PUBLISHER: Market Xcel - Markets and Data | PRODUCT CODE: 1475015
PUBLISHER: Market Xcel - Markets and Data | PRODUCT CODE: 1475015
Global synthetic lipids market is projected to witness a CAGR of 5.5% during the forecast period 2024-2031, growing from USD 2.56 billion in 2023 to USD 3.93 billion in 2031F. The market expansion is supported by the increasing utilization of synthetic lipids in personal care and cosmetic products and rapid expansion of pharmaceutical sector.
The increasing demand for synthetic lipids by the pharmaceutical sector is one of the major factors augmenting the global synthetic lipids market size. The rising requirement of synthetic lipids by the pharmaceutical sector can be attributed to the various advantages offered by the synthetic lipids over their natural counterparts as they consist of a single lipid, the quality of which is known. Also, tissue-derived lipids are usually a combination of bovine-derived or egg-derived lipids. Synthetic lipids, unlike tissue-derived lipids, do not possess a risk of protein or viral contamination or show batch-to-batch variability. Additionally, the purity of synthetic lipids can be enhanced by optimizing the purification techniques and manufacturing processes and by selecting starting materials with superior quality. Thus, boosting their demand from the pharmaceutical sector and supporting the market expansion.
Collaborations between different governments and leading players of the market are further providing lucrative growth opportunities to the market. For instance, in June 2022, Evonik, one of the leading specialty chemicals companies announced an investment of USD 220 million in partnership with the government of the United States to build lipid production facility for producing mRNA-based therapies. The Tippecanoe site in Lafayette, Indiana is expected to ensure flexible lipid production. The construction for the project commenced in early 2023 and is expected to go onstream in 2025.
Expansion of the Cosmetics and Personal Care Industry Boosts Market Demand
The increasing investments by individuals in various regions across the globe in cosmetics and personal care products is providing lucrative growth opportunities to the market. For instance, according to an article published by Forbes in 2023, the value of the cosmetics market in the United States was approximately USD 50 billion in 2022. The growth will bolster the demand for synthetic lipids and aid the expansion of the market over the forecast period. The expansion can be attributed to the essential nature of cholesterol in making a healthy skin barrier. They are often added to barrier repair moisturizers to function effectively. Regular repair of the skin barrier is essential for preventing trans-dermal water loss and for keeping allergens, irritants, and bacteria away from the skin. Due to the growing awareness about animal cruelty and rising concerns about animal welfare, individuals across the globe are switching to vegan products due to increasing consciousness. Such concerns propel the requirement for personal care products and cosmetics and support the market expansion as they boost the demand for synthetic cholesterol as plants do not produce it. The increasing adoption of synthetic cholesterol by various cosmetic and personal care manufacturers to provide vegan barrier repair moisturizers to their customers is augmenting the market demand.
Increasing Product Requirement from Food Industry Boosts Global Synthetic Lipids Market Demand
The rising requirement for commercial human milk fat substitutes (HMFSs) is positively influencing the growth of the market. Human milk fat provides approximately 50% of babies' daily calorie intake and is their primary energy source. It is also an essential source of fat-soluble vitamins and vital fatty acids. Palmitic acid and oleic acid are the main fatty acids available in human milk fat, constituting up to 25% and 40%, respectively.
However, palmitic acid, a hydrolyzed free fatty acid forms an insoluble salt with the minerals and calcium that are required by the newborns for growth is excreted in feces, causing constipation, and preventing the absorption of calcium. Hence, it is essential to regulate the composition and amount of palmitic acid while formulating HMFSs. Commercial HMFSs are synthetic lipids that have a distribution comparable to that of human milk fat and contain fatty acids. Thus, making it an essential raw material in synthesis of infant food products (formula). For instance, according to the U.S. International Trade Commission estimates, the global infant and child formula exports were valued at USD 9.6 billion with a volume of 1 million mt (these figures exclude the intra-EU trade). Therefore, the increase in the requirement for infant formula is boosting the demand for synthetic lipids and aiding the market growth.
North America to Hold Significant Share in the Market
The strong presence of leading market players and rapid expansion of pharmaceutical and food sectors in the region are boosting the growth of North America synthetic lipids market. According to the U.S. Department of Agriculture, food, agriculture, and related industries contributed approximately USD 1.420 trillion to the GDP of the United States in 2022. Additionally, estimates suggest that the United States pharmaceutical industry generated USD 550 billion in 2021 in revenue. Due to the growth and expansion in food and pharmaceutical sectors in the region, the requirement for synthetic lipids is increasing as they find various applications in the sector. Owing to the success of mRNA vaccines, Moderna, a United States based biotechnology company is now working on the development of vaccines for a host of diseases including Zika, Malaria, tuberculosis, and HIV. Hence, the increase of research and development activities amongst leading pharmaceutical and biotechnological companies in the region will further boost the requirement for synthetic lipids, thus propelling the growth of the market.
Solid Synthetic Lipids Account for Significant Global Synthetic Lipids Market Share
The growth of the segment is supported by the increasing research activities conducted by various leading research institutions across the globe on solid lipid nanoparticles. For instance, these institutes include, the Department of Chemistry, Indian Institute of Technology Kharagpur. The researchers evaluated the stability and physicochemical characterizations and in vitro evaluations of CUR-loaded solid nanoparticles that were prepared with the help of biocompatible synthetic lipids. The solid lipid nanoparticles are showing promising results as drug delivery vehicles for ensuring the delivery of different drug types, especially poorly water-soluble drugs. The solid lipid nanoparticles can play an essential role in ensuring the delivery of curcumin in the disease sites with enhanced overall effects and improved bioavailability.
Rising Requirements from the Pharmaceutical Sector Aids Global Synthetic Lipids Market Growth
The increasing utilization of synthetic lipids for development of RNA therapies is boosting the growth of the market. MRNA-based systems are deployed for development of vaccines where viral proteins are identified as the potential candidates for vaccines. These systems are preferred as they are less prone to anti-vector immunity and genome integration. For instance, the recent success of BioNTech and Moderna has now resulted in the increase of clinical and preclinical studies of mRNA to other therapeutic and infectious disease applications, thus boosting the growth of the market. Moreover, the consistency and quality of lipids utilized in different pharmaceutical formulations is extremely essential. Lipid quality, type, and source are carefully considered prior to the initiation of the process as they directly impact the properties and impurity profile of the final drug. Furthermore, the choice of lipid impacts the particle characteristics, including release properties, structure, and stability. It is essential to control various impurities such as trans fatty acids in lipids as they can alter the RNA release and particle stability. Thus, synthetic lipids offer various advantages as opposed to natural lipids because the former is derived from a single lipid with known quality, and the chances of batch-to-batch variability are decreased. It, in turn, augments the demand for synthetic lipids and supports the growth of the market.
Key Players Landscape and Outlook
Global synthetic lipids market expansion is supported by increasing investments by leading market players towards the development of new lipid manufacturing plants. For instance, in March 2023, Evonik announced the opening of a new lipid manufacturing facility in Hanau, Germany. According to the company's chemical specialist the lipids produced will be used for gene therapies and RNA drugs aimed at cancer and infectious diseases, among others. The facility supports the production of proprietary as well as custom lipids. Such investments are expected to bolster synthetic
lipids' production, supporting the market's expansion.
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Companies mentioned above DO NOT hold any order as per market share and can be changed as per information available during research work