of 7.1% during the period 2023 to 2033 and is valued at USD 1.7 billion as of 2023.
Some of the factors which might surge the market growth are:
The adoption of lecithin and phospholipids has been exponentially increasing in the healthcare sector. They are used for treating ailments like eczema, liver disease, gallbladder disease, high cholesterol, depression, anxiety, etc. Thanks to its ability to produce choline, which performs functions, like transporting fat, regulating metabolism, maintaining cells, and assisting nerves to transmit information.
Apart from that, there is a growing demand for the consumption of naturally sourced ingredients. Being abundantly available in nature in the form of red meat, peanuts, eggs, etc. ensures there is never a scarcity of lecithin. Thus, wide-ranging applications coupled with wide availability present a lot of scope for the market.
Lecithin and membrane phospholipids are used widely across the fast-food market owing to their ability to act as antioxidants and flavor protectors. The adoption of soy in fast food also helps in maintaining the right cholesterol in a few cases. Soy is also believed to be one of the phospholipids that the food industry adds to its products.
The fast-food market, which was valued at USD 730 billion as of 2021, is expected to grow at a CAGR of 7%. These statistics reveal that the market is up for a massive demand in the future, and they would continue offering lecithin food.
The change in lifestyle, which can be attributed to urbanization has led to a change in the eating pattern. This has led to a number of people turning towards food outlets, due to lack of time. Such restaurants generally make use of processed forms of soy, eggs, sunflower oil, etc., which are rich sources of lecithin and phospholipids.
Lecithin and phospholipids are also used across the beverage sector owing to their ability to reduce lumps and improve texture. Furthermore, beverage investors are also looking up to their ability to act as viscosity modifiers.
Lecithin is used as an additive in many food products, such as chocolate, ice cream mayonnaise, and salad dressing. Because of its ability to serve as an emulsifier, lecithin is used in ready-to-eat foods. Lecithin also keeps a chocolate bar intact by holding the cocoa butter and cocoa solids together. Apart from emulsification, lecithin is used to add moisture and extend the shelf life of products. The food industry's diverse use of lecithin would drive up demand.
Asia Pacific is expected to be the largest market during the forecast period. Urbanisation has led people across the region to lead a busy lifestyle, thereby motivating consumers to opt for on-the-go and RTE products. Additionally, the growing population coupled with an increase in the per capita income is expected to fuel the market growth.
| Attributes | Value |
|---|---|
| Lecithin and Phospholipids Market Value (2022) | USD 1.6 billion |
| Lecithin and Phospholipids Market Value (2023) | USD 1.7 billion |
| Lecithin and Phospholipids Market Forecast Value (2033) | USD 3.3 billion |
| Lecithin and Phospholipids Market Expected CAGR (2023 to 2033) | 7.1% |
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Since the time covid-19 struck the globe, people worldwide have started adopting practices to keep their health in the best condition. Owing to this, there has been a special focus on consuming a healthy diet. These factors have contributed to an increase in the CAGR.
While the historical CAGR was 5.8%, the anticipated CAGR for the forecast period is 7.1%. Burgeoning demand for lecithin as a supplement and beverage can be attributed to this increase. The short-term, medium-term, and long-term impact of various factors on the market growth can be attributed in the following manner:
The USA Food and Drug Administration has designated lecithin as generally known as safe (GRAS) (FDA). It is unlikely to cause adverse reactions when taken in safe quantities. This is helping in raising awareness regarding the consumption of lecithin supplements.
Lecithin is also gaining ground in the cosmetics sector primarily in skin care products. Additionally, lecithin aids in the formation of emulsions by lowering the surface tension of the emulsified substances. Leading manufacturers in the cosmetic industry are introducing various skincare or personal care products, which might lead to lecithin and phospholipids market growth.
For instance, in 2019, Praan Naturals launched both Organic Sunflower & soy Lecithin Powder and Liquid into its ethically derived product range of over 500 certified organic and traditional natural ingredients for personal care product manufacturing.
Niyok, which is based out in Germany has been manufacturing solid shampoo and conditioners. These make use of hydrogenated lecithin and phospholipids.
The demand for plant-based foods is rapidly expanding on a global scale. Oils and fats can make a significant difference in the final product's consistency and sensory experience. The use of lecithin and phospholipids for emulsification has been viewed as a significant opportunity in the market.
The vegan movement has become fairly popular in Europe during the past decade. This has given rise to the trend of ‘going meatless' with customers embracing meat- and dairy-free diets across various countries in the region.
Furthermore, plant-based ingredients have shot up in popularity with the rise of vegetarians, vegans, and the flexitarian population. Lecithin and phospholipids are widely accepted by vegan and vegetarian populations all over the world.
The growing demand for convenience foods, functional foods, and beverages is driving the lecithin and phospholipids market exponentially. The industry is expected to benefit from the rising demand for green and organic food products. With customers looking for balanced nutrition food choices that promote weight loss, the market in developing countries is expected to grow significantly.
Additionally, functional and natural ingredients in food and beverage products provide nutritional value that aids in the maintenance of healthy lifestyles. As a result, the demand for de-oiled lecithin and phospholipid is likely to continue increasing through the assessment period.
Large-scale companies are taking steps to ramp up the manufacturing of lecithin. This is done to increase the industrial application of phospholipids. The companies are integrating soybean processing, biodiesel production, and refining operations.
The focus is also on aligning the food-grade packaging line and the canola oil distribution terminal. These plants come with a capacity to crush more than 170,000 bus of soybeans per day.
This is done in a bid to diversify the revenue streams by expanding the presence in the ingredients value chain. In order to further support production, the companies have also increased the edible oil origination and production capabilities. For example, in April 2022, Louis Dreyfus inaugurated its soy liquid lecithin plant, which works along the same lines as mentioned above.
There are cases of allergy associated with the consumption of soy-based products. Apart from that, the availability of alternatives, like sorbitan esters, stearoyl lactylates, etc. is also hampering the market growth. The large-scale manufacturing of processed lecithin and phospholipids are yet to start on a large-scale basis, leading to a demand-supply gap.
The fluctuating price of raw materials is expected to have a massive impact on market growth. An increase in the price of raw materials can be attributed to supply chain disruption, especially in the North American region.
| Region | North America |
|---|---|
| Country | USA |
| CAGR (2023 to 2033) | 6.5% |
| Region | Europe |
|---|---|
| Country | UK |
| CAGR (2023 to 2033) | 4.8% |
| Region | Asia Pacific |
|---|---|
| Country | China |
| CAGR (2023 to 2033) | 10.3% |
| Region | Asia Pacific |
|---|---|
| Country | Japan |
| CAGR (2023 to 2033) | 11% |
| Region | Asia Pacific |
|---|---|
| Country | South Korea |
| CAGR (2023 to 2033) | 8.6% |
One of the main drivers of growth is the high purchasing power available to the USA. Furthermore, the USA is one of the world's largest producers and consumers of processed foods, creating demand. According to FMI, the USA will account for more than 76% of the market share in North America in 2023. The rising prevalence of health and diet-related issues is a key factor driving market developments.
| Attributes | Details |
|---|---|
| USA Lecithin and Phospholipids Market Expected Size (2033) | USD 792.7 million |
| USA Market Absolute Dollar Growth (USD Million/Billion) | USD 370 million |
| CAGR % 2017 to 2022 | 5.8% |
Aside from relatively higher levels of disposable income, Americans' increased awareness of chronic diseases has prompted efforts toward the adoption of a healthier lifestyle. As a result, lecithin sales in the country are expected to increase significantly.
The accumulation of scientific evidence of lecithin's multiple health benefits over conventional emulsifiers has aided market development. Consumers in the United Kingdom are becoming increasingly aware of the nutritional benefits of lecithin, which is driving market growth.
| Attributes | Details |
|---|---|
| UK Market Expected Size (2033) | USD 151.3 million |
| UK Market Absolute Dollar Growth (USD Million/Billion) | USD 56.2 million |
| CAGR % 2017 to 2022 | 3.8% |
Sales of plant-based goods are expected to rise by 13% in the United Kingdom alone over the next five years. Immunity and diet are becoming increasingly important aspects of an acceptable standard of living in the country.
FMI has listed the United Kingdom as one of the leading markets for lecithin. Increased healthcare spending is one of the main drivers of this growth. According to the Office for National Statistics in the United Kingdom, overall healthcare expenditure in the country accounted for 10% of the GDP in 2017.
With a growing emphasis on healthcare, the United Kingdom will offer attractive opportunities for the lecithin market to grow.
China is likely to present a highly profitable growth opportunity. The country has gained the nickname of the world's factory due to its robust business environment, low taxes and duties, and competitive currency activities. The rise in the demand for lecithin is contributing to the country’s output. In addition, following the covid-19 impact on the country, health trends such as immunity-raising foods have become fairly common in the world. As a result, consumers prefer lecithin content in food products. China is projected to hold a market share of nearly 50%.
| Attributes | Details |
|---|---|
| China Lecithin and Phospholipids Market Expected Size (2033) | USD 224.9 million |
| China Market Absolute Dollar Growth (USD Million/Billion) | USD 140.4 million |
| CAGR % 2017 to 2022 | 8.2% |
Japan is one of the most developed nations in the Asia Pacific region. Development and urbanization have certainly led to changes in the lifestyle of people. People generally prefer having food from quick-service restaurants as they are not left with much time to prepare food for themselves.
| Attributes | Details |
|---|---|
| Japan Lecithin and Phospholipids Market Expected Size (2033) | USD 170.2 million |
| Japan Market Absolute Dollar Growth (USD Million/Billion) | USD 110 million |
| CAGR % 2017 to 2022 | 10.2% |
Based on the research conducted by FMI, the Japanese quick-service restaurant market is expected to advance at a robust CAGR of nearly 10%. The quick-service restaurant market in Japan was valued at close to USD 456 million as of 2022. The market is expected to showcase a solid resurgence as lecithin and phospholipids are mainly used as emulsifiers and antioxidants.
South Korea has been witnessing an increase in dementia and Alzheimer’s cases. An increase in stress has certainly impacted the nervous system of a lot of people in South Korea, which has spurred the cases of dementia and Alzheimer’s disease. Based on research conducted by NCBI, the number of dementia cases rose from 126.41 per 100,000 persons in 2003 to 2,218.25 in 2015. The surging numbers have led to a number of pharmaceutical companies investing huge amounts in lecithin and phospholipids products.
| Attributes | Details |
|---|---|
| South Korea Lecithin and Phospholipids Market Expected Size (2033) | USD 88.9 million |
| South Korea Market Absolute Dollar Growth (USD Million/Billion) | USD 49.8 million |
| CAGR % 2017 to 2022 | 7.7% |
| Segment | Product Type |
|---|---|
| Attributes | Chemically Modified Lecithin |
| CAGR % 2017 to 2022 | 6.7% |
| CAGR % 2023 to End of Forecast(2033) | 7.8% |
| Segment | Form |
|---|---|
| Attributes | Powder |
| CAGR % 2017 to 2022 | 6.4% |
| CAGR % 2023 to End of Forecast(2033) | 7.2% |
The powder form of lecithin and phospholipids are expected to hold the largest lecithin and phospholipids market share during the forecast period. From the manufacturer’s perspective, the lecithin source should be crushed.
Following the crushing process, it is sent for purification, post which the final powder is obtained. This process allows the manufacturers to save tons of money, and they do not have to invest separately for capsules, or in melting.
Apart from that, lecithin powders have been used to treat cholesterol levels. Furthermore, healthcare experts recommend the powdered form of lecithin and phospholipids as these assist in maintaining the required dosage.
The chemically modified lecithin is expected to hold the largest market share during the forecast period. The modification of lecithin is done in order to produce better emulsifying properties. Apart from that, the chemically modified lecithin also assists in dispersibility in aqueous systems. Increased application in a gamut of industries, which includes food, pharmaceuticals, plastics, paints, etc. is expected to further surge the market share.
The chemically modified lecithin also assists in improving animal growth performance as these are added to animal feeds. Moreover, as the fatty acid is removed using phospholipase, these possess higher hydrophilic properties.
The pandemic followed by the Russia-Ukraine war has led to a shortage of lecithin and related products. Thus, the start-ups that are currently operating in the lecithin and phospholipids market are in search of various ways to overcome this shortage.
Based on the data available, around 70% of global lecithin is derived from Russia and Ukraine. However, the twist here is that instead of working on a product level, the emphasis will be more on the value chain analysis. Moreover, start-ups have come to the conclusion that the dependence on sunflower oil should be reduced. Alternatively, these are looking for ways to obtain lecithin in a hassle-free manner.
Thus, a lot of start-ups are shifting their focus toward the usage of rapeseed lecithin. This is believed to be a suitable replacement as it is non-allergenic and a non-GMO as well, which contributes to cost-cut as well.
In addition to product innovations, the key players operating in the lecithin and phospholipids market are laying a lot of emphasis on strategic partnerships. The key reason happens to be the medium to access various resources. Apart from that, the ability to access a large number of communities via strategic partnerships definitely gives an edge to the manufacturers. For example, in May 2021, Lecico joined PCMA to drive international innovation in the confectionery and snack sector.
Some of the recent developments in the lecithin and phospholipids market are:
The top players in the lecithin and phospholipids market are:
| Company | VAV Chemie Inc. |
|---|---|
| Description | VAV Chemie has been providing innovative solutions for pharmaceutical ingredients, nutritional supplements, and food ingredients. The company specializes in making ‘Lecithin and Phospholipids for cosmetic, nutrition, and pharmaceutical applications. They have been offering plant phospholipids, egg phospholipids, and synthetic phospholipids. VAV Chemie has been driven by ethics, technology, and quality of customer service. Being involved in this sector for a long time, the company understands the process of product development. They are believers in research, innovation, and customer service. |
| Company | American Chemie Inc. |
|---|---|
| Description | American Chemie has been the leading manufacturer for more than three decades. The company initially entered the chemical distribution business, with a special focus on pharmaceuticals. With the passage of time, the company has gone to cater to a diverse mix of industries. Being the preferred distribution partner, the company has been connecting customers and suppliers alike. This has helped develop a long-term relationship. The company has expertise in strategic sourcing, which has enabled it to build a robust alliance of globally recognized manufacturers. |
| Company | Lecico |
|---|---|
| Description | With over thirty years of experience in lecithin manufacturing, the company has an absolute grasp of the products. Lecico is a well-recognized player in the lecithin and phospholipid segment. The company has believed in meeting continuing trends toward high-quality food products and healthy nutrition. Lecico fully integrates a vertical supply chain. The company has always taken a flexible and customer-oriented approach. The company has clearly defined requirements with regard to quality, availability, and documentation of raw materials used. |
Other companies profiled: Archer Daniels Midland Company and Sonic Biochem.
The global lecithin and phospholipids market holds a valuation of USD 1.7 billion as of 2023.
The lecithin and phospholipids market is expected to grow at 7.1% CAGR from 2023 to 2033.
The global lecithin and phospholipids market is forecasted to surpass USD 3.3 billion by 2033.
Asia Pacific is the largest lecithin and phospholipids market.
The main drivers are: surging application of lecithin in healthcare sector and fast-food market.
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