PUBLISHER: Global Insight Services | PRODUCT CODE: 1916355
PUBLISHER: Global Insight Services | PRODUCT CODE: 1916355
Monosodium Glutamate (MSG) Market is anticipated to expand from $5.6 billion in 2025 to $9.0 billion by 2035, growing at a CAGR of approximately 4.7%. MSG Price Trends by Region -
Europe: Rising procurement costs and import reliance led to price fluctuations. Energy price volatility added challenges, while steady demand in the food and pharmaceutical sectors provided some stability. Regulatory changes and freight expenses further impacted supply chains. Initially, feedstock costs pushed prices up, but later reductions in raw material expenses led to a market correction.
North America: MSG prices remained stable despite supply chain constraints. Limited domestic production and import disruptions were balanced by strategic inventory management. Industrial demand across the food and pharmaceutical sectors remained steady. Initially, prices were high due to strong demand and restricted supply, but an economic slowdown and destocking led to a price decline.
| Market Segmentation | |
|---|---|
| Type | Natural MSG, Synthetic MSG |
| Product | Powder, Granules, Liquid |
| Technology | Biotechnology, Chemical Technology |
| Application | Food and Beverage, Pharmaceuticals, Animal Feed, Cosmetics |
| Form | Solid, Liquid |
| Process | Fermentation, Extraction, Chemical Synthesis |
| End User | Food Manufacturers, Restaurants and Food Chains, Pharmaceutical Companies, Animal Nutrition Companies, Cosmetic Manufacturers |
| Functionality | Flavor Enhancement, Preservation, Nutritional Supplement |
Asia Pacific: Oversupply and subdued demand led to price declines despite steady consumption levels. Rising inventories and lower raw material costs added downward pressure on prices. Strong demand from the food sector and high manufacturing costs initially increased prices, but economic slowdowns and declining demand later caused a downturn.
Segment Overview
Based on end-user, the market is segmented as food & beverage, restaurants & food chains, pharmaceuticals, animal nutrition, and cosmetic & others. The food & beverage segment will account maximum revenue and highest share for the monosodium glutamate (MSG) market during the forecast period In 2024, the food & beverage segment will account 41.5% market share. MSG is popular as a seasoning and flavor enhancer in food & beverage segment. For example, MSG intensifies and enhance taste & flavors in sauces, broths, soups, and many more foods. It can also be used as a partial replacement for salt, containing just one-third the sodium, and is classified as safe by the United States Food and Drug Administration and the World Health Organization. Originally associated mainly with Asian cuisines, MSG is now used globally to bring out the delicious flavor of foods.
On the other hand, the sales channel segment is bifurcated into business-to-business and business-to-consumer. The business-to-business segment will account highest CAGR for the MSG market during the forecast period The business-to-business (B2B) channel is the cornerstone of the monosodium glutamate (MSG) industry, supplying bulk purchasers like food companies, restaurant chains, and ingredient distributors. The B2B global food industry was worth $1.8 trillion in 2023, as reported by the Food and Agriculture Organization (FAO), with annual growth of 6%. The USDA points to an 8% rise in 2023 U.S. food manufacturing shipments, highlighting demand for scalable flavor solutions. In Asia-Pacific, B2B MSG sales jumped 12% per annum with the growth fueled by alliances with quick-service restaurants embracing tailor-made blends.
Geographical Overview
Asia Pacific dominates the MSG market accounting maximum revenue and highest share during the forecast period The region is experiencing growth driven by The region's deep-rooted culinary traditions have long embraced MSG as a key flavor enhancer, and recent developments further solidify its market expansion. Additionally, Asia-Pacific remains the most lucrative market for MSG due to rapid urbanization, foreign investments, and increasing consumption of processed foods, particularly among millennials. The shift toward convenience-driven lifestyles, rising disposable incomes, and the growing number of working women have contributed to higher demand for packaged and ready-to-eat meals. Furthermore, Food Standards Australia New Zealand (FSANZ) has reaffirmed that MSG poses no health risks, encouraging its broader adoption. With these factors in play, the MSG market in Asia-Pacific is expected to witness sustained growth in the coming years.
The global MSG market is witnessing strong regional growth. Europe holds the second-largest share, driven by the expansion of international fast-food chains like Wendy's, Carl's Jr., and Wingstop, creating new outlets and employment opportunities. North America faces moderate growth due to softening import prices and slower processed food production. Latin America's market is expanding steadily, supported by investments from Nestle and BRF, urbanization, evolving consumer preferences, and a culinary culture favoring bold flavors. The Middle East & Africa shows the fastest CAGR, fueled by urbanization, rising disposable incomes, increasing processed food consumption, and strong demand for flavor enhancement in home cooking and food services.
Key Trends and Drivers
Rising Processed Food Consumption -
The increasing consumption of processed foods has significantly contributed to the expansion of the monosodium glutamate (MSG) market. Processed foods undergo various modifications, including cooking, fermenting, curing, or the addition of preservatives and flavor enhancers, making them a convenient choice for consumers with busy lifestyles. The growing preference for ready-to-eat meals has heightened the demand for MSG, a widely used flavor enhancer known for amplifying the umami taste in processed edibles.
In 2024, U.S. agricultural exports reached $176.0 billion, reflecting a slight increase from the previous year. Key contributors to this growth included food preparations, which saw a 14% rise, alongside increased exports of pork, corn, and tree nuts. Bulk commodity exports grew in volume but declined in value due to price fluctuations. Notably, Mexico emerged as the largest importer of U.S. agricultural products, surpassing Canada and China, with a record $30.3 billion in purchases.
Paradigm Shift of the Consumers Towards Personalized Nutrition -
Paradigm shift towards MSG with an intent of personalized nutrition is another factor dominating the market growth. As consumers increasingly seek diets tailored to their specific health goals, MSG is being explored for its potential role in enhancing flavor while maintaining lower sodium levels. Personalized nutrition platforms are incorporating MSG as a way to help individuals balance flavor and health benefits, particularly for those managing conditions like hypertension. Additionally, the growing trend of plant-based and vegan diets has led to MSG being recognized for its ability to mimic savory flavors in meat alternatives and plant-based snacks, providing a "meatier" taste without animal-derived ingredients. This trend aligns with the broader shift towards more sustainable and plant-centric eating habits.
Research Scope