Glutamic Acid Market Leveraging the Demand Influx from the Food & Beverages Sector

The recent years have seen a constant growth of the global pharmaceutical industry, which is becoming a boon to many associated markets, and the glutamic acid market is leveraging the emerging opportunities offered by various pharmaceutical manufacturing units as the chemical is used as a pharmaceutical intermediate. Furthermore, the food & beverages (F&B) industry is a consistent consumer of glutamic acid – a prevalently found amino acid used to induce flavor in food items such as meat, rye, fish, cheese, and eggs. Moreover, it is also one of the most known natural food additives. The growth of the dairy industry is also driving the glutamic acid demand. Additionally, glutamic acid aids in metabolism, flavor enhancement, NMR spectroscopy, and plant growth. These applications of the chemical are increasing the glutamic acid market size, which was evaluated at $7.5 billion as of 2018.

The prospects for the Glutamic Acid Market companies are poised to surge because of the increasing demand from the end-user industries, and the upcoming years will be witnessing a gamut of production capacity expansion projects in the market. For instance, Ajinomoto Co., Inc. is planning to construct a new plant for glutamic-acid based surfactant, Amisoft. The production capacity will increase by 60% to meet the catapulting global demand from the pharmaceutical and F&B industries.

The demand influx in the glutamic acid market can be further fathomed by the increasing trade in the parent industry worldwide. As per the findings by the International Trade Centre (ITC), the trade value of amino compounds was $20.16 billion in 2018. Furthermore, the trade value witnessed a profitable upsurge at a rate of 12% between 2017 and 2018. A substantial part of this trade value is attributable to the trade of glutamic acid across the globe. The next few years foresee an increase in trade of the chemical as the forecast period 2019-2025 is projected to witness an increment in the glutamic acid market demand at a CAGR of 5%.

The Glutamic Acid Market Boom in APAC & Opportunities for the Vendors:

APAC registered the maximum glutamic acid market share with 38% in the global revenues as of 2018. This is mostly attributable to the growth of the pharmaceutical industry in various countries of APAC, especially India. Furthermore, the humongous population of the region makes it a great marketplace for the food products that contain glutamic acid. This further expands the glutamic acid market size in APAC. Here are some factors that are and will be significantly increasing the sales of glutamic acid in the region –

· The Envisioned Growth of the Indian Pharmaceutical Industry to Create Lucrative Opportunities –

According to the National Investment Promotion & Facility Agency, India is the third-largest pharmaceutical industry globally in terms of volume, with a 20% share in the global supply supplies of generic medicines.

Furthermore, the industry houses 3,000 companies and 10,500 manufacturing units. This creates a huge glutamic acid market scope with a lot of opportunities for the vendors because glutamic acid is used as a pharmaceutical intermediate. The upcoming years will witness a further boom in the Indian pharmaceutical industry due to the Government of India’s “Pharma Vision 2020” target envisioned to make India the global leader in end-to-end drug manufacturing. According to the India Brand Equity Foundation (IBEF), 2019 has been observing an increase in pharmaceutical exports with a valuation of $17.15 billion. The growth in export will augment the manufacturing of pharmaceutical products, and there will be a subsequent increase in the glutamic acid market demand.

· The Current Consumption of Processed Foods in APAC To Widen the Glutamic Acid Market Scope –

The changing lifestyle and the rise in the urban population in most of the APAC countries such as China, India, Indonesia, and others have led to a booming market for processed food. This processed food uses glutamic acid, and the growing consumption of processed food is increasing prospects in the APAC glutamic acid market. 

In addition to the factors mentioned above, the APAC dairy market is booming, which is also creating a myriad of opportunities for the companies that manufacture and supply glutamic acid and its derivatives. The growing glutamic acid market in APAC can also be assessed by the magnitude of import in various countries. Here’s the table that shows the import value in the parent industry that reflects the import of glutamic acid in countries of the region –

Table 1 – Import Value in the Parent Industry (APAC)

Import Value Data Source – ITC

The above data suggest a conspicuous rise in the import of amino acids such as glutamic acid which evinces enough of the growth opportunities for the players in the region.

Glutamic Acid Market – Global Scenario and Growth Drivers:

· Food & Beverages: The Key End-User Industry for the Glutamic Acid Market Players –

Glutamic acid in food is a source of micro-nutrients such as protein. The application of glutamic acid is poised to increase at a profitable CAGR of 8% over 2019-2025. This is due to the developing market for convenience and processed food, which is expanding owing to the rapid urbanization.

Furthermore, a lot of food products ranging from cheese to meat contain glutamic acid or its derivatives, which creates prospects to prosper for players. The food industry will grow in the upcoming years because alleviating hunger is one of the most important objectives in the sustainable development goals (SDGs) by the United Nations (UN). This will offer opportunities to the glutamic acid market players.

· The Global Pharmaceutical Industry: A Profitable Glutamic Acid Marketplace –

According to the International Federation of Pharmaceutical Manufacturers Association (IFPMA), the global pharmaceutical industry is poised to attain a valuation of $1.43 trillion by 2020. The industry is going to witness an augmented production of a gamut of drugs, which will use glutamic acid as an intermediate. Therefore, the pharmaceutical industry is a propitious end-user of glutamic acid.

· The Use of Glutamic Acid in the Animal Feed Market Creating Further Prospects –

The growth prospects in the animal feed market are evident in the swelling size of the animal feed additives market that had a valuation of $25.12 billion in 2018.

Furthermore, the market is expected to expand at a CAGR of 3.8% during the forecast period 2019-2025. Glutamine amino acid plays an important role in maintaining the health of the livestock, and therefore, the growth of the animal feed market will lead to an increase in the glutamic acid market demand.

· The Usage of Glutamic Acid as Nutraceutical Driving the Market –

The global nutraceutical ingredients market was evaluated at $31.4 billion in 2018, and the demand is estimated to escalate at a CAGR of 6.8%. Now, glutamic acid is also used as nutraceutical ingredients because they contain micro-nutrients such as proteins. The growing market for nutraceutical ingredients is leading to new horizons for the glutamic acid market players.

Glutamic Acid Market – Competitive Landscape:

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