Propionic Acid Market

Propionic acid, or propanoic acid, is a three-carbon carboxylic acid that occurs naturally and can be used as a food preservative. In cheeses and baked goods, this ingredient is used to prevent mold growth. It works well against molds at concentrations between 0.05 and 0.25%. However, it does not affect yeast growth and is less effective at preventing bacterial growth. Additionally, ammonium propionate, produced primarily from propionic acid in the market and less corrosive to farm equipment than propionic acid, is used as a preservative in grain and animal feed.

It has been approved for use in food & beverage as well as animal feed by many organizations ly. With the exception of current good manufacturing practices, propionic acid is generally recognized as safe (GRAS) when used as an antimicrobial and flavoring agent in food. In the meantime, it is GRAS when used in feed as a chemical preservative. Propionic acid (E280) is listed as an authorized food additive in Commission Regulation (EU) No 231/2012 under the heading "Additives other than colors and sweeteners." With the code number 280, it is a recognized ingredient in Australia and New Zealand.

Thus, the safe use of propionic acid has led to its increased use in various food products and has enhanced the Propionic Acid market CAGR ly.

In the agricultural sector, propionic acid is used as a preservative in grain and animal feed. Additionally, it is used to sanitize the areas where grain and silage are stored. Additionally, propionic acid is utilized as an antibacterial agent in livestock drinking water. Even in poultry litter, they are sprayed to eradicate bacteria and fungi. Furthermore, the growth of the livestock industry would result in a rise in feed consumption, according to the OECD-FAO Agriculture Outlook 2020-2029. According to projections, 75% of the world's demand for feed will be met by maize, wheat, and protein meal imports.

This trend is the result of policies prioritizing the development of food crops over feed crops. Thus, such growth factors are anticipated to propel the Propionic Acid market revenue growth during the forecast period.

The Global Propionic Acid Market Industry benefits from the expanding food preservation sector, where propionic acid is utilized as a food additive to prevent spoilage. Its efficacy in inhibiting mold and bacterial growth makes it a preferred choice among food manufacturers. With the increasing consumer awareness regarding food safety and quality, the demand for preservatives like propionic acid is expected to rise. This trend is further supported by regulatory approvals in various countries for its use in food products. Consequently, the market is anticipated to grow at a CAGR of 3.48% from 2025 to 2035, reaching an estimated value of 1.71 USD Billion by 2035.

The Global Propionic Acid Market Industry experiences a notable surge in demand due to its application as a preservative in animal feed and silage. Propionic acid effectively inhibits mold growth, thereby enhancing the shelf life of feed products. This is particularly relevant in regions with intensive livestock farming, where feed quality is paramount. The increasing global population and the consequent rise in meat consumption further amplify the need for effective feed preservatives. As a result, the market is projected to reach 1.17 USD Billion in 2024, reflecting the growing importance of propionic acid in agricultural practices.

The Global Propionic Acid Market Industry is poised for expansion in emerging markets, where economic growth is driving increased industrialization and agricultural development. Countries in Asia-Pacific and Latin America are witnessing a rise in demand for propionic acid due to their growing agricultural sectors and food processing industries. As these regions enhance their production capabilities, the need for effective preservatives and chemical intermediates becomes more pronounced. This shift towards modernization and efficiency in production processes suggests a favorable environment for the growth of the propionic acid market, potentially leading to increased market share in these regions.

The Global Propionic Acid Market Industry is characterized by various trends that indicate its growth trajectory. The market is projected to reach 1.17 USD Billion in 2024, with expectations of further expansion to 1.71 USD Billion by 2035. This growth is underpinned by a compound annual growth rate (CAGR) of 3.48% from 2025 to 2035. The increasing applications of propionic acid in agriculture, food preservation, and industrial processes suggest a robust demand landscape. Additionally, the emergence of new markets and the ongoing innovation in production techniques are likely to contribute to the overall market dynamics, shaping the future of the propionic acid industry.

The Global Propionic Acid Market Industry is positively influenced by regulatory support and the establishment of safety standards for food additives and preservatives. Governments worldwide are increasingly recognizing the importance of propionic acid in ensuring food safety and quality. Regulatory bodies are providing guidelines that facilitate its use in various applications, thereby enhancing consumer confidence. This regulatory backing not only promotes the adoption of propionic acid in food and feed industries but also encourages manufacturers to innovate and improve their product offerings. As a result, the market is likely to witness sustained growth, driven by compliance with safety standards and consumer demand for high-quality products.

The Global Propionic Acid Market Industry is significantly driven by its diverse industrial applications, particularly in the production of various chemicals and pharmaceuticals. Propionic acid serves as a key intermediate in the synthesis of herbicides, pesticides, and other agrochemicals. Its versatility in chemical manufacturing processes enhances its demand across multiple sectors. As industries continue to innovate and seek efficient production methods, the reliance on propionic acid is likely to increase. This trend indicates a robust growth trajectory for the market, as companies invest in propionic acid-based solutions to meet evolving industrial needs.

By Region, the study provides market insights into North America, Europe, Asia-Pacific, and the Rest of the World. Europe Propionic Acid market accounted for USD 0.5 billion in 2022 and is expected to exhibit a significant CAGR growth during the study period. Germany is the major market for the food industry and agriculture sector in the Region. Thus, the use of propionic acid in both industries drive the market growth. Moreover, ongoing investments in the food industry further boost the market's growth.

According to Cosmetics Europe, the European cosmetics and personal care market will be valued at EUR 76.7 billion in 2021. It is the largest market for cosmetic products in the world. Further, the Germany Propionic Acid market held the largest market share, and the UK Propionic Acid market was the fastest-growing market in the European Region.

Further, the major countries studied in the market report are: The U.S., Canada, Germany, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.

Figure 3:  PROPIONIC ACID MARKET SHARE BY REGION 2022 (%)Source: Secondary Research, Primary Research, Market Research Future Database, and Analyst Review

North America Propionic Acid market accounts for the second-largest market share. The rising demand for grain preservatives and secure animal feed is one of the main factors fueling the expansion of the market under study. The expanding convenience food sector has significantly aided the development of the market. During the forecast period, the rising demand for animal feed and the growing public awareness of safe animal nutrition did not significantly increase the demand for propionic acid.

The Asia-Pacific Propionic Acid Market is expected to grow at the fastest CAGR from 2022 to 2030. This is due to the increasing use of propionic acid in herbicides and the production of cellulose acetate propionate. The need and demand for packaged food, particularly hygienic food products, are other factors contributing to the growth of the propionic acid market. Additionally, propionic acid is used as a preservative to extend the shelf life of food products and stop the growth of bacteria and fungi.

Moreover, China' Propionic Acid market held the largest market share, and the India Propionic Acid market was the fastest-growing in Asia-Pacific.

Major market players are investing in new products, which is expected to help the Propionic Acid market grow in the coming years. Companies in the market are also taking various initiatives to expand their worldwide footprint, with key market developments such as new product launches, agreements, increased investments, and collaboration with other companies. Competitors in the Propionic Acid industry must offer low-cost products to maintain their position in the market.

Major players are adopting strategies such as collaborating with other manufacturers in the Propionic Acid industry to expand their presence. In recent years, the Propionic Acid industry has launched the product in the market. The Propionic Acid market major player such as 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), and DAICEL CORPORATION (JAPAN), and others are working to expand the market demand by investing in research and development activities.

BASF Se is the biggest chemical producer in the world and is a multinational chemical company based in Europe. The company's headquarters is located in Ludwigshafen, Germany. In May 2022, BASF and SINOPEC, a 50/50 joint venture in Nanjing, China, started production at the second propionic acid plant. Customers in China and the rest of Asia Pacific can now purchase commercial goods. The new facility can produce 30,000 metric tons of propionic acid annually. Thus, the combined annual capacity of the two plants has increased to 69,000 metric tons.

The Dow Chemical Company is an American multinational company with its main office in Midland, Michigan. One of the top three chemical producers in the world is the company. In December 2017, the Industrial Solutions division of the Dow Chemical Company intended to increase the capacity of its Texas City propionic acid plant. According to the business, the recently announced plant expansion, extensive capabilities in chemical processing, and in-depth knowledge of the market will ensure we remain a top supplier of food and feed applications.