Lecithin Market Size & Forecast

The Lecithin Market is expected to reach $2.91 billion by 2031, at a CAGR of 6.5% from 2024 to 2031. The growth of this market can be attributed to several factors, including the growing demand for natural and functional ingredients, the rising prevalence of lifestyle-based health issues, such as cardiovascular diseases, obesity, osteoporosis, and diabetes, growing demand for processed food & beverage products, and the rising awareness about phospholipids. However, the high presence of synthetic alternatives and allergic reactions due to soy products restrain the market’s growth.

Moreover, the increasing demand for lecithin from the personal care industry and the increasing use of lecithin in developing countries are expected to offer growth opportunities for the players operating in this market. However, fluctuations in raw material prices and availability and lack of awareness regarding the benefits of lecithin are some of the challenges impeding the market’s growth.

Additionally, the rising demand for non-GMO products and clean-label products is a prominent trend in this market.

Lecithin Market Growth Drivers

Growing Demand for Natural and Functional Ingredients

Nowadays, consumers are increasingly seeking out products with natural, organic, and functional ingredients that offer specific health benefits and are willing to pay premium prices for these products. The rising modern living among consumers has brought about changes and health issues such as heart disease, cancer, and diabetes due to the high usage of synthetic food additives. Consumers are demanding food and beverage products fortified with natural and functional ingredients that offer specific health benefits, such as improved digestion, enhanced immune function, and reduced risk of chronic diseases like obesity and diabetes.

Lecithin is gaining traction due to its naturally sourced form and associated health benefits. It can lower cholesterol, improve cardiovascular health, aid breastfeeding mothers, improve digestion, soothe and moisturize skin, and fight dementia symptoms. Due to its natural nature and various benefits, there is an increasing demand for lecithin in various food, pharmaceutical, and personal care products. Thus, the growing demand for natural and functional ingredients is further supporting market growth.

Growing Demand for Processed Food & Beverage Products

In recent years, there has been increasing demand for processed food and beverage products due to the global trend of urbanization, fast-paced lifestyles, a growing prevalence of nuclear families, an increasing number of working women, and the limited time available for food preparation. Also, increasing consumer spending on packaged foods and the increasing presence of processed food in the market are fueling growth for processed food products. As per the survey conducted by the International Food Information Council in November 2022, approximately 81% of the 1,000 American respondents regularly stocked shelf-stable, canned, or packaged foods in their households.

Lecithin is widely used as an emulsifier, viscosity reduction agent, and wetting agent in various processed food products like baked goods, ready-to-eat foods, confectioneries, pasta, and instant foods. Also, non-GMO soy lecithin is prominently used as an emulsifier, viscosity modifier, aerating agent, and lubricant in the food & beverage industry. It is widely used in products such as ice creams, confectionery, beverage powders, and baking mixes. Furthermore, 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. It can enhance mouthfeel, texture, and even distribution of ingredients, supporting its inclusion in the convenience food category. Furthermore, lecithin acts as an essential ingredient in processed food products, further supporting the growth of the market.

Lecithin Market Trends

Rising Demand for Non-GMO Products

More consumers are becoming aware of their health and focusing on living longer and healthier. They are mostly seeking healthy products that are non-GMO, natural, and free from additives or preservatives. There is increasing awareness about GMOs and their potential health impacts, which has led to a growing demand for non-GMO products. The intake of GMO food may cause toxicity in various organs, including the liver, pancreas, kidneys, and reproductive system. GMO foods can trigger an allergic reaction if the genetic change triggers the production of an allergen. Also, the consumption of GMO food supports the development of cancer by raising levels of potentially carcinogenic substances in the body.

Moreover, various governments and organizations are taking initiatives to increase the knowledge regarding the consumption of GMO-based food. For instance, the American Academy of Pediatrics (AAP) analyzes the use of genetically modified organism (GMO)-based foods and their effect on children's health in a new clinical report. It recommends that families should focus on a dietary pattern of primarily whole, plant-based foods while minimizing ultra-processed foods and avoiding GMO foods when possible. Thus, the increasing importance of this trend is further driving market growth.

Clean-label Products

Clean-label is a consumer-driven initiative primarily shaped by consumer perception of ingredient acceptability. Food products containing natural, familiar, and simple ingredients are clean-label products. Factors such as rising demand for organic, natural, and ‘free from’ artificial ingredients food products are expected to drive the demand for plant extracts across the globe.

Consumers are becoming more health-conscious and are seeking natural and organic products like clean-label products for their perceived health benefits and the desire to avoid synthetic chemicals and additives. The clean label trend is growing steadily across regions, with consumers paying more attention to ingredient lists, health claims, and the quality of products. Manufacturers are responding to increasing demand by reformulating products to meet clean label standards and consumer expectations. Moreover, the global sales of clean-label food ingredients are projected to reach around USD 64.1 billion by 2026 [source: Dairy Farmers of America, Inc. (U.S.)].

Lecithin is a clean-label ingredient widely used in various food applications due to its natural origin, versatility, and functional properties. It is mainly derived from soy, sunflower, and canola. Lecithin has clean-label benefits, as it can be sourced as non-GMO, organically produced, and label-friendly. Thus, increasing demand for clean-label products is a prominent trend that positively influences the lecithin market.

Lecithin Market Opportunity

Rising Demand for Personal Care Products

The growing demand for personal care products is escalated by an increased focus on personal grooming and hygiene, increasing spending on personal care products, a growing aging population, growing interest in personalized beauty solutions, a shift towards clean beauty, the continuous increase in online spending on beauty products, and the expansion of social networks. The demand for personal care is increasing in various countries supported by growth in vegan cosmetics. For instance, Europe is one of the highest markets for cosmetics. Market sizes in Europe are Germany USD 17.21 billion (€15.9 billion), France USD 14.83 billion (€13.7 billion), Italy USD 13.53 billion (€12.5 billion), the UK USD 11.90 billion (€11.0 billion), Spain USD 11.26 billion (€10.4 billion) and Poland USD 5.6 billion (€5.2 billion) in 2023 (Source: Cosmetics Europe).

Furthermore, the demand for herbal and natural cosmetic products is increasing due to increasing awareness and various concerns associated with the regular use of chemical-based cosmetics. Lecithin is an ingredient which is mostly used in skin care products. It acts as an emollient, making skin feel smooth by restoring hydration. Lecithin also helps in curing acne and eczema. It also improves skin tone and stimulates other parts of the body. Moreover, lecithin has antioxidant properties and is used in hair care, nail care, and decorative cosmetics. Therefore, the use of lecithin is increasing in cosmetic and personal care products, creating growth opportunities for the players operating in this market.

Lecithin Market Analysis: Key Findings

By Type: In 2024, the Unrefined Segment to Dominate the Lecithin Market

Based on type, the lecithin market is segmented into unrefined, refined, and modified. In 2024, the unrefined segment is expected to account for the largest share of the lecithin market. The large market share of this segment can be attributed to the increasing demand for food additives, the growing demand for natural ingredients with minimal processing, and the increasing use of unrefined lecithin in cosmetic products. In addition, easy and high availability and greater benefits over modified lecithin further support the growth of this market.

However, the refined segment is expected to register the highest growth rate during the forecast period of 2024–2031. The high growth of this segment is mainly driven due to refined lecithin’s hydrophilic properties, lower fat content compared to liquid lecithin, neutral color and flavor, ease of handling, and rising use in bakery and confectionery products.

By Source: In 2024, the Soy Segment to Dominate the Lecithin Market

Based on source, the lecithin market is segmented into soy, sunflower, canola/rapeseed, egg yolk, and other sources. In 2024, the soy segment is expected to account for the largest share of 45.1% of the lecithin market. The large market share of this segment can be attributed to factors such as the high availability of soy as raw material, low cost than other sources, and increasing use of soy-based lecithin in plant-based food and dairy alternatives. In addition, there is an increase in the use of soy-based phospholipids in cosmetics and pharmaceuticals as a natural ingredient, further driving the market growth.

However, the sunflower segment is expected to register the highest growth rate during the forecast period of 2024–2031. This segment's growth is mainly driven by the growing demand for healthy food products and the increasing demand for non-GMO-sourced lecithin. Sunflower lecithin is allergen-free, making it a suitable option for consumers with soy allergies or sensitivities, further fueling the segment's growth.

By Form: In 2024, the Liquid Segment to Witness Highest Demand During the Forecast Period

Based on form, the lecithin market is segmented into liquid, powder, and granular. In 2024, the liquid segment is expected to account for the largest share of the lecithin market. The large market share of this segment can be attributed to factors such as ease of use, high stability, and versatility. Liquid lecithin is more effective at emulsifying oil and water mixtures, which is crucial in many food and cosmetic applications.

By Application: In 2024, the Food and Beverages Segment to Dominate the Lecithin Market

Based on application, the lecithin market is segmented into food and beverages, pharmaceuticals & nutraceuticals, personal care, animal feed, and other applications. In 2024, the food and beverages segment is expected to account for the largest share of 46.4% of the lecithin market. The large market share of this segment can be attributed to factors such as the increasing demand for processed food products such as baked goods, dairy products, processed meats, and meat analog products and the growing demand for plant-based food products, including plant-based meat alternatives and vegan dairy products. In addition, it also acts as an emulsifier, stabilizer, wetting agent, antioxidant, and viscosity reducer in food products, which further supports the growth of the segment.

Geographical Analysis

Europe Dominates the Overall Lecithin Market

Based on geography, the lecithin market is majorly segmented into five regions: North America, Europe, Asia-Pacific, Latin America, and the Middle East & Africa. In 2024, Europe is expected to account for the largest share of 31.3% of the lecithin market, followed by North America and Asia-Pacific. Europe's lecithin market is estimated to be worth USD 585.5 million in 2024. Europe's significant market share can be attributed to several key factors, such as growing demand for healthy food products, increasing demand for natural ingredients in various industries, growing demand for plant-based food, presence of a large number of manufacturers offering products in the region, and high demand for animal feed in the region.

However, the Asia-Pacific region is projected to witness the highest growth rate during the forecast period due to the increasing consumer demand for processed food products, owing to population growth, rapid urbanization, and changing lifestyles. Also, high availability of raw materials, increasing presence of food and beverage manufacturers, rising awareness regarding natural ingredients, and growing demand for plant-based and functional products.

Lecithin Market: Key Companies

The report offers a competitive analysis based on an extensive assessment of the leading players’ product portfolios, geographic presence, and key growth strategies adopted in the last 3–4 years. Some of the key players operating in the Lecithin market are Cargill, Incorporated (U.S.), Archer-Daniels-Midland Company (U.S.), DuPont de Nemours, Inc. (U.S.), Lipoid GmbH (Germany), Bunge Global SA (U.S.), American Lecithin Company (U.S.), Global River Food Ingredients (U.S.), Sternchemie GmbH & Co. KG (Germany), Wilmar International Limited (Singapore), AAK AB (Sweden), Haneil Soyatech Pvt. Ltd. (India), Orison Chemicals Limited (China), Tianjin Hexiyuan Lecithin Technology Co., Ltd. (China), Sime Darby Oils Zwijndrecht Refinery B.V. (Netherlands), LECICO GmbH (Germany), and Sun Nutrafoods (India).

Lecithin Industry Overview: Latest Developments from Key Industry Players

• In November 2022, Novastell (France) launched soy lecithin and sunflower lecithin granules for application in food and beverages.

• In August 2022, Louis Dreyfus Company Agricultural Industries LLC (LDC) opened its new soy liquid lecithin plant in Claypool, Indiana, U.S.

• In September 2021, AAK AB (Sweden) acquired BIC Ingredients (Netherlands), a lecithin business of BIC International Holding, to increase AAK's presence in the European and global lecithin markets.
• In June 2021, Sternchemie GmbH & Co. KG (Germany) launched SternPur S DH 50, a hydrolyzed, de-oiled sunflower lecithin for various applications.

Lecithin Market Research Summary

Key questions answered in the lecithin market report: