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China Monosodium Glutamate (MSG) Market - Growth, Trends, and Forecast (2017 - 2022)

China Monosodium Glutamate (MSG) Market - Growth, Trends, and Forecast (2017 - 2022)

Market Insight

The China Monosodium Glutamate (MSG) Market was valued at USD 2,640 million in 2016 and is estimated to reach USD XX million by 2022, registering a CAGR of 4.01% during 2017-2022 (the forecast period).

Monosodium glutamate (MSG) is a synthetic flavor enhancer that belongs to the class, collectively known as, glutamates. Technically, MSG is the sodium salt of glutamic acid. The glutamates are present naturally in protein-rich food, such as, meat, fish, eggs, etc. Vegetables and fruits (especially peas, tomatoes, and potatoes), cheese, and mushrooms also contain glutamate. However, a large amount of glutamate is in free-form, when compared to protein-rich food that has a great amount of bound glutamate. Added and naturally occurring glutamate have similar chemical structures. MSG holds "generally recognized as safe," (GRAS) status from The Food and Drug Administration (FDA) and mandates the added MSG to be listed on the label.

CODEX and JECFA have also certified MSG as GRAS and its usage should confirm the Good Manufacturing Practices (GMP) requirements.

Market Dynamics

MSG is commonly used to increase the umami flavor in savory foods. Southeast Asian food products are rich in umami flavors, such as, miso soup, soy sauce, fermented seafood, etc. The production of MSG is largely concentrated in Asia-Pacific; the region produces more than 85% of MSG. Among all, China accounts for more than 55% of the production. Currently, China is the world’s largest MSG producer and consumer. Urbanization and improvement in living standards, along with dietary patterns changes, are expected to positively affect the ongoing development of the food processing industry including catering and restaurant sectors. This development is expected to drive MSG consumption growth in China. The palette effect, associated with the savory foods, especially meat, is driving the consumption of MSG in the mainland China.

With the growing demand for functional foods, consumer preferences regarding healthy and hygienic food and awareness, regarding adverse effects of artificial food ingredients, can act as a hurdle to MSG market growth in China. The demand for the clean and green label can pose a challenge to MSG sales, as products containing natural glutamates are not allowed to have “no MSG” claims.

There have been rising health issues, associated with consumption of MSG, like headache, heart palpitations, numbness, and nausea, among others. These effects are collectively termed as “Chinese Restaurant Syndrome”, however, according to the American Chemical Society, “MSG can temporarily affect a select few when consumed in huge quantities on an empty stomach, but it's perfectly safe for the vast majority of people.”

Market segmentation

The Chinese MSG market has been segmented on the basis of application type and end-use industries. The end-use industry segment of the market has been divided into food processing industry, cosmetic industry, pharmaceutical industry, animal feed, and ‘others’. Almost all the MSG produced is consumed in food applications. Based on application, the Chinese MSG market has been divided into additives, flavor enhancers, acidity regulators, preservatives, and ‘others’.

Competitive Landscape

An industrial integration of MSG was witnessed in 2012, as the major market production was getting concentrated to a few large producers. Amidst industrial restructuring and stiff market competition, the production output of MSG is growing steadily, owing to the increase in demand from end users, especially, the fast food chains and restaurants. However, the high cost of waste treatment, associated with MSG, and the intense market competition from other condiments can significantly affect the profit margins of Chinese MSG producers.

Report on China Monosodium Glutamate (MSG) Market covers the following:

Market, Trends & Dynamics
Latest News & Developments
Porter’s five forces analysis
Investment Scope
Deep-dive insights

1. Introduction
1.1 Research Methodology
1.2 Market Definition
1.3 Report Description
2. Market Overview
3. Market Dynamics
3.1 Drivers
3.1.1 Palette Effect Associated with the Savory Food and Hot Pot Condiments
3.1.2 Rapid Urbanization and Changing Dietary Patterns
3.1.3 Significant Increase in Catering and Restaurant Sectors
3.2 Restraints
3.2.1 Adverse Health Effects Associated with Consumption of MSG
3.2.2 High Demand for Clean and Green Label
3.3 Opportunities
3.3.1 Increasing Demand of Functional Foods
3.3.2 Consumers Preference Regarding Healthy and Hygienic Food
3.4 Porter’s Five Forces Analysis
3.4.1 Bargaining Power of Suppliers
3.4.2 Bargaining Power of Buyers
3.4.3 Degree of Competition
3.4.4 Threat of Substitution
3.4.5 Threat of New Entrants
4. Market Segmentation
4.1 by Application
4.1.1 Additives
4.1.2 Flavor enhancers
4.1.3 Acidity regulators
4.1.4 Preservatives
4.1.5 Others
4.2 By End-use Industries
4.2.1 Food Processing Industry
4.2.2 Cosmetic Industry
4.2.3 Pharmaceutical Industry
4.2.4 Animal Feed
4.2.5 Others
5. Competitive Landscape Overview
5.1 Market Share Analysis
5.2 Strategies by Leading Players
5.3 New Product Developments & Other Innovations
6. Company Profiles
6.1 Shandong Qilu Biotechnology Group
6.2 Fufeng Group Co. Ltd.
6.3 Henan Lotus Gourmet Powder Inc.
6.4 Meihua Holdings Group Co. Ltd.
6.5 Shandong Linghua MSG Incorporated Co. Ltd.
6.6 Fujian Jianyang Wuyi MSG Co. Ltd.
6.7 Ningxia EPPEN Biotech Co. Ltd
6.8 Shandong Xinle Monosodium Glutamate Foods Co. Ltd.
6.9 Shandong Shenghua Industry Co. Ltd.
6.10 Hongmei Group Co. Ltd.
6.11 Wuxi Taihu MSG Co. Ltd.
6.12 Zhejiang Qujiang Monosodium Glutamate Co. Ltd.
6.13 Sichuan Jingong Chuanpai Flavoring Co. Ltd
6.14 Suzhou Hexing Food Co. Ltd.
6.15 Wuxi Taihu MSG Co. Ltd.
7. Appendix

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