by Fumaric acid is an organic acid that is widely used as a feed additive in animal nutrition. It is commonly used as an acidifier to improve nutrient absorption in poultry and swine feed. Fumaric acid acts as an alternative to antibiotics in feed to promote growth while maintaining gut health of animals. The global fumaric acid market is expected to grow significantly over the forecast period owing to the ban on antibiotics as growth promoters in animal feed in many countries.
The global fumaric acid market is estimated to be valued at US$ 278.65 Mn in 2023 and is expected to exhibit a CAGR of 3.5% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Dynamics:
Increasing use of fumaric acid as a feed additive is the primary driver boosting the fumaric acid market growth. Fumaric acid improves feed conversion and utilization along with enhancing gut health of animals by decreasing pH in the digestive tract. This results in higher yields and better performance of livestock. The ban on antibiotics as growth promoters by regulatory bodies has led to rising demand for acidifiers like fumaric acid from feed manufacturers globally. However, availability of substitutes such as citric acid, lactic acid, and sorbic acid can hamper the market growth of fumaric acid over the forecast period.
SWOT Analysis
Strength: Fumaric acid has several properties that make it suitable for industrial applications. It is non-toxic, environmentally friendly, soluble in water, and has medicinal effects. It is also derived from natural materials like sugar beets and sugarcane making it a sustainable product. However, these natural sources do not meet total demand requiring chemical synthesis as well.
Weakness: The production of fumaric acid from petroleum-based feedstocks involves multiple steps and produces hazardous byproducts. More environmentally friendly fermentation-based production methods are still under development and not widely adopted. Fluctuations in raw material prices also impact production costs.
Opportunity: Growing demand for phthalate-free PVC plasticizers is a major opportunity for fumaric acid. As an alternative plasticizer, it allows the manufacturing of safer and more environmentally sustainable plastic products. Increasing health awareness is also expanding its use in dietary supplements and pharmaceutical applications.
Threats: Strict environmental regulations around VOC emissions from solvent-based production processes increase compliance costs. Substitute acidity regulators and plasticizers developed from more sustainable feedstocks pose competition over the long term. Volatility in crude oil prices can impact feedstock costs for chemical synthesis routes.
Key Takeaways
The Global Fumaric Acid Market Size is expected to witness high growth over the forecast period supported by its increasing use as a safer alternative in plasticizers and dietary supplements. The global fumaric acid market is estimated to be valued at US$ 278.65 Mn in 2023 and is expected to exhibit a CAGR of 3.5% over the forecast period 2023 to 2030.
The Asia Pacific region currently dominates consumption driven by China which is a major production and export hub for fumaric acid and its esters. The country has a strong agro-chemicals industry relying on fumaric acid. Growing health awareness is also increasing demand for fumaric acid supplements in the region.
Europe is another major regional market for fumaric acid given its large plasticizer and food industries. Stringent regulations around phthalate plasticizers contribute to the growing demand for safer non-phthalate plasticizers like diethyl fumarate and dimethyl fumarate in the region. North America is expected to exhibit steady growth due to an expanding dietary supplement industry and demand from the construction sector for plasticizer applications.
Key players operating in the Fumaric Acid market are ADVANZ Pharma, Bristol Myers Squibb, Daiichi Sankyo, GlaxoSmithKline, Novartis, MorphoSys, RemeGen, Resolve Therapeutics, Tear Solutions, VIELABIO, Otsuka Pharmaceutical Co., Ltd., and Bridge Pharma Inc. The market remains fairly consolidated with these major players investing in capacity expansion as well as new production technologies to cater to the growing demand. Implementation of fermentation-based production by key players can accelerate the shift towards more sustainable production methods over the forecast period.
Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
