Home / Food & Beverage / Industrial Lecithin Market by Type (Soy [GMO & Non-GMO], Rapeseed/Canola, Sunflower, Egg Yolk) by Distribution Channel (Agricultural spraying, Coatings, Inks & Paints, Industrial drilling, Leather Textiles)- Growth, Future Prospects And Competitive Analysis, 2016 - 2028

Industrial Lecithin Market by Type (Soy [GMO & Non-GMO], Rapeseed/Canola, Sunflower, Egg Yolk) by Distribution Channel (Agricultural spraying, Coatings, Inks & Paints, Industrial drilling, Leather Textiles)- Growth, Future Prospects And Competitive Analysis, 2016 - 2028

Published Date: Mar 2022
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Report ID: 60512
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Report Format: PDF
Food & Beverage
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Pages: 134
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Rating: 4.3 (43)

Industrial Lecithin Market Analysis

Lecithin is used in various industries, including food & beverage, pharmaceutical, and cosmetics. Fats and water are attracted to the amphiphilic characteristic of lecithin, a lipid group. Egg yolks, soybeans, sunflower seeds, and other commercial sources are all sources of lecithin. Lecithin is commonly employed for its unique properties, such as smoothening food textures, dissolving particles, repelling sticky substances, homogenizing liquid mixes, and acting as an emulsifier and stabilizing agent. Food manufacturers use commercial lecithin, a mixture of phospholipids and oil obtained from extracting oil from seeds. The most significant source of lecithin is soybean oil, and the exact mixture of phospholipids depends on the origin and location of the lecithin. Soy [GMO & Non-GMO], Rapeseed/Canola, Sunflower and Egg Yolk are major raw materials sources for the production of lecithin.

industrial-lecithin-market

Global Industrial Lecithin market is expected to witness CAGR of 9.07% during the forecast period. The revenue generated by the global Industrial Lecithin market in 2021 was over USD 246.14 million and expected to generate revenue worth USD 455.95 million in 2028. The incremental growth opportunity offered by the global Industrial Lecithin is estimated to be USD 2.47 billion between 2022 and 2028.     

Interesting Facts about Industrial Lecithin Industry

  • Lecithin naturally occurs in animal & plant tissue
  • Lecithin can be used in wide ranging applications including food, pharma, agricultural, animal feed, personal care and industrial applications
  • S., UK, Germany and France dominate the Lecithin demand
  • China, India, South Korea and Japan are expected to grow at a rapid pace
  • Soy is major source of Lecithin

Abundance of Raw Materials

There has been a constant growth of available raw materials used to manufacture lecithin over the past few years, fuelling the growth of the industrial lecithin market. The homogenizing properties that lecithin exhibits have also been growing the demand for lecithin in the industrial food industry. Lecithin is also very multifunctional and modifiable, boosting its demand in various end-use industries. Also, there has been a rising demand for natural, organic, and non-GMO lecithin worldwide.

Impact of Covid-19 on the Industrial Lecithin Market

The impact of Covid-19 was felt heavily in the lecithin market. The constant closures and lockdowns of manufacturing plants in different countries globally slowed down the industrial lecithin market considerably. Covid-19 affected the market heavily due to the disruptions in the supply chains and markets also. 

However, the one good thing that has happened for the industrial lecithin market is the relaxation of labelling requirements by the Food and Drug Administration ingredients like soy lecithin. Soy Lecithin is no longer required by the FDA to be labelled as an allergen anymore, bringing back balance to the lecithin industry.

Growing Demand in Various Industrial Applications

Agricultural spraying, Coatings, Inks & Paints, Industrial drilling and Leather Textiles are major application markets for lecithin. Lecithin is increasingly being used in manufacturing of paints, coatings and inks as they impart various important physical and chemical properties to end-products. Hence, paints & coating and inks accounted for over 35% share in 2021. While, leather textile and industrial drilling applications also held the significant share in global lecithin market in 2021.   

There is also an increased demand for lecithin in the health and wellness markets due to the growing awareness of lecithin's health benefits among the general population. The general population's use of lecithin products for preventative and therapeutic purposes grows globally.

Constant Price Fluctuations of The Raw Materials

The most significant restraint on the industrial lecithin market is the constant price fluctuations of the raw materials used to produce lecithin. There has been an increase in the price fluctuations of raw materials like oilseeds due to the Covid-19 pandemic, the changing global climate, and political instability, which could cause issues with matching the supply and demand of the lecithin industry. 

Another expected major restraint is the growing worries of the general population about genetically modified products. The use of genetically modified soybeans in lecithin manufacturing is a cause of major concern for the average consumer. Also, even though the FDA has recently eased the labeling regulations of lecithin, there is still concern about other laws and regulations related to genetically modified lecithin. Recently, the excessive intake of soy lecithin has also been associated with various health issues.

There is increasing demand for lecithin in North America and Europe. ADM, American Lecithin Company, Bunge Ltd., Cargill, DuPont, Giiava, Lecilite, Lipoid GmbH, NOW Foods, Sternchemie GmbH & Co. KG and Thew Arnott & Co., Ltd are some of the major players operating in the global Industrial Lecithin market.    

Frequently asked questions about global Industrial Lecithin industry

Likewise other industries, COVID 19 also taken a toll on Industrial Lecithin market with around 11.43% decline in its revenue in 2020 as compare to 2019

Europe is the largest regional market with highest share in the total volume of Industrial Lecithin consumed in 2021

Growing demand in paints, coatings and ink application is driving the demand for Industrial Lecithin

Soy [GMO & Non-GMO] segment dominated the Industrial Lecithin market in 2021 with over 55% share

Coatings, Inks & Paints segment was the largest application of Industrial Lecithin in 2021 with over 35% share

Industrial Lecithin Report Scope

Report Attribute Details
Market Value in 2021 USD 246.14 million
Market Value in 2028 USD 455.95 million
CAGR 9.07% between 2021 and 2028
Benchmarking Year 2021
Forecast period 2022 – 2028
Segments covered

Source

Soy [GMO & Non-GMO]

Rapeseed/Canola

Sunflower

Egg Yolk

Application

Agricultural spraying

Coatings, Inks & Paints

Industrial drilling

Leather Textiles

Major Players Analysed ADM, American Lecithin Company, Bunge Ltd., Cargill, DuPont, Giiava, Lecilite, Lipoid GmbH, NOW Foods, Sternchemie GmbH & Co. KG and Thew Arnott & Co., Ltd.
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