Core Viewpoint - The production of monosodium glutamate (MSG) in China is experiencing stable growth, with a projected output of 3.015 million tons in 2024, representing a year-on-year increase of 11.9% [1][10]. Industry Overview - MSG is primarily composed of sodium glutamate, produced through fermentation of starch or sugar by microorganisms, resulting in a product with a sodium glutamate content of 99% or higher [2][4]. - The demand for MSG is driven by the increasing quality and taste expectations of consumers, particularly in the food service and processed food sectors [1][10]. Market Demand - The apparent consumption of MSG in China is expected to reach 2.997 million tons in 2024, marking a 12.0% increase year-on-year [1][10]. - The food processing industry is the largest consumer of MSG, accounting for over 50% of the market, followed by the restaurant sector at approximately 30% [8][9]. Production and Export - China's MSG production capacity utilization rate is projected to be 84.7% in 2024 [1][10]. - In the first nine months of 2025, China exported 6,700 tons of MSG, generating an export revenue of approximately $8.72 million [1][11]. Competitive Landscape - The MSG market in China is characterized by a duopoly led by two major players: Fujian Fengfeng Group and Meihua Biological Technology Group, which dominate the industry with their extensive product offerings and global reach [11][12]. - Fujian Fengfeng Group reported a revenue of 13.96 billion yuan and a gross profit of 3.169 billion yuan in the first half of 2025, with a gross margin of 22.7% [12]. - Meihua Biological Technology Group achieved a revenue of 12.28 billion yuan in the same period, with a significant portion derived from feed amino acids and flavoring agents [12][13]. Future Trends - The MSG industry is expected to evolve towards low-sodium, natural fermentation, and composite flavor products, with a focus on customized solutions for the food processing and restaurant sectors [14]. - The growth in demand for specialized formulations for baking, pre-prepared dishes, and hot pot bases is anticipated to drive innovation and differentiation in the market [14].