Glutamic Acid Market Size and Share Analysis by Application (Food & Beverages, Pharmaceuticals, Animal Feed) - Global Industry Growth and Demand Forecast to 2030

Market Overview

The global glutamic acid market size in 2021 stood at $10,496.0 million, and it is expected to advance at a CAGR of 7.1% during 2021–2030, to reach $19,443.5 million by 2030.

Glutamic acid is an amino acid that is used for the production of proteins. The increasing consumption of such acid in the food and beverage industry as a food additive and enhancer, along with the rising need for animal feed due to the increased consumption of poultry products such as chicken, beef, pork, turkeys, and geese, as well as surging demand for aquatic products such as fish and shrimp, is expected to drive the market growth over the forecast period.

Buyers seek long-term contracts at competitive costs, in order to preserve production capacity. Product pricing is projected to be affected by the increased demand from pharmaceutical companies and functional food producers. Thus, buyer power is expected to stay strong during the predicted period.

The market is fragmented, necessitating technological partnerships and strategic alliances among significant competitors, in order to expand product penetration. Collaborations, on the other hand, are primarily conducted as a strategy to secure a continuous supply of raw resources, resulting in moderate rivalry.

There are raw material suppliers who simply manage manufacturing and distribution operations. These companies can use their extensive distribution network to control raw material pricing in different locations. As a result, supplier power is projected to remain moderate.

High levels of regulatory involvement in the production of food and feed formulations, as well as environmental damage due to harmful gas leakage, may limit the entry of new companies into the industry. However, the increased use of this acid from end-use applications, particularly pharmaceutical and functional food, can provide new competitors with several opportunities, thus the threat of new entrants is likely to be mild.

Application Insights

The food and beverage application is the largest revenue contributor to the market, with a revenue share of more than 83% in 2021. This is because glutamic acid is widely utilized as a taste enhancer in this application. For instance, monosodium glutamate (MSG), a glutamic acid molecule, is commonly used to improve the flavor of canned vegetables, soups, salad dressings, carbohydrate-based snacks, processed meat, and dairy goods.

Moreover, the growing popularity of ready-to-drink beverages and convenience food around the world is predicted to fuel the glutamic acid market demand. The need for these products is likely to rise as living standards and economic development in emerging nations such as India and China improve. Furthermore, the rising popularity of energy drinks is also likely to have a positive impact on the market growth in the food and beverage category.

Whereas, the pharmaceutical category is expected to witness the fastest growth, advancing at a CAGR of more than 7.4%, during the forecast period. Advantageous government policies and increased private investment are likely to drive the pharmaceutical business, which, in turn, is expected to improve the sales of glutamic acid in the future.

Moreover, the acid is used in pharmaceutical applications to avoid nerve damage during chemotherapy and to treat a variety of disorders, such as muscular dystrophy, epilepsy, cognitive and behavioral difficulties, and neurotransmission imbalances, in individuals. Also, this product is commonly used as an antiulcer medication and has recently acquired popularity in gastrointestinal therapy. The acid is further employed in a range of supplement formulations because it aids in detoxification and athletic performance, improves cognition, and aids in the formation of protein building blocks in the body.

Furthermore, the animal feed category accounts for a significant market share. Glutamic acid is utilized in animal feed because it promotes animal development, reproduction, health, antioxidative response, and immunological system. Consumers' growing understanding of nutritional requirements for animals, together with the increased need for quality and high production of feed, is likely to stimulate the demand for this acid in animal feed application during the forecast period.

Regional Analysis

North America has a significant share in the market. The rising demand for pharmaceuticals in the region is predicted to be the main driver of glutamic acid consumption. The region's need for pharmaceutical products, including dietary supplements, is being driven by factors such as the rise in the elderly population and the increase in cases of non-communicable diseases like chronic respiratory diseases, cardiovascular diseases, and cancer. Thus, it is projected that the rising demand for medicinal items will facilitate the use of such acid. Moreover, the growing animal feed and additive manufacturing industries will have a favorable impact on acid consumption in North America.

In addition, the European market is expected to grow significantly over the forecast period, owing to the region's thriving pharmaceutical industry, which is expected to benefit from the surging use of pharmaceutical drugs and supplements, the growing aging population, and the rising health consciousness among people of the region. Also, the demand for the acid is projected to be driven by the substantial presence of pharmaceutical manufacturers and their growing emphasis on creating cutting-edge pharmaceutical items.

Moreover, the cosmetics and personal care industries are further predicted to generate significant demand for this acid in Europe. Supplements based on glutamic acid in the region are projected to rise, as a result of changing consumer preference toward dietary supplements due to the surging health concerns.

On the other hand, the APAC market is expected to witness the fastest growth, advancing at a CAGR of more than 7.5%, during the forecast period. This can be ascribed to the rising use of glutamic acid in the food and beverage industry, increasing consumer use of organic edible products, and surging consumption of poultry products in the region. In addition, it is expected that the rising adoption of pets in households across many nations would increase the demand for pet edibles, which, in turn, will increase the use of this acid in the pet feed application.

Furthermore, due to the large population of livestock, the need for animal-eatable products is expected to increase in nations like China and India. Pork and poultry have become the most popular livestock products in APAC, as a result of the growing preference for animal-based products, such as meat, in local cuisines.

In addition, the increasing consumption of animal feed and the expanding agricultural activities are predicted to drive the LATAM market. Also, the demand for ready-to-eat food and beverages is projected to increase, as a result of evolving consumer eating habits, altering lifestyle trends, and beneficial regulatory developments in the area. Furthermore, the use of high-end products like carbonated beverages, sweets, and bakery goods among others is projected to be driven by the consistent economic expansion along with the increase in the number of middle- and high-income customers in nations like Argentina, Brazil, and Mexico.

Additionally, over the course of the forecast period, glutamic acid's rising need in the food and beverage, pharmaceutical, and supplement industries is a major factor driving the MEA market growth. The shift in consumer preference toward packaged meals and drinks along with government initiatives to boost the food and beverage sector in the region is projected to increase the demand for such acid. Moreover, the MEA's animal husbandry industry is benefiting from the surging need for dairy products and expanding need for poultry goods, which, in turn, results in the MEA glutamic acid market growth.

Top Players in the Market Are:

• Ajinomoto Co. Inc.
• Evonik Industries AG
• Akzo Nobel N.V.
• Sichuan Tongsheng Amino acid Co. Ltd.
• KYOWA HAKKO BIO Co. Ltd.
• Otto Chemie Pvt. Ltd.
• Hefei TNJ Chemical Industry Co. Ltd.
• Global Bio-chem Technology Group Company Limited

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Market Size Breakdown by Segment

The study offers a comprehensive market segmentation analysis along with market estimation for the period 2017-2030.

Based on Application

• Food & Beverages
• Pharmaceuticals
• Animal Feed

Geographical Analysis

• North America
  • U.S.
  • Canada
• Europe
  • U.K.
  • Germany
  • France
  • Spain
• Asia-Pacific
  • China
  • India
  • Japan
  • South Korea
• Latin America
  • Brazil
  • Mexico
• Middle East and Africa
  • Saudi Arabia
  • South Africa