Introduction
So, you want to set up a soya lecithin manufacturing plant? But you’re unsure of its path to profitability?
As process engineering partners with an eight-decade legacy, we at Kumar are known for our impeccable oilseeds processing solutions – the plants and machinery we build are robustly engineered, versatile, and most importantly, they’re operationally profitable. Our work as soya lecithin plant manufacturers also boasts of all these advantages.
As you step into the world of soya lecithin production, let us give you a quick look into the soya lecithin market, what it takes to get started, and crucially, what it takes to remain competitive and sustainable in today’s global markets.
The soya lecithin market
As a phospholipid, soya lecithin has emulsifying and stabilising properties, which make it a great addition to chocolate, margarine, baked goods, and many many other food and non-food products.
As per a market research report by Grand View Research, the global lecithin market was worth an estimated USD 645.1 million in 2024. Between 2025 and 2030, they forecast that the market will grow at a CAGR of 9.1%, taking the total market value to an estimated USD 1,068.8 million by 2030.
Soya lecithin accounted for the largest share of this market, with soya lecithin revenues surpassing USD 469 million in 2023. In 2024, soya lecithin accounted for a 78.3% revenue share of the global lecithin market. The popularity of soybeans for lecithin production is because this oil-bearing crop is already widely cultivated around the world for its oil and protein content. Soyabean is also a fairly affordable feedstock for lecithin production.
Now, the demand for lecithin varies by its final form. So, before you set up your soya lecithin manufacturing plant, you should have clarity on the form you want to produce. Understanding the market for each form will help you make a decision.
For instance, at 86.2%, liquid lecithin accounted for a massive share of global lecithin revenue in 2024. This is thanks to the application of liquid lecithin in diverse industries like cosmetics, food processing, confectioneries, supplements, and industrial coatings.
Though it accounts for a smaller market share, powdered lecithin is also witnessing growth – from 2025 to 2030, it is forecast to grow at a CAGR of 9.8%. This can be attributed to its growing use in F&B, animal feed, cosmetics, and pharmaceuticals.
The soya lecithin manufacturing process
You probably already know that soya lecithin is a natural by-product of the soyabean oil extraction process. So, improving the profitability of your soya lecithin plant necessitates that you also improve the profitability of your soyabean oil manufacturing process. We’ve already written about this in other posts on our blog – you can check out this post about soyabean oil machine prices, this one about soyabean oil manufacturing plant cost, and this one about soybean oil refinery plants.
Beyond the oil extraction process, there are myriad factors you must consider to ensure you’re on the right track to set up a profitable soya lecithin manufacturing plant. This includes requirements for raw materials, utilities, infrastructure, machinery and other technology, manpower, packaging, and transportation. You must also take into account your capital investments and operating expenditure. As you lay out a business plan, work on procuring project funding – this will require you to develop income and expenditure projections, assess fixed vs variable costs, expected ROI, and net present value.
Potential challenges in soya lecithin production
Soya lecithin production is certainly a lucrative opportunity, but that isn’t to say that there are no challenges.
A growing trend shaping the market today is the increasing preference for non-GMO and organic soya lecithin – this shift is driven by consumers’ greater focus on sustainability, responsible sourcing, and health consciousness. As a soya lecithin manufacturer, you will have to be careful to source organic, non-GMO soyabeans or soyabean oil if you want to cater to the markets that care about these factors.
Second, there are some concerns about the cholesterol levels and allergic properties of soybeans. Developing hypoallergenic lecithin can help address this segment of the market.
Finally, as a soya lecithin manufacturer, you may also be plagued by potential fluctuations in soyabean prices. Maintaining stable prices for your products and steady raw material availability will require proactive planning on your part.
Despite these challenges, it is possible to set up a profitable soya lecithin manufacturing plant that not only stands the test of time but also effectively meets consumer demand.
Setting up your soya lecithin plant for profitability
The end-use industries of soy lecithin are witnessing rapid growth – think F&B, pharmaceuticals, nutraceuticals, and animal feed. At the same time, lecithin production has risen to fill the gap between supply and demand. For this reason, market analyses don’t predict more than moderate price increases over the rest of this decade.
If you can’t increase your revenue per unit for soya lecithin, what you can do is reduce your cost of production. This is also a smart option because soya lecithin end-use products tend to be price-sensitive – competing on cost is what will give you an edge in the market.
Reducing costs is a function of multiple variables, the most important of which are process innovation (which we pride ourselves on in our OM Innovation Centre) and raw material costs (which are beyond our or your control, unless you plan to vertically integrate your business down the entire soyabean value chain).
So, what strategies can you employ to control your input costs? For starters, you should consider sustainability. Not only is this imperative to meet ESG goals, but it can also help you cut costs – think renewable energy sources, energy-efficient production lines, and circular economyapproaches.
Second, your soya lecithin manufacturing plant should be designed for product flexibility. The plant should be equipped with machines and processes that can accommodate multiple product specifications so that you can respond to evolving market demands without significant infrastructural changes.
You should also select machinery and design your soya lecithin plant in alignment with your intended scale of production. Whether you’re setting up a small-scale plant or large industrial operations, choosing the right equipment and layout will help you ensure the optimal use of resources, space, and production capabilities.
No one size fits all soya lecithin plants
At the end of the day, your soya lecithin manufacturing plant will have its own constraints, challenges, and goals. From raw material and labour availability to market preferences, automation level, and beyond, you will have to take a nuanced, personalised approach to your plant.
The good news is that you don’t have to embark on this journey alone. Through our decades of experience, we at Kumar have helped hundreds of clients navigate production across the oilseeds value chain. We can help you, too, to set up an operationally profitable soya lecithin manufacturing plant. Reach out to us for an expert consultation.
The crux of the matter: The preparation of lecithin
Recovering lecithin from oil is a fairly straightforward process. The lecithin manufacturing process hinges on the hydration of phosphatides using water or steam; this reaction is followed by the recovery of lecithin using a centrifuge and drying to eliminate moisture.
Before and after the hydration process, however, multiple steps and processes determine the yield, quality, and properties of the final lecithin product.
Since lecithin is produced from plant-based oils, the first stage of the lecithin manufacturing process is to procure the oil from the seeds, fruit, or beans – this involves oilseed harvesting, preparation, and extraction.
Oilseed preparatory steps will vary based on the feedstock being used. This stage will generally include cleaning, cracking, and dehulling for soybeans.
Oil extraction, like in most other cases, is carried out using either mechanical extraction or solvent extraction. The former results in a lower yield, but since no chemicals are used, it is considered safer and healthier, especially when it comes to human consumption. Mechanical extraction also maintains the organic profile of the lecithin derived. When used for the production of natural sunflower lecithin, this process yields non-GMO, organic lecithin that is preferred in many markets.
On the other hand, solvent extraction gives a greater yield, but involves the use of chemical solvents, typically hexane. While this process is completely safe, extra caution must be taken to ensure all the solvent is separated from the oil. Solvent extraction is typically used in the production of soy lecithin. (If a non-GMO, organic soy lecithin is required, mechanical extraction can also be employed, though care should be taken about the origin of the soybean to ensure it is not genetically modified.)
When the extracted crude oil is being refined, one of the most important steps is degumming – the process in which water is used to separate the gums or phospholipids from the oil. It is during this step that lecithin is produced as a by-product.
Depending on the application of the lecithin, it is further refined – this may involve drying, filtration and/or bleaching – to improve its quality, colour and texture, and enhance its concentration.
Note: Only half the phosphatides in soybeans are extracted when conventional solvent extraction is used. That’s why in the lecithin manufacturing process, preparatory steps like the Alcon process or expanders should be used to increase the phosphatidyl choline content by 30 to 40%, thereby increasing the total extracted phosphatides.
More recently, a relatively new method called enzymatic hydrolysis is also being explored for lecithin production. This process involves using enzymes to break down plant material, extracting oil and lecithin in the process. Not only is this process more eco-friendly because it doesn’t use harmful chemicals, but it also yields larger quantities of oil and lecithin. Nevertheless, enzymatic hydrolysis is a more complex process; it also requires the use of more sophisticated and specialised machinery.
Lecithin refining, modification, and customisation
The extracted crude lecithin may be put through further process to improve its quality and longevity like pretreatment, vacuum drying, acetone extraction, spray drying, milling, and packaging. Depending on its end use and the relevant quality standards.
Beyond refining, lecithin may also be modified and customised for specific uses. Depending on the applications for which you are producing lecithin, the final product that you obtain can be in liquid, granular, or powdered form.
Let’s take the use of lecithin as an emulsifier in food processing – if you supply to food processing industries, you would want to produce liquid lecithin. In the pharmaceutical industry, however, powdered lecithin is the form of choice for many formulations and dietary supplements.
When you want the powdered form of lecithin, you must de-oil it using appropriate techniques. For industrial applications, you may have to fractionate or enrich the lecithin to enhance certain properties like its thermal stability or water dispersibility.
Quality control in lecithin production
From start to finish, the lecithin manufacturing process must be carefully monitored and controlled to ensure that the final product meets the quality standards imposed by local, regional, and global regulatory bodies.
Beyond regulatory compliance, effective quality control is essential to maximise lecithin’s quality, utility, and functionality. This covers processing conditions from cultivation, harvest, storage and transport of the oilseeds to crude oil storage, pretreatment, drying, bleaching, and chemical modification – each of these processes can influence the quality of the lecithin used in your chocolates, sauces, dips, and medicines.
So, what steps does good quality control include? It includes the selection of high-quality raw materials. It involves careful monitoring of extraction and refining processes, with SOPs that prevent any sort of errors or contamination in the first place. Ensuring lecithin quality and safety for human use also requires regular testing for contaminants like heavy metals, microbes, and pesticides.
Once lecithin has been produced, you or your laboratory partner can use analytical methods like spectroscopy and chromatography to assess the purity and composition of the product. Many such quality processes are governed by ISO and FDA regulations.
Producing lecithin appropriate for your customers and their industry
At the end of the day, every part of your lecithin manufacturing process must comply with stringent quality control measures that not only protect your customers but also enhance your brand’s reputation and the marketability of lecithin-based products.
If you’re looking for a partner in your lecithin manufacturing operations, write to us. Our expert teams have just the solutions you need for all your oilseeds-related processes.
