diff --git a/core/src/Streamly/Internal/Data/Fold/Container.hs b/core/src/Streamly/Internal/Data/Fold/Container.hs
index 390f1d4a24..b7ec1bf307 100644
--- a/core/src/Streamly/Internal/Data/Fold/Container.hs
+++ b/core/src/Streamly/Internal/Data/Fold/Container.hs
@@ -387,9 +387,12 @@ demuxerToContainer getKey getFold =
     step (Tuple' kv kv1) a = do
         let k = getKey a
         case IsMap.mapLookup k kv of
-            Nothing -> do
-                fld <- getFold k
-                runFold kv kv1 fld (k, a)
+            Nothing ->
+                case IsMap.mapLookup k kv1 of
+                    Just _ -> pure $ Tuple' kv kv1
+                    Nothing -> do
+                        fld <- getFold k
+                        runFold kv kv1 fld (k, a)
             Just f -> runFold kv kv1 f (k, a)
 
     final (Tuple' kv kv1) = do
@@ -406,7 +409,7 @@ demuxerToContainer getKey getFold =
 
 -- | Scanning variant of 'demuxerToContainer'.
 {-# INLINE demuxScanGeneric #-}
-demuxScanGeneric :: (Monad m, IsMap f, Traversable f) =>
+demuxScanGeneric :: (Monad m, IsMap f, Traversable f, Ord (Key f)) =>
        (a -> Key f)
     -> (Key f -> m (Fold m a b))
     -> Scanl m a (m (f b), Maybe (Key f, b))
@@ -415,10 +418,10 @@ demuxScanGeneric getKey getFold =
 
     where
 
-    initial = return $ Tuple' IsMap.mapEmpty Nothing
+    initial = return $ Tuple3' IsMap.mapEmpty Set.empty Nothing
 
     {-# INLINE runFold #-}
-    runFold kv (Fold step1 initial1 extract1 final1) (k, a) = do
+    runFold kv set (Fold step1 initial1 extract1 final1) (k, a) = do
          res <- initial1
          case res of
             Partial s -> do
@@ -427,23 +430,28 @@ demuxScanGeneric getKey getFold =
                     $ case res1 of
                         Partial _ ->
                             let fld = Fold step1 (return res1) extract1 final1
-                             in Tuple' (IsMap.mapInsert k fld kv) Nothing
-                        Done b -> Tuple' (IsMap.mapDelete k kv) (Just (k, b))
+                                set1 = Set.insert k set
+                                kv1 = IsMap.mapInsert k fld kv
+                             in Tuple3' kv1 set1 Nothing
+                        Done b ->
+                            let kv1 = IsMap.mapDelete k kv
+                                set1 = Set.insert k set
+                             in Tuple3' kv1 set1 (Just (k, b))
             Done b ->
                 -- Done in "initial" is possible only for the very first time
                 -- the fold is initialized, and in that case we have not yet
                 -- inserted it in the Map, so we do not need to delete it.
-                return $ Tuple' kv (Just (k, b))
+                return $ Tuple3' kv (Set.insert k set) (Just (k, b))
 
-    step (Tuple' kv _) a = do
+    step (Tuple3' kv set _) a = do
         let k = getKey a
         case IsMap.mapLookup k kv of
             Nothing -> do
                 fld <- getFold k
-                runFold kv fld (k, a)
-            Just f -> runFold kv f (k, a)
+                runFold kv set fld (k, a)
+            Just f -> runFold kv set f (k, a)
 
-    extract (Tuple' kv x) = return (Prelude.mapM f kv, x)
+    extract (Tuple3' kv _ x) = return (Prelude.mapM f kv, x)
 
         where
 
@@ -453,7 +461,7 @@ demuxScanGeneric getKey getFold =
                 Partial s -> e s
                 _ -> error "demuxGeneric: unreachable code"
 
-    final (Tuple' kv x) = return (Prelude.mapM f kv, x)
+    final (Tuple3' kv _ x) = return (Prelude.mapM f kv, x)
 
         where
 
@@ -647,8 +655,11 @@ demuxerToContainerIO getKey getFold =
         let k = getKey a
         case IsMap.mapLookup k kv of
             Nothing -> do
-                f <- getFold k
-                initFold kv kv1 f (k, a)
+                case IsMap.mapLookup k kv1 of
+                    Just _ -> pure $ Tuple' kv kv1
+                    Nothing -> do
+                        f <- getFold k
+                        initFold kv kv1 f (k, a)
             Just ref -> do
                 f <- liftIO $ readIORef ref
                 runFold kv kv1 ref f (k, a)
@@ -673,7 +684,7 @@ demuxerToContainerIO getKey getFold =
 -- ongoing fold if you are using those concurrently in another thread.
 --
 {-# INLINE demuxScanGenericIO #-}
-demuxScanGenericIO :: (MonadIO m, IsMap f, Traversable f) =>
+demuxScanGenericIO :: (MonadIO m, IsMap f, Traversable f, Ord (Key f)) =>
        (a -> Key f)
     -> (Key f -> m (Fold m a b))
     -> Scanl m a (m (f b), Maybe (Key f, b))
@@ -682,10 +693,10 @@ demuxScanGenericIO getKey getFold =
 
     where
 
-    initial = return $ Tuple' IsMap.mapEmpty Nothing
+    initial = return $ Tuple3' IsMap.mapEmpty Set.empty Nothing
 
     {-# INLINE initFold #-}
-    initFold kv (Fold step1 initial1 extract1 final1) (k, a) = do
+    initFold kv set (Fold step1 initial1 extract1 final1) (k, a) = do
          res <- initial1
          case res of
             Partial s -> do
@@ -697,12 +708,12 @@ demuxScanGenericIO getKey getFold =
                         -- accumulator. That will reduce the allocations.
                         let fld = Fold step1 (return res1) extract1 final1
                         ref <- liftIO $ newIORef fld
-                        return $ Tuple' (IsMap.mapInsert k ref kv) Nothing
-                    Done b -> return $ Tuple' kv (Just (k, b))
-            Done b -> return $ Tuple' kv (Just (k, b))
+                        return $ Tuple3' (IsMap.mapInsert k ref kv) set Nothing
+                    Done b -> pure $ Tuple3' kv (Set.insert k set) (Just (k, b))
+            Done b -> return $ Tuple3' kv (Set.insert k set) (Just (k, b))
 
     {-# INLINE runFold #-}
-    runFold kv ref (Fold step1 initial1 extract1 final1) (k, a) = do
+    runFold kv set ref (Fold step1 initial1 extract1 final1) (k, a) = do
          res <- initial1
          case res of
             Partial s -> do
@@ -711,23 +722,27 @@ demuxScanGenericIO getKey getFold =
                         Partial _ -> do
                             let fld = Fold step1 (return res1) extract1 final1
                             liftIO $ writeIORef ref fld
-                            return $ Tuple' kv Nothing
+                            return $ Tuple3' kv set Nothing
                         Done b ->
                             let kv1 = IsMap.mapDelete k kv
-                             in return $ Tuple' kv1 (Just (k, b))
+                                set1 = Set.insert k set
+                             in return $ Tuple3' kv1 set1 (Just (k, b))
             Done _ -> error "demuxGenericIO: unreachable"
 
-    step (Tuple' kv _) a = do
+    step (Tuple3' kv set _) a = do
         let k = getKey a
         case IsMap.mapLookup k kv of
-            Nothing -> do
-                f <- getFold k
-                initFold kv f (k, a)
+            Nothing ->
+                if Set.member k set
+                then return (Tuple3' kv set Nothing)
+                else do
+                    f <- getFold k
+                    initFold kv set f (k, a)
             Just ref -> do
                 f <- liftIO $ readIORef ref
-                runFold kv ref f (k, a)
+                runFold kv set ref f (k, a)
 
-    extract (Tuple' kv x) = return (Prelude.mapM f kv, x)
+    extract (Tuple3' kv _ x) = return (Prelude.mapM f kv, x)
 
         where
 
@@ -738,7 +753,7 @@ demuxScanGenericIO getKey getFold =
                 Partial s -> e s
                 _ -> error "demuxGenericIO: unreachable code"
 
-    final (Tuple' kv x) = return (Prelude.mapM f kv, x)
+    final (Tuple3' kv _ x) = return (Prelude.mapM f kv, x)
 
         where