Lecithin Market - Forecast(2024 - 2030)

Lecithin Market Overview:

According to WHO, estimated 2.8 million people are dying each year as a result of being overweight or obese.^[1] ‘Natural healthy fats’ is a mega-trend engulfing majority of the share in food and beverage industry. Rising working class population amalgamated with health consciousness is attracting the consumers towards processed, convenient, and nutrition food. Extracted from natural sources such as soybeans, eggs, milk, marine sources, rapeseed, cottonseed, and sunflower, lecithin imparts virtuous traits as an emulsifier consisting of naturally occurring mixture of phospholipids, glycolipids, neutral lipids and sugars. This has led the lecithin market towards acquiring remarkable scope of applications in bakery and confectionery, pharmaceuticals, and dietary supplements. Leveraging the downstream sectors, developing a front dedicated to health-conscious consumers, the global lecithin market is valued at $860 million as of 2018.

Lecithin Market Outlook:

Non-toxicity of lecithin has led to its commercialization as a food additive. As it holds phosphatidylcholines, a source of choline and vital nutrient employed in the dietary supplement which is beneficial for ailments of liver and cholesterol. Simultaneously, due to the opportunities originating from cosmetics and livestock feed additive sectors, the lecithin market is progressing with a CAGR of 6.20% during the forecast period 2019-2025.

The lecithin market, in terms of application industries is bifurcated into food, nutrition and supplements, cosmetic, pharmaceutical, and animal feed sector. An in-depth business analysis of various sector identifies food sector at apex position, progressing with an application CAGR of 6.10% through 2025. In commercial confectioneries, lecithin reduces viscosity, regulates sugar crystallization, and the flow properties of chocolate. Delivering towards economic aspects, it restricts staling of baked goods, thus, increasing their shelf life. The global food and agricultural sector accounts for nearly 10% of the global GDP^[2] and with increase in count of middle-class population, confectioneries holds a major revenue in its pocket, drifting the lecithin market towards voluminous trade.

European economies such as the U.K., France, Spain, and Germany encompass several booming downstream sectors for lecithin application including dietary supplement, cosmetics and personal care, livestock feed and bakery market. Owing to abundant scope of exploitation and trade, Europe is the most productive marketplace, generating 32% of global lecithin market demand under its territory in 2018. Certain facts supporting the above arguments are-

· European Union food and drink industry is the leading employer in Europe with 4.57 million employees and covering 17.9% share in the EU exports.^[3] With geriatric population and the emphasis on health, the EU consumers are looking for healthier alternatives such as fresh, organic, artisanal, added-value food. Gluten-free and organic products are the modern key influences which are driving bakery market as the nutritional demand is increasing significantly. The bakery sector is dynamic in terms of innovation and is supporting the elevated trajectory of lecithin market demand.

· Sunflower lecithin is used in manufacturing of moisturizers, revitalizers and toning creams, shampoos, and conditioners. The European personal care products market is gaining high penetration as it is elevating from being a women centric domain and spreading its firm grip over the dominant and higher income-disposing male population as well, owing to the male pattern balding genetic circumstance in Britain. According to the National Health Service, in England, 50% of women above the age of 65 experience androgenetic alopecia or female pattern hair loss (FPHL) and Men’s Health Forum indicates that 7.4 million men are losing their hair at any one time.^[4]

Lecithin Market Growth Drivers and Trends:

· High quality meat-based protein demand is a major trend disrupting the lecithin market. Animal nutrition market employ soy lecithin in poultry feed due to its efficient provision of requisite amino acids for maximum poultry-based production. Limited livestock sector encounter the high meat-based protein demand and engagement with animal nutrition for proficient quality and capacity production.

· Increasing vegan population amalgamated with increasing instance of food allergies across the globe is enforcing the F&B sector towards developing an additional frontier of ‘egg-less products’. Egg-derived lecithin is not generally a concern for those allergic to eggs since commercially available egg lecithin is decidedly decontaminated and devoid of allergy-causing egg proteins. FDA has confirmed and approved lecithin for human consumption and placed it in ‘generally recognized as safe’ category. Likewise, lecithin is acknowledged by the EU as a food additive, labelled as E322.

· 10% decline in serum cholesterol in men aged 40 years reduces heart diseases by 50% within 5 years, as reported by WHO.^[5] The increasing instances of cholesterol is a major driver of lecithin market’s pharmaceutical application. Soy lecithin are used in treatment for hypercholesterolemia which cuts cholesterol levels along with alterations in fat metabolism and recovers neurological disorders which consequences in improving memory.

Lecithin Market Challenges:

Commercial lecithin, used by food companies, is a mixture of phospholipids in oil. The foremost phospholipids in lecithin from soya and sunflower are phosphatidyl ethanolamine, phosphatidyl inositol, phosphatidylserine, phosphatidyl choline and phosphatidic acid.

Engineering procedure of lecithin is capital intensive along with the application of hazardous chemicals in abstraction of soy is challenging factor expected to obstruct the market growth. However, sunflower lecithin is an efficient alternative to soy as these are procured naturally without the implementation of any chemicals providing an organic front for various health applications, thereby driving the industry growth.

Lecithin Market Players Perspective:

Some of the major players with established grounds in the global lecithin market share are DuPont Nutrition& Health, Lipoid GmbH, American Lecithin Company, Thew Arnott & Co., Ltd., Archer Daniels Midland Company, Bunge Limited, Cargill Inc., VAV Life Sciences Pvt. Ltd., NOW Foods, and Sternchemie GmbH & Co. KG. To have a foot ahead of the arc in this competitive landscape, the companies are involved in mergers and acquisitions to widespread their regional dominance. Emphasis on novel product range is expected to increase viable advantage which will foster market growth.

ENHANCE Soy Lecithin is a range of lecithin containing food in the form of fluid and powder providing inimitable nutritional and functional applications in a range of pet foods, companion animal foods, calf milk replacers, aquaculture and production animal’s diets.

Lecithin Market Research Scope:

The base year of the study is 2018, with forecast done up to 2025. The study presents a thorough analysis of the competitive landscape, taking into account the market shares of the leading companies. It also provides information on unit shipments. These provide the key market participants with the necessary business intelligence and help them understand the future of the lecithin market. The assessment includes the forecast, an overview of the competitive structure, the market shares of the competitors, as well as the market trends, market demands, market drivers, market challenges, and product analysis. The market drivers and restraints have been assessed to fathom their impact over the forecast period. This report further identifies the key opportunities for growth while also detailing the key challenges and possible threats. The key areas of focus include the various types of products in global lecithin market, and their specific advantages.

The global Lecithin Market report also analyzes the major geographic regions for the market as well as the major countries for the market in these regions. The regions and countries covered in the study include:

•           North America: The U.S., Canada, Mexico

•           South America: Brazil, Venezuela, Argentina, Ecuador, Peru, Colombia, Costa Rica

•           Europe: The U.K., Germany, Italy, France, The Netherlands, Belgium, Spain, Denmark

•           APAC: China, Japan, Australia, South Korea, India, Taiwan, Malaysia, Hong Kong

•           Middle East and Africa: Israel, South Africa, Saudi Arabia

Key Questions Addressed in the Lecithin Market Report

1.         Is the market for the lecithin growing? How long will it continue to grow and at what rate?

2.         Which type of systems presents the major growth opportunities?

3.         Is there a possibility for change in the market structure over time? 

4.         Are additional developments needed for the existing product or services offerings or do the existing products meet the customer demands?

5.         Do the key vendors look for partnerships to expand their businesses with respect to geography or product?

6.         What are the short-term, long-term, and medium-term growth drivers for the market?

7.         What are the short-term, medium-term, and long-term challenges for the market?

8.         What are the short-term, medium-term, and long-term opportunities for the market

9.         Who are the top players/companies of the market?

10.       What are the recent innovations in the market?

11.       How many patents have been filed by the leading players?

12.       What are the types of patents filed by the leading players?

13.       What is our Vision 2030 lecithin market?

A few focus points of this Research are given below:

•           Give a deep-dive analysis of the key operational strategies with focus on the corporate structure, R&D strategies, localization strategies, production capabilities, and sales performance of various companies

•           Provide an overview of the product portfolio, including product planning, development, and positioning

•           Discuss the role of technology companies in partnerships

•           Explore the regional sales activities

•           Analyze the market size and giving the forecast for current and future lecithin market during the forecast 2019–2025

•           Analyze the competitive factors, competitors’ market shares, product capabilities, and supply chain structures.

[1] https://www.who.int/features/factfiles/obesity/en/

[2] https://www.forbes.com/2007/11/11/growth-agriculture-business-forbeslife-food07-cx_sm_1113bigfood.html#453f1496373e

[3]https://www.fooddrinkeurope.eu/uploads/publications_documents/FoodDrinkEurope_Data_and_Trends_2018_FINAL.pdf

[4] http://www.bad.org.uk/for-the-public/patient-information-leaflets/androgenetic-alopecia/?showmore=1#.XLcGijAzbIU

[5] https://www.who.int/gho/ncd/risk_factors/cholesterol_text/en/

@2019 IndustryARC