MSG INDUSTRY MAKES A STEADY DECLINE

Starting from 1940, every passing decade had witnessed a 200% rise in world MSG production, but it would not be the case in 2020. According to financial specialists, Chinese manufacturers are currently facing difficulties in holding the same market share. National level reports show a clear decline of the industry commencing from 2013.

2010-2016 MSG industry production and sales rate trend chart (unit: %)
Source: Prospective Industry Research Institute "China Condiment Industry Analysis Report"

Experts had listed possible reasons for this steady historical decline.

1. Strict environmental regulations imposed on companies by Chinese government.
2. When environmental regulatory costs are added to high energy expenditure, a rise in unit production cost is unavoidable.
3. Overflow of cheap MSG substitutes (chicken essence and chicken powder) is considered the main threat.