Propionic Acid Market Research Report: Information by Application [Animal Feed, Food & Beverages (Bakery & Confectionery, Dairy Products, Beverages, Convenience Food, Meat, Poultry, and Seafood Products Others), Personal Care, Pharmaceuticals, Agrochemicals, and Others] and Region (North America, Europe, Asia-Pacific, and RoW) - Forecast till 2027

Propionic Acid Market Overview

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.

Covid-19 Analysis

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

Drivers

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.

Restraints

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.

Technology Analysis

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.

Study Objectives

• To consider the viewpoint of various industry experts and leaders and predict compound annual growth rate and market growth rate by the end of the propionic acid market forecast.


• To highlight a competitive market outlook and examine the yield models of key market players, worldwide.


• To observe the various market dynamics like trends, drivers, and restraints that are most probable to play a role in helping the propionic acid market and its different segments growing in the domestic as well as international market.

Segment Overview

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.)

Regional Analysis

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.

Competitive Landscape

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: -

• BASF Se (GERMANY)


• The Dow Chemical Company (US)


• Eastman Chemical Company (US)


• Oxea GMBH (GERMANY)


• PERSTORP ORGNR (SWEDEN)


• Krishna Chemicals (INDIA)


• Celanese Corporation (US)


• BIOMIN HOLDING GMBH (AUSTRIA)


• A.M. FOOD CHEMICAL CO. LTD (CHINA)


• DAICEL CORPORATION (JAPAN)


• KEMIN INDUSTRIES INC (US)


• NIACET CORPORATION (US)


• IMPEXTRACO NV (BELGIUM)


• HAWKINS INC.


• YANCHENG HUADE BIOLOGICAL ENGINEERING CO. LTD


• MACCO ORGANIQUES INC


• OMAN OIL COMPANY SAOC

Recent Developments

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.

Intended Audience

• Propionic acid manufacturers


• Food and beverage processors


• Agrochemical manufacturers


• Pharmaceutical manufacturers


• Personal care products manufacturers


• Raw material suppliers


• Retailers and wholesalers


• Traders, importers, and exporter

Report Overview

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.