Global De-Oiled Lecithin Market - 2024 - 2031

Report Overview

Global De-Oiled Lecithin Market reached US$ 220.6 million in 2023 and is expected to reach US$ 388.5 million by 2031, growing with a CAGR of 7.33% during the forecast period 2024-2031.

The de-oiled lecithin market is experiencing robust growth, driven by rising health consciousness among consumers who prefer low-fat, clean-label ingredients in food products. Its extensive use across the food and beverage, pharmaceutical and cosmetics industries is bolstered by its natural emulsifying properties and alignment with the trend towards plant-based and vegan offerings.

Additionally, the demand for de-oiled lecithin is supported by its non-GMO organic and allergen-free certifications, making it a preferred choice in health-focused markets. The growth of food processing and pharmaceutical sectors in emerging economies, particularly in Asia-Pacific and South America, is further contributing to market expansion.

The regulatory landscape for de-oiled lecithin is favorable, with the FDA recognizing it as GRAS and the EPA exempting lecithin residues from tolerance requirements in pesticides when used properly. Additionally, the USDA's National Organic Program permits the use of de-oiled lecithin in organic processing. The regulatory approvals contribute to the stability and growth of the global de-oiled lecithin market, enhancing its appeal across various industries.

Market Dynamics

Growing Consumer Preference For Natural And Clean-Label Ingredients

The growing consumer preference for natural and clean-label ingredients is driving significant changes in the food industry, pushing companies to innovate with transparent, simple and natural alternatives to artificial additives. The trend is particularly boosting the de-oiled lecithin market, as its natural origin and functional properties make it an ideal clean-label emulsifier. As manufacturers increasingly prioritize clean-label standards, de-oiled lecithin is gaining traction as a preferred ingredient, contributing to its robust market growth.

The inclusion of de-oiled lecithin in organic processing underscores its market significance, particularly as a food additive in the organic sector. Regulatory support in US, especially in the organic food industry, drives global demand, enhancing its relevance in markets focused on clean labels and organic certifications. The regulatory backing is pivotal in sustaining growth and shaping the global dynamics of the de-oiled lecithin market.

Growing Vegan Population

As per the Sentient Media, the growing popularity of veganism is reflected in the increasing consumer demand for plant-based foods, with US sales rising from US$ 3.9 billion in 2017 to US$ 8.1 billion in 2023. While survey data on veganism remains inconsistent, younger generations, especially Millennials and Gen Z, are driving this trend. The shift is largely driven by ethical concerns, environmental consciousness and health benefits, indicating a broader market opportunity for vegan alternatives. It aligns with the expanding global interest in plant-based diets.

The surge in veganism is closely linked to the growing demand for de-oiled lecithin, a key plant-based emulsifier. Derived from sources such as soy, sunflower and rapeseed, de-oiled lecithin is crucial in formulating vegan dairy alternatives, baked goods and processed foods. As the vegan market expands, driven by ethical, environmental and health considerations, the de-oiled lecithin sector is set for substantial growth, supporting the rise of plant-based, clean-label products that cater to the evolving consumer preferences.

Price Volatility Of Raw Materials

In the global de-oiled lecithin market, price volatility of raw materials remains a significant concern, reflecting broader trends within the sector. De-oiled lecithin, primarily derived from soybeans and sunflower seeds, has experienced notable fluctuations in raw material costs due to a combination of supply chain disruptions, agricultural yield variability and geopolitical tensions.

Soybean prices, a major raw material for de-oiled lecithin, are subject to volatility driven by climate conditions, trade policies and fluctuations in global demand. Variations in weather patterns, such as droughts or floods, directly impact soybean yields, causing sharp price swings. Additionally, international trade agreements and tariffs can exacerbate price volatility by affecting import and export dynamics.

Similarly, sunflower seed prices, another key source for lecithin production, have been volatile due to regional production challenges and geopolitical uncertainties. For instance, geopolitical tensions in major sunflower-producing regions can disrupt supply chains, leading to price spikes. The interplay between these factors results in fluctuating costs for manufacturers of de-oiled lecithin, impacting profit margins and pricing strategies. To mitigate these risks, companies are increasingly investing in supply chain diversification and long-term contracts to stabilize raw material costs.

Market Segment Analysis

The global de-oiled lecithin market is segmented based on source, form, method of extraction, nature, application and region.

The Surging Demand For Soybean De-Oiled Lecithin

Increasing consumer awareness of health and wellness is driving the demand for soybean de-oiled lecithin, valued for its benefits such as improved liver function and cholesterol management. The clean-label movement further fuels this demand, as consumers seek natural, non-synthetic ingredients. Additionally, the rising interest in functional foods, which offer enhanced health benefits, is boosting lecithin's appeal due to its role in optimizing nutritional profiles.

De-oiled soybean lecithin, offered by Avi Agri Business Limited, is experiencing increased demand due to its multifunctional benefits and cost-efficiency in the food industry. As an effective emulsifier, it stabilizes oil-water mixtures, crucial for maintaining the texture and consistency of products like dressings, sauces and spreads. Its role as an extender and binder further enhances the freshness and cohesion of baked goods and snacks, preventing staleness and ensuring ingredient integration.

Market Geographical Share

Rising Demand For De-Oiled Lecithin In North America

The de-oiled lecithin market in North America is experiencing robust growth driven by increasing consumer demand for clean-label and health-oriented products. Key sectors such as food and beverages, pharmaceuticals and cosmetics are leveraging de-oiled lecithin for its emulsification and stabilization benefits.

On August 22, 2024, Bunge unveiled its expanded lecithin portfolio in North America with de-oiled soybean lecithin. The new offering, available in powdered and granulated forms, enhances Bunge's existing lecithin range and is designed for use in beverages, bakery products, snacks, supplements and pet food. It provides efficient mixing, a clean taste and a light color.

Market Competitive Landscape

The major global players in the market include Cargill, Incorporated, ADM, Bunge, American Lecithin Company, Stern-Wywiol Gruppe, Lecilite, Sonic Biochem, Avi Agri Business Limited, GIIAVA, Amitex Agro Product Pvt. Ltd.

Russia-Ukraine War Impact Analysis

The ongoing Russia-Ukraine conflict has severely disrupted global sunflower seed supplies, as these countries historically produce over 50% of the world's sunflower seeds. The disruption has caused sunflower lecithin prices to surge three to four times above pre-war levels, with no immediate relief in sight. The significant price hikes have prompted brands to seek alternative ingredients to replace sunflower lecithin in their formulations.

In response, Kerry has introduced Puremul, a clean-label solution derived from acacia and natural flavor, designed to substitute sunflower lecithin effectively. The alternative has been noted for its cost savings of up to 40% and improved product stability. While other options such as non-GMO canola or rapeseed lecithin exist, they come with challenges related to flavor and availability, highlighting the critical need for ingredient diversification to manage supply chain risks.

By Source

Soybean

Sunflower

Rapeseed & Canola

Eggs

Other Sources

By Form

Powder

Granules

By Method of Extraction

Acetone Extraction

Carbon Dioxide Extraction

Ultrafiltration Process

By Nature

Genetically Modified Organisms

Non-Genetically Modified Organisms

By Application

Food and Beverages

Bakery and Confectionery

Convenience Foods

Beverages

Dairy Products

Others

Feed

Industrial

Healthcare

Other Applications

By Region

North America

US

Canada

Mexico

Europe

Germany

UK

France

Italy

Spain

Rest of Europe

South America

Brazil

Argentina

Rest of South America

Asia-Pacific

China

India

Japan

Australia

Rest of Asia-Pacific

Middle East and Africa

Key Developments

In February 2022, Austrade Inc. launched de-oiled rapeseed lecithin powder as a preferred alternative to soy lecithin due to increasing concerns over GMOs and food allergies. The de-oiled variant, with its low oil content, boasts superior wetting, emulsifying and dispersing properties, making it highly effective across various applications.

In June 2021, Stern-Wywiol Gruppe launched SternPur S DH 50, a hydrolyzed, de-oiled sunflower lecithin that perfectly aligns with growing consumer demands for transparency, ethical sourcing and clean-label products. The allergen-free, non-GMO lecithin serves as an ideal alternative to artificial emulsifiers.

Why Purchase the Report?

To visualize the global de-oiled lecithin market segmentation based on source, form, method of extraction, nature, application and region as well as understand key commercial assets and players.

Identify commercial opportunities by analyzing trends and co-development.

Excel data sheet with numerous data points of the de-oiled lecithin market with all segments.

PDF report consists of a comprehensive analysis after exhaustive qualitative interviews and an in-depth study.

Product mapping available as Excel consisting of key products of all the major players.

The global de-oiled lecithin market report would provide approximately 78 tables, 75 figures and 219 Pages.

Target Audience 2024

Manufacturers/ Buyers

Industry Investors/Investment Bankers

Research Professionals

Emerging Companies