Increasing Demand for Processed Food and Initiatives to Challenges Assumptions about Monosodium Glutamate to Augment Growth of Monosodium Glutamate Market

 

Monosodium Glutamate (MSG) is one of the most widely used food-additives in commercial foods.

Market Dynamics

Increasing demand for processed food is expected to propel growth of the global monosodium glutamate market. For instance, according to the U.S Department of Agriculture, export of prepared food from U.S. increased from US$ 5, 849 million in 2015 to US$ 6,682 million in 2019. Moreover, increasing sales in the restaurant sector is also expected to aid in growth of the market. For instance, according to The National Restaurant Association, restaurant sales are expected to value US$ 863 billion in 2019 in the U.S., witnessing an increase of 3.6% from 2018.

Initiatives to challenges assumptions about monosodium glutamate are expected to offer lucrative growth opportunities for players in the global monosodium glutamate market. For instance, in December 2020, Ajinomoto Co., Inc. announced a new campaign to address the heart of MSG’s perception problem in the U.S. Moreover, increasing expenditure on dining out is also expected to aid in growth of the market. For instance, according to the U.S. Census Bureau, sales at eating and drinking establishments increased over 4% in 2019, surpassing grocery sales at just 3%.

However, ban on the use of monosodium glutamate in several developed economies such as the U.S. and Canada is expected to hinder growth of the monosodium glutamate market. Excessive use of MSG has been linked with obesity, metabolic disorders, and Chinese restaurant syndrome. Sale of counterfeit MSG is also expected to limit the market growth. For instance, in February 2021, Consumer officials in Thailand found a large quantity of falsely labelled monosodium glutamate products in Lam Luk Ka district.

Among regions, Asia Pacific is expected to witness significant growth in the monosodium glutamate market, owing to launch of instant-cook products in the region. For instance, in February 2021, Marico Limited, a consumer goods company, launched Saffola Oodles in India. Moreover, instant-noodles market is also expected to boost demand for MSG in the region. For instance, according to ITC Limited, a multinational conglomerate company, instant-noodles market in India is expected to grow 4.5 times by 2035.

Competitive Analysis

Major players operating in the global monosodium glutamate market include, E. I. du Pont de Nemours and Company, Ajinomoto, Co., Inc., Qingdao Century Minghui Co., Ltd., and Korai Enterprises

Major players operating in the global monosodium glutamate market are focused on adopting M&A strategies to enhance their market share. For instance, in December 2020, Ajinomoto Cambrooke, Inc. a consolidated subsidiary of Ajinomoto Co., Inc., entered into a share purchase agreement with Nualtra Limited, a supplements company in Ireland, in order to make Nualtra a consolidated subsidiary of Ajinomoto Co. 

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