Lecithin and Phospholipids Market: Increasing use of lecithin for medicinal purposes to boost the market growth

The Lecithin and Phospholipids Market size reached USD 5.20 billion in 2021 and is expected to reach USD 8.16 billion by 2029, growing at a CAGR of 5.8 % during the forecast period.

Lecithin is made by extracting and purifying phospholipids from plant sources such as soybeans, eggs, sunflowers, and canola seeds. Phospholipids are the basic components of human cells, which are closely related to human nervous, reproductive, and hormone functions. Lecithin and Phospholipids have high nutritional and medical value and in some developed countries of Western Europe, it is considered equal to protein and vitamin. Lecithins have different affinities for oil and water and have low production costs, making them suitable for a variety of manufacturing processes. Lecithin's blending properties make it popular in the pharmaceutical, cosmetics, and food and beverage sectors. Lecithin is “generally recognized as safe” (GRAS) by the USFDA (United States Food and Drug Administration) and European regulatory bodies.

The food & beverage industry value exceeded USD 8.6 trillion in 2021 with an inclination toward health-beneficial and fortified foods, which has increased the consumption of lecithin products across the world. The growing demand for ready-to-eat products along with changing dietary preferences for low-sugar, low-fat, and organic baked products is also expected to positively influence the Lecithin and Phospholipids market growth during the forecast period. The Lecithin and Phospholipids manufacturing companies trying to enter the market are required to maintain stringent regulatory standards. This offers an edge to the established players in the Lecithin and Phospholipids market competition. Moreover, the high cost required for the investment also poses a major obstacle to the entry of new players in the lecithin & phospholipids market.

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Lecithin and Phospholipids Market Dynamics:
The High Potency of Soybean Lecithin to boost the Lecithin and Phospholipids Market growth

Soy lecithin is derived from raw soybeans and utilized as an ingredient in food products as well as a health supplement. Modern people live at a fast pace and therefore they required a lot of phospholipid nutrition. Timely supplementation of complete phospholipids is necessary for modern people. Medical scientists also began to pay attention to the positive role of Soybean lecithin in the prevention of disease because it does not have any side effects. It is confirmed by Clinical research that soybean lecithin can use to lower cholesterol levels and in cancer prevention. It is a good source of choline, vitamin E&K, and polyunsaturated fats. Phospholipids from Soybean Lecithin can effectively enhance cell function, metabolism, and the ability of cells to eliminate lipid peroxide. Soy lecithin also helps to regulate blood lipids, lowering cholesterol and preventing atherosclerosis. The increased focus on living a healthy lifestyle, along with a rise in the incidence of critical diseases has increased demand for nutrient-rich food, beverages, and supplements, pushing manufacturers to use nutrient-rich and cost-effective products such as soy lecithin.

The increasing growth of the pharmaceutical industry

Lecithin's multifunctional properties make it an ideal additive for medicinal purposes. In medicinal formulations, both natural and synthetic lecithin is used. Organic phospholipids are preferred due to their low cost, easy availability, and purity. Lecithin acts as a binding force and maximizes the beneficial results of the drug to enhance solubility and infusion. Asia Pacific is a leading producer of pharmaceutical ingredients, accounting for 46 to 50% of the global market, making it an important geographical region for lecithin manufacturers. The region's rapid increase in population has contributed to a rise in pharmaceutical demand, driving the use of lecithin products in Asian countries.

Increasing demand for natural food additives and Rising consumers' awareness of clean-label products

Clean Product labeling for food has become necessary in developed economies such as the US and EU countries. Consumers look for natural products that taste good and have fewer calories. The need for clean-label products is being driven by rising consumer awareness and health consciousness regarding the negative impacts of artificial additives in food and beverages. Clean-label emulsifiers are an important additive in the food, dairy, and baking industry. They are also widely used in the cosmetics industry because of the increasing beauty concerns and growing awareness regarding the use of harsh chemicals and their side effects. Lecithin is a good natural food additive that is used in the processing of the food & beverage sector to improve the quality of the product, add texture, and as a food thickener. They are using organic and non-GMO manufacturing techniques to secure a strong position in the market. Manufacturers are attempting to grow their customer base by focusing on a variety of end users and locations. They are putting more emphasis on growing their product portfolios by investing in R&D to provide cutting-edge and organic products.

The trend of consumer preference for low-fat products is rising rapidly, and marketing campaigns are planned around the world to highlight the use and health benefit of these products. Cargill, the US-based company produces lecithin that functions as a low-fat dressing, gaining the attention of companies who want to produce low-fat food products. The demand for the usage of lecithin is expected to grow in countries such as Japan, Australia, and other Asia Pacific countries.

Application of Lecithin and phospholipids as animal feed to provide market growth

Animal feed is made with lecithin and phospholipids. The chemical and physical features of lecithin have attracted animal feed makers. Lecithin improves the fertility rate of animals, especially fish and shrimp. The appropriate use of lecithin and phospholipids in animal feed can help in improving the lactation of mammals, the hatching rate of poultry eggs, and the breeding rate of seedlings. The manufacturing of lecithin and phospholipids is a complicated process that must comply with several government regulations. Scientific expert groups at the national and international levels thoroughly test lecithin and phospholipids, as well as food additives.

Authorities such as the European Food Safety Authority (EFSA), state authorities, and the Joint FAO/WHO Expert Committee on Food Additives (JECFA) are responsible for approving additives used in the production of food products. EFSA is responsible for inspecting and approving lecithin and phospholipids at each step of manufacturing and has established guidelines to meet the requirements for use in food and beverage products in Europe. Furthermore, the FDA provides standards for lecithin and phospholipids that are suitable for use within their respective restrictions in North America. However, the adoption of severe government rules governing the usage of lecithin and phospholipids has reduced the Lecithin and phospholipids market's growth rate.

The volatile price of Lecithin and Phospholipids

Manufacturers of lecithin & phospholipids use plant sources which include soy, sunflower, and rapeseed for the production of lecithin & phospholipids. These raw materials can be available in large quantities in the market. But the fluctuating prices of raw materials hampers the manufacturing company's profit margin. End-use industries, especially food manufacturers, demand high-quality lecithin that can be available at low prices.
Lecithin and Phospholipids Market Segment Analysis:
Based on Source, the soy segment held the largest market share of approximately 58% in 2021. Because of the growing food industry in regions of Europe and the Asia Pacific. These regions have the presence of extensive areas of land under soybean cultivation and production. Soy Lecithin is mainly used for the manufacturing of dairy products, ice creams, dietary supplements, infant formulas, bread, margarine, and other convenience foods. However, increasing concerns regarding cholesterol levels and allergic properties of soybean are expected to decrease their demand during the forecast period.

The sunflower seeds segment is expected to grow at a rapid rate because it provides a wide range of benefits to healthy foods. The demand for sunflower seed lecithin is expected to remain high on account of its growing consumption for manufacturing supplements during the forecast period.

Based on Type, the fluid lecithin segment led the market in 2021, with a market share of more than 49.5%. The growth might be attributable to the rising demand for fluid lecithin from application industries. Fluid lecithin products are standardized fluid mixtures of natural phospholipids and vegetable oils that are stable and easy to handle. Lecithin has emulsifying effects due to the presence of the abovementioned properties. As a result, it is appropriate for use in bakeries, confectionery, and other food and beverage products.

Based on Application, the food and beverage segment is constantly developing because of the changing consumer food habits. Consumers today expect high-quality foods and drinks at reasonable prices. Pre-cooked or ready-to-eat meals save time, money, and effort. These benefits have increased demand for quick meals, especially among working people and students. Lecithin and phospholipids are used as emulsifiers in food and beverage manufacturing because they improve product quality, and texture, and serve as a food thickener. As a result, the lecithin and phospholipids market is growing due to an increase in packaged food sales.
Lecithin and Phospholipids Market Regional Insights
In North America, the Lecithin and Phospholipids market accounted for the highest revenue share in 2021 because of the high purchasing power of consumers in this region. The increasing prevalence of health and diet-related issues is a key factor driving market developments. The United States is expected to dominate the lecithin market because it has the largest food and beverage industries; product innovation is one of the important drivers presenting growth opportunities to market players in the United States. The rising demand for high-protein food products by health-conscious consumers has encouraged manufacturers to offer a wide range of products, which results in the growth of the Lecithin and Phospholipids Market.

The Asia Pacific region dominated the global Lecithin and Phospholipids market share in 2021. The region's growth can be linked to rising demand from India and China, both of which are experiencing significant population growth and changing demographic trends. The presence of large areas of land for oilseed cultivation is likely to drive market growth. Lecithin is widely used in the manufacture of convenience foods and skincare products across India. The key lecithin and Phospholipids manufacturers are focusing on collaborating with local players in the Indian market, which is expected to provide lucrative opportunities to the market players.

This study focuses on the major driving factors and restraints that affect the Lecithin and Phospholipids market. Global and regional players in the Lecithin and Phospholipids industry are discussed in depth, including revenue data and market share information. The Lecithin and Phospholipids market analysis includes trends in Lecithin and Phospholipids, information about the potential market and needs, and lists of potential competitors. MMR has segmented the global Lecithin and Phospholipids Market report based on the Source, Type, Application, and region. The report contains strategic profiling of top key players in the market, a wide-ranging analysis of their core competencies, and their strategies like new product launches, growths, agreements, joint ventures, partnerships, and acquisitions that apply to the businesses. Our team of analysts can also provide you with data in excel files and pivot tables or can assist you in creating presentations from the data sets available in the report.
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Lecithin and Phospholipids Market


Report Coverage
Details


Base Year:
2021
Forecast Period:
2022-2029


Historical Data:
2017 to 2021
Market Size in 2021:
US $ 5.20 Bn.


Forecast Period 2022 to 2029 CAGR:
5.8%
Market Size in 2029:
US $ 8.16 Bn.


 Segments Covered:
by Source
• Soy
• Sunflower
• Rapseed and Canola
• Egg
• Others


by Type
• Fluid lecithin
• De-oiled lecithin
• Modified


by Application
• Feed
• Food and beverages
• Industrial
• Healthcare



Lecithin and Phospholipids Market, by Region
• North America
• Europe
• Asia Pacific
• Middle East and Africa
• South America
Lecithin and Phospholipids Market Key Players are:
• Cargill, Inc.
• ADM
• Lipoid GmbH
• Bunge Limited
• American Lecithin Company
• Global River Food Ingredients
• DuPont de Nemours, Inc.
• Stern-Wywiol Gruppe GmbH & Co. KG
• Haneil Soyatech Pvt. Ltd.
• NOW Foods
• Thew Arnott & Co. Ltd.
• GIIAVA
• AKK Soya International
• Imcopo Food Ingredients B.V.
• Sun Nutrafoods
• Lasenor EMUL., S.L.
• Sime Darby Unimills B.V.
• LECICO GmbH
• Wilmar International Ltd.
• Yugen Chemicals
• Barentz
• Tianjin Hexiyuan Lecithin Technology Co., Ltd.
• Orison Chemicals Limited

FAQs:

1. Who are the key players in the Lecithin and Phospholipids market?
Ans. Cargill, Inc., ADM, Lipoid GmbH, Bunge Limited, American Lecithin Company, Global River Food Ingredients, and DuPont de Nemours, Inc. are some of the market players in the Lecithin and Phospholipids industry.

2. Which Source segment dominates the Lecithin and Phospholipids market?
Ans. The Soy segment accounted for the largest share of the global Lecithin and Phospholipids market in 2021.

3. How big is the Lecithin and Phospholipids market?
Ans. The global Lecithin and Phospholipids market size reached USD 5.20 billion in 2021 and is expected to reach USD 8.16 billion by 2029, growing at a CAGR of 5.8 % during the forecast period.

4. What are the key regions in the global Lecithin and Phospholipids market?
Ans. Based On the region, the market has been classified into North America, Europe, Asia Pacific, Middle, East and Africa, and Latin America. Asia Pacific dominates the global Lecithin and Phospholipids market.