GVR Report cover Glutamic Acid Market Size, Share & Trends Report

Glutamic Acid Market Size, Share & Trends Analysis Report By Application (Food & Beverages, Pharmaceuticals, Animal Feed), By Region (North America, Europe, APAC, CSA, MEA), And Segment Forecasts, 2021 - 2028

  • Published Date: Oct, 2021
  • Base Year for Estimate: 2020
  • Report ID: GVR-4-68039-561-1
  • Format: Electronic (PDF)
  • Historical Data: 2017 - 2019
  • Number of Pages: 150

Report Overview

The global glutamic acid market size was valued at USD 9.54 billion in 2020 and is expected to expand at a compound annual growth rate (CAGR) of 7.6% from 2021 to 2028. Increasing demand for animal feed, coupled with the growing utilization of food additives and food enhancers in the food and beverages industry, is estimated to trigger the product demand in the near future. The spread of the COVID-19 virus has crippled several economies and severely impacted the supply chains across industries. The production and consumption of glutamic acid are highly influenced by its demand from the end-use industries. Thus, any fluctuations in the demand from the end-use industries are anticipated to directly impact the demand for glutamic acid. The increasing awareness among individuals regarding consuming healthy products has positively impacted the demand for glutamic acid in the food and beverages and pharmaceuticals sectors.

U.S. glutamic acid market size, by application, 2018 - 2028 (USD Billion)

The key raw materials used to produce glutamic acid include Coryneform bacteria, glucose, and sugarcane molasses. The product is manufactured using required raw materials through the fermentation process, which involves various steps such as fermentation, centrifugation, carbon adsorption, evaporation, crystallization, and ion exchange. The fermentation process has gained popularity among manufacturers owing to the high quality and purity of products obtained through this process. However, the process is capital-intensive and has high energy and water requirements.

The key suppliers of raw materials include Ambuja Group, Roquette Frères, Cargill, Incorporated, Eurosweet GmbH, Mahajan Molasses Company, and United States Biological. These suppliers are well-established players operating for a long time in the industry and have a strong distribution network.

Application Insights

The food and beverages application segment dominated the market with a revenue share of over 80.0% in 2020. This is attributed to the growing utilization of glutamic acid in the food and beverages industry as a flavor enhancer. Monosodium glutamate (MSG), a compound of glutamic acid, is generally used as a flavor enhancer in canned vegetables, salad dressings, soups, processed meat, carbohydrate-based snacks, and dairy products such as ice cream, bread, and cheese. The globally increasing popularity of convenience food and ready-to-drink beverages is expected to drive the demand for glutamic acid in the food and beverages application.

The pharmaceuticals segment is anticipated to expand at the highest revenue-based CAGR of 8.0% over the forecast period. In pharmaceutical applications, glutamic acid plays a vital role in the prevention of nerve damage during chemotherapy and treatment of various diseases, such as epilepsy, muscular dystrophy, neurotransmission imbalances, and cognitive and behavioral problems, among individuals. Favorable government policies to support the pharmaceutical sector, coupled with the growing investment by private companies, are expected to drive the pharmaceutical industry, which, in turn, is projected to boost the consumption of glutamic acid in the coming years.

In the personal care and cosmetic industry, glutamic acid is used to adjust pH concentrations in cosmetics and personal products. It is used in baby products, eye makeup, hair care products, skin care products, bath products, and anti-aging creams, among others. It is used in acne and anti-aging creams as it helps to reduce wrinkles, improves skin health, protects skin from free radical damage, and helps to maintain hydration.

Regional Insights

Asia Pacific dominated the market with a revenue share of over 50.0% in 2020 and is expected to witness the fastest growth over the forecast period. This is attributed to the expansion of the end-use industries such as animal feed, pharmaceutical, cosmetics and personal care, and food and beverage, in the developing economies of the region. China is one of the top feed-producing countries in the region, with a production capacity of over 187 million metric tons annually.

The demand for animal feed in countries such as India and China is projected to grow due to the presence of an abundant livestock population. Pork and poultry emerged as the prominent livestock segment in Asia Pacific owing to the growing preference for meat in local cuisines. Vietnam and Thailand are among the most prominent markets for animal feed in the region due to large-scale cattle farming activities.

Global glutamic acid market share, by region, 2020 (%)

North America accounted for the second-largest market share in 2020. In North America, the demand for glutamic acid is anticipated to be driven by the growing demand for pharmaceuticals and animal feed. In the pharmaceutical sector, the product is utilized to manufacture a variety of drugs for the treatment of various diseases such as epilepsy and cognitive problems. According to a report published by a U.K.-based pharmaceutical manufacturer in 2020, the pharmaceutical market in North America is expected to be valued at USD 633 billion by 2024, recording a CAGR of 3.5% over the forecast period.

According to the Organization for Economic Co-operation and Development (OECD), North America is the second-largest consumer of dairy products such as cheese, after Europe. As per an article published by Dairy Food in April 2019, the per capita consumption of cheese such as Cheddar and Colby-Jack in North America increased from 11.7 pounds in 1995 to 15 pounds in 2017. Thus, the growing demand for various food and beverage products in North America is anticipated to drive the market in the region over the forecast period.

Key Companies & Market Share Insights

The market is characterized by the presence of several large and small-scale manufacturers engaged in the production of glutamic acid. Among these, small-scale local companies do not have a major impact on the overall market demand due to low production volumes. The companies are involved in bulk manufacturing of the product, which is then distributed to global destinations. Several companies are also redefining their supply chains to reduce cost and customer delays.

Key manufacturers in the market are focused on establishing production facilities at strategic locations to reduce the transportation cost, gain benefit from local incentives, and make the product readily available to end users. Industry participants focus on third-party agreements with professional distributors and sell distribution rights to these merchants in order to reach developed markets.

The market is fragmented owing to the well-established players located in developing economies as well. Large-scale companies focus on product development and innovation as well as marketing strategies. Some companies are also redefining their supply chain to reduce cost and customer delays. Some prominent players in the global glutamic acid market include:

  • Ajinomoto Co., Inc.

  • Akzo Nobel N.V.

  • Evonik Industries AG

  • Sichuan Tongsheng Amino acid Co., Ltd.

  • KYOWA HAKKO BIO CO., LTD.

  • Ottokemi

  • Hefei TNJ Chemical Industry Co., Ltd.

  • Suzhou Yuanfang Chemical Co., Ltd.

  • Global Bio-chem Technology Group Company Limited

  • Ningxia Yipin Biological Technology Co., Ltd.

Glutamic Acid Market Report Scope

Report Attribute

Details

Market size value in 2021

USD 10.17 billion

Revenue forecast in 2028

USD 17.16 billion

Growth Rate

CAGR of 7.6% from 2021 to 2028

Base year for estimation

2020

Historical data

2017 - 2019

Forecast period

2021 - 2028

Quantitative units

Volume in kilotons, revenue in USD million/billion, and CAGR from 2021 to 2028

Report coverage

Volume forecast, revenue forecast, company ranking, competitive landscape, growth factors, and trends

Segments covered

Application, region

Regional scope

North America; Europe; Asia Pacific; Central & South America; Middle East & Africa

Country scope

U.S.; Canada; Mexico; Germany; U.K.; France; China; India; Japan; Brazil; Argentina; Saudi Arabia; South Africa

Key companies profiled

Ajinomoto Co., Inc.; Akzo Nobel N.V.; Evonik Industries AG; Sichuan Tongsheng Amino acid Co., Ltd.; KYOWA HAKKO BIO CO., LTD.; Ottokemi; Hefei TNJ Chemical Industry Co., Ltd.; Suzhou Yuanfang Chemical Co., Ltd.; Global Bio-chem Technology Group Company Limited; Ningxia Yipin Biological Technology Co., Ltd.

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Segments Covered in the Report

This report forecasts volume and revenue growth at the global, regional, and country levels and provides an analysis of the latest industry trends and opportunities in each of the sub-segments from 2017 to 2028. For the purpose of this study, Grand View Research has segmented the global glutamic acid market report on the basis of application and region:

  • Application Outlook (Volume, Kilotons; Revenue, USD Million, 2017 - 2028)

    • Food & Beverages

    • Pharmaceuticals

    • Animal Feed

    • Others

  • Regional Outlook (Volume, Kilotons; Revenue, USD Million, 2017 - 2028)

    • North America

      • U.S.

      • Canada

      • Mexico

    • Europe

      • U.K.

      • Germany

      • France

    • Asia Pacific

      • China

      • India

      • Japan

    • Central & South America

      • Brazil

      • Argentina

    • Middle East & Africa

      • Saudi Arabia

      • South Africa

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