De-oiled Lecithin Market by Source (Soybean, Sunflower, Rapeseed & Canola, Eggs), Nature (Non-GMO and GMO), Form (Powder and Granules), Application (Food & Beverages, Feed, Industrial and Healthcare Products) and Region - Global Forecast to 2028
[324 Pages Report] The de-oiled lecithin market is estimated at USD 220 million in 2023 and is projected to reach USD 321 million by 2028, at a CAGR of 7.8% from 2023 to 2028. The increased demand for nutrients for the human body has resulted from urbanization and a fast-paced lifestyle. As a result, food additives have been mixed into food products. Natural food additives boost the nutritious content of the foods they are mixed with without causing any harm. Natural ingredients are in high demand in both the conventional and organic food industries. According to article by BakeryandSnacks (leading online news source for the bakery and snacks sectors) 2022, natural ingredients are leading consumer trends: approximately 47% of global consumers ask for natural products, and 55% of respondents look for natural features when buying products in at least one category. Natural food additives are in high demand because of stringent EU regulations prohibiting the use of synthetic additives. As a result, the food additives market has grown exponentially. De-oiled Lecithin is one such additive derived from many sources such as soy, egg, and sunflower. De-oiled Lecithin contains lipids, which are essential for the body. The demand for food products laced with de-oiled Lecithin is increasing to maintain a healthy lifestyle.
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De-oiled lecithin Market Dynamics
Driver: Increasing consumer awareness about clean label products.
Natural and clean label health product sales are increasing as more people adopt better lifestyles. Natural and organic health products are regarded to be safer and of higher quality. According to a survey conducted on behalf of Food Supplements Europe 2021, 56% of respondents consider organic, natural, or non-GMO labelling when purchasing supplements. This corresponds to an increase in demand for organic products. In 2020, European organic retail sales surpassed €52 billion, up roughly 15% from the previous year. Consumers in Europe want to avoid synthetic chemicals and pesticides in the food. Many people are concerned about the environmental impact of conventional farming and prefer organic farming methods. Additionally, organic food and beverages do not include synthetic food additives. This opens a new market for natural food additive suppliers in developing countries. As the organic food market grows, so does the demand for natural food additives. Consumers are becoming more health-conscious and are looking for food products that are free from synthetic ingredients and additives. De-oiled lecithin is a natural alternative to synthetic emulsifiers and stabilizers, making it a popular choice for manufacturers of organic and natural food products. Natural ingredients are in high demand in both the conventional and organic food industries.
Restraint: Volatile prices of raw materials
One of the primary challenges presented by fluctuations in raw material prices is the impact on production costs. When the price of soybeans increases, the cost of producing de-oiled lecithin also increases, which can lead to higher production costs for manufacturers. In turn, this can lead to higher prices for finished products that contain de-oiled lecithin as an ingredient. Consumers may be reluctant to pay these higher prices, which can impact demand for these products and ultimately impact the profitability of manufacturers. Another challenge presented by fluctuations in raw material prices is supply chain disruptions. If the price of soybeans increases suddenly, manufacturers may struggle to secure a reliable supply of de-oiled lecithin at a reasonable price. This can lead to delays in production, increased lead times, and potentially even shortages of products that contain de-oiled lecithin. These disruptions can have significant consequences for manufacturers and consumers alike. As raw material prices change, manufacturers may need to adjust their production processes, which can impact the quality and consistency of the finished product. This can be particularly challenging for manufacturers that produce products with strict quality control requirements, as even small variations in the quality of the raw material can impact the quality of the finished product. Overall, fluctuations in raw material prices can be a challenge for the de-oiled lecithin market because they can create uncertainty and instability in pricing and supply chain management.
Opportunity: Emerging markets & changing consumer lifestyles
Consumer preference for low-fat products is quickly increasing, and marketing campaigns are being developed to highlight their use and health benefit claims. Cargill (US) manufactures de-oiled lecithin, which serves as a low-fat dressing, attracting the interest of companies seeking to manufacture low-fat food products. The expansion in processed food production and innovation in almost all areas, such as meat products, dairy, and bakery & confectionery items, may drive demand for low-fat products. However, demand for de-oiled lecithin is likely to expand continuously in early adopting nations like Japan, and exponentially in new and emerging markets like Australia and other Asia Pacific countries. Furthermore, Asia provides a cost advantage in terms of production and processing. Strong demand, combined with low production costs, is an important ability that would benefit De-oiled lecithin suppliers.
Companies in the de-oiled lecithin market are broadening their product offerings and increasing their distribution base to pursue aggressive expansion strategies in emerging economies. They concentrate on tapping emerging economies with expanding urban demographics. Major players can strengthen their position by expanding their consumer base to Asia Pacific, South America, the Middle East, and Africa. Manufacturers have already begun to focus on these regions to expand their footprint; corporations are launching new products and gaining approval from regional governments to position their products in those countries. In April 2014, Cargill received license to use sunflower lecithin in Japan. Development in these growing regions in the next years will provide exciting opportunities for business expansion. As a result, the players in this market can tap new markets to gain profits. In 2021, Lecico, the subsidiary of Avril Group went into an agreement deal with Ciranda for the North American de-oiled lecithin market which would help the company with expansion of Non-GMO products in the market.
Challenge: Stringent government regulations
The de-oiled lecithin business is growing in popularity around the world. It is increasingly used in food, feed, healthcare, and personal care, directly affecting the health or interests of customers. As a result, the de-oiled lecithin market is regulated to protect customers' interests because it is utilized in vital industries such as food, beverages, healthcare, and personal care. The stringent government regulations that monitor, control, and regulate the manufacturing, distribution, and consumption of de-oiled lecithin will pose a challenge to the market's growth.
De-oiled Lecithin Market Ecosystem
Prominent companies in this market include well-established, financially stable manufacturers of de-oiled lecithin. These companies have been operating in the market for several years and possess a diversified product portfolio, state-of-the-art technologies, and strong global sales and marketing networks. Prominent companies in this market include Cargill Incorporated (US), ADM (US), Stern-Wywiol Gruppe (Germany), IMCD Group B.V. (US), and Bunge (US).
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Based on Source, soybean segment is estimated to account for the largest market share of the De-oiled lecithin market
Based on Source, the soybean segment is estimated to account for the largest market share. Soybean is a legume that originated in East Asia. According to USDA, in 2021/2022, China was the leading soybean oil-producing country with a production volume of about 15.68 million metric tons. Soy lecithin is used as an emulsifier and as a lubricant. When added to food, it is also known to provide antioxidants. Soy lecithin also helps to preserve food flavors. Because of its ease of availability, soybean is favored among de-oiled lecithin manufacturers. Additionally, the extraction of de-oiled lecithin from soybean is inexpensive in comparison to other commodities, making it a cost-effective endeavor for producers. De-oiled soybean is becoming more popular in the personal care and pharmaceutical industries. As a result, the growing personal care and pharmaceutical industries will benefit soybean development.
The powder form of the de-oiled lecithin market is projected to witness the highest CAGR during the forecast period.
Based on form, the powder segment is estimated to account for the highest growth rate. The powder form of De-oiled lecithin is easier to handle and transport. It has a longer shelf life than liquid lecithin, which can spoil if not stored properly. This makes it more convenient for manufacturers to use and store and reduces the risk of product wastage. The powder form of de-oiled lecithin is more versatile than other forms. It can be easily added to dry mixtures, such as bakery mixes, without affecting the texture or moisture content of the final product. This makes it ideal for use in a wide range of applications, including food, feed, and industrial products.
Based on application, the Food & beverages segment are anticipated to dominate the market.
Based on application, the market is segmented into food & beverages, feed, industry, and Healthcare. De-oiled Lecithin is a natural preservative that helps baked foods last longer. It helps in the retention of moisture in baked goods, hence increasing their freshness. It protects the flavor of food and contains antioxidants, which contributes to its increasing use in the food industry. It is used as an emulsifier in packaged foods. De-oiled Lecithin is now being utilized to improve the consistency, flavor, shelf-life, and texture of vegan products. The growing use of de-oiled lecithin in the food industry propels the segment's growth.
The Asia Pacific market is projected to contribute the largest share of the De-oiled lecithin market.
Asia Pacific is expected to lead the de-oiled lecithin market in 2023. The Asia Pacific region currently dominates the de-oiled lecithin market because of the large agriculture sectors of India, China, and Japan, which supply raw materials such as soybean and sunflower for lecithin manufacture. According to United Nations Economic and Social Commission for Asia and the Pacific (UNESCAP), the agriculture and food processing industries accounted for more than a quarter of the GDP of Asia Pacific’s developing countries in 2020. Livestock is also common throughout the Asia Pacific, serving as an additional source of income for the region's large farming community. With the region's growing livestock, the feed industry will grow. According to the 11th annual Alltech feed survey, Global feed production increased 2.3% in 2021, and found that Asia Pacific feed production increased to 44.221 MMT, up from 43.201 MMT in 2020. Furthermore, the region's low labor costs and good manufacturing and business environments make lecithin extraction a cost-effective process, attracting major market players.
Key Market Players
The key players in this include Cargill, Incorporated (US), ADM (US), Stern-Wywiol Gruppe (Germany), IMCD Group B.V. (US), Bunge (US), Sonic Biochem (India), Avril Group (France), American Lecithin Company (US), VAV Life Sciences Pvt. Ltd (India). These players in this market are focusing on increasing their presence through agreements and collaborations. These companies have a strong presence in North America, Asia Pacific and Europe. They also have manufacturing facilities along with strong distribution networks across these regions.
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Report Metric |
Details |
Market size available for years |
2018–2028 |
Base year considered |
2022 |
Forecast period |
2023–2028 |
Forecast units |
Value (USD) |
Segments covered |
by source (Soybean, Sunflower, Rapeseed & canola, Eggs, and Other Sources), by nature (GMO & Non-GMO), by method of extraction (Acetone extraction, carbon dioxide extraction, Ultrafiltration Process), by form (powder and granules), by application (Food & Beverages, Feed, Industrial, Healthcare products) and Region |
Regions covered |
North America, Europe, Asia Pacific, Latin America, and Rest of the World |
Companies covered |
Cargill Incorporated (US), ADM (US), Stern-Wywiol Gruppe (Germany), IMCD Group B.V. (US), and Bunge (US). |
This research report categorizes the de-oiled lecithin market based on source, nature, method of extractions, form, applications, and region.
Based on source, the de-oiled lecithin market has been segmented as follows:
- Soybean
- Sunflower
- Rapeseed & Canola
- Eggs
- Other sources (corn, krill, and rice)
Based on nature, the de-oiled lecithin market has been segmented as follows:
- GMO
- NON-GMO
Based on the method of extractions, the de-oiled lecithin market has been segmented as follows:
- Acetone Extraction
- Carbon Dioxide Extraction
- Ultrafiltration Process
Based on the form, the de-oiled lecithin market has been segmented as follows:
- Powder
- Granules
Based on the applications, the de-oiled lecithin market has been segmented as follows:
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Food & beverages
- Bakery products
- Convenience food
- Confectioneries
- Beverages
- Dairy & non-dairy products
- Other food applications
- Feed
- Industrial
- Health care products
Based on the region, the de-oiled lecithin market has been segmented as follows:
- North America
- Europe
- Asia Pacific
- Latin America
- Rest of the World (Middle East & Africa)
Recent Developments
- In June 2021, Bunge Limited signed an agreement with IMCD Group BV. The agreement allowed IMCD Group BV to distribute Bunge Loders Croklaan’s complete BungeMaxx lecithin portfolio in Austria, Belgium, Denmark, France, Germany, Ireland, Italy, The Netherlands, Norway, Sweden, Switzerland, and the UK. Moreover, this agreement caters to the customer's preference for premium quality natural emulsifiers and allows to further grow into key market segments in the European food industry.
- In March 2021, STERN-WYWIOL GRUPPE launched a non - GMO and allergen-free alternative to chemically modified emulsifiers. Its functionality exceeds all expectations and opens a broad range of applications, from plant-based milk alternatives to nutritional supplement products. It improves the bioavailability of fat-soluble nutrients. The launch of SternPur SDH-50 is likely to have a positive impact on Stern-Wywiol Gruppe by expanding their product line, differentiating them from competitors, and demonstrating their commitment to meeting market demands and driving innovation.
- In March 2021, Lecico, a subsidiary of Avril Group (France), signed an exclusive distribution partnership agreement with Ciranda for the North American market. Ciranda supplies brand and manufacturers worldwide with a variety of high-quality certified organic ingredients and non-GMO ingredients. This will strengthen the position of Lecico in North America market.
- In August 2020, Fismer Lecithin, and the international confectionery trade association Sweets Global Network E. V. (SG), with over three hundred member companies, formed a strategic partnership that significantly impacted Fismer Lecithin for getting information and communication in special lecithin for confectionery and bakery items. The partnership with Sweets Global Network has the potential to be a positive development for Fismer Lecithin, helping the company to expand its reach, improve its products, increase its brand awareness, and access valuable industry expertise.
Frequently Asked Questions (FAQ):
Which are the major companies in the De-oiled Lecithin market? What are their major strategies to strengthen their market presence?
The key players in this Cargill, Incorporated (US), ADM (US), Stern-Wywiol Gruppe (Germany), IMCD Group B.V. (US), Bunge (US), STERN-WYWIOL GRUPPE (Germany), Sonic Biochem (India), Avril Group (France), American Lecithin Company (US), VAV Life Sciences Pvt. Ltd (India). These players in this market are focusing on increasing their presence through agreements and collaborations. These companies have a strong presence in North America, Asia Pacific and Europe. They also have manufacturing facilities along with strong distribution networks across these regions.
What are the drivers and opportunities for the De-oiled Lecithin market?
As consumers become more health-conscious and environmentally aware, there is a growing demand for natural and plant-based ingredients in food, feed, and other products. De-oiled lecithin is a natural and plant-based ingredient that is widely used in various applications, and the demand for it is expected to increase in the coming years. The food and feed industries are expected to grow in the coming years, driven by an increasing population and changing food habits. De-oiled lecithin is a widely used ingredient in these industries, and the growth of these industries is expected to drive the growth of the de-oiled lecithin market.
Which region is expected to hold the highest market share?
The market in Asia Pacific will dominate the market share in 2022, showcasing strong demand for de-oiled lecithin in the region. The Asia Pacific region has a large population and a growing middle class with changing food habits, which is driving the demand for processed and convenience foods. De-oiled lecithin is a widely used ingredient in these foods, and the growing demand for such foods is driving the growth of the de-oiled lecithin market in the region.
Which are the key technology trends prevailing in the De-oiled lecithin market?
Water degumming is a newer technology that uses water instead of solvents to remove the phospholipids from the oil. In this process, the oil is mixed with water, and the phospholipids form a sludge that can be separated from the oil. Spray drying is a technology used to convert liquid lecithin into a powder form. In this process, the liquid lecithin is sprayed into a chamber where it is dried using hot air, resulting in a powder form that is easier to handle and store.
What is the total CAGR expected to be recorded for the De-oiled lecithin market during 2023-2028?
The CAGR for the de-oiled lecithin market is estimated to be 7.8 % from 2023-2028.
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The study involved four major activities in estimating the current size of the de-oiled lecithin market. Exhaustive secondary research was done to collect information on the market, peer market, and parent market. The next step was to validate these findings, assumptions, and sizing with industry experts across the value chain through primary research. Both top-down and bottom-up approaches were employed to estimate the complete market size. After that, market breakdown and data triangulation were used to estimate the market size of segments and subsegments.
Secondary Research
In the secondary research process, sources such as annual reports, press releases, and investor presentations of companies, white papers, certified publications, articles from regulatory bodies, trade directories, by recognized authors, and databases were used to identify and collect information for this study.
Secondary research was used to obtain key information about the industry’s supply chain, the total pool of key players, market classification, and segmentation according to the industry trends to the bottom-most level, geographic markets, and key developments from both market- and technology-oriented perspectives.
Primary Research
The de-oiled lecithin market includes several stakeholders in the supply chain, including raw material suppliers, de-oiled lecithin manufacturers, end-product manufacturers, and regulatory organizations. The demand side of the market is characterized by the presence of key food producers and processors, food importers/exporters, manufacturers engaged in the production of lecithin and related government agencies. The supply side is characterized by key manufacturers of de-oiled lecithin and suppliers of raw materials.
Various primary sources from the supply and demand sides were interviewed to obtain qualitative and quantitative information. The primary interviewees from the demand side include key opinion leaders, executives, vice presidents, and CEOs from the food & beverage and feed sectors. The primary sources from the supply side include key opinion leaders and key manufacturers in the de-oiled lecithin market.
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Market Size Estimation
The top-down and bottom-up approaches were used to estimate and validate the total size of the de-oiled lecithin market. These approaches were also used extensively to estimate the size of various subsegments in the market. The research methodology used to estimate the market size includes the following details.
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Top-down approach:
- The key industry and market players were identified through extensive secondary research.
- The industry's supply chain and market size were determined through primary and secondary research.
- All percentage share splits and breakdowns were determined using secondary sources and verified through primary sources.
- The adjacent market—the lecithin market and vegetable protein market—was considered to validate further the market details of de-oiled lecithin.
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Bottom-up approach:
- The market size was analyzed based on the share of each source of de-oiled lecithin and its penetration within the application and form at regional and country levels. Thus, the global market was estimated with a bottom-up approach at the country level.
- Other factors include demand within the supply chain, including the food & beverages, feed, healthcare, and industrial applications; and function trends; pricing trends; adoption rate and price factors; patents registered; and organic and inorganic growth attempts.
- All macroeconomic and microeconomic factors affecting the de-oiled lecithin market were considered while estimating the market size.
- All possible parameters that affect the market covered in this research study were accounted for, viewed in extensive detail, verified through primary research, and analyzed to obtain final quantitative and qualitative data.
Global de-oiled lecithin market Size: Bottom-Up Approach
The bottom-up approach used the data extracted from secondary research to validate the market segment sizes obtained. The approach was employed to arrive at the overall size of the de-oiled lecithin market in particular regions, and its share in the de-oiled lecithin market at the country and regional levels was validated through primary interviews conducted with suppliers, dealers, and distributors.
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Global de-oiled lecithin market Size: Top-Down Approach
In the top-down approach, the overall market size was used to estimate the size of individual markets (mentioned in the segmentation) through percentage splits from secondary and primary research.
The top-down approach used to triangulate the data obtained through this study is explained in the next section:
- In the global de-oiled lecithin market, related secondary sources such as US Department of Agriculture (USDA), Food and Drug Administration (FDA), US Department of Agriculture (USDA), National Oilseed Processors Association (NOPA), The Australian Oilseed Federation (AOF), The European Vegetable Oil and Protein meal Industry (FEDOIL), Brazilian Association of Vegetable Oil Industries (ABIOVE) and company annual reports of all major players were considered to arrive at the global market size.
- The global number for de-oiled lecithin was arrived upon after giving certain weightage factors for the data obtained from these secondary and primary sources.
- With the data triangulation procedure and data validation through primaries (from both supply and demand sides), the shares and sizes of the regional markets and individual markets were determined and confirmed.
- Data on company revenues, area harvested, product launches, and global regulations for de-oiled lecithin in the last four years was used to arrive at the country-wise market size, and CAGR estimation of type and application segments was then validated from primary sources.
Data Triangulation
After arriving at the overall market size from the estimation process explained above, the total market was split into several segments and subsegments. The data triangulation and market breakdown procedures were employed, wherever applicable, to estimate the overall de-oiled lecithin market and arrive at the exact statistics for all segments and subsegments. The data was triangulated by studying various factors and trends from the demand and supply sides. The market size was also validated using both the top-down and bottom-up approaches.
Market Definition
According to the International Food Additives Council (IFAC), de-oiled lecithin products contain almost no vegetable oil and are high in polyunsaturated fatty acids. They are available in granular and powdered forms.
De-oiled lecithin is simply - lecithin with nearly no oil. It is practically oil-free and includes a high concentration of polyunsaturated fatty acids. Powdered lecithin is de-oiled lecithin and has hydrophilic properties. It is the most used form of lecithin and is more refined than granules. Powdered lecithin contains less fat than liquid lecithin. It is light yellow in color. It differs from liquid lecithin in that it has no effect on the color of the mixture or the product. Powdered or granular lecithin is a compact, easier-to-handle concentrated lecithin product.
Key Stakeholders
- De-oiled lecithin manufacturers
- De-oiled lecithin importers and exporters
- De-oiled lecithin distributors and suppliers
- Manufacturers from industry such as confectionery, chocolate, bakeries, processed food, nutrition and supplements, cosmetics, pharmaceuticals, paints, herbicides, and animal feed using de-oiled lecithin.
- Government and research organizations
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Associations and industry bodies
- National Soybean Processors Association (NSPA)
- The United States Department of Agriculture (USDA
- The Food and Drug Administration (FDA)
- The European Vegetable Oil and Protein meal Industry (FEDOIL)
- European Feed Manufacturers' Federation (FEFAC)
- European Feed Safety Ingredients Certification (EFISC)
- The Soybean Processors Association of India (SOPA)
- American Soybean Association (ASA)
- United Soybean Board (USB)
- Brazilian Association of Vegetable Oil Industries (ABIOVE)
- Canadian Oilseed Processors Association (COPA)
- Cosmetics Toiletries and Fragrance Association (CTFA),
- The International Soybean Growers Alliance (ISGA)
- The Australian Oilseeds Federation (AOF)
- The Paraguayan Chamber of Cereal and Oilseed Exporters (CAPECO)
- Cámara de la Industria Aceitera de la República Argentina (CIARA)
- National Oilseed Processors Association (NOPA).
Report Objectives
Market Intelligence
- Determining and projecting the size of the de-oiled lecithin market based on source, type, nature, method of extraction, form, application, and region over a five-year period ranging from 2023 to 2028.
- Identifying the attractive opportunities in the market by determining the largest and fastest-growing segments across the key regions
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Analyzing the demand-side factors based on the following:
- Impact of macro- and micro-economic factors on the market
- Shifts in demand patterns across different subsegments and regions.
- Providing detailed information about the key factors influencing the growth of the market (drivers, restraints, opportunities, and industry-specific challenges)
- To analyze the opportunities in the market for stakeholders and provide a competitive landscape for market leaders.
- To strategically profile the key players and comprehensively analyze their core competencies.
- To analyze competitive developments such as joint ventures, mergers & acquisitions, new product developments, and research & development (R&D) in the de-oiled lecithin market
Competitive Intelligence
- Identifying and profiling the key market players in the de-oiled lecithin market
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Providing a comparative analysis of the market leaders based on the following:
- Product offerings
- Business strategies
- Strengths and weaknesses
- Key financials
- Understanding the competitive landscape and identifying the major growth strategies adopted by players across the key region.
- Analyzing the value chain and regulatory frameworks across regions and their impact on prominent market players
- Providing insights into the key investments and product innovations and technology in the de-oiled lecithin market
Available Customizations
With the given market data, MarketsandMarkets offers customizations according to the company’s specific scientific needs.
The following customization options are available for the report:
Geographic Analysis
- Further breakdown of the Rest of Europe market into Netherlands, Poland, Belgium, Denmark, and others
- Further breakdown of the Rest of Asia Pacific market into Thailand, Malaysia, South Korea, Indonesia, Singapore, and others
- Further breakdown of the Rest of Latin America market into Peru, Uruguay, Paraguay, and others
Growth opportunities and latent adjacency in De-oiled Lecithin Market