Soy Lecithin Market Overview
The Soy Lecithin Market size is forecasted to reach US$712.4 million by 2027, after growing at an estimated CAGR of 4.6% during the forecast period 2022-2027. The soy lecithin is a naturally occurring fatty compound that is composed of phospholipids, which include phosphatidic acid, phosphatidylcholine, phosphatidylserine, phosphatidylethanolamine and other components, fatty acids and others. Soy lecithin has a wide range of applications in cosmetics, pharmaceuticals, textiles, construction and others because of its excellent functions as an emulsifying agent, a wetting agent, a lubricant and a release agent. The rising demand for soy lecithin in the food & beverage sector such as packaged foods, bakery goods, meat, confectioneries and others due to its superior emulsifying properties is anticipated to offer major growth opportunities in the Soy Lecithin Market during the forecast period. COVID-19 led to a major slowdown in the soy lecithin industry due to factors such as the closure of food & beverage outlets, halted production activities, raw material supply disruptions and other lockdown restrictions. However, with flourishing demand from major industries and recovery in the market, the demand for soy lecithin is anticipated to rise. This would offer rapid growth in the market and would contribute to the growing Soy Lecithin Market size during the forecast period.
The “Soy Lecithin Market Report – Forecast (2022-2027)” by IndustryARC, covers an in-depth analysis of the following segments in the Soy Lecithin Industry.
- North America dominates the Soy Lecithin industry due to the growing production base for soybeans, along with major advancements and development in healthcare, personal care, construction and others. These factors continue to boost market growth.
- The Soy Lecithin Market size is growing because of the rising emphasis on biobased and organic lecithin products, high demand and applications across major end-use industries during the forecast period.
- The liquid Soy Lecithin has excellent features such as blendability, viscosity control and emulsification, which boost its demand in the food & beverage sector.
- However, the health risks associated with GMO Soy Lecithin such as allergies, vomit and others, along with rising soybean and Soy Lecithin prices hamper the growth of the market.
Soy Lecithin Market Segment Analysis – by Form
The liquid segment held the largest Soy Lecithin Market share in 2021 and is forecasted to grow at an estimated CAGR of 4.2% during the forecast period 2022-2027. The liquid form of soy lecithin is high in demand as it smoothly blends with processed food products and removes a barrier. The soybean phospholipids consist of glycerophospholipids, phosphatidylethanolamine, phosphatidic acid, phosphatidylinositol, phosphatidylcholine, phosphatidylserine and sphingomyelin and have usage of liquid soy lecithin in food and beverage industry for bakery, soups and others. According to the India Brand Equity Foundation (IBEF), the food processing sector in India is estimated to reach US$535 billion by the year 2025-26. According to the U.S Department of Agriculture (USDA), the per capita consumption of baked products is 7.2 kg per year in China, 40.2kg in the United States and 22.5 kg in Japan. Moreover, the retail sale of baked goods in China is projected to grow to US$53 billion by 2025. With the robust consumption and growth of baked food items, the application of liquid soy lecithin as a flavor protector and antioxidant is rising, which is boosting the demand for soy lecithin in the food & beverage industry. Thus, the liquid Soy Lecithin form is anticipated to grow rapidly during the forecast period.
Soy Lecithin Market Segment Analysis – by End-use Industry
The food & beverage segment held the largest Soy Lecithin Market share in 2021 and is forecasted to grow at an estimated CAGR of 5.1% during the forecast period 2022-2027. Soy lecithin has a growing demand in the food & beverage sector due to flourishing applications in food items, confectioneries, meat & poultry, infant formulas, juices and others. The high demand for soy lecithin in the food and beverage industry is due to its superior properties such as emulsification, flavor protection and antioxidant features. According to the U.S Department of Agriculture (USDA), the full-service and fast-food restaurants, the two largest segments of the food service market accounted for 73.7% of all food-away-from-home sales in 2020. Furthermore, according to the Food & Drink Federation, the food and drink manufacturing business in the UK saw an increase of 7.9% in 2021 as compared to 2020. The flourishing food and beverage item production is boosting the growth of soy lecithin for a wide range of applications in the food and beverage industry, thereby contributing to the growth of the food and beverage segment in the Soy Lecithin market during the forecast period.
Soy Lecithin Market Segment Analysis – by Geography
North America held the largest Soy Lecithin Market share (up to 37%) in 2021, owing to the robust demand for soy lecithin from major end-use sectors such as medical & healthcare, cosmetics & personal care, food & beverage and others in this region. The robust growth in the pharmaceutical sector is driving the Soy Lecithin Market, owing to major healthcare development, drug development activities and others. According to the International Federation of Pharmaceutical Manufacturers & Associations (IFPMA), the estimated growth of the pharmaceutical sector for 2022 was 5.4% in North America. Furthermore, according to World Bank data, health expenditure in North America accounted for 16.32% of the GDP in 2019. The cosmetics and personal care sector is also rapidly growing in North America and contributes majorly to the growth of soy lecithin. According to the L'OREAL Annual Report 2021, the growth of like-for-like sales in cosmetics accounted for 22.2% compared to negative 7.4% like-for-like sales in 2020. The North American region held a 25% share in L'OREAL sales in 2021. Moreover, with a flourishing base for soy lecithin and soy production in the North American region, the demand for soy lecithin in North America is growing. Thus, the North American Soy Lecithin Market would grow rapidly during the forecast period.
Soy Lecithin Market Drivers
Flourishing Application in the Cosmetics and Personal Care Industry:
Soy Lecithin has a rising demand in the cosmetics & personal care industry for a wide range of applications in skin care products (such as facial creams, lotions, cleansers and others), hair care products, primers, lip balms and others due to its superior functions such as emollient, emulsifying agent, viscosity control and others. Cosmetics & personal care is growing rapidly due to flourishing trend and production for beauty products, owing to high demand majorly from female users. According to the International Trade Administration, the beauty and personal care sector in Thailand is projected to grow at 5.5% through 2025. Moreover, as per the annual report 2021 by LOREAL, the annual revenue for cosmetics in 2021 accounted for US$34.57 billion compared to US$29.88 billion in 2020. Skincare held a share of 42%, haircare of 22% and hygiene products of 10% in 2020. With the rise in the cosmetics and personal care products such as skincare, haircare and others, the demand for soy lecithin for various applications in the cosmetics and personal care sector is flourishing, thereby driving the market and offering major growth opportunities in the Soy Lecithin industry.
Increasing Demand from the Medical & Healthcare Sector:
Soy Lecithin is composed of phospholipids, which include phosphatidic acid, phosphatidylcholine, phosphatidylserine, phosphatidylethanolamine and other components. It has flourishing applications in the healthcare sector for medications, natural supplements and drugs used in the treatment of liver disease, controlling high cholesterol and others. The medical industry is growing rapidly owing to flourishing development in healthcare infrastructure, increasing incidents of chronic disorder cases and high growth in drug development and advancements. According to the Indian Economic Survey, the domestic pharmaceutical industry in India is anticipated to reach US$65 billion by 2024 and further expand to US$125-130 billion by 2030. According to the Germany Trade and Investment (GTAI), the vitamin & minerals supplement OTC medications held US$1,189 million and joint pain treatment medications were US$1,498 million in the pharmacy segment in Europe 2019. With the high demand for over-the-counter (OTC) medications and supplements, the demand for soy lecithin in the medical and healthcare industry for dietary supplements, medications and other OTC drugs is rising, thereby driving the market.
Soy Lecithin Market Challenges
Health Issues and Rise in Soy Prices Hinder the Growth:
The genetically modified (GMO) Soy Lecithin is considered hazardous and is prone to various allergic reactions and health hazards such as gastrointestinal problems, low blood pressure, vomit and others. Moreover, the hike in the prices of soybean creates a challenge in the market as it affects the demand, supply and production trends in the industry. The soy prices are soaring and the Soybean Futures Trading was US$45.10 per quintal in October 2020, which spiraled to US$79.90 per quintal in August 2021 in India. Furthermore, Lasenor, a manufacturer of soy lecithin, stated that the prices for the non-GM IP soya lecithin rose from 6% to 9% when compared to 2020 and 2021. Thus, with major health risks and price rises associated with soy lecithin, the Soy Lecithin Market faces a slowdown and growth hamper.
Soy Lecithin Industry Outlook
Technology launches, acquisitions and R&D activities are key strategies players adopt in the Soy Lecithin Market. The top 10 companies in the Soy Lecithin Market are:
- American Lecithin Company
- Lipoid GmbH
- DuPont de Nemours Inc.
- Sonic Biochem Extractions
- Cargill Inc.
- NOW Foods
- Wilmar International
- LECICO GmbH
- Praan Naturals
- Lasenor Emul S.L.
- In September 2021, AAK acquired BIC Ingredients, the lecithin arm of BIC International Holdings. The company deals with sunflower, soy, rapeseed and other organic lecithins. The acquisition aimed to hold boost the product portfolio in specialty lecithin and offer reliable solutions in food, Pharma, cosmetics and others.
- In September 2019, Praan Naturals launched the organic soy lecithin powder and liquid for usage in the cosmetics and personal care sector. The product launch aimed to expand the product portfolio and diversify applications in cosmetics for skin care, nail care, hair care and others.
- In February 2019, Lasenor Emul, SL., and Simmons Grain Co. formed a joint venture named Lasenor USA LLC. The joint venture aimed to boost the production of full set organic soy lecithin products, which have major use in food and non-food applications. Thus, it offered a major growth in the market.
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