Fumaric Acid prices in India projected to rise gradually until Q1 2022

The Food and Beverage (F&B) sector is amongst the most significant industries growing at the fastest pace in India. After growing a CAGR of 14% in 2020, the F&B sector is projected to achieve $1260 million in the next few years. Like several other industries, this industry is heavily reliant on Research and Development (R&D) to give their products world-class quality and to make them last longer & taste better.

Fumaric acid is extensively utilized in various food items such as meat products, baked goods, gelatins, puddings, jams, and also in beverages for preservation and maintenance of the quality for a long time. The food Industry uses Fumaric acid to accentuate the shelf life of food items without compromising on taste and nutritional value. When some government body asks for specific standards to be met while maintaining the safety standards and shelf life, it comes down to the R&D department to come up with a solution, and Fumaric Acid has been proven extremely beneficial for the same.

As per the recent assessment by ChemAnalyst, after witnessing a Month-on-Month rise from the start of 2022 and a hike of 2.1% in February, the prices of Fumaric Acid are anticipated to increase gradually in the Indian domestic market. Industrially, the production of Fumaric acid is done by the isomerization of Maleic Acid, which is in turn produced from Maleic Anhydride.

The strong prices of upstream Maleic Anhydride owing to its disrupted supply, along with the increased demand from other end-user industries, including pharmaceuticals, chemicals, etc., are the major reasons behind this consistent price rise in India. Due to the rising concerns regarding food safety, F&B companies have now gyrated the demand for Fumaric Acid because of its antimicrobial properties.