Fumaric acid is an organic acid used as a food additive and in unsaturated polyester resins. It has various advantages as it improves taste and acts as a preservative. Fumaric acid is used to make candies, baked goods, gelatin, puddings and more palatable. It enhances the flavor of processed meat and replaces phosphates. Due to the COVID-19 pandemic, the demand for packaged and convenience foods increased rapidly which drove the consumption of fumaric acid.
The global Fumaric Acid Market is estimated to be valued at US$ 321.01 Bn in 2024 and is expected to exhibit a CAGR of 32.% over the forecast period 2024 to 2031, as highlighted in a new report published by Coherent Market Insights.
Market key trends:
One of the major trends in the fumaric acid market is its increasing utilization in skin care and hair care products. Fumaric acid acts as an exfoliant and helps slough off dead skin cells from the skin surface. It also helps lighten complexions and reduce pigmentation. The growing personal care industry especially for anti-aging products has been a big driver of demand. Additionally, fumaric acid has properties that make hair smooth and silky. It is used in conditioners, shampoos and hair masks. The booming natural beauty products market which prefers plant-based ingredients over chemicals has contributed to the uptake of fumaric acid in personal care vertical.
Threat of new entrants: Low barriers to entry in some regions and product substitutes pose moderate threat of new entrants in the fumaric acid market.
Bargaining power of buyers: Global manufacturers have significant bargaining power over buyers due to strong brand image and supply contracts.
Bargaining power of suppliers: Suppliers have moderate bargaining power due to the availability of substitutes and differentiated products.
Threat of new substitutes: Substitutes like adipic acid, itaconic acid pose moderate threat due to performance advantages and price differential.
Competitive rivalry: The fumaric acid market experiences high competitive rivalry due to established regional players and private label brands.
The Global Fumaric Acid Market Demand is expected to witness high growth.
Regional analysis comprised Asia Pacific dominates the global fumaric acid market and is expected to grow at a high CAGR during the forecast period. This can be attributed to increased demand from food & beverage industry in countries like China and India.
Key players operating in the fumaric acid market are Nio Inc., Amara Raja Batteries Limited, Lithion Power Private Limited, Amplify Cleantech Solutions Private Limited, Gogoro Inc., Chargemygaadi, Esmito Solutions Pvt. Ltd., and Echargeup. These players are focusing on capacity expansion and new product launches to strengthen their position in the global market. For instance, in 2022, Nio unveiled its first sedan model ES7 with dual-motor all-wheel drive powertrain and 150 kWh battery pack.
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it