Phospholipids Market - Growth, Trends, and Forecasts (2022 - 2027)

The Phospholipids market is projected to register a CAGR of 5.6% during the forecast period, 2022-2027.

The demand for phospholipids has been increasing in various industries including food, supplements, and pharmaceutical owing to their versatile property. In addition, the abundant availability of raw materials had enabled the manufacturers to utilize the resource and expand their product portfolio. For instance, in 2021, Fonterra Co-Operative Group Limited, the New Zealand company launched NZMP milk phospholipid 70 under the brand name NZMP. This phospholipid ingredient is suitable for various food and beverage products including supplement sachets, nutritional bars, and ready-to-mix health powders, and is specially formulated for mood enhancement and cognitive performance under stress issues that have been amplified during the pandemic period.

Subsequently, phospholipid is a promising natural ingredient for nutritional supplements products owing to the increasing demand for natural health supplements. In addition, the growing adoption of a healthy lifestyle coupled with increasing consumption of functional and convenience foods are further increasing the demand for phospholipid ingredients which in turn drives the market growth in the forecast period.

Owing to its emulsifying property, phospholipid has wide application in the food and confectionery industry. In addition, infant formula is the fastest growing application segment for phospholipids as it is rich in DHA, ALA, and omega fatty acids which are essential components for infant nutrition. This attribute will impact positively the phospholipid ingredients in the global market.

Key Market Trends

Increasing utilization in nutrients and supplements

The demand for phospholipids is increasing in the nutraceutical industry owing to the rising consumption of nutritional supplements among global consumers. Phosphatidylserine is majorly used in brain health supplements as it helps to boost cognitive function. Moreover, recent studies indicate that the consumption of phosphatidylserine supplements might act beneficial to children with attention deficit hyperactivity disorder and the young population suffering from anxiety and stress. In addition, Phosphatidylserine is widely utilized in sports nutrition products owing to its health benefits such as improving sports performance, speeding up recovery, and preventing muscle soreness. Similarly, Phosphatidylcholine is widely used in infant formula as it is enriched with docosahexaenoic acid and arachidonic acid which is essential for infant growth. Thereby, the increasing demand for phospholipid-based nutritional supplements among the population is further boosting the growth of the phospholipids ingredients market.

Asia-Pacific is the Fastest Growing Region

The Asia-Pacific region is anticipated to be the fastest-growing region for the phospholipids market due to its increasing demand in various application industries. China holds the largest share in the phospholipid market owing to its high demand in food and beverage manufacturing. Further, the abundant availability of raw materials such as soy, sunflower, egg, rapeseed, and milk is encouraging the small-scale players to produce naturally sourced ingredients for food and nutraceutical formulation. India has witnessed a higher adoption rate of phospholipid-based nutritional and health supplements due to its health benefits including the absorption of omega-3 fatty acids, which in turn, drives the demand for phospholipids.

Moreover, the manufacturers are engaged in formulating innovative phospholipids to cater to emerging end-use segments such as functional food products. For instance, in November 2020, Fonterra launched a new range of milk phospholipids including NZMP milk phospholipids for functional food & beverages to manage the effect of stress. Subsequently, the growing young population coupled with raising health consciousness has driven consumers to look up better alternatives such as food supplements. As a result, it strengthens the market value of phospholipids in the Asia-Pacific region. Additionally, the ongoing expansion of the pharmaceutical industry is anticipated to offer lucrative opportunities for phospholipid suppliers in the coming years.

Competitive Landscape

The global phospholipids market is consolidated as major players are coming up with nutritional ingredients in order to expand their reach in the food, beverage, nutraceuticals, and pharmaceutical industries. The players such as Cargill Inc., Lipoid, Lecico GmbH, VAV life science, and Novastell Ingredients Essentials among others are operating in the market. With prevalent FDA regulations, the leading players have an upper edge and continue to dominate the market. Major players in the region have been focusing on mergers and acquisitions as a strategy to strengthen their product portfolio, to cater a wide range of customers, and expand to untapped markets. For instance, in 2019, Avril Group, a manufacturer of oil and ingredient solutions acquired Lecico GmbH, a producer of phospholipids to expand their business activities in Germany.

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