Glutamic Acid Market: Overview
The market size for glutamic acid was USD 10.2 billion in 2021, and it is projected to grow at a CAGR of 5.1 percent during the forecast period. In the future, it is predicted that the rising demand for animal feed will be accompanied by an increase in the use of food enhancers and additives in the food and beverage sector. People's rising awareness of the need to eat nutritious foods has boosted the demand for glutamic acid in the food and beverage and pharmaceutical industries. With its qualities, food containing glutamic acid is advantageous to memory and general physical well-being. Thus, as consumer interest in eating wholesome foods grows and health-related awareness among the general population rises, so does the demand for glutamic acid. 60% of Americans simply try to eat healthily, whereas 20% actively seek out items or adhere to diets for certain health benefits. As a food additive and flavor enhancer, glutamic acid is utilized in several packaged and functional meals. Manufacturers are seeking fresh approaches to creating agricultural products to stay up with shifting consumer food preferences.
The pharmaceutical industry's increasing demand will also increase glutamic acid use. People with illnesses like muscular dystrophy, epilepsy, aberrant neurotransmission, and cognitive and behavioral problems frequently receive treatment with glutamic acid. For instance, it has been demonstrated that glutamine significantly reduces whole-body protein breakdown in Duchenne muscular dystrophy. Favorable government regulations supporting the pharmaceutical industry and increasing government investment are anticipated to promote the pharmaceutical sector, which is anticipated to raise demand for glutamic acid in the upcoming years. Production and consumption of glutamic acid are significantly influenced by end-use industry demand; hence, any changes in end-use industry demand are anticipated to directly affect glutamic acid demand.
Strategic partnerships and collaborations have been a significant trend gaining traction in the glutamic acid industry. Major corporations are forming alliances and working together to maintain their presence in the glutamic acid market. For instance, Cassava Sciences, a US-based biotechnology business, and Evonik, a German company that deals in glutamic acid, signed into a supply arrangement in March 2021. Evonik would provide Cassava Sciences, a medication candidate for the treatment of Alzheimer's disease, in clinical-grade quantities via this deal.
Glutamic Acid Market: COVID-19 Impact
With the COVID-19 epidemic in China and its subsequent global spread, manufacturing in the industrial sectors was suspended, affecting glutamic acid production. The COVID-19 epidemic presented difficulties with the purchase of raw materials as well. With regard to consumer behavior, labor shortages or stoppages, inventories, sales, and business and manufacturing operations, among other things, the COVID-19 pandemic is anticipated to have substantial effects on industrial operations, both directly and indirectly. The extent of the scientific and medical issues, the anticipated duration of the pandemic, and the potential political and economic disruption it may bring are just a few of the many unknowns surrounding the COVID-19 pandemic, according to the companies active in the market. With the lockdown, the supply chain and the manufacturing sectors experienced an economic slowdown. However, the COVID-19 epidemic increased demand for the pharmaceutical, food, and beverage industries, increasing demand for glutamic acid in these sectors.
Glutamic Acid Market: Drivers
Various Industries Using Glutamic Acid is Driving Market Expansion
The demand for glutamic acid from the end-use industries significantly impacts production and consumption. It is expected that increased demand for animal feed will be accompanied by a rise in the usage of food enhancers and additives in the food and beverage sector in the coming years. The usage of glutamic acid in the food business is being maximized by the rising demand for packaged foods and food enhancers. With its many advantages, glutamic acid is also widely used in the pharmaceutical business. Glutamic acid is used to treat children's behavioral issues and aids in the improvement of personality disorders. Additionally, glutamic acid treats ulcers, epilepsy, mental retardation, muscular dystrophy, and hypoglycemia coma.
Glutamic Acid's Nutritional Advantages are Promoting Market’s Growth
The market is also being driven by a movement in consumer preference toward natural food products, which is reinforced by growing health concerns. Additionally, dairy products include glutamic acids to improve flavor and extend shelf life. People's rising awareness of the need to eat nutritious foods has increased the demand for glutamic acid in the food and beverage and pharmaceutical sectors. For the brain, glutamic acid serves as a fuel. It affects your brain in various positive ways, as you might expect. This amino acid aids in focusing attention, enhancing memory, and providing energy for the brain. Glutamic acid acts as a chemical messenger in the brain and is believed to aid in improving mood and mental acuity.
Glutamic Acid Market: Restraints
Risk of Excessive Consumption Impeding Market Expansion
Unsupervised direction and an excessive intake of glutamic acid may be harmful to one's health. Glutamic acid overconsumption can cause headaches and tiredness issues. This does not only negatively impact people's health, but they also experience prolonged fatigue as a result. Additionally, glutamic acid usage is limiting the market's expansion due to the danger of stroke it carries. Brain cell death or injury can result from too much glutamate in the wrong region, at the incorrect concentration, for too long. Parkinson's disease, Alzheimer's disease, and Huntington's disease are a few neurodegenerative conditions linked to excessive glutamate-stimulating nerve cells.
Glutamic Acid Market: Segment Overview
With Increase Meat Consumption, Animal Feed Dominate Market
The animal feed segment accounts for a sizeable portion of the market. Since it supports animal growth, reproduction, health, antioxidative response, and immune system, glutamic acid is used in animal feed. During the forecast period, the demand for this acid in animal feed applications is projected to expand due to consumers' improving understanding of the nutritional needs of animals and the increased need for high-quality feed. Along with the strong economic expansion, the demand for meat-based food products is increasing across the Asia-Pacific and South American areas, particularly in China, India, Brazil, and Argentina. The market is developing due to increased demand for meat protein, which has resulted in increased usage of feed additives, notably feed enzymes. More meat and protein are being consumed, and dietary patterns have changed from being based on cereal and vegetables. As a result, it is projected that increasing meat consumption will propel the feed glutamic acid market throughout the forecast period.
Glutamic Acid Market: Regional Landscape
Asia Pacific to Acquire Major Market Share due to Increase in Demand for Animal Feed
With a major revenue share, Asia Pacific dominated the market and is anticipated to grow at the highest rate during the forecast period. This is due to the growth of end-use businesses in the region's rising economies, including animal feed, pharmaceuticals, cosmetics and personal care, and food and beverage. With a capacity of more than 187 million metric tonnes yearly, China is one of the top feed producers in the area. With the large livestock population, the need for animal feed is expected to increase in nations like China and India. In 2021, there were more than 305 million cattle in India. India had the most cattle that year, followed by Brazil, China, and the United States, even though there were over 996 million cattle worldwide. As a result of the increasing demand for meat in regional cuisines, pork and poultry have become the most popular animal types in the Asia Pacific region. With the growing cow farming operations, Vietnam and Thailand are two of the region's most important markets for animal feed.
In the forecast period, North America held the second-largest market share. The region's need for pharmaceutical products, including dietary supplements, is driven by the rise in the elderly population and non-communicable diseases like chronic respiratory diseases, cardiovascular diseases, and cancer. This is projected to raise glutamic acid demand in North America. Approximately half of all Americans, or 133 million people, suffer from at least one chronic condition such as arthritis, heart disease, or hypertension. Thus, it is anticipated that the increased demand for pharmaceuticals would make it easier to use this acid. The expanding animal feed and additive manufacturing sectors will also benefit North American acid use.
Global Glutamic Acid Market: Competitive Landscape
In October 2020, American Vanguard Corporation (AVC), a US-based agrochemical corporation, paid an undisclosed sum for the Agrinos Group of enterprises. Agrinos' portfolio is projected to complement AVC's Green Plant liquid nutrition products, which have grown substantially in the Central American market due to this acquisition. Agrinos is a full-service biological input provider in the United States that produces glutamic acids. In September 2020, Evonik, a German-based glutamic acid maker, formed a strategic alliance with Unilever, a UK-based consumer goods producer. With this relationship, Evonik's biotech expertise would serve as a key pillar for Unilever's Clean Future program.
Few of the players in the 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.
Global Glutamic Acid Market is Segmented as Below:
Key Elements Included In The Study: Global Glutamic Acid Market
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