Global Propionic Acid Market Size, Share & Trends Analysis Report By Application (Food Preservatives, Herbicides, Rubber Products, Plasticizers, and Others), By End-user, By Regional Outlook and Forecast, 2023 - 2030

Global Propionic Acid Market Size, Share & Trends Analysis Report By Application (Food Preservatives, Herbicides, Rubber Products, Plasticizers, and Others), By End-user, By Regional Outlook and Forecast, 2023 - 2030

The Global Propionic Acid Market size is expected to reach $1.7 billion by 2030, rising at a market growth of 3.7% CAGR during the forecast period. In the year 2022, the market attained a volume of 626.12 Kilo tonnes, experiencing a growth of 2.9% (2019-2022).

Propionic acid serves as an intermediate in the synthesis of various pharmaceutical compounds. Therefore, the pharmaceuticals segment captured $3,539.6 million revenue in the market in 2022. It can be chemically modified to produce propionates, building blocks for synthesizing active pharmaceutical ingredients (APIs). Propionates can undergo reactions to form esters, amides, or other functional groups, contributing to the complexity and specificity of drug molecules. This may be used for its antimicrobial properties in dermatological formulations, such as creams and ointments. This is particularly important in formulations were preventing the growth of microorganisms on the skin or in the product itself is crucial.

Propionic acid is widely used to preserve bakery products like bread, cakes, and pastries. Its ability to inhibit mold and bacteria growth aids in extending the shelf life of these perishable goods. As consumers seek convenient and longer-lasting bakery items, the demand for this as a preservative in this sector has risen. The antimicrobial properties of this contribute to enhanced food safety and quality. This helps maintain the freshness and integrity of food products by preventing the development of spoilage microorganisms. This is particularly important as consumers increasingly prioritize food safety and demand products with minimal chemical additives. Additionally, post-harvest diseases pose a threat to the quality and marketability of harvested crops. This is employed in post-harvest treatments to control fungal growth and extend the shelf life of fruits, vegetables, and other perishable crops. Integrated Pest Management (IPM) practices, which emphasize sustainable and environmentally friendly pest control strategies, contribute to the demand for this. Its role in bio-based pest management aligns with the principles of Integrated Pest Management (IPM). Due to the above-mentioned aspects, the market is expected to grow significantly.

However, propionic acid manufacturers are directly affected by fluctuations in the prices of raw materials, particularly methanol and ethylene. When the prices of these raw materials increase, their production costs also rise. If manufacturers cannot pass these increased costs onto consumers through higher product prices, profit margins may be squeezed. Price fluctuations in raw materials can lead to challenges related to competitive pricing in the market. Manufacturers may struggle to maintain competitive prices when facing increased production costs due to higher raw material prices. This can result in market share challenges and impact on a company's capacity to attract and retain customers. Due to the above factors, market growth will be hampered in the coming years.

By Application Analysis

On the basis of application, the market is segmented into herbicides, rubber products, plasticizers, food preservatives, and others. The plasticizers segment projected a prominent revenue share in the propionic acid market in 2022. Propionic acid might be used as an intermediate in the synthesis of plasticizers. It could serve as a starting material or be involved in reaction pathways leading to the formation of specific plasticizer compounds. The resulting plasticizers, not propionic acid itself, would then be added to polymers to impart flexibility. Propionic acid or its derivatives might be acid catalysts in polymerization reactions. Some polymerization reactions, especially those involving certain monomers or condensation reactions, may benefit from acid catalysts. The choice of acid can influence the properties of the resulting polymer.

By End User Analysis

Based on end-user, the market is fragmented into pharmaceuticals, personal care, food & beverages, agriculture, and others. The agriculture segment procured a remarkable revenue share in the market in 2022. This is effective against fungi that commonly infect stored grains. When applied as a treatment to grains, it permits control and prevents the growth of molds such as Aspergillus and Fusarium. This application is particularly important for maintaining the quality and safety of stored grains, reducing the risk of mycotoxin contamination. This is considered an alternative to synthetic chemical preservatives because of an increasing emphasis on sustainable and eco-friendly agricultural practices. Its biodegradability and lower environmental impact make it an attractive choice for those pursuing alternatives to traditional preservatives.

By Regional Analysis

Region-wise, the market is analysed across North America, Europe, Asia Pacific, and LAMEA. The Asia Pacific region covered a considerable revenue share in the market in 2022. In countries including China, India, and Australia, the demand for food preservatives and the expansion of the pharmaceutical industry are factors. Furthermore, the expectation is that the rising demand for this in the region will be propelled by the increased consumption of processed meats and other ready-to-eat foods resulting from the region's rising disposable income. Due to the rising poultry and swine production, this region is expected to experience substantial economic expansion, particularly in India and China.

List of Key Companies Profiled

• Celanese Corporation
• Corbion N.V.
• Eastman Chemical Company
• BASF SE
• The Dow Chemical Company
• Merck KGaA
• Perstorp Holding AB (PETRONAS Chemicals Group Berhad)
• Hawkins, Inc.
• Otto Chemie Pvt. Ltd.
• Kemin Industries, Inc.

Global Propionic Acid Market Report Segmentation

By Application (Volume, Kilo Tonnes, USD Billion, 2019-2030)

• Food Preservatives
• Herbicides
• Rubber Products
• Plasticizers
• Others

By End-user (Volume, Kilo Tonnes, USD Billion, 2019-2030)

• Food & Beverages
• Agriculture
• Pharmaceuticals
• Personal Care
• Others

By Geography (Volume, Kilo Tonnes, USD Billion, 2019-2030)

• North America
• US
• Canada
• Mexico
• Rest of North America
• Europe
• Germany
• UK
• France
• Russia
• Spain
• Italy
• Rest of Europe
• Asia Pacific
• China
• Japan
• India
• South Korea
• Australia
• Malaysia
• Rest of Asia Pacific
• LAMEA
• Brazil
• Argentina
• UAE
• Saudi Arabia
• South Africa
• Nigeria
• Rest of LAMEA