FUMARIC ACID MARKET ANALYSIS

The Fumaric Acid Market was valued at US$ 266.4 Mn in 2022, and is expected to exhibit a CAGR of 4.6%, over the forecast period (2023-2030) to reach US$ 381.6 Mn by 2030. Fumaric acid (trans-butanediol acid) is a white crystalline compound found in nature. Fumaric acid helps produce energy from food in the form of (adenosine triphosphate)ATP.

Fumaric Acid Market - Impact of Coronavirus (COVID-19) Pandemic

The COVID-19 pandemic had a significant impact on the Fumaric acid market in 2020, with nationwide lockdowns across the world, led to manufacturing and supply chain disruptions, and halts in production. However, the market started to recover in 2021 and is expected to grow at a promising rate over the forecast period. The growing use of fumaric acid in the food and beverages industry is one of the main drivers of the market. One of the main constraints for the market is the health hazards associated with fumaric acid. However, new potential application areas are likely to open up new opportunities for the market in the near future. The Asia Pacific region dominated the market in 2020 and is expected to remain dominant over the next few years due to its growing demand for Fumaric Acid.

Figure 1. Global Fumaric Acid Market Value Share (%), By Type, in 2022

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Fumaric Acid Market: Drivers

• Growing demand from the food & beverage industry: Growing applications in food and beverage industry are driving the growth of the fumaric acid market. Fumaric acid is used as a food additive in the food & beverage industry. It is used as an essential ingredient in the production of candy to add sourness. For instance, in the recent past, fumaric acid was significantly used as a substitute for other food additives, like tartaric acid and citric acid, as a lesser quantity of fumaric acid can be used to achieve the same results. For example, 1 gram of fumaric acid can add the same amount of sourness as 1.5 gram of citric acid.

• Increasing use in the pharmaceutical industry as an optical bleaching agent: Increasing demand of Fumaric Acid in the pharmaceutical industry, where it is used to produce alexipharmic sodium dimercaptosuccinate and ferrous fumarate, as an optical bleaching agent, in formulations for alternative medicine, or as fumaric acid esters monoethyl fumarate and dimethyl fumarate to treat psoriasis.

Fumaric Acid Market: Restraints

Associated health hazards

• Health hazards associated with fumaric acid are expected to limit the Market growth. Fumaric acid can be hazardous to human health, and it is certified as a hazardous material by the Department of Transportation (USA) and the Environmental Protection Agency. However, the industry can deal this limitation by implementing proper handling and safety measures to minimize the health hazards posed by fumaric acid.
• Counterbalance: The health hazards caused by fumaric acid can be minimized by proper implementation of safety measures to handle the hazardous acid. Low concentration of the acid should be used in food so that it does not affect the digestive system and cause harm.
• For Instance, in April 2023, Shionogi & Co., Ltd. (Head Office: Osaka, Japan; Chief Executive Officer: Isao Teshirogi, Ph.D.; hereafter "Shionogi") announced that the U.S. Food and Drug Administration (FDA) has granted Fast Track designation for theirInvestigational COVID-19 oral antiviral ensitrelvir (Generic name: ensitrelvir fumaric acid, Code No.: S-217622, hereafter “ensitrelvir”).

Strict environmental regulations

• Strict government regulations, due to growing environmental concern, in order to reduce carbon footprints are again anticipated to hinder the market growth. Regulations, owing to environmental concerns in developed countries from North America and European Union, are anticipated to impact the demand for fumaric acids in the paint industry. However, manufacturers in the industry are likely to handle these regulations by adopting sustainable practices and developing eco-friendly alternatives.
• Counterbalance: If the carbon footprints of the fumaric acid can be controlled, then the regulations laid down by the governments on the fumaric acid, regarding environmental concerns, could also be relaxed to some extent. Fumaric acid is used in foods as a flavor enhancer. Food is a major contributor to carbon footprints, and meat, which is particularly, is an issue. The cause of carbon footprint needs to be reduced for the good of our own health and environment.

Market Trends/Key Takeaways:

• Rise in construction and remodeling activities: Rise in construction and remodeling activities across developing countries is creating demand for Unsaturated Polyester Resin (UPR). It is used in the production of UPR and alkyd resins, thus demand for paints is expected to grow due to growing construction activities.

• Innovation and key development by key players: Increasing investments in R&D by key players to develop bio-based fumaric acid are expected to uplift the market growth in the near future. For instance, in March 2020, Bartek Ingredients (company based in North America and distributing to customers around the globe, Bartek is the world's largest producer of malic acid and food-grade fumaric acid) announced a 10,000 million ton (Mt) malic acid capacity expansion by the first quarter of 2021.The company specializes in malic acid, food-grade fumaric acid, and maleic anhydride for food and beverage applications.

Fumaric Acid Market: Market Segmentation

On the basis of type, global fumaric acid market is divided into technical grade and food grade. The technical grade segment has been dominating the segment by carrying the market share value of 65% in 2022. In technical grade the description fumaric acid includes, fumaric acid as a white crystalline powder. The addition of fumaric acid increases the adhesion of resultant paints and coatings. The food-grade segment contains fumaric acid in the food ingredients, such as pH modifier, flavor enhancer, and micro-organisms growth controller, which helps in increasing the shelf life, preserves the color, enhances the flavor, and maintains the texture and the overall quality of the food. Furthermore, the growing food and beverage market is also expected to boost the fumaric acid use in the food-grade segment.

Fumaric Acid Market: Regional Analysis

The Fumaric Acid Market was valued at US$ 266.4 Mn in 2022 and is forecast to reach a value of US$ 381.6 Mn by 2030 at a CAGR of 4.6% between 2022 and 2030. North America held dominant position in the Fumaric Acid Market in 2020, accounting for 38.5% share in terms of volume, followed by Europe and Asia Pacific, respectively. Asia Pacific is expected to account for the largest market share of Fumaric acid during the forecast period. This is mainly due to the growing demand for convenience foods and drinks, as a result of changes in lifestyle and hectic work schedules, as well as the increase in per capita disposable income, which has improved the standard of living in the region. In addition, the food and beverages industry is expected to grow rapidly in this region due to the development of new food innovations and the development of various health products. This will further increase the demand for fumaric acid.

Figure 2. Global Fumaric Acid Market Share (%) in terms of Volume, By Region, in 2022

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Fumaric Acid Market: Recent Developments

• In February 2020, Polynt, an actively involved company in the production, sales, research and development of organic anhydrides and their derivatives, announced the establishment of its fully owned subsidiary Polynt Composites in Istanbul, Turkey. The company will be able to serve the Turkish growing markets with its outstanding product portfolio and technical experience.
• In October 2021, ESIM Chemicals, a producer and distributer of an agricultural and crop protection chemicals has completed the sale of its IM (Intermediate Business), a unit to the U.S.-based company, Vertellus, founded in 1857, headquartered in Indianapolis, Indiana, is a manufacturer of niche specialty products. The company will now focus mainly on the development and production of specialty chemical products.
• In February 2022, Merck KGAA, a global pharmaceutical and chemicals company, acquired Exelead a company which specializes in manufacturing lipid nanoparticle, liposome, and pegylated formulations, following the regulatory clearances, for approximately USD 780 million in cash. The business combination is expected to enable Merck’s Life Science business sector to provide its customers with comprehensive end-to-end Contract Development and Manufacturing Organization (CDMO) services across the mRNA value chain. Merck & Co., Inc, plans to further invest over US$ 543.1 million to scale up Exelead’s technology over the next ten years.
• In May 2022, Bartek Ingredients Inc., a company involved in the production and distribution of malic acid, fumaric acid and maleic anhydride, will invest USD 160 million to construct a vertically integrated facility, which will become the world’s largest malic and food-grade fumaric acid and production plant. The project is expected to double Bartek Ingredients capacity.

Fumaric Acid Market: Key Companies

The key players active in the Fumaric Acid Market are 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.

*Definition: Fumaric acid is a white solid and occurs widely in nature. This organic compound has a fruity taste. The Number E297, refers to the substance fumaric acid as well as the salts and esters of fumaric acid. Fumaric acid salts are also referred to as fumarates. In chemical terms, fumarate is a C2 compound. In addition to its use in foods, fumaric acid has been found in various other products. It is widely used in wheat tortillas, sourdough, rye breads, refrigerated biscuit dough, and fruit juices. It is also used as a preservative in alcoholic beverages, as well as in cleaning products.