The monosodium glutamate market is primarily driven by the wide range of applications in the food industry. Monosodium glutamate, commonly known as MSG, is a flavor enhancer that improves the palatability of food without altering its original taste. It brings out natural flavors in food and reduces salt and fat content.
The Global Monosodium Glutamate Market Demand is estimated to be valued at US$ 6.81 Bn in 2024 and is expected to exhibit a CAGR of 8.7% over the forecast period 2024 to 2030.
Monosodium glutamate is used extensively as a flavor enhancer in various Asian cuisine, soups, sauces, salad dressings and snacks. The unique umami taste of MSG makes food taste richer, boosts appetite and improves digestion. It is a good source of glutamate and sodium. With increasing health consciousness, MSG has become a popular alternative to salt as it enhances flavors at very low concentrations. The demand for MSG from fast food chains, restaurants and packaged food manufacturers is rising owing to busier lifestyles and preference for convenience food.
Key Takeaways
Key players operating in the monosodium glutamate market are Thermo Fisher Scientific, Merck KGaA, Takara Bio, Agilent Technologies, Oxford Expression Technologies, Promega Corporation, Qiagen N.V., Bio-Rad Laboratories, New England Biolabs, Genscript Biotech Corporation, Syngene International Limited, Sartorius AG, Aragen Bioscience, Vivopure, Creative Biogene, Absolute Antibody, Rockland Immunochemicals, Protein Technologies Inc., Proteogenix, Virovek.
The increasing demand for packaged and convenience food items is propelling the monosodium glutamate market. Factors such as changing food habits, increased disposable income and preference for foreign cuisine are contributing to the growth of processed food industry in developing countries. MSG is widely used as a salt and fat substitute in various snacks, ready meals and prepared dishes to enhance their palatability.
New production technologies such as fermentation techniques are helping lower the cost of MSG production. This has made MSG more affordable for use across different food applications. Companies are investing in R&D to develop new grades of MSG with distinct flavor profiles for novel product offerings.
Market Trends
Reduction of salt content in food: With increasing incidence of lifestyle diseases like hypertension, many countries and food brands have launched initiatives to reduce salt levels in packaged foods. MSG, being a flavor enhancer, allows achieving salt reduction targets without compromising on taste.
Preference for clean label products: Consumers are shifting towards ingredients they can recognize and pronounce. MSG manufactured using non-GMO fermentation methods receives higher demand from clean label oriented companies in developed markets.
Market Opportunities
Growth in Asian fusion cuisines: Popularity of Asian cuisines worldwide has increased dramatically over last few decades. This burgeoning trend provides significant opportunities for MSG market, given its extensive usage in Asian recipes.
Demand from halal food segment: Halal food sector is one of the fastest growing segments. Many Muslim majority countries have lifted their ban on MSG after declaring it halal. This will encourage usage of MSG across Middle East and Asian halal food manufacturing industry.
Impact of COVID-19 on Monosodium Glutamate Market Growth
The COVID-19 pandemic adversely impacted the growth of the monosodium glutamate market globally in the initial phase. Supply chain disruption, shortage of raw materials, and workforce constraints across various parts of the value chain slowed down the market growth trajectory. Demand from the foodservice industry declined significantly due to lockdowns and social distancing measures imposed in many countries. However, demand from the packaged food sector provided some resilience to offset the losses from the foodservice segment. With easing of restrictions and resumption of economic activities, the market started regaining lost momentum in the latter part of 2020 and 2021.
The food processing companies increased the use of MSG in packaged foods such as soups, sauces, frozen meals, snacks, and ready-to-eat dishes to enhance taste and preserve shelf life during the pandemic. The trend of work from home and online education also boosted the demand for packaged food products. On the other hand, the increased health consciousness among consumers regarding immunity support during the pandemic strengthened the prospects for clean label and natural ingredients like yeast extracts. However, several governments have allowed the use of Monosodium Glutamate after studying its safety, which helped the market to recover. Investments in capacity expansion, R&D for new applications, and tie-ups with food brands are the key strategies used by market players to navigate the crisis period. The long-term outlook remains positive driven by changing consumer preferences for convenience foods.
Geographical Concentration of Monosodium Glutamate Market
In terms of value, the Asia Pacific region holds the largest share in the monosodium glutamate market and is expected to maintain its leading position during the forecast period as well. China dominates the MSG market in the region due to its large population and growing inclination towards packaged foods. Other major Asian markets include Japan, India, Indonesia, and South Korea. The widespread use of MSG as a seasoning agent in Chinese, Japanese and Southeast Asian cuisines has propelled the growth of the monosodium glutamate market in Asia Pacific.
Europe represents the second largest geographical region for monosodium glutamate globally. Germany, France, UK, Italy, and Russia account for major demand from the European MSG market. High consumption of processed meat and savory snacks coupled with well-established food manufacturing industries drive market growth in Europe. The North American market, mainly led by the US and Canada, is estimated to expand at a steady rate during the forecast timeline owing to shifting dietary habits. Emerging countries of Latin America and the Middle East & Africa also offer lucrative prospects for MSG market participants over the next few years.
Fastest Growing Region for Monosodium Glutamate Market
The Asia Pacific region is anticipated to witness the fastest growth in the global monosodium glutamate market during the forecast period. Factors such as rising affluence, fast-paced lifestyles, growing influence of Western culinary styles and increased indulgence towards processed and packaged food items are driving the growth of the MSG market in the Asia Pacific region. Rapid urbanization, high dependence on restaurant cuisine and expanding retail landscape are bolstering the product demand from the foodservice and food processing sectors. Population explosion in countries like India and increasing disposable incomes are creating an unprecedented demand for convenience food products with superior taste in Asia Pacific. Export-oriented food manufacturing base of nations like China and Taiwan is further propelling the regional market growth.
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