COVID-19 and the following post-pandemic year have caused a significant decline in various sectors. Some even experienced temporary closures. All the havoc spread by the pandemic also impacted the supply and demand of fast-moving consumer goods globally.
However, 2022 brought with it increased opportunities as things slowly started normalising and the economy settled. An improving market meant renewed demand for FMCG products. Since food products are a staple in the FMCG sector, an increase in its sales made a positive impact on the need for lecithin.
This forecast focuses on market research, the outlook for key utilisation, and the end users. Also the growth rate for each application sector and the production, revenue, and price, and the overall contribution of wholesale and retail vendors to the lecithin market.
Until 2022, lecithin’s market size was valued at $1638 million approx. Now, its expected CAGR is 9.84% till 2027, which would ultimately revalue it at $2878 million.
The projection for the demand for sunflower lecithin alone is valued at approximately $838 million by 2027 from $477 million in 2022. The growth rate is 11.91%.
The size of the global lecithin market is divided into segments based on types (GMO and non-GMO lecithin), applications (food and beverage, feed, nutrition and supplements, pharmaceuticals, therapeutic uses, and others), regions, and forecasts through 2027.
The food sector has always been responsible for the spike in the market value of lecithin. With an industrial value of $8 trillion, the sector is the major buyer of lecithin.
With the growing need for ready-to-eat products and the rising focus on the consumption of healthier options, the demand for lecithin doesn’t seem to be ceasing anytime in the near future.
Its safe status, constantly researched new uses, and benefits in skincare products have elevated sales in the past few years.
The animal feed segment will be the primary market share holder of soy lecithin due to its extensive application for supplementation and fat digestion in animal feed and its incorporation in energy-rich animal feeds.
Because of the increased demand for lecithin in various production areas, the soy lecithin market is expected to exceed USD 2.3 billion by 2030.
As for sunflower lecithin, since it’s allergen-free, non-GMO, and plant-based, its demands will witness a rise in the expanding healthy foods market. Sunflower lecithin is also fast replacing lecithin derived from animals or soy because of its non-GMO nature.
In its various forms, i.e., liquid, powder, gel, and granules, liquid lecithin holds a big chunk of the market share. Even its applications are varied in different industries from F&B to skincare and cosmetics.
According to the USDA, the global annual per capita consumption of baked goods is also at an all-time high with China, the US, and Japan leading the pact. As per the recent numbers released by the India Brand Equity Foundation (IBEF), India will soon enter the processed food consumer market as well.
With the increased consumption and expansion of the sector, the use of liquid lecithin as a flavour protector and antioxidant is increasing, driving up the demand for it in the F&B industry.
Up until 2021, North America was considered the biggest marketplace for lecithin due to its extensive applications in various sectors. The rapid growth in their health industry and new drug developments have only added fuel to that fire, skyrocketing lecithin’s market.
A recent report from the International Federation of Pharmaceutical Manufacturers and Associations, or IFPMA, the pharmaceutical industry in North America is expected to grow by more than 9% by the end of 2026. Surprisingly, the North American lecithin demand is solely focused on liquid soy lecithin.
Whereas Asia-Pacific will remain the largest consumer of liquid sunflower lecithin for the foreseeable future, backed by factors like rising disposable income, adoption of healthy lifestyles, increasing product innovations, the active presence of large companies, and the region's well-established manufacturing sector.
For soy lecithin, the two major market drivers are the personal care industry and the healthcare sector. This doesn’t mean though that soy lecithin isn’t used in the F&B sector. Its use has, however, become limited because of the allergen presence in soy. The role is swiftly being taken over by sunflower lecithin.
Due to its widespread availability and low price points in the global marketplace, lecithin demand seems to be on the constant rise in every applicant sector.
The expanding uses for it are now breaking the chains of the food sector as they have entered non-food industries.
Unfortunately, the ongoing war tensions between Russia and Ukraine have negatively impacted the production of both soy and sunflower lecithin. With no sign of a decline in its demand and an expected shortage of supply, lecithin can witness a continued price increase throughout the year 2023. LECITEIN’s advice to our readers is to stock up on lecithin to meet their needs for at least two quarters for a hiccup-free production.
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