Propionic Acid Global Market Report 2024

Propionic acid is a naturally occurring, colorless organic compound characterized by a pungent odor and falls under the category of carboxylic acids. Widely recognized for its applications, it serves as a food preservative, fungicide, and antimicrobial agent within the food industry. Additionally, propionic acid plays a crucial role in the production of cellulose acetate propionate, herbicides, pharmaceuticals, and plasticizers.

The primary methods for producing propionic acid involve the oxo process, Reppe process, and the by-product process. The oxo process is a chemical reaction employed in generating aldehydes and alcohols, with diverse applications spanning herbicides, rubber products, plasticizers, food preservatives, and more. Various industries, including pharmaceuticals, personal care, food and beverage, agriculture, and others, utilize propionic acid as a key component in their end products.

The propionic acid market research report is one of a series of new reports from The Business Research Company that provides propionic acid market statistics, including propionic acid industry global market size, regional shares, competitors with a propionic acid market share, detailed propionic acid market segments, market trends and opportunities, and any further data you may need to thrive in the propionic acid industry. This propionic acid market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The propionic acid market size has grown strongly in recent years. It will grow from $1.42 billion in 2023 to $1.5 billion in 2024 at a compound annual growth rate (CAGR) of 5.6%. The growth observed in the historic period can be attributed to several factors, including the rising demand for animal feed preservatives, the expansion of the food and beverage industry, a heightened focus on grain preservation, increasing awareness of food safety, a rise in livestock farming, and the application of propionic acid in the production of cellulose acetate propionate (CAP).

The propionic acid market size is expected to see steady growth in the next few years. It will grow to $1.77 billion in 2028 at a compound annual growth rate (CAGR) of 4.2%. The anticipated growth in the forecast period can be attributed to several factors, including the sustained expansion of livestock farming, a growing emphasis on sustainable agriculture, increased demand for processed food, global initiatives for food security, the rising application of propionic acid in derivatives production, and the influence of environmental regulations and sustainable practices. Key trends expected in the forecast period encompass the emergence of propionic acid as a herbicide, technological innovations in production processes, a growing adoption in the pharmaceutical and cosmetic industries, a focus on regulatory compliance and quality standards, and market expansion in developing regions.

The anticipated growth in the agricultural industry is poised to drive the expansion of the propionic acid market in the foreseeable future. The agricultural industry encompasses all activities related to cultivating plants and raising animals for various purposes, such as food production, fiber, and materials production. Propionic acid plays a crucial role in the agriculture sector as an antimicrobial and antifungal agent, utilized in the management of poultry litter and the treatment of livestock drinking water. As an illustration, in May 2023, data from the National Statistical Institute of Iceland, an official statistics institution based in Iceland, revealed a 12% growth in the production value of the agricultural industry in Iceland, increasing from $0.54 billion in 2021 to $0.61 billion in 2022. Therefore, the growth in the agricultural industry is a key factor propelling the expansion of the propionic acid market.

The increasing demand for natural beauty products is expected to contribute to the growth of the propionic acid market in the coming years. Natural beauty products, including cosmetics, skincare, and personal care items formulated with ingredients derived from nature, have seen rising popularity. Propionic acid, known for its antimicrobial properties, serves as a crucial preservative in natural beauty products, preventing bacterial growth and extending product shelf life. This contributes to increased sales in the personal care industry. For example, in 2022, a report published by the Soil Association, a UK-based registered charity, indicated that the organic and natural product market reached a value of $188 million (£147.23 million) in 2022, reflecting a growth of 6.8% from the previous year. Therefore, the rising demand for natural beauty products is playing a significant role in propelling the growth of the propionic acid market.

The COVID-19 impact may impede the market's growth during the forecast period, as the global lockdowns and restrictions implemented to curb the spread of the virus have disrupted supply chains. This disruption could have repercussions on the production and distribution of propionic acid and its derivatives, potentially resulting in shortages or delays in supply. For example, in 2023, as stated by The European Federation of Pharmaceutical Industries and Associations, the European biopharmaceutical industry remains dedicated to worldwide initiatives amid the ongoing global impact of COVID-19. These initiatives are aimed at supporting affected individuals, managing the pandemic, and developing capabilities to address potential future outbreaks. Consequently, the impact of COVID-19 is acting as a hindrance to the growth of the propionic acid market.

Major companies in the propionic acid market are actively engaged in developing innovative processes for propionic acid production, such as biomimetic fermentation for generating bio-sourced organic acids. Biomimetic fermentation involves the use of fermentation technology to produce pure organic acids, with a primary focus on propionic acid. For instance, in October 2022, AFYREN SA, a France-based chemicals manufacturing company, launched a plant for industrial production utilizing Afyren technology based on the biomimetic fermentation of GMO-free co-products. This approach allows for the production of a high-quality and pure organic family of seven fully bio-sourced acids, including afyren propionic acid.

In April 2022, BASF SE, a Germany-based chemical manufacturing company producing propionic acid, entered into a partnership with Sinopec Corp. The collaboration aims to expand production capacities for propionic acid, ethylenediamine, purified ethylene oxide, propionic aldehyde, and ethanolamine. Additionally, both companies seek to integrate state-of-the-art technologies for constructing new facilities, enhancing their competitive edge. Sinopec Corp. is a China-based oil and gas manufacturer.

Major companies operating in the propionic acid market report are BASF SE, Merck KGaA, Dow Chemical Company, Thermo Fisher Scientific Inc., Honeywell International Inc., INEOS Group Holdings S.A., Evonik Industries AG, Solvay S.A., Arkema SA, Eastman Chemical Company, Celanese Corporation, Clariant AG, Sigma-Aldrich Corporation, Daicel Corporation, Novozymes A/S, OQ Chemicals GmbH, Corbion N.V., Hawkins Inc., Nacalai Tesque Inc., Kishida Chemical Co. Ltd. , Macco Organiques Inc., Niacet Corporation, Gelest Inc., Vigon International Inc., Kanto Chemical Co. Inc., Impextraco N.V., Otto Chemie Pvt. Ltd., Perstorp Holding AB, Jarchem Industries Inc., TRInternational Inc.

Europe was the largest region in the propionic acid market in 2023. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the propionic acid market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.

The countries covered in the propionic acid market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The propionic acid market consists of sales of sodium propionate, calcium propionate, and potassium propionate. Values in this market are 'factory gate' values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

Propionic Acid Global Market Report 2024 from The Business Research Company provides strategists, marketers and senior management with the critical information they need to assess the market.

This report focuses on propionic acid market which is experiencing strong growth. The report gives a guide to the trends which will be shaping the market over the next ten years and beyond.

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Where is the largest and fastest growing market for propionic acid ? How does the market relate to the overall economy, demography and other similar markets? What forces will shape the market going forward? The propionic acid market global report from the Business Research Company answers all these questions and many more.

The report covers market characteristics, size and growth, segmentation, regional and country breakdowns, competitive landscape, market shares, trends and strategies for this market. It traces the market's historic and forecast market growth by geography.

• The market characteristics section of the report defines and explains the market.
• The market size section gives the market size ($b) covering both the historic growth of the market, and forecasting its development.
• The forecasts are made after considering the major factors currently impacting the market. These include:

The impact of sanctions, supply chain disruptions, and altered demand for goods and services due to the Russian Ukraine war, impacting various macro-economic factors and parameters in the Eastern European region and its subsequent effect on global markets.

The impact of higher inflation in many countries and the resulting spike in interest rates.

The continued but declining impact of covid 19 on supply chains and consumption patterns.

• Market segmentations break down the market into sub markets.
• The regional and country breakdowns section gives an analysis of the market in each geography and the size of the market by geography and compares their historic and forecast growth. It covers the growth trajectory of COVID-19 for all regions, key developed countries and major emerging markets.
• The competitive landscape chapter gives a description of the competitive nature of the market, market shares, and a description of the leading companies. Key financial deals which have shaped the market in recent years are identified.
• The trends and strategies section analyses the shape of the market as it emerges from the crisis and suggests how companies can grow as the market recovers.

Scope

Markets Covered:

• 1) By Product: Oxo Process; Reppe Process; By-product Process
• 2) By Application: Herbicides; Rubber Products; Plasticizers; Food Preservatives; Other Applications
• 3) By End-User Industry: Pharmaceuticals; Personal Care; Food And Beverage; Agriculture; Other End-User Industries
• Companies Mentioned: BASF SE; Merck KGaA; Dow Chemical Company; Thermo Fisher Scientific Inc.; Honeywell International Inc.
• Countries: Australia; Brazil; China; France; Germany; India; Indonesia; Japan; Russia; South Korea; UK; USA; Canada; Italy; Spain
• Regions: Asia-Pacific; Western Europe; Eastern Europe; North America; South America; Middle East; Africa
• Time series: Five years historic and ten years forecast.
• Data: Ratios of market size and growth to related markets, GDP proportions, expenditure per capita,
• Data segmentations: country and regional historic and forecast data, market share of competitors, market segments.
• Sourcing and Referencing: Data and analysis throughout the report is sourced using end notes.
• Delivery format: PDF, Word and Excel Data Dashboard.