MARKET OVERVIEW- NATURAL SOY LECITHIN MARKET
Soy lecithin is a combination of oil and phospholipids extracted from soybeans. It is commonly utilized as an emulsifier in the food industry and in other fields such as pharmaceuticals, cosmetics, and industrial products. Natural soy lecithin, which comes from non-genetically modified soybeans, is often employed as an alternative to synthetic emulsifiers. It has several beneficial nutrients, including choline, which is vital for liver health and brain function. Regulatory bodies such as the FDA and EFSA have deemed soy lecithin safe for human consumption. Nevertheless, some people may have soy allergies, and the potential health consequences of consuming large amounts of soy products are disputed.
MARKET DRIVERS
The demand for soy lecithin is on the rise in the cosmetics and personal care industry due to its various beneficial functions such as emollient, viscosity control, and emulsifying agent. With the growth of the beauty and personal care sector, particularly in Thailand, where it is expected to expand by 5.5% until 2025, and with major companies such as LOREAL reporting a substantial increase in annual revenue for cosmetics, soy lecithin is expected to have significant growth opportunities in this industry. Soy lecithin also has applications in the medical and healthcare sector due to its composition of phospholipids such as phosphatidic acid, phosphatidylcholine, and others. It is used in medications and natural supplements for liver disease treatment, controlling high cholesterol, and other conditions. The medical industry is rapidly growing, particularly in India, where the domestic pharmaceutical industry is projected to reach US$65 billion by 2025 and expand to US$125-130 billion by 2030. The demand for OTC medications and supplements is also high in Europe, creating opportunities for soy lecithin in the healthcare sector.
MARKET OPPORTUNITIES
The use of natural soy lecithin as an emulsifier is prevalent in various industries. In the food industry, it is utilized to produce baked goods, margarine, chocolate, salad dressings, and more. As consumers demand more natural and healthier food options, the demand for natural soy lecithin is expected to increase. Similarly, the personal care industry uses it as an emulsifier and moisturizer in creams, lotions, and hair conditioners. As consumers become more conscious of the ingredients in their personal care products, the demand for natural soy lecithin is also projected to grow. In the pharmaceutical industry, it acts as an excipient, enhancing drug delivery in capsules, tablets, and other medications. The demand for natural and organic ingredients in the pharmaceutical industry is also expected to contribute to the growth of the natural soy lecithin market. Additionally, it is utilized as an emulsifier and choline source in the animal feed industry. With the rising demand for natural and healthier animal feed options, the market for natural soy lecithin is also anticipated to expand.
MARKET RESTRAINTS
Soy lecithin, which is derived from soybeans, has the potential to cause allergic reactions in individuals who are allergic to soy. As a result, the use of natural soy lecithin in certain food products may be limited, particularly those intended for individuals with food allergies or intolerances. The production of soybeans for soy lecithin can have negative environmental consequences, such as deforestation, soil degradation, and greenhouse gas emissions, raising concerns about sustainability. As a result, there is a growing demand for sustainable alternatives, which could limit the demand for natural soy lecithin.
MARKET GROWTH CHALLENGES
The use of genetically modified soy lecithin has been linked to several health hazards, including allergic reactions and gastrointestinal problems, leading to a decline in demand and production trends in the industry. Additionally, the recent hike in soybean prices has presented a challenge for the market, with Soybean Futures Trading in India soaring from US$45.10 per quintal in October 2022 to US$84.90 per quintal in August 2022. The manufacturer of soy lecithin, Lasenor, reported a 6-9% increase in the prices of non-GM IP soya lecithin in comparison to 2021 and 2022. Consequently, the Soy Lecithin Market is facing a slowdown in growth due to these significant health risks and price rises.
CUMULATIVE GROWTH ANALYSIS
The report provides in-depth analysis of the Natural Soy Lecithin market, market size, and compound annual growth rate (CAGR) for the forecast period of 2023-2029, considering 2022 as the base year. A rise in demand for Natural Soy Lecithin in various application is anticipated to stimulate the growth of the market and due to this factor, the market is expected to witness growth at a specific CAGR from 2023-2029.
NATURAL SOY LECITHIN MARKET SEGMENTAL OVERVIEW
The Natural Soy Lecithin market comprises of different market segments like Type, Application and geography.
NATURAL SOY LECITHIN MARKET BY TYPE
By type, Natural Soy Lecithin market includes key segments like
The natural soy lecithin market is expected to witness significant growth in the coming years due to the escalating demand for natural and healthy food ingredients, particularly in the food and beverage industry. Consumers' increasing awareness of the various health benefits of soy lecithin, such as its ability to enhance brain function, reduce cholesterol levels, and prevent liver damage, is also expected to drive market growth. The powder form of natural soy lecithin is anticipated to dominate the market segment due to its versatile applications in various industries, including food and beverage, cosmetics, pharmaceuticals, and animal feed. Soy lecithin powder is commonly utilized as an emulsifier, stabilizer, and thickener in food and beverage products. In the pharmaceutical sector, it is used as an excipient to improve drug solubility and bioavailability. Soy lecithin powder is also commonly used as a supplement in animal feed to promote animal growth and health. The liquid form of natural soy lecithin is also projected to experience substantial growth, primarily driven by the increasing demand for natural emulsifiers in the food and beverage industry. Soy lecithin liquid is widely used as a natural emulsifier in salad dressings, sauces, and beverages to enhance their stability and texture.
NATURAL SOY LECITHIN MARKET BY APPLICATION
By Application, Natural Soy Lecithin market finds major application in
- Food users
- Therapeutic Users
- Non-Food and Industrial Users
- Others
Natural soy lecithin is a versatile ingredient with a wide range of uses in different industries. The food industry is the primary consumer of soy lecithin, where it serves as an emulsifier, stabilizer, and dispersant in various food products. The demand for natural soy lecithin in the food industry is expected to grow due to the increasing demand for functional food and clean label ingredients, as well as its health benefits such as cholesterol reduction and cognitive function improvement. Apart from the food industry, natural soy lecithin is also used in pharmaceuticals and nutraceuticals to treat liver disease, memory disorders, and high cholesterol. The use of natural remedies is gaining popularity due to the growing prevalence of chronic diseases. Non-food industries such as personal care products, animal feed, and industrial applications such as paints, coatings, and inks also use natural soy lecithin. The demand for sustainable and natural ingredients is driving the growth of this market segment. Other industries such as cosmetics, agriculture, and textiles are also utilizing natural soy lecithin. The increasing awareness of the benefits of natural and sustainable ingredients is expected to drive growth in this market segment.
NATURAL SOY LECITHIN MARKET BY REGION
The Natural Soy Lecithin Market is studied for the following region
- North America
- Europe
- Asia Pacific
- Rest of the World
It has been predicted that the Asia-Pacific region will lead the soy lecithin market in the foreseeable future due to the abundance of raw materials in this area. Soy lecithin is a crucial ingredient in paints as it reduces viscosity, and it is also used in construction and food. The key driving regions for this market are expected to be India and China. North America and Europe are also expected to contribute to the growth of the market in the forecast period. The demand for high-protein foods in developed regions has led to an increase in demand for the Soy Lecithin market. With people leading busy lifestyles, they are seeking a cost-effective and high-quality protein source, which has fueled the demand for the Soy Lecithin market.
COVID-19 IMPACT ANALYSIS ON NATURAL SOY LECITHIN MARKET
Axiom MRC provides a 360-degree analysis of micro and macro-economic factors on the Natural Soy Lecithin Market. In addition, a complete analysis of changes on the Natural Soy Lecithin Market expenditure, and economic and international policies on the supply and demand side is provided in this exclusive report. The report also studies the impact of the pandemic on Global economies, international trade, business investments, GDP, and marketing strategies of key players present in the market.
The natural soy lecithin market has been significantly affected by the COVID-19 pandemic, which has caused disruptions in supply chains and a drop in demand for the product. Soy lecithin is an emulsifier used in various industries such as food, pharmaceuticals, and personal care. The pandemic has led to the closure of factories and difficulties in sourcing raw materials, resulting in supply shortages and price fluctuations. The food and beverage industry, which is the largest consumer of soy lecithin, has been particularly affected by the closure of foodservice outlets, resulting in a significant decrease in demand for soy lecithin in processed foods and baked goods. However, there has been an increase in demand for soy lecithin in the nutraceutical and pharmaceutical industries due to the growing need for health supplements and medication.
COMPETITIVE LANDSCAPE ANALYSIS
Natural Soy Lecithin Market, Key players include Cargill, Stern Wywiol, Lipoid, American Lecithin Company, Sodrugestvo, Kewpie Corporation, Lecital, Lasenor Emul, Avanti Polar Lipids, and Lecico.
The key players studied in market are
- Cargill
- Danisco
- ADM
- Lipoid
- Ruchi Soya
- Bunge
- Shankar Soya Concepts
- Denofa
- Lucas Meyer
- Marathwada Chemical
- Jiusan Group
- Merya's Lecithin
- Gushen Biological Technology
- Shandong Bohi Industry
- Siwei Phospholipid
- Tianjin Hexiyuan Lecithin Technology
- Beijing Yuan Hua Mei Lecithin Sci-Tech
RECENT DEVELOPMENT:
December 2021: the Hain Celestial Group made an announcement regarding its acquisition of "That's How We Roll," a company that produces and markets ParmCrisps and Thinsters. These two brands are gaining popularity due to their healthy and delicious snack options that are convenient for consumers. The acquisition, which was made from Clearlake Capital, is expected to bolster the Hain Celestial Group's position in the competitive snacking industry.
March 2021: cico and Ciranda formed a partnership in March 2021 to distribute lecithin and phospholipids in North America, with a focus on meeting the demand for clean-label food products and offering local commercial and technical assistance.
January 2020: Lipoid launched PhytoCodine, a line of personal care and cosmetic products featuring natural phospholipids, premium botanical extracts, and active ingredients.
