Global De-Oiled Lecithin Market Size Analysis Report - Market Share, Forecast Trends and Outlook (2024-2032)

De-Oiled Lecithin Market Growth

De-oiled lecithin is a natural emulsifier and stabiliser that is derived from soybeans, sunflower seeds, or rapeseeds. It is a by-product of the oil extraction process. Lecithin itself is a fatty substance found in living cells, and it is commonly used in various industries, including food, pharmaceuticals, and cosmetics.

The increasing demand for organic and healthy foods is expected to significantly enhance the global growth of the de-oiled lecithin market in the forecast period. De-oiled lecithin is rich in phospholipids, which are essential for various biological functions. It is also known to promote liver health, improve cognitive functions, and aid in the absorption of fat-soluble vitamins. In addition, due to de-oiled lecithin being a plant-based emulsifier, it has gained traction as a suitable alternative to animal-derived counterparts like egg yolk.

De-Oiled Lecithin Market Trends

A key trend in de-oiled lecithin market is the rising awareness among consumers about the ingredients in the food, leading them to gravitate towards products with clean labels that are manufactured with fewer and easily recognisable ingredients. De-oiled lecithin aligns with this trend as it is a natural and easily identifiable ingredient.

De-oiled lecithin is extensively utilised for animal nutrition due to its high level of phospholipid content. The global demand is expected to be high in the coming years as the product is especially helpful in improving nutrient absorption and growth. De-oiled lecithin provides a source of essential fatty acids and choline, which are crucial for the overall health and well-being of animals.

Recent Developments

As per the de-oiled lecithin market dynamics and trends, Louis Dreyfus Company, Donlink Holding Group (Donlink) and Guangdong HAID Group (HAID) announced their joint venture for the establishment of a food industrial park in Guangzhou, China and as of September 2023, the first phase of the construction of the park was finished. The industrial park is expected to include a feed protein mill, vegetable oil refining mill, lecithin production line, and soybean oil tanks, among others. 

Industry Outlook

Major factors influencing the growth of the de-oiled lecithin industry include the increasing demand for natural and allergen-free food additives and the rising applications in pharmaceuticals and cosmetics for their emulsifying and stabilizing properties.

According to International Grain Council (IGC), global soybean production which is a major raw material for de-oiled lecithin exhibited significant fluctuations between 2017/18 and 2022/23, In 2017/18, global production was 346.0 million tons, increasing to 364.7 million tons in 2018/19, and then declining to 341.8 million tons in 2019/20. Production rebounded in 2020/21 to 370.5 million tons, dipped slightly to 356.9 million tons in 2021/22, and rose again to 374.7 million tons in 2022/23. 

As per the de-oiled lecithin industry analysis, Alltech feed production data stated that in 2023, feed tonnage in the Asia-Pacific region reached 475.3 MMT, growing by 6.5 MMT (1.4%) from 2022’s 468.8 MMT. This region accounted for approximately 36.7% of global feed production. Europe’s feed production declined from 269.5 MMT in 2022 to 261.9 MMT in 2023, a reduction of 7.6 MMT (-2.8%), representing about 20.2% of the global total. North America's feed tonnage decreased by 2.8 MMT (-1.1%), from 262.1 MMT in 2022 to 259.3 MMT in 2023, holding a 20.0% market share.

Latin America saw production increase by 2.5 MMT (1.2%), from 198.2 MMT in 2022 to 200.7 MMT in 2023, making up 15.5% of global feed tonnage and boosting the de-oiled lecithin industry revenue. Africa's feed tonnage rose by 1.0 MMT (1.9%), from 50.4 MMT in 2022 to 51.4 MMT in 2023, representing 4.0% of the global market. The Middle East saw a slight decline of 0.1 MMT (-0.3%), from 36.0 MMT in 2022 to 35.9 MMT in 2023, constituting 2.8% of global production. Oceania’s feed tonnage increased by 0.4 MMT (3.7%), from 10.4 MMT in 2022 to 10.8 MMT in 2023, holding a 0.8% market share.

Overall, global feed tonnage slightly decreased by 0.1 MMT (-0.01%), from 1,295.4 MMT in 2022 to 1,295.3 MMT in 2023. The growth in the Asia-Pacific region supports the increasing demand for de-oiled lecithin as a feed additive, reflecting a trend towards enhanced nutritional solutions and enhancing de-oiled lecithin market value. Similarly, the expansion in Latin America aligns with rising applications of de-oiled lecithin in animal feed, indicating its growing importance in improving feed quality.

What Factors are Strengthening the Growth of the Global De-Oiled Lecithin Market?

• Growing Use in Plant-Based Foods: Increased incorporation of de-oiled lecithin in plant-based meat and dairy alternatives enhances texture and shelf life, catering to the rising vegan population.
• Pharmaceuticals’ Demand for Drug Formulations: Rising application of de-oiled lecithin in liposomal drug delivery systems improves bioavailability and efficacy, driving de-oiled lecithin demand growth.
• Cosmetic Industry’s Preference for Natural Emulsifiers: The cosmetic industry’s shift towards natural emulsifiers for skincare products boosts the demand for de-oiled lecithin due to its non-irritating properties.
• Animal Feed Efficiency: Use of de-oiled lecithin in high-performance animal feeds enhances nutrient absorption and feed efficiency, supporting livestock productivity and market growth.

Challenges Impacting the Global Market along with Supply Chain Disruptions:

• Contamination Risks in Soy and Sunflower Supply Chains: Incidents of contamination, such as pesticide residues in soybeans and sunflower seeds, can disrupt supply and necessitate costly quality control measures that can affect de-oiled lecithin demand forecast.
• High Extraction and Processing Costs: Advanced extraction and processing technologies for high-quality de-oiled lecithin require significant investment, affecting overall product pricing.
• Complex Certification Processes: Obtaining certifications like Non-GMO Project Verified and Organic Certification involves rigorous and lengthy processes, delaying market entry and increasing costs.
• Market Competition from Enzymatic Lecithin’s: Enzymatically modified lecithin’s, which offer tailored functionalities, are increasingly preferred by food and pharmaceutical industries, challenging the demand for traditional de-oiled lecithin.

What are the Key Trends Shaping the Global De-Oiled Lecithin Market?

• Precision Fermentation Techniques: Adoption of precision fermentation to produce de-oiled lecithin with consistent quality and enhanced functional properties, reducing dependency on traditional agricultural sources and boosting demand of de-oiled lecithin market.
• Customization for Functional Foods: Tailoring de-oiled lecithin formulations to meet the specific needs of functional foods, such as improving bioavailability of nutrients in fortified products.
• Expansion in Nutraceuticals: Increasing use of de-oiled lecithin in nutraceuticals for its role in improving cognitive health and supporting lipid metabolism, driven by consumer interest in wellness products.
• Integration into High-Performance Animal Feeds: Development of specialized de-oiled lecithin additives to enhance feed efficiency and nutrient absorption in high-performance livestock and poultry feeds.

De-Oiled Lecithin Industry Segmentations

Based on form, the market can be segmented into powdered and granulated. The global market segmentation, based on method of extraction, includes acetone extraction, carbon dioxide extraction, and ultrafiltration process. The market, based on source, is categorised into soy, rapeseed, egg, and sunflower.

Based on application, the market is divided into food, animal feed, pharmaceuticals, and personal care, among others. The major regional markets for de-oiled lecithin are North America, Europe, the Asia Pacific, Latin America, and the Middle East and Africa 

De-Oiled Lecithin Market Share by Source

Rapeseed-derived de-oiled lecithin is likely to experience significant growth in the foreseeable future. It can be attributed to its wide use in the food sector as an emulsifier in products such as baked goods, margarine, dressings, and sauces. Many varieties of rapeseed used for lecithin production are non-genetically modified organisms (non-GMO) that can also boost the de-oiled lecithin market revenue.

Additionally, rapeseed de-oiled lecithin is typically free from common allergens like soy, making it suitable for individuals with specific dietary restrictions or allergies.

Competitive Landscape

Bunge Limited is an American multinational agribusiness and food processing company, primarily dealing with the processing and trading of agricultural commodities. The company is involved in various activities, including processing and merchandising of agricultural commodities, producing edible oils, milling wheat and corn, and selling and marketing fertilisers.

Cargill, Incorporated is an American multinational corporation in the de-oiled lecithin industry. Originally a grain storage and merchandising operation, Cargill has grown into one of the largest privately owned companies globally. The company's operations encompass a wide range of activities, ranging from sourcing and processing crops like corn, soybeans, and wheat, to producing food ingredients like starches, sweeteners, and oils.

Archer Daniels Midland Company is an American multinational food processing and commodities trading corporation. The company is involved in a wide range of activities, including processing and merchandising of agricultural commodities, producing food ingredients, and providing transportation and logistics services. It initially started its operations as a linseed crushing business.

Other global de-oiled lecithin industry players include Avi Agri Business Limited, Austrade Inc., Groupe Avril, Sternchemie GmbH & Co. KG, American Lecithin Company, The Scoular Company, and Sonic Biochem Extractions Pvt. Ltd., among others.

De-Oiled Lecithin Market Regional Analysis

The Asia Pacific is expected to be a significant contributor to the growth of the global de-oiled lecithin market share in the coming years. The growth of the region can be attributed to the abundance of raw materials like soybean and rapeseed, crucial elements in the manufacturing of de-oiled lecithin, that allows for efficient and cost-effective production processes.

In addition, consumers in the region are increasingly seeking out products that align with their health and wellness goals, surging the usage of de-oiled lecithin in food and beverages.

Competitive Factors in the Global De-Oiled Lecithin Market

• In the global de-oiled lecithin market, competitive factors include the ability to offer non-GMO and organic certified products, which meet rising consumer demand for clean-label ingredients. Companies with advanced extraction technologies, such as enzymatic extraction, gain a competitive edge by producing higher-purity lecithin. 
• Strategic partnerships with food and pharmaceutical manufacturers enhance market reach and product development. 
• Additionally, robust supply chain management ensures consistent quality and availability of raw materials, particularly soybeans and sunflower seeds, and enhances de-oiled lecithin market value.
• Companies investing in sustainable sourcing practices and innovations tailored for specific applications, like plant-based foods and nutraceuticals, further strengthen their market position.

Key Price Indicators in the Global De-Oiled Lecithin Market

• Raw Material Costs: Fluctuations in the prices of soybeans, sunflower seeds, and rapeseeds directly impact the cost of de-oiled lecithin production, as these are primary sources.
• Extraction Technology Advancements: Costs associated with adopting advanced extraction technologies, such as enzymatic extraction, can influence the pricing structure of high-purity de-oiled lecithin and impact de-oiled lecithin demand.
• Supply Chain Disruptions: Any disruptions in the supply chain, such as transportation issues or geopolitical tensions affecting major producing regions, can lead to price volatility.
• Regulatory Compliance Expenses: Costs incurred to meet stringent regulatory standards for non-GMO, organic, and allergen-free certifications can affect the overall pricing of de-oiled lecithin products.