Segments - Propionic Acid Market by Application (Rubber Products; Cellulose Acetate Propionate; Herbicides; Plasticizers; Animal Feed & Food Preservatives; Calcium, Ammonium & Sodium Salts; and Others), End-user (Food & Beverage, Personal Care, Pharmaceutical, Agriculture, and Others), and Region (Asia Pacific, North America, Latin America, Europe, and Middle East & Africa) - Global Industry Analysis, Growth, Share, Size, Trends, and Forecast 2023 – 2031
The Global Propionic Acid Market size was valued at USD 1.35 Billion in 2022 and is expected to surpass USD 1.86 Billion by 2031, expanding at a CAGR of 3.6% during the forecast period, 2023–2031.
The market growth is attributed to the rising concern for improving animal nutrition and the increasing demand for mold & bacteria-curbing additives in animal feed.
Propionic acid is a three-carbon carboxylic acid. Propionic acid is a water-soluble, colorless liquid with an unpleasant and pungent smell. Propionic acid has a water solubility of 1000 g/l at 250C. Propionic acid is manufactured using a fermentation process. Also, it is manufactured by the hydrocarboxylation of ethylene by using a nickel carbonyl catalyst. Raw materials used for the production of propionic acid are ethylene and carbon monoxide.
Propionic acid is used as a preservative in foods including baked goods, cheeses, or additives for artificial fruit flavors. It also serves as a synthetic intermediate to produce vitamin E, esters, flavoring agents, pharmaceuticals, crop protection agents, and solvents. Moreover, Propionic acid is used as an intermediate while manufacturing of cellulose acetate propionate (CAP), a thermoplastic.
The esters of acid are utilized as artificial flavorings in food & beverages and solvents and replace the chemical ones. Propionic acid is considered to be safe for use as a versatile preservative and common food additive in animal feed.
Propionic acid possesses antibacterial properties. It prevents the growth of several molds. Thus, it is used in tortillas and bread for preservation to increase their shelf life. Propionic acid can be safely used as an intermediate in several production processes. However, if propionic acid is not used in a safe manner, it can severely irritate and burn the skin.
Propionic acid can also cause eye damage and can lead to severe irritation and blindness if it gets into a person’s eyes. Propionic acid possesses antifungal and antimicrobial properties. Thus, it is used to control bacteria and fungi in stored hay and grains, and as a crop protection agent.
The research report finds that the COVID-19 pandemic affected the developing, manufacturing, production, and logistics units of the propionic acid market. The government imposed various restrictions and due to this propionic market has been affected drastically. People became more aware of their health and eating habits, thus resulting in a decline in the demand for packaged food and food preservative.
A food preservative is the key application of propionic acid and thus market faces different losses. The personal care and cosmetic products market was negatively impacted, due to the closure of cosmetic stores and beauty parlors.
The research report presents a complete market overview by providing a detailed analysis of the current market trends, existing drivers, growth opportunities, and emerging challenges. The propionic acid market report offers up-to-date information about factors that can shape the market outcome or overall performance during the forecast period, 2022 to 2030.
Propionic acid is used as a preservative in animal feed and packaged food. The rising demand for grain preservatives and safe animal feed is expected to drive market growth during the forecast period. Propionic acid is used as an herbicide. Propionic acid is also used to manufacture cellulose acetate propionate. These are other applications that are anticipated to propel the market expansion.
The demand for propionic acid is expected to expand from 471-kilo tons in 2020 to 538-kilo. The growing demand for the convenience food industry is projected to fuel market growth. The demand for hygienic packaged food products is increasing, due to the changing lifestyle of people. Propionic acid is used as a preservative in food products to prevent the growth of mold, bacteria, and fungi. Propionic acid increases the shelf life of food products.
The increasing demand for cellulose acetate propionate (CAP) from the downstream industry is anticipated to drive market growth during the forecast period. Cellulose acetate propionate can withstand a great amount of physical stress. The structure of cellulose acetate propionate gives rigidity to the goggles and eyeglasses. Cellulose acetate propionate is an important thermoplastic cellulose ester. The properties of cellulose acetate propionate are intermediate between cellulose butyrate and cellulose acetate resins.
The rising environmental concerns regarding the use of pesticides are likely to hamper the market expansion in the coming years. Moreover, a shortage of innovative ideas while offering various products is another factor that is expected to hinder market growth. The overall market revenue is affected, due to the confronted situation which is pressurizing market players to reduce margins on sales of products.
The harmful effects of propionic acid on human health are anticipated to hinder market growth. Direct exposure to propionic acid has various side effects, as it causes, vomiting, headaches, diarrhea, and abdominal pain and can severely irritate and burn the skin and eyes with possible eye damage. It is verified that propionic acid lowers the fatty acid content in the liver and plasma. It also reduces food intake, improves tissue insulin sensitivity, and exerts immunosuppressive actions.
The esters of propionic acid are used as solvents or artificial flavorings and replace the chemical ones. The esters of propionic acid are used as solvents or artificial flavorings and it has fruit-like odors. Propionic acid is a common intermediate product in biogas plants, which is formed by fermentation with propionic acid bacteria. The esters of propionic acid are projected to create lucrative opportunities for the market players.
The propionic acid market research report includes an assessment of the market trends, segments, and regional markets. Overview and dynamics have also been included in the report.
Attributes |
Details |
Report Title |
Propionic Acid Market - Global Industry Analysis, Growth, Share, Size, Trends, and Forecast |
Base Year |
2022 |
Historic Data |
2016–2021 |
Forecast Period |
2023–2031 |
Segmentation |
Application (Rubber Products; Cellulose Acetate Propionate; Herbicides; Plasticizers; Animal Feed & Food Preservatives; Calcium, Ammonium & Sodium Salts; and Others), and End-user (Food & Beverage, Personal Care, Pharmaceutical, Agriculture, and Others) |
Regional Scope |
Asia Pacific, North America, Latin America, Europe, and Middle East & Africa |
Report Coverage |
Company Share, Market Analysis and Size, Competitive Landscape, Growth Factors, Market Trends, and Revenue Forecast |
Key Players Covered in the Report |
Perstorp; Eastman Chemical Company; Niacet Corporation; BASF SE; Oman Oil Company; and The Dow Chemical Company |
On the basis of application, the propionic acid market is segmented into rubber products; cellulose acetate propionate; herbicides; plasticizers; animal feed & food preservatives; calcium, ammonium & sodium salts; and others.
The rubber products segment is projected to expand at a considerable CAGR during the forecast period. Propionic acid is used as an intermediate for the production of rubber. Rubber products are being used in building & construction, automotive, industrial manufacturing, and polymer modification. Rubber products are widely used in the automotive industry, due to their extensive applications in the industry. The use of propionic acid in the manufacturing of rubber propels market growth.
The cellulose acetate propionate segment is anticipated to account for a major market share during the forecast period. Propionic acid is used to manufacture cellulose acetate propionate. Cellulose acetate propionate is a thermoplastic and is used to manufacture frames of spectacles and sunglasses. Also, it is used to make herbicides and food additives such as sodium propionate and calcium propionate.
Based on end-user, the market is divided into food & beverage, personal care, pharmaceutical, agriculture, and others.
The food & beverage segment is expected to hold a significant share of the market in the coming years, due to the rising use of propionic acid as a common food preservative in cakes, cheese, bread, non-alcoholic beverages, jellies, jams, and other processed foods to prevent the development of mold and bacteria and to increase shelf life of the food products.
Propionic acid is used to prevent the growth of mold & bacteria in food and beverage products. There has been a rise in the consumption of hydrating drinks. This factor is expected to increase the demand for propionic acid in the food & beverage industry.
The agriculture segment accounts for a significant market share. Propionic acid is used to sanitize the surface where grain and silage are stored. It is also used as a preservative in animal feed and grain in the agriculture industry.
Moreover, propionic acid is used as an anti-bacterial agent in water. The water mixed with propionic acid is used for drinking purposes by livestock. This water is even sprayed into poultry litter to kill bacteria and fungi.
In terms of regions, the propionic acid market is classified as Asia Pacific, North America, Latin America, Europe, and Middle East & Africa.
Europe is expected to dominate the market during the forecast period, owing to the presence of key market players in the region. The presence of many suppliers and manufacturers of propionic acid in the region is anticipated to boost the market expansion.
Germany is the prominent market for the agriculture sector and food industry in the region. The use of propionic acid in both industry and the ongoing investments in the food industry further drives market growth.
The market in the Asia Pacific is anticipated to expand at a rapid pace during the forecast period, due to rising population and food & feed production in the region. The Asia Pacific market is anticipated to grow at a CAGR of over 3% from 2014 to 2020, due to the rising animal feed additives industry in India, China, and Australia.
India and China accounted for a significant share of the overall Asia Pacific market. Moreover, the Chinese market is projected to boost due to the increasing demand for pharmaceuticals and preservatives.
The global propionic acid market has been segmented on the basis of
Key players competing in the global propionic acid market are Perstorp; Eastman Chemical; Niacet Corporation; BASF SE; Oman Oil Company; and The Dow Chemical Company.
Some of the major companies in the market have adopted various organic growth strategies including product launches, mergers, partnerships, and collaborations to increase their market share and witness significant growth. Key players are actively engaged in R&D programs and aim at the expansion of manufacturing units to expand their consumer base and increase their product portfolio.
For instance, in May 2019, BASF SE established a second production plant for propionic acid in Nanjing, China. This is projected to help BASF SE meet the market demand for propionic acid.
The global propionic acid market size was around USD 1.35 billion in 2022.
The growing demand for the convenience food industry is projected to fuel market growth.
The global propionic acid market is expanding at a CAGR of 3.6% during the forecast period, 2023–2031.
The growing demand for the convenience food industry is projected to fuel market growth.
Key players competing in the global propionic acid market are Perstorp; Eastman Chemical; Niacet Corporation; BASF SE; Oman Oil Company; and The Dow Chemical Company.