South America Lecithin Market: By Source (Soybean, GMO, Non-GMO, Sunflower Seed, Egg Yolk, Rapeseed/Canola, Others), By Form (Liquid, Powder, Granules), By Grade (Food Grade, Pharma Grade, Feed Grade), By Applications (Food and Beverage, Nutritional Supplements, Animal Feed, Cosmetics, Pharmaceutical, Industrial, Others), and Country Forecast 2020-2031

South America Lecithin Market size was valued at US$ 180 million in 2024 and is expected to reach US$ 250 million by 2031, growing at a significant CAGR of 4.8% from 2025-2031. The market is transforming into a strategically important part of the total food, nutraceutical, and industrial enterprises. Lecithin as a natural emulsifier became significant because of growing demand for functional foods and clean-label foods. With Brazil and Argentina becoming soy hubs, the continent automatically is favored in procuring lecithin, mostly the soy-derived ones. Domestic manufacturers are also considering the potential to export, fueled by European and North American demand. This is not necessarily a numbers game, however, regulatory demands, quality consistency, and claims of being free from allergens are reconfiguring competitive dynamics in the market, making it challenging but desirable.

The market is being reconfigured on multi-dimensional levels through the discourse of sustainability and increasing demand for plant-based options. Though soy is still the market leader, growth in sunflower and rapeseed lecithin is quietly reshuffling supplier lists due to allergen concerns and non-GMO demands. At the same time, applications are expanding into traditional food segments to pharmaceuticals, personal care, and animal nutrition. Most interesting is the way local producers are making it cost-effective without compromising on innovation, by combining geographic raw material advantage with functionality tailored to order. With global supply chains turning to South America for reliable supply of lecithin, market players are vying on traceability, quality, and flexibility.

Facts & Figures:

• South America is the global leader in soy production and, by extension, a natural location for low-cost lecithin production and export.
• Growing demand in the South American domestic food market for clean-label bakery, confectionery, and plant-based dairy alternatives fuels the need for lecithin.
• There is real momentum for local processors to manufacture sunflower lecithin in service of growing world demand for non-GMO and allergen-free ingredients.
• Brazilian and Argentine lecithin exporters invest in traceability systems and third-party certifications to penetrate high-standard markets such as the EU and U.S.

Recent Developments:

• In April 2025, Pfizer declared that around 80% of the lecithin used in its lipid nanoparticles in mRNA therapy now originated from the genetically enhanced soy lecithin of Cargill, enhancing encapsulation efficiency by around ~30%.
• In January 2025, DuPont launched a heat-stable soy lecithin product named ThermoLec™ in expanded-food production, currently an example of state-of-the-art product innovation and application development.

South America Lecithin Market Segmentation:

Based on the source:

• Soyabean
• GMO
• Sunflower Seed
• Egg yolk
• Rapeseed/ Canola
• Others

Soybean GMO lecithin is in a leading position in South America, thanks largely to the availability of GMO soybeans on the continent and state-of-the-art extraction plants in Brazil and Argentina. Price sensitivity and established supply lines make it the emulsifier of choice for local food processing and for export markets. As consumers around the world shift towards non-GMO sources, GMO soybean lecithin is still viable in price-sensitive markets and production processes. Soybean lecithin is used by manufacturers in South America for multi-modalities ranging from emulsification to moisture retention in a broad range of foodstuffs and animal feedstuffs. Its development in the future will be based on how producers deal with increasing pressure from overseas customers for sustainability and traceability.

Based on the form:

• Liquid
• Powder
• Granules

Liquid lecithin is widely available in South America because of its ease of application due to flexibility and susceptibility to food processing as well as industrial production. It has especially increased the acceptance of large food processors due to the flowability and blending features for ease of production. The widespread use of liquid lecithin also stems from local processing techniques more likely to provide liquid extract as the major product in the first place. Despite powder and granule forms rising for particular applications, liquid lecithin is the form of choice in bulk production uses like baking, confectionery, and margarine manufacture due to it being assured availability and having a lower processing cost that makes it retain its market.

Based on the grade:

• Food Grade
• Pharma Grade
• Feed Grade

South American food-grade lecithin is the highest grade, being backed by Brazil's and other neighbouring countries' humongous food processing industry. It enjoys strong demand as a natural emulsifier, stabilizer, and dispersing agent in bakery foods, dairy foods, and confectionary foods. With increasingly more clean-label trends emerging, food-grade lecithin is utilized even more as a natural alternative to man-made emulsifiers with safe and traceable ingredients demanded by consumers. South American producers, with a pool of raw materials and refining capacity, are buying food-grade lecithin not only for local use but also as a prime export product. Adherence to global food safety standards is an industry necessity now.

Based on the applications:

• Food & Beverages
• Nutritional Supplements
• Animal Feed
• Cosmetics Pharmaceutical
• Industrial
• Others

Foodstuffs and beverages are the largest end-use application of lecithin in South America due to its extensive application to enhance texture, shelf life, and dispersibility of the ingredients. Bakery and confectionery foods especially depend on lecithin for enhanced moisture retention, softness, and consistency of the final product. Due to increasing domestic demand for packaged and processed foods, food-grade lecithin is a dominant ingredient. Export companies also put lecithin-based formulates into global standards, driving innovation in non-GMO and allergen-free formulations. As clean-label trends infiltrate consumer psyches, lecithin's reputation as a natural, multifunctional ingredient is the key to its longevity in food application.