The fumaric acid, also known as trans-butenedioic acid, is a white or colorless crystalline widely available in nature with a fruit-like taste. It is more on the economic side than the other food acids and is naturally found in bolete mushrooms, lichens, Iceland moss, and eukaryotes and comes in liquid, dry powder, and pellet large crystals. It is the strongest tasting food acidulants known for adjusting pH, controlling the growth of micro-organisms, and enhancing food flavor. It can also replace other acidulants, such as malic and citric acids as it has higher relative sourness than them, which offers a long-lasting sourness and flavor.
The increased use of fumaric acid in the food and beverage industry due to its benefits such as increased shelf life, flavor enhancement, quality maintenance of the food, etc. is the major factor driving this market's growth. Apart from this, various industries, such as construction, pharmaceutical, aerospace, etc. have also augmented this market's growth.
Therefore, this market is anticipated to grow faster and has a broad scope during the forecast period. However, the availability of substitutes and stringent rules and regulations set by the government is anticipated to restrict this market's growth.
The changes in people's lifestyles due to busy work schedules and lack of physical activities have led to increased health awareness, which has further created a demand for healthy convenience food and beverages. It offers tasty, ready-to-eat packaged food and drinks, which are nutritional and can be prepared easily. These convenience foods are mostly preferred by the growing number of working people or who are conscious about their health and therefore, is expected to augment the growth of fumaric acid by increasing its demand in making of such foods to enhance the flavor, increase the shelf life, as well as maintain the overall quality of the food. Moreover, another factor responsible for the demand for convenience foods is the growing urban population, which accounted for 4.2 billion in 2018, a total of 55% of the world's population and is expected to increase to 68% by 2050 as per the World Urbanization Prospects produced by the Population Division of the UN Department of Economic and Social Affairs (UN DESA).
Based on types, the fumaric acid market is categorized into food grade and technical grade. The food-grade segment is expected to account for the largest share during the forecast period owing to the growing demand for fumaric acid in the food ingredients due to its properties 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 overall quality of the food. Furthermore, the growing food and beverage market is also expected to increase fumaric acid use in the food-grade segment.
Based on Applications, the Fumaric Acid market is categorized into Food Additives, Rosin-Sized Sheathing Paper, Unsaturated Polyester Resins, Alkyd Resins, and Others. The Food Additives segment is anticipated to account for the maximum market share because of the growing demand for fumaric acid in the food and beverage industry. The advantages provided by this application, such as enhancing the flavor, increasing the shelf life, and maintaining the quality of the several types of food such as refrigerated biscuit dough, fruit juices, gelatin desserts, wheat and corn tortillas, pie fillings, etc. have also increased the demand for fumaric acid as food additives. Furthermore, the growing consumption and demand for organic food additives have also boosted this segment's growth.
Unsaturated polyester resin (UPR) is expected to be the second-largest segment based on the application due to the growing construction and remodeling activities and the increase in automobile production. The increasing use of unsaturated polyester resins in various end-user industries such as marine, aerospace, tanks, and pipes is also expected to augment fumaric acid demand and drive its market growth.
Based on end-use, the fumaric acid market is categorized into the food and beverages industry, cosmetics industry, pharmaceutical industry, and chemical industry. The food and beverage industry segment is forecasted to hold the largest market share based on end-use during the forecast period. The growth can be attributed to the rise in awareness regarding health and healthy eating habits, which has led to a shift from eating unhealthy and junk food to consuming a proper nutritional diet.
As per the World Health Organization (WHO), around 1.9 billion adults were overweight and 650 million obese, along with 340 million children being overweight or obese worldwide in 2018, which has increased the focus towards proper and healthy diet intake.
The increase in the consumption of organic food additives is identified as one of the significant factors that are expected to drive the growth of this segment and the overall fumaric acid market. The use of fumaric acid as an acidulant in food and beverages because of its properties, such as pH modifier, micro-organisms growth controller, and flavor enhancer help color preservation, texture maintenance, and overall quality food also promotes the market growth of this segment. Furthermore, the manufacturers' growing focus to launch unique, exotic flavored, and easy to make food and beverages are also anticipated to increase the demand for fumaric acid, thus driving this segment's growth and overall fumaric acid market.
Based on extraction types, the fumaric acid market is categorized into Fumaria Officinalis, Maleic Anhydride, and Fermentation. The fermentation extraction type is expected to hold the maximum market share owing to the rising utilization of fumaric acid as a raw material in the polymer industry. A uniform increase in the prices of petroleum-based acids has also increased the demand for renewable resources' fermentation process. Furthermore, the economically attractive yields and productivities are also anticipated to boost this segment's growth and the overall market.
Based on geography, the fumaric acid market is categorized into North America, Europe, Asia-Pacific, Central and South America and the Caribbean, the Middle East, and Africa. The Asia-Pacific is estimated to hold the largest share of the glycolic acid market during the forecast period. The growth in this region can be attributed to the increased demand for convenience food and beverages due to changes in lifestyle and busy work schedules and a rise in per capita disposable income of the population, which has led to an improved standard of living. In addition to this, the food and beverage industry is anticipated to witness rapid growth in this region due to food innovations and the emergence of various health products, which will further increase the demand for fumaric acid.
According to the Bureau of Economic Analysis of the United States, disposable personal income increased by 0.4% in June 2019. Furthermore, real spending (PCE) saw an increase of 0.2% in the same month. Moreover, the plastics industry's growth will also drive fumaric acid demand since it is used as an intermediate in unsaturated polyester resins and alkyd resins. The growing population and construction and remodeling activities are also expected to boost this region's growth. Apart from this, the low manufacturing costs, cheap land availability, and labor are also augmenting the growth by attracting various manufacturers in this region.
According to the report shared by the World Economic Forum in December 2019, Asia will have the largest GDP, which is expected to increase the consumption of goods and services and gain in businesses of regional players. The below figure shows the expected GDP from 2017 to 2024.
Figure 1: Emerging and Developing Asia: Gross Domestic Product (GDP), 2017-2024(e), (In USD Billion)
Source: World Economic Forum