Monosodium glutamate (MSG) is a food additive commonly used in various foods such as frozen meals, salad dressings, chips, snacks, soup, and sauces to enhance food flavor. MSG enhances the savory taste of food known as umami, and is extensively used as a flavor enhancer and preservative in the food processing industry. It helps reduce the salt and fat content of food products.
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 Opportunity:
Due to rapid urbanization and hectic lifestyle, there is a rise in demand for convenience and packaged food products. MSG is widely used as a flavor enhancer in convenient food mixes, soup powders, frozen foods, and snacks. It helps reduce the cooking time and provides uniform taste in packaged food. Furthermore, the increasing health-conscious population has led to a rise in low-calorie and low-fat food products. MSG serves as a potential salt and fat replacer in food formulations. Thus, the surging demand for convenient and processed food from food processing companies is fueling the demand for monosodium glutamate, providing an opportunity for remarkable market growth over the forecast period.
Porter’s Analysis
Threat of new entrants: The threat is moderate as the MSG market requires high capital investment and established distribution channels. Bargaining power of buyers: Buyers have moderate bargaining power due to the availability of substitute products. Bargaining power of suppliers: Suppliers have high bargaining power given the specialized skills required for MSG production. Threat of new substitutes: The threat is high as alternatives like calcium caseinate and hydrolyzed vegetable protein are gaining popularity. Competitive rivalry: Intense as major players compete on pricing and quality.
SWOT Analysis
Strengths: Wide applications in food industry. High demand from Asia Pacific region.
Weaknesses: Negative perception regarding potential health impacts. Stringent processing standards necessitate high capital investment.
Opportunities: Growth of food service industry in developing nations. Innovation of organic and clean label products.
Threats: Popularity of vegan diet reducing meat consumption. Regulations on food additives in key markets.
Key Takeaways
The Global Monosodium Glutamate Market Size is expected to witness high growth over the forecast period of 2023 to 2030. The Asia Pacific region currently dominates the market with a share of over 50% due to wide consumption in Chinese cuisine. Countries like China, Japan and South Korea are major producers and consumers of MSG.
Regional analysis shows that Asia Pacific is expected to maintain its lead position through 2030 owing to rising disposable incomes and changing lifestyles increasing demand for convenience andProcessed foods in the region. The growing food service industry in countries like India and Indonesia is also creating new opportunities.
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. While Eppen and Fufeng have a large presence in China, Meihua and Cargill have significant global footprints to leverage opportunities beyond Asia.
Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it