Propionic Acid Market - Forecast(2024 - 2030)

Report Code: CMR 15434 Report Format: PDF + Excel

Propionic Acid Market Overview

The Propionic Acid Market size is estimated to reach US$1.7 billion by 2027, growing at a CAGR of 3.4% during the forecast period 2022-2027. Propionic Acid, also known as propanoic acid, is a short-chain fatty acid produced through microbial fermentation. The acid, due to its rich chemical nature and anti-bacterial properties, finds applicability in pesticides, food preservative agents, intermediates, solvents and plasticizers. This is influencing the growth of the Propionic Acid Market. Owing to the rapid increase in agricultural activities, the consumption of pesticides has shown a significant increase over the years. According to the Food and Agriculture Organization, global pesticide consumption stood at 2.66 million tons in 2020, showing a 2.3% increase as compared to the 2019 consumption level. In addition to agriculture, the rapid developments witnessed by the rubber and cosmetics & personal sectors have also created a surge in the growth of the propionic acid industry. However, stringent government regulations regarding chemicals used in pesticides can hamper the growth of the Propionic Acid Market, thereby negatively impacting the Propionic Acid Market size during the forecast period. Lockdown restrictions halted the activities of major end-use industries of propionic acid such as agriculture, food & beverage and rubber, which decreased the market demand for the acid. This further affected its market revenue as well as the Propionic Acid industry outlook.

Propionic Acid Market

Propionic Acid Market Report Coverage

The “Propionic Acid Market Report – Forecast (2022–2027)” by IndustryARC, covers an in-depth analysis of the following segments in the Propionic Acid Industry.

By Grade: Food Grade, Technical Grade and Industrial Grade.
By Packaging: Drums, Bottles and Others.
By Application: Pesticides, Food Preservative Agent, Plasticizers, Coating Additives, Perfumes, Intermediates, Solvents and Others.
By End-use Industry: Agriculture, Food & Beverages (Dairy Items, Non-alcoholic Drinks, Processed Food, Grain Products and Others), Rubber Industry, Cosmetics & Personal Care, Pharmaceuticals, Chemical Industry and Others.
By Geography: North America (the USA, Canada and Mexico), Europe (the UK, Germany, France, Italy, the Netherlands, Spain, Belgium and the Rest of Europe), Asia-Pacific (China, India, Japan, South Korea, Australia, New Zealand, Indonesia, Taiwan, Malaysia and the Rest of APAC), South America (Brazil, Argentina, Colombia, Chile and the Rest of South America) and the Rest of the World (the Middle East and Africa).

Key Takeaways

  • Europe dominates the Propionic Acid Market owing to the rapid increase in food & beverage items production which is creating a drive in the demand for Propionic Acid as a food preservative agent in the region.
  • The increasing consumption of cosmetic products due to growing skincare awareness has accelerated the demand for propionic acid for protecting cosmetic products from bacterial growth, which has positively impacted the Propionic Acid industry outlook.
  • The regulations passed by government organizations to limit chemical usage in pesticides can hamper the demand and consumption of Propionic Acid in the agriculture sector. This would restrain the growth of the Propionic Acid Market size.

Figure: Propionic Acid Market Revenue Share by Geography, 2021 (%)

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Propionic Acid Market Segment Analysis – by Grade

The industrial grade segment held the largest share in the Propionic Acid Market in 2021 and is estimated to grow at a CAGR of 3.5% during the forecast period 2022-2027. Industrial-grade propionic acid has rich antibacterial and growth-inhibiting properties, due to which it is used in agrochemicals such as pesticides. Moreover, due to its chemical stability nature, the industrial grade also finds high applicability as an intermediate for rubber production, cosmetics products and as a food preservative agent in food & beverages. Owing to its high applicability in these sectors coupled with their growing developments, the demand and usage of industrial grade are anticipated to increase. This is stimulating its segment growth in the Propionic Acid Market during the forecast period.

Propionic Acid Market Segment Analysis – by End-use Industry

The food & beverage segment held the largest share of the Propionic Acid Market in 2021 and is estimated to grow at a CAGR of 3.7% during the forecast period 2022-2027. Propionic acid or propanoic acid has high applicability in the food & beverage sector as a food preservative agent for dairy items and as artificial flavors in confectionery. The rapid increase in disposable income and improvement in living standards coupled with population growth has increased the demand for items, leading to their high consumption. According to the National Confectioners Association, in 2021, chocolate sales in the U.S. increased by 9.2% in comparison to the previous year. Furthermore, according to the USDA’s National Agricultural Statistical Service, in 2021, cheese production in the U.S. increased by 3.5% in comparison to the previous year, due to its growing demand. Such rapid consumption and production of food items have accelerated the usage of propionic acid as a food preservative agent and artificial flavor additive, thereby propelling the growth of the Propionic Acid Market during the forecast period.

Propionic Acid Market Segment Analysis – by Geography

Europe dominated the Propionic Acid Market in 2021 with a share of up to 37.4%. The food & beverage sector in the region has witnessed significant growth over the years, resulting from an increase in government budgets, investment inflows and food consumption. According to FoodDrink Europe, in Q1 of 2022, food and drink production increased by 3% in Europe in comparison to Q1 of 2021. Furthermore, according to Eurostat, in 2021, cheese production in the EU stood at 10.7 million tons, showing a 3.8% increase in comparison to 2020. With such rapid development in the food & beverage sector, the demand for propionic acid as a food preservative agent would increase in the European region, thereby creating a surge in the growth of the Propionic Acid Market during the forecast period.

Propionic Acid Market Drivers

Rapid Increase in Rubber Production:

Short-chain fatty acid such as Propanoic Acid has rich chemical nature. Due to this nature, it is used as an intermediate during rubber manufacturing to improve its longevity. The growing demand for rubber from major transportation sectors such as automotive and aerospace has increased the production level. According to the Association of Natural Rubber Producing Countries, global rubber production is estimated to expand by 3.9% in 2022. Furthermore, according to the Department of Statistics Malaysia, in January 2022, rubber production in the country increased by 7.3% in comparison to 2021 for the same month. With such an increase in rubber production, the demand and usage of propionic acid for intermediate applications are also anticipated to increase. This is positively impacting the growth of the Propionic Industry during the forecast period.

Growth in Consumption of Cosmetic Products:

Due to its anti-bacterial properties, Propionic Acid has high applicability in the cosmetics & personal care sector, prevents bacterial growth and protects cosmetics products from spoilage. The rapid increase in purchasing power along with the growing shift of people toward skincare and nourishment has increased the consumption of such products. According to statements given by skincare giant Shiseido, in 2021, the global sales of the company’s skincare products increased by 12.4% in comparison to the previous year. Furthermore, according to the annual report of L’Oréal, in 2021, the overall sale of cosmetics products of L’Oréal grew by 16% with a valuation of US$35.7 billion. With such growing consumption of cosmetics products, the demand for propionic acid as an antimicrobial agent has also increased in the cosmetics & personal care sector, thereby stimulating the growth of the Propionic Acid industry.

Propionic Acid Market Challenges

Stringent Government Regulations on Chemical Usage in Pesticides:

Propionic Acid is a short-chain fatty acid that has high applicability in pesticides. However, the extensive usage of such chemicals leads to serious health issues such as eye damage, abdominal pain, breathlessness and lung damage. To minimize the effects of such chemicals, certain regulations and acts have been passed by governing authorities. For instance, the Federal Insecticide, Fungicide and Rodenticide Act by U.S. EPA and the Pesticide Peer Review System by European Food And Safety Authority regulate the usage of chemicals such as propionic acid in pesticides. Such regulations can limit the consumption of propionic acid in agrochemical applications, which hamper the growth of the Propionic Acid Market size during the forecast period.

Propionic Acid Industry Outlook

Technology launches, acquisitions and R&D activities are key strategies adopted by players in the Propionic Acid Market. The top 10 companies in the Propionic Acid Market are:
  1. BASF SE
  2. Dow Inc.
  3. Eastman Chemical Company
  4. Merck KGaA
  5. Perstorp Holding AB
  6. Hawkins Inc
  7. Otto Chemical Pvt. Ltd.
  8. Celanese Corporation
  9. Kemin Industries Inc.
  10. Niacet Corporation

Recent Developments

  • In April 2022, Perstorp announced plans to build new carboxylic acid manufacturing plant in Sweden by 2024 which would add a production capacity of around 70,000 metric tons per year for naturally occurring carboxylic acids such as Propionic Acid.
  • In June 2019, Dow Inc. completed the expansion of its Propionic Acid production facility in Texas, United States. This expansion enabled the company to meet the global demand for Propionic Acid.
  • In May 2019, BASF SE established a second production plant of Propionic Acid in Nanjing, China.

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1. Propionic Acid Market - Market Overview
    1.1 Definitions and Scope
2. Propionic Acid Market - Executive Summary
    2.1 Key Trends by Grade
    2.2 Key Trends by Packaging
    2.3 Key Trends by Application
    2.4 Key Trends by End-use Industry
    2.5 Key Trends by Geography
3. Propionic Acid Market – Comparative analysis
    3.1 Market Share Analysis - Major Companies
    3.2 Product Benchmarking - Major Companies
    3.3 Top 5 Financials Analysis
    3.4 Patent Analysis - Major Companies
    3.5 Pricing Analysis (ASPs will be provided)
4. Propionic Acid Market - Startup companies Scenario Premium Premium 
    4.1 Major startup company analysis:
        4.1.1 Investment
        4.1.2 Revenue
        4.1.3 Product portfolio
        4.1.4 Venture Capital and Funding Scenario
5. Propionic Acid Market – Market Entry Scenario Premium Premium 
    5.1 Regulatory Framework Overview
    5.2 New Business and Ease of Doing Business Index
    5.3 Successful Venture Profiles
    5.4 Customer Analysis – Major companies
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 Buyers
        6.3.3 Threat of New Entrants
        6.3.4 Competitive Rivalry
        6.3.5 Threat of Substitutes
7. Propionic Acid Market – Strategic Analysis
    7.1 Value/Supply Chain Analysis
    7.2 Opportunity Analysis
    7.3 Product/Market Life Cycle
    7.4 Distributor Analysis – Major Companies
8. Propionic Acid Market – by Grade (Market Size - US$ 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 - US$ Million/Billion)
    9.1 Drums
    9.2 Bottles
    9.3 Others
10. Propionic Acid Market – by Application (Market Size - US$ 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 - US$ 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 - US$ Million/Billion)
    12.1 North America
        12.1.1 The USA
        12.1.2 Canada
        12.1.3 Mexico
    12.2 Europe
        12.2.1 The UK
        12.2.2 Germany
        12.2.3 France
        12.2.4 Italy
        12.2.5 The Netherlands
        12.2.6 Spain
        12.2.7 Belgium
        12.2.8 The Rest of Europe
    12.3 Asia-Pacific
        12.3.1 China
        12.3.2 Japan
        12.3.3 India
        12.3.4 South Korea
        12.3.5 Australia and New Zealand
        12.3.6 Indonesia
        12.3.7 Taiwan
        12.3.8 Malaysia
        12.3.9 The Rest of APAC
    12.4 South America
        12.4.1 Brazil
        12.4.2 Argentina
        12.4.3 Colombia
        12.4.4 Chile
        12.4.5 The Rest of South America
    12.5 The Rest of the World
        12.5.1 The Middle East
   Saudi Arabia
   The UAE
   The Rest of the Middle East
        12.5.2 Africa
   South Africa
   The Rest of Africa
13. Propionic Acid Market – Entropy
    13.1 New Product Launches
    13.2 M&As, Collaborations, JVs and Partnerships
14. Propionic Acid Market – Industry/Competition Segment Analysis Premium 
    14.1 Company Benchmarking Matrix – Major Companies
    14.2 Market Share at Global Level - Major companies
    14.3 Market Share by Key Region - Major companies
    14.4 Market Share by Key Country - Major companies
    14.5 Market Share by Key Application - Major companies
    14.6 Market Share by Key Product Type/Product category - Major companies
15. Propionic Acid Market – Key Company List by Country Premium Premium 
16. Propionic Acid Market Company Analysis - Business Overview, Product Portfolio, Financials and Developments
    16.1 Company 1
    16.2 Company 2
    16.3 Company 3
    16.4 Company 4
    16.5 Company 5
    16.6 Company 6
    16.7 Company 7
    16.8 Company 8
    16.9 Company 9
    16.10 Company 10 and more
* "Financials would be provided to private companies on best-efforts basis."
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