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Propionic Acid Market - By Grade (Food Grade, Technical Grade, Industrial Grade & Others), By Packaging (Drums, Bottles & Others), By Application (Pesticides, Food Preservative Agent, Plasticizers, Coating Additives, Perfumes, Intermediates, Solvents & Others), By End-Use Industry (Agriculture, Food & Beverage, Rubber Industry, Cosmetics & Personal Care, Pharmaceuticals, Chemical Industry & Others), By Geography - Global Opportunity Analysis & Industry Forecast, 2023-2030
Propionic Acid Market Overview:
Propionic Acid Market size is estimated to reach $2.3 billion by 2030, growing at a CAGR of 4.0% during the forecast period 2024-2030. Propionic acid is a colorless liquid with a pungent scent, it is miscible in water and almost all normal organic solvents. It is used as a food preservative, plasticizer, coating additives, perfume, intermediates, and solvent among other uses. Propionic acid has antibacterial and mold-inhibiting properties, due to which it is used as a food preservative. The growing demand for natural preservatives from the food industry, increasing consumption of cosmetics and the growing demand for rubber are the factors that are set to drive the growth of the global Propionic Acid Market during the forecast period 2024-2030.
Antibiotics are added to animal feed to treat and prevent infections and to improve growth and production. The usage of antibiotics in the animal feed industry is causing an increase of disease resistant infections among humans. According to an article in The Lancet, in 2023, 1.27 million people died due to antibiotic drug-resistant bacteria. According to the Environmental Working Group, by 2048 antibiotic resistance could cause more casualties than cancer. As propionic acid has antibacterial and mold-inhibiting properties it is used as a safer alternative to antibiotics in animal feed. This represents the Propionic Acid Industry Outlook.
Market Snapshot:
Propionic Acid Market - Report Coverage:
The “Propionic Acid Market Report - Forecast (2024-2030)” by IndustryARC, covers an in-depth analysis of the following segments in the Propionic Acid Market.
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By Grade |
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By Packaging |
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By Application |
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By End-Use Industry |
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By Geography |
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COVID-19 / Ukraine Crisis - Impact Analysis:
The COVID-19 pandemic had an adverse effect on the chemical industry resulting in complete shutdown of production of certain chemicals. Recovery of the sector was also affected due to supply chain woes.
Russia’s Invasion of Ukraine resulted in high inflation and higher manufacturing costs which impacted production. To keep up with costs, several manufacturers were forced to increase the price of their products. For instance, in March 2022, Perstorp increased the price of propionic acid citing soaring raw material and energy costs in Europe.
Key Takeaways:
Dominance of Europe
- Geographically, Europe held the largest share with 37% of the overall market in 2023 and it is poised to dominate the market over the period 2024-2030. Propionic acid is mainly used in baked goods and cheese. The food & beverage sector in Europe has seen significant growth over the years, resulting from an increase in government budgets, investment inflows and food consumption. As per data released by Clal, an Italian consulting firm, exports of Italian cheese in the first half of 2022 showed growth in volume (14.1%) and value (21.7%), with unit prices rising 6.6%. Thus, the growing food industry in the regions boosts the Propionic Acid Industry in the region.
Food Preservative holds the largest market share
- Based on Application, the food preservative segment held the largest Propionic Acid Market share in 2023 and it is estimated to grow with a CAGR of 4.2% during the forecast period 2024-2030. According to Perstorp AB, more than half of the produced propionic acid is used for preservation of food. Baked goods are considered staple breakfast particularly in the Americas and Europe. According to Waitrose, on an average more than 98% of British shoppers buy bread. The growing demand for bread and other baked goods boosts the Propionic Acid Market.
Food & Beverage is the largest market
- Based on End-Use Industry, food & beverage segment held the largest Propionic Acid Market share in 2023 and it is estimated to grow with a CAGR of 4.4% during the forecast period 2024-2030 owing to the growing need to extend the shelf-life of bread, dairy products, processed meats, and baked goods.
High Demand for Natural Preservatives to Drive the Market
- According to a survey of 1,054 adults conducted in 2022 by the International Food Information Council, 40% of respondents seek out food products with natural preservatives while only about one in 10 consumers buy food products with artificial preservatives. There is high demand for natural food additives owing to consumer awareness as consumers are worried about the side-effects of synthetic preservatives.
Increasing Consumption of Cosmetics
- The rising awareness of beauty products, increasing premium on personal grooming, changes in consumption patterns and lifestyles and improved purchasing power among women are expected to boost the cosmetics industry. Propionic acid is a safe and non-toxic skin brightening agent that can be used to minimize hyperpigmentation. The growing demand for safe cosmetics is set to drive the growth of the Propionic Acid Market during the forecast period 2024-2030.
Volatile Prices to hamper market growth
- The prices of propionic acid have been affected due to the pandemic as well as geopolitical tensions. In April 2022, Eastman Chemical Company announced an increase in the price of propionic acid in North America and Latin America. This is a major factor that hampers the growth of the Propionic Acid Market.
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Key Market Players:
Product/Service launches, approvals, patents and events, acquisitions, partnerships and collaborations are key strategies adopted by players in the Propionic Acid Market. The top 10 companies in the Propionic Acid Market are:
- BASF SE
- The Dow Chemical Company
- Eastman Chemical Corporation
- Perstorp Holdings AB
- Celanese Corporation
- Merck KGaA
- BIOMIN
- Hawkins Inc.
- Niacet Corporation
- Prathista Industries
Scope of Report:
| Report Metric | Details |
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Market size available for years |
2023–2030 |
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Base year considered |
2023 |
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Forecast period |
2024–2030 |
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Forecast units |
Value (USD) |
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Segments covered |
Grade, Packaging, Application, End-Use Industry and Region |
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Geographies covered |
North America (US, Canada and Mexico), Europe (Germany, France, UK, Italy, Spain, Belgium, Netherlands, and Rest of Europe), Asia-Pacific (China, Japan, South Korea, India, Australia & New Zealand, Indonesia, Malaysia, Taiwan and Rest of Asia-Pacific), South America (Brazil, Argentina, Chile, Colombia and Rest of South America), Rest of the World (Middle East and Africa). |
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1. Propionic Acid Market Overview
1.1 Definitions and Scope
2. Propionic Acid Market - Executive Summary
3. Propionic Acid Market – Market Landscape
3.1 Company Benchmarking- Key Companies
3.2 Key Company Financial Analysis
3.3 Market Share Analysis - Key Companies
3.4 Patent Analysis
3.5 Pricing Analysis (Comparison of General Price Offerings in the Market)
4. Propionic Acid Market – Startup Company Scenario
4.1 Investment
4.2 Revenue
4.3 Venture Capital and Funding Scenario
5. Propionic Acid Market – Market Entry Scenario Premium
5.1 Regulatory Scenario
5.2 New Business and Ease of Doing business index
5.3 Case Studies of Successful Ventures
6. Propionic Acid Market - Market Forces
6.1 Market Drivers
6.2 Market Constraints
6.3 Porter's Five Force Model
6.3.1 Bargaining power of suppliers
6.3.2 Bargaining powers of customers
6.3.3 Threat of new entrants
6.3.4 Rivalry among existing players
6.3.5 Threat of substitutes
7. Propionic Acid Market – Strategic Analysis
7.1 Value Chain Analysis
7.2 Opportunities Analysis
7.3 Market Life Cycle Analysis
8. Propionic Acid Market – by Grade (Market Size –$Million/$Billion)
8.1 Food Grade
8.2 Technical Grade
8.3 Industrial Grade
8.4 Others
9. Propionic Acid Market – by Packaging (Market Size –$Million/$Billion)
9.1 Drums
9.2 Bottles
9.3 Others
10. Propionic Acid Market – by Application (Market Size –$Million/$Billion)
10.1 Pesticides
10.2 Food Preservative Agent
10.3 Plasticizers
10.4 Coating Additives
10.5 Perfumes
10.6 Intermediates
10.7 Solvents
10.8 Others
11. Propionic Acid Market – by End-Use Industry (Market Size –$Million/$Billion)
11.1 Agriculture
11.2 Food & Beverages
11.2.1 Dairy items
11.2.2 Non-alcoholic Drinks
11.2.3 Processed Food
11.2.4 Grain Products
11.2.5 Others
11.3 Rubber Industry
11.4 Cosmetics & Personal Care
11.5 Pharmaceuticals
11.6 Chemical Industry
11.7 Others
12. Propionic Acid Market - by Geography (Market Size -$Million/Billion)
12.1 North America
12.1.1 U.S
12.1.2 Canada
12.1.3 Mexico
12.2 Europe
12.2.1 Germany
12.2.2 France
12.2.3 UK
12.2.4 Italy
12.2.5 Spain
12.2.6 Belgium
12.2.7 Netherlands
12.2.8 Rest of Europe
12.3 Asia-Pacific
12.3.1 China
12.3.2 Japan
12.3.3 South Korea
12.3.4 India
12.3.5 Australia & New Zealand
12.3.6 Indonesia
12.3.7 Malaysia
12.3.8 Taiwan
12.3.9 Rest of Asia-Pacific
12.4 South America
12.4.1 Brazil
12.4.2 Argentina
12.4.3 Chile
12.4.4 Colombia
12.4.5 Rest of South America
12.5 Rest of The World
12.5.1 Middle East
12.5.1.1 Saudi Arabia
12.5.1.2 UAE
12.5.1.3 Israel
12.5.1.4 Rest of the Middle East
12.5.2 Africa
12.5.2.1 South Africa
12.5.2.2 Nigeria
12.5.2.3 Rest of Africa
13. Propionic Acid Market - Market Entropy
13.1 New product launches
13.2 M&A's, collaborations, JVs and partnerships
14. Propionic Acid Market – Industry Competition Landscape
14.1 Market Share Analysis
14.1.1 Market Share by Service Type – Key Companies
14.1.2 Market Share by Country – Key Companies
14.1.3 Market Share by Region – Key Companies
14.2 Competition Matrix
14.3 Best Practices for Companies
15. Propionic Acid Market – Key Company List by Country Premium
16. Propionic Acid Market - Company Analysis
16.1 BASF SE
16.2 The Dow Chemical Company
16.3 Eastman Chemical Company
16.4 Perstorp Holdings AB
16.5 Celanese Corporation
16.6 Merck KGaA
16.7 BIOMIN
16.8 Hawkins Inc.
16.9 Niacet Corporation
16.10 Prathista Industries
* "Financials would be provided to private companies on best-efforts basis."
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The Propionic Acid Market is forecast to grow at 4.0% during the forecast period 2024-2030
Global Propionic Acid Market size is estimated to be US$1.8 billion in 2023 and is projected to reach US$2.3 Billion by 2030
BASF SE, the Dow Chemical Company, Eastman Chemical Company, Perstorp Holdings AB, Celanese Corporation and others.
Use of propionic acid as an alternative to antibiotic growth promoters in animal feed and the increased scrutiny on artificial preservatives are the major trends in the Propionic Acid Market.
The growing demand for natural preservatives from the food industry, increasing consumption of cosmetics and the growing demand for rubber are driving the Propionic Acid Market growth. R&D investment in deriving propionic acid from food waste is opportunity for the market.