The global Fumaric Acid Market is estimated to be valued at US$ 266.4 Mn in 2022 and is expected to exhibit a CAGR of 4.6% over the forecast period 2023-2030, as highlighted in a new report published by Coherent Market Insights.

Market Overview:

Fumaric acid is a naturally occurring organic acid that has various applications in different industries. It is primarily used as a food additive, providing a tart taste and enhancing the shelf life of food products. Fumaric acid is also used in the manufacturing of resins and polymers, as well as in the pharmaceutical and personal care industries. The increasing demand for food additives, especially in the processed food industry, is driving the growth of the fumaric acid market. The advantages of fumaric acid include its low toxicity, stability at high temperatures, and compatibility with other food ingredients.

Market key trends:

One key trend observed in the fumaric acid market is the growing use of fumaric acid in the pharmaceutical industry. Fumaric acid has been found to have therapeutic effects and is used in the treatment of certain skin diseases such as psoriasis. The demand for fumaric acid in the pharmaceutical industry is expected to increase significantly in the coming years, driven by the growing prevalence of skin diseases and the increasing adoption of fumaric acid-based treatments. This trend presents lucrative opportunities for market players to expand their product portfolios and cater to the growing demand in the pharmaceutical sector.

Porter’s Analysis

Threat of New Entrants: The threat of new entrants into the fumaric acid market is low. This is due to the high capital investment required to establish manufacturing facilities and the high level of technological expertise needed to produce fumaric acid. Additionally, there are significant economies of scale enjoyed by existing players in the market, making it difficult for new entrants to compete.

Bargaining Power of Buyers:

The bargaining power of buyers in the fumaric acid market is moderate. Buyers in this market include various industries such as food and beverages, pharmaceuticals, and chemicals. While individual buyers may not have significant bargaining power, larger industrial buyers can negotiate favorable pricing and terms with suppliers due to their high purchase volumes.

Bargaining Power of Suppliers:

The bargaining power of suppliers in the fumaric acid market is low. Fumaric acid is primarily produced from maleic anhydride, which is readily available from various suppliers. The presence of multiple suppliers and the ease of switching between them reduces the bargaining power of individual suppliers.

Threat of New Substitutes:

The threat of new substitutes for fumaric acid is low. Fumaric acid is a unique compound with applications in various industries, including food and beverages, pharmaceuticals, and chemicals. There are currently no widely adopted substitutes that can replicate the properties and functionalities offered by fumaric acid.

Competitive Rivalry:

The competitive rivalry in the fumaric acid market is high. There are several key players operating in the market, each striving to capture a larger market share. These companies engage in aggressive marketing strategies, product innovation, and price competition to gain a competitive edge in the market.

Key Takeaways

The global fumaric acid market is expected to witness high growth, exhibiting a CAGR of 4.6% over the forecast period (2023-2030). This growth can be attributed to the increasing demand from various industries, including food and beverages, pharmaceuticals, and chemicals. The growth in these industries, coupled with the expanding application of fumaric acid as an additive and ingredient, is expected to drive market growth.

In terms of regional analysis, Asia Pacific is projected to be the fastest-growing and dominating region in the fumaric acid market. This can be attributed to the increasing population, rising disposable income, and growing urbanization in countries like China and India. Furthermore, the rapid expansion of the food and beverages and pharmaceutical industries in this region is boosting the demand for fumaric acid.

Key players operating in the fumaric acid market include Anmol Chemicals, Bartek Ingredients Inc., Changmao Biochemm, ESIM Chemicals, Fuso Chemical Co. Ltd, Merck KGaA, Polynt, Thirumalai Chemicals Ltd, UPC Group, Yongsan Chemicals Inc., and XST Biological Co. Ltd. These players have a strong presence in the market and focus on strategies such as mergers and acquisitions, partnerships, and product innovation to maintain their market position.

In conclusion, the fumaric acid market is expected to experience significant growth in the coming years, driven by increasing demand from various industries, particularly in the Asia Pacific region. The market is highly competitive, with key players actively striving to gain a larger market share through various strategic initiatives.