Propionic Acid Market Size, Share, Growth Analysis, By Application (Animal Feed, Cellulose Acetate Propionate), By End Use Industry, By Region - Industry Forecast 2024-2031

Global Propionic Acid Market size was valued at USD 1.05 billion in 2022 and is poised to grow from USD 1.1 billion in 2023 to USD 1.42 billion by 2031, growing at a CAGR of 3.78% in the forecast period (2024-2031).

Propionic acid, a colourless liquid with a strong odour, is produced through the hydro carboxylation of ethylene, utilizing nickel carbonyl as a catalyst. Its versatile applications span animal feed additives, food preservatives, and crop protection, largely due to its strong anti-fungal and anti-bacterial properties and high boiling point. The acid is particularly beneficial in cattle drinking water as an antibacterial agent. As a natural preservative, propionic acid enhances the shelf life of baked goods such as bread, tortillas, and cheeses, and is also employed in the preservation packaging of ready-to-eat foods. The market for propionic acid is poised for growth, fuelled by advancements in industries that harness its functionalities.

Top-down and bottom-up approaches were used to estimate and validate the size of the Global Propionic Acid market and to estimate the size of various other dependent submarkets. The research methodology used to estimate the market size includes the following details: The key players in the market were identified through secondary research, and their market shares in the respective regions were determined through primary and secondary research. This entire procedure includes the study of the annual and financial reports of the top market players and extensive interviews for key insights from industry leaders such as CEOs, VPs, directors, and marketing executives. All percentage shares split, and breakdowns were determined using secondary sources and verified through Primary sources. All possible parameters that affect the markets covered in this research study have been accounted for, viewed in extensive detail, verified through primary research, and analyzed to get the final quantitative and qualitative data.

Global Propionic Acid Market Segmental Analysis

Global Propionic Acid Market is segmented by Application and region. Based on Application, the market is segmented into Animal Feed, Calcium and Sodium Propionate, Cellulose Acetate Propionate. Based on End Use Industry, the market is segmented into Pharmaceuticals, Personal Care, Food & Beverage, Agriculture, Others. Based on region, the market is segmented into North America, Europe, Asia Pacific, Latin America and Middle East & Africa.

Driver of the Global Propionic Acid Market

The global propionic acid market is being significantly driven by its rising application in the preservation of packaged foods and animal feed. As consumer lifestyles shift towards convenience and hygiene, the demand for packaged food products has surged, leading to increased utilization of propionic acid as a preservative that effectively prolongs shelf life and inhibits bacterial and fungal growth. Additionally, propionic acid is key in the manufacturing of cellulose acetate propionate and various herbicides, further propelling market growth. The consumption of propionic acid witnessed substantial figures, with 471 kilo tonnes consumed in 2020 and an anticipated increase to 538 kilo tonnes by 2025, showcasing robust market potential.

Restraints in the Global Propionic Acid Market

The global propionic acid market faces several restraints that hinder its growth. Rising environmental concerns related to herbicide use significantly limit market expansion, as stakeholders increasingly prioritize sustainable practices. Moreover, a lack of innovation in packaging is stifling industry development and reducing competitiveness. Participants in this market are also under pressure to lower their profit margins on product sales, which negatively impacts overall revenue generation. Furthermore, inadequate production facilities and the potential adverse effects associated with direct exposure to propionic acid present additional challenges. Collectively, these factors create a multifaceted environment that restricts the market's expansion potential.

Market Trends of the Global Propionic Acid Market

The global propionic acid market is witnessing a robust upward trend, fueled by its expanding utility across diverse applications, particularly in agriculture and food preservation. As a proven fungicide and bactericide, propionic acid effectively combats bacterial and fungal growth in grain storage, poultry litter, and livestock drinking water, thereby enhancing food safety and animal health. This versatility, coupled with rising health and safety regulations in food production, drives increasing adoption among end-users. Furthermore, the growing emphasis on sustainable agriculture practices and organic farming is anticipated to bolster demand, positioning propionic acid as a critical component in the agricultural sector.