The Propionic Acid Market Share is expected to grow from USD 2 billion in 2024, with a compound annual growth rate of 7% during the period of forecast.
Propionic acid is clear, colorless liquid with an irritating smell. The production of propionic acid is done by hydro carboxylation of ethylene in which nickel carbonyl act as a catalyst. Propionic acid itself and its esters are used in the production of animal feed and food preservatives.
The boiling point of propionic acid market is very high that is approx. 141.15 degrees Celsius. It is used as an agent for crop protection due to its antifungal and antimicrobial properties. It also found its application as an anti-bacterial agent in water used by livestock to drink. Propionic acid is also known as carboxylic acid or methane carboxylic acid or CARBOXYETHANE, and ethyl formic acid. In its natural form, it can be used as ester in essential oils.
The coronavirus pandemic has given a very hard time to most of the manufacturing, developing, production, and logistic units of the propionic acid market. Due to this pandemic situation, restrictions were imposed by the government of different countries. The propionic acid market has been impacted drastically. Due to this pandemic people became more conscious about their health and eating habits which in turn resulted in a decline in the demand for packaged food and food preservatives and being one of the main applications of propionic acid, severe losses were faced by the market players. The cosmetic and personal care was impacted seriously due to the closure of beauty parlors, cosmetic stores, etc. also due to closures of manufacturing units there was a shortage of supply of cosmetic products. On the other hand, where the demand for animal feed was stable but the supply chain of feed was seriously affected by the Covid-19 pandemic.
Propionic Acid Market Dynamics
The rising application of propionic acid being used as a preservative in packaged food and animal feed is one of the major factors responsible for the growth of this propionic acid market. Also, the application of propionic acid in herbicides and manufacturing cellulose acetate propionate is another key reason for the growth of this industry. Due to alteration in the lifestyle of people, the demand for packaged food and that too hygienic food products is another factor driving this market growth as the main application of propionic acid is found in it being used as a preservative to prevent the growth of bacteria and fungus and increasing the shelf life of food products. The demand for propionic acid is anticipated to grow from 471-kilo tons in 2020 to 538-kilo tons.
The increasing environmental concerns over the period about the usage of herbicides is one of the major factors responsible for restraining the growth of this market. Another factor is the shortage of innovative ideas while offering products is another factor which may hinder the growth of this industry. Also, the overall revenue is being affected as the market players are being confronted by the situations which are pressurizing them to reduce margins on sales of products, this is another factor that may act as a barrier in the growth of propionic acid market. The direct exposure of propionic acid has different types of side effects and shortage of production facilities are another certain factors that may hamper the growth of this market to a certain extent.
With the help of recent studies published it has been observed that propionic acid market can be used in many ways. It can act as a fungicide and bactericide which are confirmed to prevent the growth and development of bacteria and fungi in stored grains, poultry litter, and drinking water for livestock and poultry. To keep animal products safe and human health, propionic acid is considered to be an effective antibiotic growth promoter. In place of using chemicals for artificial flavorings or as solvents esters of propionic acid can be used effectively.
Propionic Acid Market share is anticipated to witness significant growth owing to the performance of different market segments. Among these segments, the food and beverages segment will be the fastest-growing and also contribute towards this market growth more than any other segment. The rising use of propionic acid as a preservative in pieces of bread, cakes, cheese, non-alcoholic beverages, jams, and other processed & packaged food to prevent them from getting affected by mold and bacteria which in turn increases its shelf life is the reason for the growth of this segment. The rubber segment will also experience significant growth during the forecast period. For an amplifying use the propionic acid market has been segmented into the following on different bases:
Based on end-use industries, it has agrochemicals, pharmaceuticals personal care, food & beverages, and personal care. The food and beverages industries are further classified into bakery & confectionery, dairy products, beverages, convenience food, meat, poultry, and seafood products.
Based on application, it has Animal feed & food preservatives, Calcium and sodium Salts, Cellulose acetate propionate, rubber products, plasticizers, Herbicides, and Others (Flavours, fragrances, etc.)
The propionic acid market movements are remarkably working in 4 major regions of the world that is North America, Asia Pacific, Europe, and the rest of the world. Among all these regions, the European region will dominate propionic acid market, and the reason attributed to it is the rising consumption of packed convenience food & meat, poultry, and seafood products in this region. Also, with the increase in the use of propionic acid in the pharmaceutical sector is one of the major factors factor boosting the market growth in this region. The Asia Pacific region will be the second-largest market will have a CAGR Growth of 10.6% during the forecast period. And the factors responsible for this growth are growing animal feeds, food & beverages, and the personal care industry. The increasing usage of propionic acid in various agrochemicals and the agriculture sector being a significant one in this region is another factor that is boosting the market growth in this region led by India, China, and Japan.
To get a detailed and profound idea about the Propionic Acid Market insights, it is very important to create a competitive environment amongst the different key players at different market locations all around the country. All the market players are competing with each other globally in the international markets by implementing various types of strategies such as product launches and upgrades, mergers and acquisitions, partnerships, etc. The prime players of this market include: -
In January 2021, with the aim of manufacturing, by green chemistry method, different organic acids such as propionic acid, acetic acid, VALERIC acid, butyric acid, ISOBUTYRIC acid, HEXANOIC acid, and ISOVALERIC acid biotechnology start-up named AFYREN started construction of its first industrial-scale industry named AFYREN NEOXY.
The major application of the use of propionic acid is in the making of composites. So, to earn more profits and enhance the growth of their companies, the consolidation of advanced composites market was done by top 5 prime players of this market namely Dow, NIACET, KEMIN Industries Inc, Eastman Chemical Company, and Celanese Corporation accounting for 20% share each.
The propionic acid market report presents a shift analysis that includes market drivers, opportunities, and restraints that are available in the global market. The report discusses the impact of covid-19 on the key players of this market. The report also talks about the market segmentation on a different basis and how a competitive environment is developed among the key players around the globe. At last, the report presents some recent developments in this industry.
Frequently Asked Questions (FAQ) :
The expected CAGR growth would be 7%.
USD 2 billion will be the market valuation by 2024.
The European region is likely to have the maximum growth.