For the Quarter Ending June 2025
APAC
• Monosodium Glutamate Spot Price in China showed a consistent decline across Q2 2025. This decline was driven by moderate demand and surplus inventory. The Price Index decreased by -2.17% in April, -3.33% in May and -0.57% in June with June settling at USD 865/MT FOB Dalian.
• The Monosodium Glutamate Price Forecast indicates a potentially stabilized or mildly bullish sentiment moving into Q3 due to exporters limiting further price cuts after extensive Q2 markdowns and the gradual easing of surplus inventory.
• The Monosodium Glutamate Production Cost Trend was favourable through Q2 as feedstock Glutamic Acid prices showed limited volatility. This allowed producers to operate at steady rates without incurring raw material cost inflation.
• Despite no plant disruptions or policy shocks, the excessive inventory from cautious Q1 buying and restrained international offtake created an oversupplied market. This resulted in dampening of export prices in April and May.
• The Monosodium Glutamate Demand Outlook remained regular but uninspired across Q2. Food processing companies (noodle manufacturers, snack processors, and seasonings producers) maintained stable off-take but refrained from bulk forward buying.
• International inquiries from Southeast Asia, the Middle East, and Africa remained tepid due to buyers awaiting further price corrections. This contributed to the flat demand environment and limited spot market volatility.
• Exporters were compelled to lower prices incrementally to prevent unsustainable inventory buildup, especially in May when the Price Index saw the steepest monthly drop.
• Despite consistent production and export capabilities, the absence of seasonal triggers, promotional drives, or bulk tendering events restricted any price rally during Q2.
• Why did the price change in July 2025? Logistics efficiency remained high in early July 2025 with no port congestion, container issues, or inland transit disruptions. This operational stability meant that price changes were demand-driven, not supply-constrained.
North America
• In Q2 2025, Monosodium Glutamate Spot Price in North America trended slightly lower as importers adjusted their procurement in response to declining Asian export offers. Local prices responded to competitive landed cost dynamics rather than domestic supply shifts.
• The Price Index for MSG in North America likely softened by approximately 2–4% during Q2, primarily due to an influx of low-cost imports from Asia and a softening in processed food manufacturing activity.
• The Monosodium Glutamate Price Forecast into Q3 appears neutral to bearish, with buyers still adopting a wait-and-watch strategy, especially from institutional food service buyers.
• Monosodium Glutamate Production Cost Trend remained stable in the U.S. as domestic blending and formulation used imported Glutamic Acid or MSG directly from Asia, benefiting from softened FOB China offers.
• The Monosodium Glutamate Demand Outlook remained stable across Q2 from fast-food chains, seasoning companies, and processed meat producers, but did not show any Q2-specific surge to counteract broader pricing softness.
• Inventory positions among distributors were higher than anticipated, given early Q1 bookings, which reduced Q2 spot buying frequency, leading to a cautious trading environment.
• The MSG market in the U.S. was not affected by freight or inland transportation issues during Q2, meaning logistics were not a driver of price shifts.
• Price negotiations were dominated by Asian suppliers offering small but steady discounts to retain North American contracts, especially in May and June when Asian oversupply was most visible.
• Why did the price change in July 2025? In July 2025, the Price Index in North America likely decreased slightly due to low procurement enthusiasm and cheaper Asian offers continuing into early Q3.
Europe
• European Monosodium Glutamate Spot Price softened during Q2, mirroring global supply trends. Lower-cost Asian exports and stagnant EU demand led to minor price corrections in wholesale contracts.
• The Price Index in Europe fell by an estimated 2–3% through Q2, with key drops in May as bulk buyers in Germany, France, and Eastern Europe held off from forward booking due to inventory carryovers.
• The Monosodium Glutamate Price Forecast into Q3 remains cautiously bearish, with subdued restocking activity expected until back-to-school and retail promotions restart food industry demand in late Q3.
• The Monosodium Glutamate Production Cost Trend remained steady, as most EU buyers relied on imported product rather than in-house fermentation. The benefits of lower Asian feedstock and production costs were passed on downstream.
• The Monosodium Glutamate Demand Outlook remained passive, with consistent offtake from institutional catering and snack producers but little growth. Buyers opted for lean procurement to manage inflationary cost pressures elsewhere.
• Wholesalers across Europe carried forward moderate inventory from Q1’s promotional cycle, limiting Q2 purchase urgency. Price competition from Asian importers further constrained local pricing flexibility.
• MSG shipments into major ports like Rotterdam and Antwerp encountered no logistical delays or port congestion in Q2. Stable supply lines helped sustain order fulfillment but didn’t trigger upward price momentum.
• European seasoning manufacturers were content drawing from earlier contracts and avoided spot procurement in May–June, aligning with the broader soft global demand phase.
• Why did the price change in July 2025? In July 2025, Monosodium Glutamate Price Index in Europe declined modestly, driven by lower Asian-origin offers and stagnant demand from processed food sectors post-Q2.
For the Quarter Ending March 2025
North America
In North America, the Monosodium Glutamate (MSG) market showed signs of softness during the first quarter of 2025. The market trend during the quarter reflected a mild downward adjustment, shaped by cautious procurement activity and stable supply conditions. Seasonal change from winter into early spring may have slightly impacted consumption patterns, especially in the food processing sector.
Procurement was carried out carefully and buyers tried to avoid overstocking situation. Supply remained steady and logistics were not disrupted. Inventory levels were comfortably maintained across major distributors. Demand from key downstream sectors like food and personal care appeared cautious. Some buyers planned procurement based on expected consumption in upcoming periods rather than current needs.
The presence of tariffs remained but they did not notably drive prices up or down this time. Overall, the price movement seemed gentle and aligned with a well-balanced market. Without signs of excessive supply or sudden shifts in demand, the North American market reflected a quiet quarter. The soft conditions likely kept prices stable or slightly adjusted and were influenced by routine demand and smooth distribution.
Asia Pacific
During the first quarter of 2025, prices of Monosodium Glutamate (MSG) in the Asia Pacific region declined by an average of 5.39%. The market experienced a slow start as the Chinese Lunar New Year disrupted production and trading activity for a short period. This led to subdued purchasing interest from buyers across the region, especially in January. Inventory levels among major manufacturers were reportedly sufficient, which reduced urgency in procurement. As production resumed after the holiday, supply remained stable.
However, demand from downstream sectors such as food and beverages stayed soft. Many buyers were cautious and avoided bulk purchases and expected a better clarity in future market direction. Seasonal transition during this period also meant consumption patterns remained mild. With smooth logistics and no major bottlenecks, market players focused more on routine procurement rather than aggressive restocking. The overall price decline reflected a quiet and well-supplied market, shaped by low urgency and steady offtake. The trend during the quarter was more of a correction than a downturn, showing how stable supply and measured demand shaped pricing.
Europe
In Europe, the Monosodium Glutamate (MSG) market appeared calm and balanced in the first quarter of 2025. Market conditions during the quarter appeared relatively steady, with no strong signs pointing toward significant price shifts. The market maintained steady performance and was supported by consistent procurement from the food and personal care sectors. Demand stayed moderate as buyers responded to the seasonal shift by managing their stock levels efficiently.
Production activities across the region ran without major delays and suppliers ensured timely fulfilment of contracts. Inventory levels were strategically controlled and reduced any chances of supply pressure. Buyers focused on restocking only what was necessary for short-term use.
Logistics remained smooth throughout the first quarter and contributed to stable availability of the product. With no disruptions or strong supply-demand imbalances, prices likely remained in a tight range. The market behaviour suggested a preference for cautious procurement and well-paced consumption. Given these soft but stable fundamentals the pricing have seen minor adjustments which reflected a well-aligned and predictable quarter for the European MSG market.
For the Quarter Ending December 2024
North America
The North American Monosodium Glutamate market showed strong growth in Q4 2024, navigating a challenging economic landscape marked by shifting supply chain dynamics and sustained industrial demand.
Moderate supply constraints, due to limited domestic production and occasional import disruptions, influenced the market, but the manufacturing sector demonstrated exceptional adaptability. Efforts focused on optimizing supply chains, automating processes, and managing costs effectively to ensure continued growth. Demand from key industries such as food processing, pharmaceuticals, and personal care remained robust, helping maintain market stability. Strategic adjustments in inventory management and pricing enabled the market to address temporary supply-demand imbalances, showcasing its capacity to adapt to changing conditions.
The ongoing demand from critical sectors, combined with technological advancements, highlighted the market's strong structural foundation. With its key role in advanced manufacturing supply chains, the Monosodium Glutamate market is poised for further growth. The sector's resilience and innovative strategies underscore its importance in supporting North American industrial value chains.
Asia Pacific
The overall trend for the Monosodium Glutamate market in Q4 2024 is a sustained downward pressure on prices, driven by oversupply, weak demand, and geopolitical factors. In October, prices declined sharply due to an oversupply caused by increased domestic production in China and reduced exports, leading to surplus inventory. Demand remained moderate, exacerbating the imbalance between supply and consumption.
Logistics improvements, while efficient, inadvertently contributed to market saturation. The bearish trend continued as Glutamic acid prices fell and inventory levels rose, especially in North China where trading activity remained low. In November, prices saw a slight decline due to supply chain adjustments and inventory reductions ahead of the holiday season. Despite steady demand, supply-driven price drops persisted.
The raw material prices, including falling corn costs, also contributed to the bearish outlook. Geopolitical factors, such as potential tariffs and currency manipulation, worsened the market's challenges, causing further inventory destocking and reinforcing the oversupply issue. The market remains a buyer’s market, with price pressures expected to persist until demand improves or production is reduced. As Q4 concluded, the prices of Monosodium glutamate settled at USD 920/MT FOB Shanghai showcasing an average quarterly decline of 3.64%.
Europe
In Q4 2024, the European Monosodium Glutamate market experienced significant volatility, shaped by rising prices and complex challenges. A growing dependency on Chinese imports, increasing freight costs, and fluctuating energy prices created a dynamic market, demanding sophisticated inventory and procurement strategies from traders.
Despite these pressures, sectors such as food additives and pharmaceuticals showed solid growth, as businesses managed rising operational costs amidst unclear demand trends. Mid-quarter, the market seized opportunities from Chinese suppliers clearing inventories through competitive pricing, which allowed traders to capitalize on favorable conditions.
However, the stringent regulatory standards and quality control demands added layers of complexity, highlighting the need for strategic market insights and proactive adjustments to shifting market dynamics. The quarter underscored the importance of adaptability, as European traders balanced cost control with demand uncertainties, while also leveraging short-term pricing advantages. This response emphasizes the market's evolving nature and its ability to navigate volatility with both resilience and strategic foresight.
For the Quarter Ending September 2024
North America
The US MSG market began Q3 2024 with firm prices, influenced by robust demand from the food service sector and increased import costs. American importers faced challenges with higher freight rates from China and continued port congestion on both coasts. The strong dollar partially offset the impact of rising import costs, though logistics expenses remained significant. Safety stock building by major food manufacturers supported the price momentum.
August brought relief as prices began to soften, coinciding with Chinese suppliers' inventory reduction efforts. US buyers maintained a strategic purchasing approach, balancing immediate needs against expected price decreases. The food processing industry showed steady demand, though buying patterns became more calculated. Importers with existing contracts faced pressure from spot market availability at lower prices.
September's market dynamics reflected the global downward trend, with US prices following the Chinese market's descent. The combination of increased Chinese production capacity and slower domestic demand led to more favorable import terms. Large-scale food manufacturers postponed major purchases, anticipating further price reductions. The quarter ended with importers negotiating aggressively for Q4 contracts, leveraging the oversupply situation in China and declining raw material costs. Market participants anticipated continued price pressure through the remainder of the year, influenced by China's production economics and global logistics costs.
Asia Pacific
The Monosodium Glutamate (MSG) market started Q3 2024 with a steady price increase, reflecting a stable environment and cautious optimism. Key drivers included heightened bulk procurement, stable production costs, and rising demand from downstream industries. Export activity from major producers grew as traders aimed to enhance profit margins. However, logistical challenges and rising freight costs from China dampened trading sentiment, contributing to price increases. Experts remained optimistic due to stable raw material costs and favorable production support.
In August, prices significantly declined, reversing the previous trend. This drop stemmed from seasonal factors, as manufacturers cleared excess inventory accumulated during peak production. Weakened downstream purchasing and budget reallocations led to oversupply, intensifying downward pressure on prices. Manufacturers adopted aggressive pricing strategies, exacerbated by the ongoing monsoon season, which prompted discounts to mitigate inventory damage risks.
September continued this downward trajectory, with prices falling due to increased production capacity leading to oversupply. Demand from key markets showed saturation, while logistical challenges and currency fluctuations, notably a stronger yuan, diminished the competitiveness of Chinese exports. By the end of Q3, discounted pricing strategies were common, influenced by falling domestic prices for corn and glutamic acid, suggesting a bearish outlook for MSG prices in the short to medium term.
Europe
The European MSG market in Q3 2024 opened with upward price momentum, driven by increased landed costs of Chinese imports and stronger regional demand. Key factors included higher freight rates from Asia, extended delivery times, and growing demand from the processed food sector. European importers increased their inventory levels to hedge against supply chain uncertainties. The Euro's relative stability against the Yuan provided some cushioning against price increases, though logistics costs remained a concern.
By August, the market witnessed a notable price correction as Chinese suppliers began offering more competitive rates to clear their inventories. European buyers leveraged this situation by negotiating better terms, though the benefits were partially offset by persistent shipping constraints. The food processing industry showed seasonal slowdown in purchasing activities, typical for the summer holiday period, leading to adequate stock levels across major distribution hubs.
September saw further price erosion in the European market, reflecting the global oversupply situation and reduced Chinese export prices. Importers adopted a cautious approach, making smaller, more frequent purchases rather than bulk orders. The market experienced increased competition among traders, leading to competitive pricing strategies. As Q3 concluded, the bearish sentiment from China's domestic market influenced European price negotiations for Q4 contracts.
FAQs
1. What is Monosodium Glutamate (MSG) and how is it used in the food industry?
MSG is the sodium salt of glutamic acid, a naturally occurring amino acid. It is widely used as a flavor enhancer in the food industry to intensify the umami (savory) taste in products such as soups, sauces, snacks, seasonings, and ready-to-eat meals.
2. Is MSG safe for consumption?
MSG is generally recognized as safe (GRAS) by the U.S. FDA and is approved for use by food safety authorities in the EU, Canada, Japan, and many other countries. While some individuals may report mild sensitivity, no conclusive scientific evidence links MSG to serious health issues.
3. Which industries beyond food manufacturing utilize MSG?
While predominantly used in food production, MSG is also employed in the pharmaceutical sector for tablet formulations and in animal feed manufacturing to enhance palatability. Its role as a nutritional additive in livestock diets is gaining attention in some markets.
4. How is MSG typically manufactured?
Commercial MSG is primarily produced through the fermentation of starch, sugar beets, sugarcane, or molasses. Microbial fermentation, often using Corynebacterium glutamicum, yields glutamic acid, which is then neutralized with sodium to form MSG.
5. What are the major global markets for MSG?
Asia-Pacific, particularly China, is the dominant producer and exporter of MSG. North America, Southeast Asia, and parts of Europe are significant consumers. Demand trends are driven by evolving food processing sectors, especially in urban and convenience-oriented economies.
