The glutamic acid is widely used in the food and beverage industry as an enhancer or additive. Besides this, it is also used in the animal feed, due to high consumption of poultry products such as pork, beef, chicken, geese, and turkeys as well as the growing demand for aquatic products such as shrimp and fish, resulting in industry propulsion. 

The buyers of glutamic acid seek long-term contracts at a competitive cost to preserve the production capacity. The cost of the product is expected to be impacted by the rising demand in the pharmaceutical industry, as well as functional food producers. Therefore, the bargaining power of the buyer is predicted to stay strong in the near future. 

Browse detailed - Glutamic Acid Market Revenue Estimation and Growth Forecast Report

Under the application segment, the food and beverage application are the significant revenue contributor to the industry, accounting for 83%. It is led by the wide usage of glutamic acid as a taste enhancer. For instance, monosodium glutamate (MSG) is primarily used for enhancing the flavor of salad dressings, canned vegetables, carbohydrate-based snacks, processed dairy goods, and meat. 

In addition, the worldwide rising popularity of ready-to-drink beverages, and convenience food is projected to proliferate the industry growth. The increased requirement for such products is expected to improve living standards and economic development in developing countries such as China and India. Along with this, the rising popularity of energy drinks is projected to result into the industry propulsion.

Moreover, the pharmaceutical industry is projected to experience significant growth, growing at a rate of over 7.4% in the coming future. The beneficial government policies and rising private investment are expected to increase glutamic acid sales in the future.