De-oiled Lecithin Market

[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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Scope of the Report

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:

• 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.

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