Fumaric Acid Market Is Estimated To Witness High Growth Owing To Opportunity In Food And Beverage In
Author : Leena Shedmake | Published On : 01 Feb 2024
Fumaric acid is an unsaturated dicarboxylic acid that occurs naturally in certain plants. It is mainly used as an acidity regulator in beverages and processed foods such as sauces, snacks, bakery and meat products. The growing processed food industry and shift in consumer preference towards nutrition-rich food products have boosted the demand for fumaric acid in recent years. 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 Opportunity:
The growing food and beverage industry presents a major market opportunity for fumaric acid producers. Increasing demand for processed and packaged food products as well as ready-to-eat meals have created a strong market landscape for food acidulants such as fumaric acid. It acts as an important preservative and flavoring agent in various food products and its demand is projected to rise significantly with the expansion of the global processed food industry. Additionally, with more people becoming health conscious today, there is rising preference for nutrition-rich and natural food ingredients, which makes fumaric acid a preferred choice. The opportunity lies in catering to the changing needs of food manufacturers by providing customized and innovative fumaric acid solutions.
Porter's Analysis
Threat of new entrants: The fumaric acid market has moderate threat of new entrants as it requires large capital investment to establish manufacturing facilities and gaining consumer trust which takes significant amount of time and resources for new players.
Bargaining power of buyers: The bargaining power of buyers is moderate as fumaric acid has a wide range of applications and market is diversified globally. Buyers can negotiate on price to some extent.
Bargaining power of suppliers: The bargaining power of suppliers is low to moderate as raw materials required for fumaric acid production such as maleic anhydride are available from numerous suppliers globally.
Threat of new substitutes: Threat of substitutes is low as fumaric acid has unique properties and wide applications in food and beverages, animal feed and others. It can be a difficult task for substitutes to gain consumer preference.
Competitive rivalry: The competitive rivalry is moderate to high as the market is dominated by top players globally.
SWOT Analysis
Strength: Fumaric acid has wide applications in industries like food and beverages, animal feed others. Growing consumer health awareness is driving its use.
Weakness: Requirement of high capital investments and changes in crude oil prices can impact raw material costs.
Opportunity: Increasing applications of fumaric acid in construction, pharmaceuticals provides growth avenues. Rapid urbanisation in developing nations also boosts market prospects.
Threats: Strict environmental norms regarding VOC emissions during manufacturing act as a challenge. Substitute products can emerge.
Key Takeaways
The Global Fumaric Acid Market Growth is expected to witness high during the forecast period of 2024 to 2031.
Regionally, Europe dominates the market currently accounting for over 30% of global demand followed by Asia Pacific. The fastest growing regional market is expected to be Asia Pacific owing to rapid industrialisation and growing population in nations 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.
Explore more information on this topic, Please visit-
https://www.newsstatix.com/fumaric-acid-market-share-size-and-growth-share-trends-analysis-demand-forecast/
