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.