India Monosodium Glutamate Market Size Likely to Surpass at a CAGR of 8.6% By 2033

As per the current market research conducted by the CMI Team, the India Monosodium Glutamate Market size is expected to record a CAGR of 8.6% from 2024 to 2033. In 2024, the market size is projected to reach a valuation of USD 566.2 Million. By 2033, the valuation is anticipated to reach USD 1,189.8 Million.

India Monosodium Glutamate Market: Growth Factors and Dynamics

• Rising Demand in the Food Processing Industry: The increasing popularity of processed and convenience foods among urban consumers is driving the demand for MSG. It is widely used as a flavor enhancer in snacks, canned vegetables, soups, sauces, and ready-to-eat meals, boosting its market growth.

• Expansion of the Restaurant Industry: The rapid growth of the restaurant and food service industry in India, driven by changing lifestyles and a growing preference for dining out, is contributing significantly to the demand for MSG. Restaurants and food outlets often use MSG to enhance the taste of their dishes, leading to increased consumption.

• Urbanization and Changing Dietary Preferences: With increasing urbanization, there is a shift in dietary patterns towards more Westernized and processed food items, which frequently contain MSG. This shift is propelling the growth of the MSG market as consumers seek out tastier and more flavorful food options.

• Increased Awareness and Acceptance: Growing consumer awareness about the role of MSG in enhancing flavor and its safety when consumed within regulated limits is positively influencing its market. Educational campaigns and clarifications by food safety authorities have helped reduce misconceptions and drive market acceptance.

• Economic Growth and Rising Disposable Incomes: Economic development and the rise in disposable incomes are enabling consumers to spend more on processed and packaged foods. This economic upliftment is facilitating the growth of the MSG market as people have more purchasing power to buy a variety of food products that contain MSG.

• Emergence of E-commerce and Modern Retail: The growth of e-commerce platforms and modern retail chains in India has made MSG more accessible to consumers. Online retailing and organized retail formats offer a wide variety of MSG products, thus expanding the market reach and consumer base.

• Technological Advancements in Food Production: Innovations in food processing technologies and improved manufacturing techniques are enhancing the production efficiency and quality of MSG. These advancements enable manufacturers to produce MSG more cost-effectively and with better quality, driving market growth by meeting the increasing demand for high-quality food additives.

• Regulatory Support and Standardization: Supportive regulations and standards set by food safety authorities such as the Food Safety and Standards Authority of India (FSSAI) ensure the safe use of MSG in food products. Clear guidelines and compliance measures help maintain consumer trust and encourage the adoption of MSG by food manufacturers.

• Growth of the Packaged Food Industry: The booming packaged food industry in India, driven by a busy lifestyle and the need for convenient meal options, significantly boosts the demand for MSG. The trend towards ready-to-eat meals, instant noodles, and snack foods, which often use MSG to enhance flavor, supports market expansion.

India Monosodium Glutamate Market: Partnership and Acquisitions

• In 2021, The Ajinomoto Group formed Ajinomoto Food Manufacturing Co. Ltd., a new entity tasked with producing and packaging flavor enhancers, seasonings like MSG, and processed foods in Japan. This initiative aims to streamline manufacturing processes and enhance product quality control.

Report Scope

India Monosodium Glutamate Market: COVID-19 Analysis

The COVID-19 pandemic has significantly impacted the India Monosodium Glutamate Market, with the industry experiencing both positive and negative effects. Here are some of the key impacts:

• Supply Chain Disruptions: The COVID-19 pandemic caused significant disruptions in the supply chain of MSG, affecting the availability of raw materials and delaying production processes. Lockdowns and restrictions on movement hindered the transportation of goods, leading to temporary shortages and increased costs for manufacturers.

• Reduced Demand from Food Service Sector: With the closure of restaurants, hotels, and other food service establishments during lockdowns, there was a substantial decline in the demand for MSG from this sector. The reduction in dining out and catering services led to decreased orders for flavor enhancers like MSG, impacting sales.

• Resumption of Food Service Operations: As restrictions lifted and the food service industry began to recover, the demand for MSG from restaurants, hotels, and catering services started to bounce back. The gradual reopening of dining establishments led to an increase in orders for flavor enhancers.

• Shift Towards Home Cooking: During the pandemic, there was a significant rise in home cooking, which continued post-pandemic. Consumers experimenting with new recipes and seeking restaurant-like flavors at home boosted the retail demand for MSG, as it is a common ingredient in enhancing the taste of home-cooked meals.

• Strengthening Supply Chain Resilience: Manufacturers and suppliers of MSG took steps to strengthen their supply chains by diversifying sourcing strategies, enhancing logistics, and building more robust inventory management systems. These measures helped mitigate future disruptions and ensured a steady supply of MSG to meet market demand.

• Growth of E-commerce Platforms: The pandemic accelerated the adoption of e-commerce, with more consumers turning to online platforms for purchasing groceries and food ingredients, including MSG. The convenience and accessibility of e-commerce channels contributed to the recovery of MSG sales, expanding its reach to a broader consumer base.

• Innovations in Product Offerings: Companies introduced new and improved MSG products, focusing on better quality, packaging, and health claims to attract health-conscious consumers. Innovations and marketing efforts highlighting the safety and benefits of MSG helped regain consumer confidence and drive sales.

• Increased Focus on Health and Nutrition: With heightened awareness about health and nutrition post-pandemic, consumers became more discerning about their food choices. Educational campaigns and clearer communication about the safe consumption levels of MSG contributed to its acceptance and increased usage in various food products.

In conclusion, the COVID-19 pandemic has had a mixed impact on the India Monosodium Glutamate Market, with some challenges and opportunities arising from the pandemic.

List of the prominent players in the India Monosodium Glutamate Market:

• Ajinomoto India Pvt. Ltd.
• Vedan International (Holdings) Limited
• Meihua Holdings Group Co. Ltd.
• Ningxia Eppen Biotech Co. Ltd.
• Fufeng Group Limited
• Shandong Linghua Monosodium Glutamate Incorporated Company
• Lotus MSG (Vietnam) Co. Ltd.
• Global Bio-Chem Technology Group Company Limited
• Henan Lotus Flower Gourmet Powder Co. Ltd.
• Qilu Jianhua Group
• Shandong Qilu Biotechnology Group
• Shaanxi Fuhua Trading Co. Ltd.
• Shandong Tongda Foodstuffs Co. Ltd.
• Jiangsu NHU Group Co. Ltd.
• PT Indofood Sukses Makmur Tbk
• Others

The India Monosodium Glutamate Market is segmented as follows:

By Application

• Food Processing
• Restaurant
• Household
• Animal Feed
• Others

By Form

• Powder
• Granules
• Crystal

By Sales Channel

• Business to Business
• Business to Consumers