Global De-Oiled Lecithin Market is Expected to Register a Healthy CAGR in the Forecast Period of 2019 to 2026

DRIVERS

GROWTH IN DEMAND FOR DE-OILED LECITHINES IN VARIOUS FOOD APPLICATIONS

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De-oiled lecithin is oil free and enriched in phospholipids components and is ideal for food and nutritional applications. This lecithin is added in dried form with a bland flavor and low aroma in food. De-oiled lecithin is neutral in color and flavor and comes in both granular and powder forms. De-oiled lecithin is used in other application areas such as Beverages, Confectionery, Convenience Foods (Instant Mixes, Soups, and Sauces) and dairy, Meat & Fish (Ground Meat Products and Fillings). There is substantially increase in demand for convenience foods over the past several years as convenience foods have become staple of a typical diet. Whereas In food lecithin is also used in animal feeds as a nutritional ingredient, emulsifier, and wetting aid in calf milk replacers, pet foods, and many other types of feeds required high fat and oil contents.

Growing demand for de-oiled lecithin is fulfilled by some companies who are manufacturing lecithin products.

  • In March 2018, Cargill (U.S.) launched de-oiled lecithin products range that completes its portfolio of GMO and non-GMO lecithin products. With this launch of product the company has fulfilled the growing demand from consumers for label-friendly ingredients.

INCREASE IN ACCEPTANCE OF SUNFLOWER-BASED LECITHIN

The lecithin contains nutritional value and hence can be used in cereals, snacks, energy drinks, dietary enrich tablets and capsules. De-oiled lecithin is produced by using certain raw materials such as soybeans, rapeseeds, sunflowers and others. Soy lecithin is used in various food application but most of the people are allergic to soy lecithin which causes some health related issues. In order to use lecithin now the lecithin is also produced from sun flowers which as less allergenic activity and hence people are more attractive towards sunflower-based lecithin. However sunflower lecithin can be extracted naturally without the use of chemicals and is a safer and healthier choice compared to soy lecithin. The purity of phospholipids in Sunflower lecithin is comparatively higher compared to other de-oiled lecithin.

Due to better properties and benefits the sun flower lecithin is more accepted by people as it is more non-GMO and less allergenic. There are companies launching such products with benefits in market and they are:

  • In September 2018, Sun Nutrafoods (India) launched Sunflower Lecithin with a new brand SUNTHIN. The Sunflower Lecithin produced by the company is 100% Non-GMO and Allergen Free and hence it is giving clean label their customers.
  • In July 2018, Bunge Loders Croklaan (U.S.) launched sunflower lecithin. This product is a Non-GMO Project Verified ingredient that has application area such as food and beverages and it includes crystallization control, emulsification and others.

GROWTH IN DEMAND FOR NATURAL FOOD ADDITIVES

Lecithins (deoiled, enriched phospholipids from soya bean) are the fractions or mixtures of phosphatides which are obtained by the physical procedures from animal or vegetable foodstuffs. Lecithin is used in various food applications such as texturization, dispersing, emulsification and many others. The major application of lecithin is in food industries such as chocolates for better enrobing as well as reduces crystallization of cocoa fat. De-oiled lecithin is extracted from different sources such as soy, sunflower, and rapeseed and it has advantages and applications in animal nutrition, beverages, baked goods, confectionery, human nutrition, snacks and soups, gravies and sauces.

In beverages, it improves the dispersion of high- and low-fat powders and also improves mouthfeel for various food products.

There are various companies launching de-oiled lecithin in market which can be used in food industries.

  • In March 2018, Cargill, Incorporated (U.S.) introduced de-oiled lecithin of GMO and non-GMO lecithin products. The product will firstly market in the Europe; de-oiled lecithin can help bakery and snacks manufacturers to deliver the recognizable ingredient label to the consumers at affordable price range.
  • In October 2018, LASENOR EMUL, S.L (Spain) announced the launch of VEROLEC ORGANIC, organic soya lecithin originated in the U.S., with USDA (United States Department of Agriculture) Organic Certification.

RESTRAINT

REPLICABILITY OF DE-OILED LECITHIN BY SYNTHETIC ALTERNATIVES

Deoiled lecithin (powder) is extremely nutritional valuable product and is extracted from soy and sunflower and other sources. Lecithin has various functional as well as synergistic properties due to which is can be used as an emulsifier, stabilizes and homogenisers fat particles in food. It is also used in instant drinks, cosmetics and many others.

De-oiled lecithin is used as an emulsifier but there are various other products that can be used as emulsifier and can replace lecithin easily in market. Few products which can be used for the emulsifying agents include

  • Honey
  • Mustard
  • CSL Calcium Stearoyl Di Laciate
  • PolyGlycerol Ester (PGE)
  • Sorbitan Ester (SOE)
  • PG Ester (PGME)
  • Sugar Ester (SE)
  • Monoglyceride (MG)
  • Acetylated Monoglyceride (AMG)
  • Lactylated Monoglyceride (LMG)

These food emulsifiers provide a food very appealing as without emulsifier the water and the oil content in food will look separate. Similarly there are other usages of de-oiled lecithin in various industries for which substitutes are available which can affect or hamper the growth of the market.

OPPORTUNITY

EMERGING MARKETS & CHANGING CONSUMER LIFESTYLES

De-oiled lecithin as its name suggests the product with no oil. De-oiled lecithin is practically free from oil and consisting of high concentration of polyunsaturated fatty acids. It is available in powder or granular form which makes it more compact, easy to handle product. In addition to this the products has improved functional properties and are essentially ready nutraceuticals with immense nutritional benefits for consumers. There are different sources available such as soy, egg and sunflowers.

For fulfilling consumers demand who has better lifestyle various companies have involved and some of them are given below:

  • In November 2013, Berg + Schmidt (Germany) and Sternchemie (Germany) have invested in a de-oiling plant for the production of pure soybean lecithin. The capacity plant in the first phase of construction was 4,000 tonnes p.a. of de-oiled lecithin. This has fulfilled increasing popularity of convenience foods and better feed in the market among people. This is lecithin de-oiling plant in Singapore and is the first in South-East Asia that fulfilled people need.

As per an article published in science direct in 2017, emerging countries are estimated a sales growth in Pharma sector than in developed countries, with BRIC-MT (Mexico and Turkey) countries ranking first with a 9.3% growth in sales between 2015 and 2020.

CHALLENGES

FLUCTUATION IN RAW MATERIAL PRICES

Currency fluctuations start with floating exchange rate system which is followed by many major economies of different countries. The exchange rate of currencies in countries differs with other countries on various factors such as demand for currencies, relative supply, inflation outlook, economic growth of countries, capital flows, and others. Due to changes in these factors currencies fluctuate accordingly. This change in currency or fluctuation can have a far reaching impact on the country’s economy, businesses and remittance inflows and consumers.

Due to fluctuation in currency this impacts on the prices on the products such as agricultural products, raw materials and others. Farmers in all over the world face dramatic fluctuations in the price of the crops they produce.

These fluctuations in currency may affect manufacturer in importing and exporting raw materials from one place to other which can hamper the growth of the market.

There are the raw materials used for the production of de-oiled lecithin and they are soybeans, rapeseeds, sunflower and eggs. These materials are exported or imported from one to other as per the requirement for production of lecithin products.

FLUCTUATION IN RAW MATERIAL PRICES

There is an increase in consumer health concern in consuming GMO products which has led a declination in the acceptance of GMO products. Stringent regulations have been imposed on the production and import-export of GMO products. There are the countries who are adopting GMOs products rapidly but there are also rise in GMO complexity. The complexity in GM products involves the levelling rules under Regulation (EC) 1830/2003. In this regulation a mandate indication for labeling GM products must fall more than 0.9%.

The GM labeling is mandate in many countries around the world and name of the countries are listed below in each region. Sometimes it may cause the issues in maintaining the labelling.

Due to allergenic activity of soy, stringent regulation has been imposed on the production from regulatory authority. The stringent regulation in such cases may hamper growth of the market.

In 2014, there has been stringent regulation made by the EFSA Panel on Dietetic Products, Nutrition and Allergies (EFSA NDA Panel, 2014) in which allergenic foods and food ingredients must be labelled with allergenicity in products for ex. egg and soya lecithin. Due to strict regulation imposed in production of soy or egg lecithin, a sometimes manufacturer has to face problems in producing the product with proper guidelines.

Market Trends:

  • On the basis of type, the market is segmented into GMO, Non-GMO. In 2019, GMO segment is estimated to lead global de-oiled lecithin market. The GMO is dominating the market due to soybean is one of the most known GMO crop, and it is the major source of lecithin also consumer wants non modified products as sunflower is a non GMO products.
  • On the basis of extraction method, the market is segmented into acetone extraction, supercritical carbon dioxide extraction and ultrafiltration process. In 2019, acetone extraction segment is estimated to lead the global de-oiled lecithin market. The acetone extraction method is dominating the market due to easier processing and less time consumption in the precipitation of the lecithin from the whole mixture, making their preference among manufacturers.
  • On the basis of sources, the market is segmented into soy, sunflower, rapeseed and egg. In 2019, Soy segment is estimated to lead the global de-oiled lecithin market. The soy segment is dominating the market due to exhibits excellent emulsification properties and hence is suitable for use in high quality applications such as beverages, baked goods, confectionery, snacks and others.
  • On the basis of form, the market is segmented into powder and granulated. In 2019, powder segment is estimated to lead the global de-oiled lecithin market.The powdered segment is dominating the market due to powdered form of de-oiled lecithin has reduced content of triglycerides and fatty acids as compared to standard lecithin, thus providing enhanced nutritional value.
  • On the basis of application, the market is segmented into Food & Beverage, Pharmaceuticals, Feed, Personal Care, Others. The Food & Beverage segment is sub-segmented into Bakery Products, Convenience Food & Beverages, Dairy & Frozen Desserts, Confectionery Products, Others. In 2019, food & beverage segment is estimated to lead the global de-oiled lecithin market. The Food & Beverage segment is dominating the market due to high requirement of the emulsifiers, viscosity modifiers, instantizing agent, antioxidant, release agents, surfactants in the food products leading the food manufacturers to use de-oiled lecithin as food additives to enhance the shelf life, taste of the product.

Major Players: Global De-Oiled Lecithin Market

Some of the prominent players operating in this market are Cargill, Incorporated, Archer Daniels Midland Company, LECICO GmbH, Lecital, Austrade Inc, Clarkson Grain, GIIAVA, Bunge Limited, LASENOR EMUL, S.L., Amitex Agro Product Pvt. Ltd., American Lecithin Company, Clarkson Grain, Stern-Wywiol Gruppe, Novastell, DUPONT and others.