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No. 0009M006 Production and Market of Monosodium Glutamate (MSG) in China  - Edition(1)

 

 

About This Report:

 

Report edition:  2009 edition(1)
Language version: English
Document type: PPT document with additional Excel Document
For ready report --    
  Finished in: July 2009 ,edition(1)
  Total pages: 85
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Report Edition List:

 

Version Finished in Availability Language   Pages   Delivery Price/Copy (For single user)
update report - update on request English - within 1-1 work days upon confirmation USD8000.00
2009,edition(1) July,2009 available English 85 within 1-1 work days upon confirmation USD6500.00

 

 

Description:

 

Chinese consume monosodium glutamate (MSG) with over 80 years’ history in the world. Along with the development of fermentation industry, Chinese MSG production has leaped to the No.1 of the world since 1994. It is reported that the output of MSG in 2006 was up to 1,706,000 tonnes with the year on year growth rate of 25.75%, but the growth rate was only 12.13% in 2007. The slower growth of MSG industry in 2007 showed that Chinese MSG industry may enter adjustment phase.

1)Surplus capacity and severe market competition
The growth rate of MSG supply exceeds that of MSG demand. The capacity of MSG is a little surplus now. Some large-scale MSG manufacturers continue to expand their capacity to occupy the market. The market competition will be more and more severe. What’s current production situation of MSG industry? What’s their strategy in the future?

2)Policy adjustment
The MSG industry is greatly influenced by policy. For example,
-China has suspended the work of revaluation of well-known brand MSG since 2008.
-China adjust the MSG industrial standard
-China took steps to restrict the development of downstream industry of corn in 2007
-China would cancel the export rebates
What’s the influence on MSG industry detailedly? What’s the trend of policy on MSG industry?

3)ressure of environmental protection
Chinese MSG producers face the large pressure of environmental protection, because MSG industry has large pollution and high energy consumption. MSG producers should invest more to do waste treat and reduce the energy consumption, while many small-scale producers cannot pay for the investment. What’s will Chinese producers deal with the pollution?

As the international precarious economic situation and how to catch the maximum commercial opportunities, CCM has finished the market research on monosodium glutamate industry in China, based on first-hand information and primary data which is analyzed by scientific methodology, confirmed with both manufacturers/end users/traders and legal authorities, and presented in a logic way.

Monosodium glutamate (MSG) is commonly marketed as a flavor enhancer. China has become the world’s largest MSG producer in recent years. Meanwhile, MSG market in China has gradually become saturated. China's MSG consumption volume per capita has been increasing in the past five years and exceeding 1 kg at present.

With intense competition in MSG industry in China, MSG industry has gained low profit in recent years. Since China has begun MSG industrial integration and raised environmental threshold, small-scale MSG manufacturers have been phased out and more will be washed out in the future. Competition driven by the bright market prospects among MSG manufacturers in China will be more intense.

MSG price has increased slightly in last 3 years in China. With robust demand for MSG in the world in next five years, MSG capacity and output in China will increase slightly.

In this report, you can obtain the latest info about MSG market and in-depth analysis on MSG industry in China. CCM will provide a detailed introduction and summary about the past, present, and future situation of MSG production, import/export, consumption, technology innovation of MSG in China to help readers understand the actual situation of China’s MSG market. Based on in-depth investigation, CCM forecasts the production and demand of MSG in China to 2014.

 

Main Content:

 

No. Content
Page
Executive summary
1
Methodology
3
I Economical environment
5
I-1 Macro-economy in China
5
I-2 Governmental regulations on MSG and their impacts and forecast
8
- Industrial standard
10
- Environmental protection and energy-saving regulations
11
- Others (Forbidden 80% purity MSG, etc.)
12
II Production and market of MSG in China
13
II-1 Historic development of MSG industry in China
13
II-2 MSG production in China
14
II-2.1 Overview of MSG production in recent years, ~2008
14
- National Capacity & output, by volume
14
- Regional distribution of MSG production
16
II-2.2 Summary of MSG manufacturers in China
18
- Active manufacturers
18
- Idle manufacturers
20
- Potential manufacturers
20
- Stopped manufacturers
20
II-2.3 Raw material supply situation
20
- Corn starch
23
- Wheat starch
24
- Rice starch
24
- Molasses
24
II-2.4 Pricing of MSG and reasons for price change
24
- MSG price in recent years
24
- Reasons affecting price change
25
II-2.5 Competitiveness of MSG production
26
- Major analysis of economy index of MSG production
26
II-3 Import and export analysis of MSG in recent years, mainly in 2008
28
II-3.1 Export situation in recent years
28
II-3.2 Import and export situation in 2008
28
- Import analysis in 2008
28
- Export analysis in 2008
29
II-3.3 Export situation in Jan.-May 2009
31
II-4 Market demand of MSG in China
33
II-4.1 Market consumption of MSG
33
- MSG consumption volume in recent years, by volume
33
- Market distribution in 2008
35
II-4.2 Application
36
- Directly edible
37
- For other condiment use
37
II-4.3 Market supply of MSG in China
39
II-5 Technology of MSG industry
43
II-5.1 Fermentation technology and hydrolysis method
43
II-5.2 Waste treatment
47
III Future prospect of MSG in China
49
III-1 Key factors affecting the development of MSG industry
49
III-2 Future prospect
51
IV Conclusion and opportunity
54
V Appendix (profile of major MSG manufacturers)
55
V-1 Meihua Biological Technology Group Co., Ltd.
55
… …
V-29 Zhejiang Qujiang MSG Co., Ltd.
84

LIST OF TABLES
Table I-2.1 Regulations involving MSG products since 2004
Table I-2.2 Standard of HJ 444-2008
Table I-2.3 Similarities and differences between GB19431-2004 and GW8978-1996
Table II-2.2.1 Active MSG manufacturers in China, 2009
Table II-2.3.1 GA production of MSG manufacturers, 2009
Table II-2.4.1 MSG price quoted in June 2009
Table II-2.5.1 Major economy indexes of MSG manufacturer, 2008
Table II-3.2.1 Import origins of MSG in 2008 (Quantity: tonne; Price: USD/kg; Value: USD)
Table II-3.2.2 Export price of MSG, 2008 (Quantity: tonne; Price: USD/kg; Value: USD)
Table II-3.2.3 Chinese exporters of MSG, 2008 (Quantity: tonne; Price: USD/kg; Value: USD)
Table II-3.2.4 Export situation of Chinese manufacturers, 2008 (Quantity: tonne; Price: USD/kg; Value: USD)
Table II-3.2.5 Export destination of MSG, 2008(Quantity: tonne; Price: USD/kg; Value: USD)
Table II-3.3.1 Export volume and price of MSG, in Jan-May 2009
Table II-4.2.1 Situation of MSG consumption by application in China, 2008
Table II-4.2.2 Major MSG consumers in condiment and food industry in China, 2008
Table II-4.3.1 Sales situation of MSG manufacturers, 2008
Table II-4.3.2 Detailed sales situation of MSG manufacturers in China, 2008
Table II-5.1.1 Fermentation technologies in GA production in China
Table II-5.1.2 Key technology for MSG production in China, 2008
Table II-5.2.1 Key waste treatment technologies in China
Table II-5.2.2 Major cases of MSG manufacturers benefited from recycling wastewater

LIST OF FIGURES
Figure I-1.1 GDP changes in China, 2004-2008
Figure I-1.2 Changes of industrial added value and investment in fixed assets in China, 2004-2008
Figure I-1.3 Income changes of both urban and rural residents in China, 2004-2008
Figure I-1.4 Total retail sales of consumer goods and final consumption expenditure in China, 2004-2008
Figure I-1.5 Rapid development of catering business in China, 2004-2008
Figure I-1.6 Total export volume and value of MSG in China, 2004-2008
Figure I-1.7 Fluctuations of RMB’s foreign exchange rate, 2004-2008
Figure II-1 Chemical structure of MSG
Figure II-1.1 MSG production development milestones in China
Figure II-2.1.1 MSG market development in China, 2004-2008
Figure II-2.1.2 Capacity distribution of MSG in China, 2009
Figure II-2.1.3 Number of MSG manufacturer in different provinces, 2009
Figure II-2.1.4 MSG output structure of different provinces by volume, 2008
Figure II-2.2.1 Market size development of top five MSG manufacturers by output, 2007-2008
Figure II-2.3.1 Market size of top five GA manufacturers by output, 2008
Figure II-2.3.2 Market size of raw materials for GA production, 2008
Figure II-3.1.1 Export volume and average export price of MSG, 2004-2008
Figure II-3.3.1 Export volume of MSG in Jan.-May 2008 and Jan.-May 2009
Figure II-3.3.2 Export price of MSG in 2008 to May-2009
Figure II-4.1.1 MSG demand situation in China, 2004-2008
Figure II-4.1.2 Total value of MSG in China, 2004-2008
Figure II-4.1.3 MSG consumption volume in China’s rural and urban areas, 2004-2008
Figure II-4.1.4 Per-capita MSG consumption volume in China, 2004-2008
Figure II-4.2.1 MSG consumption structure by application, 2008
Figure II-4.2.2 MSG consumption changes by application, 2004-2008
Figure II-4.2.2 MSG consumption changes by application, 2004-2008
Figure II-4.3.1 Top 10 MSG manufacturers with the largest sales value in China, 2008
Figure II-4.3.2 Top 10 MSG manufacturers with the largest net income in China, 2008
Figure II-5.1.1 Flow chart of MSG production technology in China
Figure II-5.1.2 MSG production technology development milestones around the world
Figure III-1.1 Global real GDP growth assumption, 2009-2014
Figure III-1.2 Exchange rate growth projection for USD/RMB, 2009-2014
Figure III-2.1 Predicted MSG capacity and output, 2009-2014
Figure III-2.2 Forecast on total supply and consumption volume of MSG in China, 2009-2014
Figure III-2.3 Forecast on total consumption volume of MSG in China, 2009-2014
Figure III-2.4 Forecast on MSG consumption structure by application, 2009-2014
Figure III-2.5 Forecast on MSG consumption changes by application, 2009-2014

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Executive Summary

China’s monosodium glutamate (MSG) industry has eighty six years history since the first MSG manufacturer, XXX entered MSG market in 1923. China has become the largest MSG production base in the world since XXX, and its MSG output has increased from XXX tonnes in 2004 to XXX tonnes in 2008, with CAGR of XXX% in 2004 to 2008, making China currently facing the serious MSG overcapacity situation. At present, many well-known MSG brands have been built, mainly including XXX, XXX, XXX, XXX, XXX and so on. Brand has become important intangible assets to China's well-known MSG manufacturers.

MSG industry is environmentally friendless due to its high pollution, high energy consumption and large consumption of resources. With stricter environmental policies on MSG industry, small-scale MSG manufacturers with the capacity less than XXX t/a, who invest little in environmental protection, have gradually withdrawn from the market especially in the last 3 years. Backward production capacity of total XXX tonnes has been eliminated during XXX to XXX, which is beneficial to for largest-scale MSG manufacturers with advantages of lower production cost and advanced technologies to dominate MSG market in China.

In recent years, MSG production base has been shifting from Southeast China to North China where local supply of raw material, namely corn starch and wheat starch, has been abundant. With faster MSG industry integration, China now has only XXX active MSG manufacturers distributed in XXX provinces, including XXX, XXX and XXX, with their total capacity reaching XXX tonnes in 2009, accounting for XXX% of the national total.

Raw materials are mainly corn starch, wheat starch, rice starch and molasses in China. And XXX is the most widely used for GA production owing to its mature production technology and lower price, taking up XXX% of the total supply volume of raw material for glutamic acid (GA) production in 2008. XXX is expected to be the most important raw material for GA production in next five years in China.

Fermentation is the most important step in MSG production in China. Most MSG manufacturers adopt GA fermentation with appropriate sub-type biotin pathway owing to its advanced extracting and fermentation technology. Roughly XXX tonne GA is needed to produce one tonne MSG in China. Currently, only XXX MSG manufacturers in China have established GA production lines and nine can be self - sufficient in GA while the rest manufacturers have to purchase GA from other companies.

Because of intense competition in MSG industry in China, MSG industry has gained low profit in recent years. The average net profit rate of MSG industry was only XXX% in 2008. MSG price fluctuates according to changes of seasons. On the whole, MSG price has increased slightly in last 3 years in China. Without obvious change of MSG overcapacity in the next five years, MSG price will not change too much in China.

China’s MSG was mainly exported to XXX. In 2007 to 2008, China’s MSG export has remained basically stable, with export volume of about XXX tonnes in 2008. Average export price of MSG had remained stable in XXX to XXX, but sharply increased to USDXXX/kg in 2008 from USDXXX/kg in 2007.

With the improvement of people's life quality and change of dietary structure, and the common understanding of MSG’s little bad health impact on human body, MSG demand has increased from XXX tonnes in 2004 to XXX tonnes in 2008, with CAGR of XXX% in 2004 to 2008. Main MSG consumers are urban residents, with their consumption volume accounting for about XXX% of the national total.

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(The rest content of this report is omitted.)

Character of CCM' Report:

This multi-client report provides a comprehensive study on the researched subject in China, from aspects of production, technology, import & export, consumption & end uses, etc.

>>
 All the producers in China, either active or idled or potential, have been sourced and contacted. Their situation has been verified and compiled as in the appendix.
>>
 The competitiveness of Chinese production has been discussed in order to uncover the mystery of ever-increasing capability of Chinese manufacturing.
>>
 The import & export analysis for the situation in the recent three years has been conducted.
>>
 The consumption pattern of the researched subject has been carried out in order to breakdown the end uses into different segments. The major end users under each major end use segments have been identified.
>>
 The scientific methodology has been employed to conduct the quantitative forecast on this subject in the future 5-10 years.

The aim of this report is to provide powerful assistance to the strategy group and the management team in making correct decision as how to penetrate the ever-increasing China market and how to catch the maximum commercial opportunities. The report is formulated independently by CCM’s professional market researchers, based on the first-hand and primary data which are analyzed by scientific methodology, confirmed with both manufacturers/end users/traders and legal authorities, and presented in a logic way.

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