MSG (Monosodium Glutamate) Price Trend and Forecast

MSG (Monosodium Glutamate) Regional Price Overview

Get the latest insights on price movement and trend analysis of MSG (Monosodium Glutamate) in different regions across the world (Asia, Europe, North America, Latin America, and the Middle East & Africa).

Monosodium Glutamate Price Trend for the Second Half of 2023

Asia

The Asian countries enjoyed support from the downstream food and beverage industry in the third quarter of 2023. The manufacturing sector also revamped its production rates as the downstream demand dried up the inventories, further leading to an uptick in the market prices of monosodium glutamate. Additionally, the inclining prices of crude oil and natural gas, along with raw materials, increased the overall cost of production and, in turn, the prices of monosodium glutamate in Q3 of 2023.
 

MSG (Monosodium Glutamate) Price Chart

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The fourth quarter, however, failed to continue this momentum as the engraved economic challenges and weak nature of downstream industries pushed the monosodium glutamate price trend towards a southward trajectory.

Europe

During the third and fourth quarter of 2023, the market for monosodium glutamate experienced rising demand from the downstream industries and reflected the rise in the cost of feedstock materials. The uproar in the market was also influenced by the influx of expensive imports from the overseas players as the dependency of the customer base relies majorly on these imports, thereby contributing to the northward movement of the monosodium glutamate price trend. However, in the later months of the year, the cost of feedstock materials began to decline, reducing the overall cost of production and the monosodium glutamate prices.

North America

The variations in the prices of monosodium glutamate during the third and fourth quarter of 2023 were much more prominent as compared to the first half of the year. During the third and initial phase of the fourth quarter, the prices remained on the higher end, as indicated by the rising demand from the downstream industries and limited rates of production.

The escalation was also supported by the rising interest of Asian and European regions in North American produce and, thus, the export of expensive shipments. However, the degrading condition of the North American economy and destocking activities in the later months of the year suggested a downturn in the monosodium glutamate price trend.

Analyst Insight

According to Procurement Resource, the price trend of Monosodium Glutamate is estimated to oscillate on the upper end of the pricing spectra as the downstream demand is likely to roll out in favor of the monosodium glutamate price trend.
 

Monosodium Glutamate Price Trend for First Half of 2023

Asia

The prices of monosodium glutamate (MSG) were influenced by the market activities of its feedstock glutamic acid. The first quarter proved to be in favor of the rise in prices of monosodium glutamate as the pharmaceutical sector in China witnessed a strong incline in their market activities, and the number of offtakes from domestic and international buyers also escalated at a great pace.

The revival of China’s market after a long stretch of stagnancy due to COVID-19 and the holiday season resulted in high rates of production that were balanced out by the growing demand for monosodium glutamate. However, from the middle of the second quarter, the trend began its southward journey due to a lack of support from feedstock prices, a reduction in demand, and high economic uncertainties in the region.

Europe

The European traders witnessed a gradual incline in the price trend of monosodium glutamate in the first quarter of 2023 as the rates of procurement from the downstream industries increased several folds and trading activities also moved positively.

The price trend inclined in the initial months of the second quarter, too, as the domestic demand, high cost of raw materials, and rising prices of energy production led to the upward movement of monosodium glutamate prices. However, the slow movement of the European economy, large-scale production of products, and fall in demand affected the monosodium glutamate negatively in the end months of the second quarter of 2023.

North America

A steady trend in the prices of monosodium glutamate was observed in the first quarter of 2023 as the market was supported by enhanced trade flow and low cost of logistics along with high demand from the downstream pharmaceuticals sector. The cost of raw materials also led to a positive inclination in the prices of monosodium glutamate.

However, the market dynamics in the second quarter were not that favorable for the price trend of monosodium glutamate as its demand slid in both domestic and international markets. And with improvement in trade with Asian countries, the high rates of influx boosted the level of inventories. In addition to this, rising inflation and interest rates by banks amid concerning economic conditions proved to be consistent problems for the monosodium glutamate price trend.

Analyst Insight

According to Procurement Resource, the price trend of Monosodium Glutamate is expected to decline in the upcoming quarter as the downstream industries are showing low rates of procurement, and heavy fluctuations in the economic sector will likely have a negative impact on the monosodium glutamate market.

Procurement Resource provides latest prices of MSG (Monosodium Glutamate). Each price database is tied to a user-friendly graphing tool dating back to 2014, which provides a range of functionalities: configuration of price series over user defined time period; comparison of product movements across countries; customisation of price currencies and unit; extraction of price data as excel files to be used offline.