Soy lecithin is an insulator, which reduces heat flow between high and low temperature materials. Soy lecithin is generally used in buildings as window insulating film, in mechanical systems, spacecraft, and automotive. Air being a poor thermal conductor, soy lecithin is used as an alternative to it in many thermal insulation applications. Soy lecithin traps gases and forms a layer of coating against heat. Also, soy lecithin reduces noise and vibrations.
Soy lecithin is used as a wetting, stabilizing, and dispersing agent due to which it is widely used in the pharmaceutical industry. It is rich in fat and protein owing to which it finds application as animal feed. It is also used in paint industry as an antioxidant and wetting, suspending, emulsifying & stabilizing agent.
Soy lecithin Market Taxonomy
On the basis of grade, the soy lecithin market is classified into:
- Food grade
- Feed grade
- Pharmaceutical grade
- Industry grade
On the basis of function, the soy lecithin market is classified into:
On the basis of application, the soy lecithin market is classified into:
- Food & Beverages
- Automotive & Aerospace
Soy lecithin is largely used in food, industrial as well as pharmaceutical industries due to the rich protein content and protective cover formation property.
Soy Lecithin Market Outlook
- Asia Pacific is estimated to be the largest and fastest growing market in the forecast period owing to the high demand for the product and abundance of raw materials. India and China contribute significantly to the market growth in the region. The forecasted growth is backed by the immense demand for the product from food, construction, and paint industries
- North America is the second largest market of soy lecithin. The market growth is primarily supported by the rising demand for protein-rich as well as processed food. Busy life schedules of modern society has augmented the demand for packaged nutritional supplements, which in turn boosts the demand for soy lecithin
- Europe is an emerging market in the global soy lecithin market. The rising use of cheap source of high-quality protein in food and supplements increases the demand for soy lecithin
- The Latin America and Africa soy lecithin markets are witnessing sluggish growth rate, however, the growing economy of these regions creates a better platform for soy lecithin market in the upcoming years
Soy lecithin being of lower price and easily available is preferred over other protein enriched food items.
Soy Lecithin Market Challenges
Excess consumption of soy lecithin leads to many health issues. Strict government regulations pertaining to genetically modified soybeans hinder the soy lecithin market growth to an extent.
- In January 2019, Avril Group acquired LECICO GmbH (manufacture of soy, sunflower, & rapeseed lecithin, phospholipids, and nutraceutical products). The acquisition will help Avril Group to expand its product portfolio and increase its market share in lecithin market.
- In September 2019, Praan Naturals launched its new Organic Soy Lecithin Liquid and Powder for personal care industry. The new product launch helped Praan Naturals to expand its product portfolio. The new product will find application in skin care, lip care, hair care, nail care and cosmetic products.
- In February 2019, Lasenor Emul, S.L. (manufacturer of emulsifiers) and Simmons Grain Co. (organic soybean processor based in Ohio, U.S.) entered into a joint venture to form LASENOR USA LLC. The new company will manufacture organic soya lecithin products for food and feed applications.
- In September 2019, AAK (Sweden based manufacturer of vegetable oils & fats) acquired U.K. based Soya International (manufacturer of soy, sunflower & rapeseed lecithin). The acquisition will help AAK to strengthen its position in lecithin market.
Some of the key market players identified in the value chain of global soy lecithin market are Archer Daniels Midland Company, Cargill, Lipoid GmbH, American Lecithin Company, Lasenor emul, Lecico Gmbh, Ruchi Soya Industries Ltd., Ceresking Ecology & Technology Co. Ltd., and Bunge Limited.