Phospholipids Market

Phospholipids Market Outlook (2022-2032)

The global Phospholipids Market was valued at around US$ 3.7 Billion in 2021. With a projected CAGR of 7.3% for the next ten years, the market is likely to reach a valuation of approximately US$ 7.8 Billion by the end of 2032.

Fact.MR’s analysis reveals that most of the phospholipids industry revenue is grossed from Soy as a source which has a predicted CAGR of 7.8% by 2032. Nutrition and Supplements are the top application of these tests, with a CAGR of 7.4% in the forecast period.

Phospholipids are extensively used across a variety of applications, from pharmaceuticals and vaccines, and drug delivery systems to cosmetics and nutrition. This widespread usage, as well as the increase in funding for research and production by authorities, is expected to be the key driver for demand in the forecast period.

Report Attributes	Details
Global Market Size (2021A)	US$ 3.6 Billion
Estimated Market Value (2022E)	US$ 3.8 Billion
Forecasted Market Value (2032)	US$ 7.8  Billion
Global Market Growth Rate (2022-2032)	7.3% CAGR
United States Forecasted Market Value (2032)	US$ 2.5 Billion
United States Growth Rate(2022-2032)	7.7% CAGR
Key Companies Profiled	Archer Daniels Midland Company Croda International Plc. Bunge Ltd. Cargill, Inc. Kewpie Corporation Lasenor Emul SL Lecico GmbH Lipoid GmbH Sime Darby Unimills B.V. SojaProtein a.d. Stern-Wywiol Gruppe VAV Life Sciences Pvt. Ltd. Wilmar International Ltd.

How are dietary concerns boosting demand for phospholipids in the nutrition and supplements segment?

The Nutrition and Supplements segment accounted for 61.5% of the market revenue in 2021, with a forecasted CAGR of 7.4% in the next decade. The use of phospholipids in supplements and nutrition has been gaining prominence as an increasing amount of research indicates their importance. Phospholipids form a shell around necessary fats and fat-soluble nutrients such as omega-3 fatty acids, which aid in the distribution and absorption by the body.

They are naturally found in meat, eggs, and seafood, but are also taken as supplements. Krill is a popular source, containing 40% phospholipids. Research has also suggested that the omega-3s DHA and EPA from krill oil, which is bound to phospholipids instead of to triglycerides as they are in fish oil, might show higher bioavailability. The increase in usage of supplements as research indicates their importance widens is expected to boost demand.

How has use in Drug delivery systems given a boost to the market?

The use of Phospholipids in Drug Delivery Systems has been a key contributor to demand. The key concern when designing drug delivery systems is to create a product that can allow the substance to reach the site of action while avoiding the rest of the host tissue. Phospholipids have good biocompatibility and their amphiphilic nature means they have excellent characteristics for use in these systems, such as self-assembly, Emulsification, and wetting abilities. The wetting ability in particular is useful in the usage to enhance the hydrophilicity of hydrophobic drugs.

Phospholipids also have the ability to form liposomes, which have wide usage in drug-carrying applications. Liposomes can deliver a wide variety of drugs, antifungal, and analgesic, both hydrophilic and lipophilic types of drugs, can target the site of action efficiently, improve the stability of the drug and reduce drug toxicity.

Phospholipids are also used in drugs that have dermal administration since they enhance the skin barrier and moisturize the skin. They also increase the retention time for the drugs.

How has the use of phospholipids in mRNA-based vaccines affected the phospholipids market?

Despite the lull due to supply chain interruptions, COVID-19 led to a boost in demand due to the nature of phospholipids as an important component in the mRNA-based COVID-19 vaccines. mRNA technology, which uses a copy of the messenger RNA to produce an immune response, uses lipids. This is because RNA is widely regarded as fragile, since they are seen as intrinsically less stable when compared with DNA, and can degrade pre-emptively and even cause an unwanted immune reaction.

mRNA developers use a combination of lipids to form liquid nanoparticles or LNPs in order to ensure the mRNA reaches the target cells. The 4-lipid package used in mRNA vaccination includes, amongst the other lipids, DSPC or di-stearoyl phosphatidylcholine which is a structure-forming phospholipid. With the global pandemic, several authorities are encouraging research and development efforts for the same, giving a significant boost to demand.

Why has there been a surge in the usage of phospholipids in the cosmetic industry?

Phospholipids are gaining popularity in the cosmetic industry, Phospholipids are natural humectants. They are hygroscopic substances that can pull in water and can lock in moisture to hydrate and improve the skin barrier function. While monoacylphospholipids are mostly used only as emulsifiers, saturated and unsaturated phospholipids have a variety of applications, with the unsaturated type finding more usage in the enhancement of skin protection and as actives the unsaturated type finding use as surface-active compounds. Research also indicates their potential both as antioxidants and in the enhancing delivery of other cosmetics.

How is the boost in demand for lecithin affecting the market?

Commercial lecithin is a complex mixture of phospholipids and oil. It is being used in varied applications, such as use as emulsification and dispersion agents. Lecithin’s amphiphilic nature, with the ability to attract both water and fatty substances, means it also has widespread application in other uses, such as emulsifying infusion solutions, the synthesis of liposomes, and others. Lecithin is commonly used in applications that require the mixing of fats with other liquids or solids, such as in confectionery and baking applications.

Region-Wise Insights

How is Europe an emerging market for demand?

Europe is an emerging market for the demand for Phospholipids. According to the European Commission, lecithin is categorized as an E322 food additive with no fixed ADI value. This means lecithin is allowed for quantum satis use. Germany is a key country for demand, having witnessed a CAGR of 5.9% and having a forecasted market value of US$ 391 Mn at a CAGR of 7.0%. In April 2022, Wacker and CordenPharma announced that they had won a bid with the German government for the stand-by production of mRNA vaccines. The bid entails the expectation for the two to produce 80 Million doses, which may be increased to 100 Million doses, if required, by 2029.

Country-wise Insights

United States Phospholipids Market Analysis

The United States is a key country for demand, having witnessed a CAGR of 5.5%, with an absolute dollar opportunity of US$ 1.3 Bn and a forecasted 2032 market size of US $2.8 Bn at a CAGR of 7.7%. The FDA assigns a GRAS affirmation for lecithin. In June 2022, Croda International Plc announced an agreement with the US government for the expansion of manufacturing capacity for lipid systems used in novel drug systems. Under this agreement, the US government will provide US$ 75 Mn and Croda will invest US$ 58 Mn for the building of Croda’s lipid facility in the US.

This amount was awarded as a joint award from BARDA, or the Biomedical Research and Development Authority (which is part of the Office of the Assistant Secretary for Preparedness and Response within the US Department of Health and Human Services) and the JPEO-CBRND or the US Department of Defense’s Joint Program Executive Office for Chemical, Biological, Radiological and Nuclear Defence in partnership with the ACC JCRD or the Army Contracting Command’s Joint COVID Response Division.

UK Phospholipids Market Analysis

The UK is slowly emerging as a contributor to global demand, having witnessed a CAGR of 6.7%, with an absolute dollar opportunity of US$ 172 Mn and a forecasted 2032 market size of US$ 349 Mn at a CAGR of 7.1%. In March 2022, Croda International Plc announced that it had been awarded a grant of £15.9 million or approximately US$ 20.8 Mn by the U.K. government to increase the production capacity of their specialty lipids at their facility in Leek.

Japan Phospholipids Market Analysis

The market in Japan was held at US$ 155 Mn in 2021. The market in the country is projected to reach a valuation of US$ 315 Mn by 2032, growing at a CAGR of 6.7% during 2022 – 2032. The market during the forecast period is expected to garner an absolute dollar opportunity of US$ 150 Mn. 

South Korea Phospholipids Market Analysis

In South Korea, the market is expected to reach a valuation of US$ 189 Mn. The market is projected to gross an absolute dollar opportunity of about US$ 100 Mn during the forecast period, growing at a CAGR of 7.6%.

Category-wise Insights

What is the top source of phospholipids?

Soy-based phospholipids, which are expected to contribute to over 50% of market revenue in 2032, are the top source of phospholipids, having witnessed a CAGR of 5.6% during 2017 – 2021. Soy-based phospholipids are a byproduct of the soybean oil production process. The sludge that remains after soy oil is degummed in the soybean oil manufacturing process is processed either mechanically or chemically to produce Soy Lecithin. Soy lecithin is a cheap form of an emulsifier since soybean is one of the cheapest crops to produce, with several countries even providing subsidies to produce it. Soy lecithin’s popularity is increased by the fact that it is required in small doses to show results.

For example, 0.5% of lecithin can have the same effect on thinning down coating in chocolate that 3.0%-4.0% cocoa butter would have had. The replacement with lecithin is also attractive due to the fact that it can significantly reduce manufacturing costs.

Competitive Landscape

Phospholipids providers are focused on increasing the production of their products to meet demand in widespread applications. The key companies operating include Archer Daniels Midland Company, Croda International Plc, Bunge Ltd., Cargill, Inc., Kewpie Corporation, Lasenor Emul SL, Lecico GmbH, Lipoid GmbH, Sime Darby Unimills B.V. SojaProtein, Stern-Wywiol Gruppe, VAV Life Sciences Pvt. Ltd., and Wilmar International Ltd.

Some of the recent development in Phospholipids are as follows:

• In June 2022, Germany’s LECICO GmbH announced the launching of a soy-sourced phospholipid in the form of phosphatidylcholine. The product was named LIPAMINE PC 30 P IP and was intended for use as a nutraceutical for functional food formulations, as well as an excipient in pharmaceutical and liposomes.
• In June 2022, Evonik Industries announced an agreement with the US government for the expansion of its capacity to manufacture lipids for use in mRNA therapies both in and beyond COVID vaccines.

Under this agreement, there is a total of US$ 220 Mn as investment, from BARDA, or the Biomedical Research and Development Authority providing US$ 150 Mn, with additional support from the IEDC or Indiana Economic Development Corporation, the GLC or the Greater Lafayette Commerce and Duke Energy.

• In November 2021, Bunge Loders Croklaan, the natural, plant-based business from Bunge announced plans to build a production facility in the Port of Amsterdam with a 2024 completion goal.
• In April 2021, VAV Lifesciences through its subsidiary VAV lipids announced an agreement with a US-based Contract Development and Manufacturing or CDMO firm for the supply of phospholipids to be used in mRNA-based COVID vaccine manufacturing. The firm is a vaccine maker for companies like Pfizer-BioNTech and Moderna and will use the phospholipids provided to produce LNPs or Liquid nanoparticles on the behalf of the two.
• In March 2021, Lecico and Ciranda announced an agreement that grants Ciranda an exclusive distribution agreement in the North American Market.
• In January 2021, New Zealand’s Fonterra Co-Operative Group Limited launched milk phospholipids sourced from non-GMO rBST-free and grass-fed cows’ milk. This product is intended for the resolution of mental stress and neutraceuticals.

Similarly, recent developments related to companies manufacturing phospholipids have been tracked by the team at Fact.MR, which is available in the full report.

Key Segments Covered in Phospholipids Survey

• By Source:

  • Soy
  • Eggs
  • Other Sources

• By Application:

  • Nutrition and Supplements
  • Pharmaceuticals
  • Other Applications

• By Region:

  • North America 
  • Latin America 
  • Europe 
  • Asia Pacific 
  • Middle East & Africa