Monosodium glutamate (MSG) is a common flavor enhancer used in convenience food products to enhance the savory taste of food. MSG is commonly used in Chinese food, Japanese food, soups and snacks to bolster the umami flavor naturally found in foods like tomatoes and cheese. The growing demand for convenience food products owing to changing lifestyles and busier schedules has fueled the growth of the MSG market. MSG is widely utilized by food processing companies in convenience meals, soup powders, bouillon cubes, seasonings and snack seasonings.
The global Monosodium Glutamate market is estimated to be valued at US$ 5.91 Bn in 2023 and is expected to exhibit a CAGR of 4.0% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market key trends:
The rising demand for clean label products has led to innovation in MSG production. Companies are developing vegetable-based and non-GMO MSG to cater to health-conscious consumers looking for natural ingredients. Furthermore, the growth of the organic food movement has also boosted research on producing MSG from organic sources. Innovation around organic and clean label MSG will be a key trend shaping the future of the monosodium glutamate market. While MSG is generally recognized as safe for consumption, some consumers associate it with adverse health effects like headaches and numbness. As a result, food companies are substituting MSG partially or fully with alternative ingredients that enhance umami flavor like yeast extracts, calcium compounds and salt. This transition toward using alternatives and lesser amount of MSG will be another important market trend.
Porter's Analysis
Threat of new entrants: The threat of new entrants is moderate in the monosodium glutamate market. Established players dominate the market and new entrants require significant investment to build infrastructure and distribution channels.
Bargaining power of buyers: The bargaining power of buyers is high due to the availability of substitutes. Buyers can switch to alternative food ingredients like hydrolyzed vegetable protein.
Bargaining power of suppliers: The bargaining power of suppliers is moderate. Major suppliers control the prices and supply of raw materials required for monosodium glutamate.
Threat of new substitutes: The threat of substitutes is high. Hydrolyzed vegetable protein, seasoning mixes and other natural seasonings are increasingly being used as alternatives to MSG.
Competitive rivalry: The market is highly competitive with the presence of numerous regional and global players. Players differentiate based on quality, packaging and distribution.
Key Takeaways
The Global Monosodium Glutamate Market Size is expected to witness high growth during the forecast period. Asia Pacific currently dominates the market due to high consumption in countries like China, Japan and South Korea. China accounts for over 50% of global MSG production as major players like Fufeng Group and Meihua Holdings are based in China.
Key players operating in the monosodium glutamate market are Ningxia Eppen Biotech Co., Ltd, Fufeng Group, Meihua Holdings Group Co., Ltd, Gremount International Co.,Ltd and Cargill Inc. Players are focusing on expanding their production facilities and distribution networks to strengthen their market position. For example, in 2021, Ningxia Eppen Biotech announced plans to double its glutamate production capacity to 1.2 million tons by 2025.
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