The glutamic acid industry contributes $10,496.0 million in 2021, and it is projected to generate $19,443.5 million in 2030, advancing at a rate of 7.1% from 2021 to 2030. Glutamic acid is an amino acid utilized for the production of proteins.
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.
The raw material suppliers involved in the manufacturing and distribution of operations utilize the extensive distribution network for controlling the prices of raw materials in various locations. Therefore, the power of the supplier is expected to remain moderate in the coming years.