Propionic Acid Market Size

Market Size Snapshot

Note – Market size depicts the revenue generated over the financial year

The propionic acid market is expected to be worth about $1.14 billion in 2023, with a forecasted growth to $1.42 billion by 2030. This translates into a CAGR of 3.78% for the forecast period. The steady growth of the market is attributed to the increasing demand for propionic acid in a variety of applications, especially in the food and feed industries, where it is used as a preservative and antimicrobial. The growing awareness of food safety and the need to extend the shelf life of food are also driving the market. In addition, technological developments and innovations in the production processes are expected to have a positive impact on the market. The development of bio-based production methods, for example, is in line with the growing trend towards sustainable and environment-friendly practices. The leading players in the propionic acid market, such as BASF SE, Perstorp Holding AB, and Eastman Chemical Company, are undertaking strategic initiatives, such as collaborations and investments in research and development, to enhance their product offerings and gain a larger market share. These efforts not only increase their competitiveness but also meet the changing needs of the consumers and industries.

Regional Market Size

Regional Deep Dive

Propionic acid has a wide range of applications in various industries, including food, agriculture and pharmaceuticals. In North America, the market is driven by the increasing demand for food additives and preservatives and the increasing focus on sustainable agriculture. The region is characterized by advanced manufacturing capabilities and a regulatory framework that promotes innovation and the safety of chemical production. Propionic acid is used as a preservative and as a food additive in organic and natural foods. As consumers' preferences for organic and natural foods continue to increase, the demand for safe preservatives will also increase, which will also boost the market's growth.

Europe

• The European Union has implemented stricter regulations on food additives, which has led to an increased focus on the safety and efficacy of propionic acid, driving innovation in its applications.
• Companies such as Perstorp and Dow Chemical are actively working on developing bio-based propionic acid, aligning with the EU's sustainability goals and responding to consumer demand for greener products.

Asia Pacific

• The rapid growth of the food and beverage industry in countries like China and India is significantly increasing the demand for propionic acid as a preservative, leading to new market opportunities.
• Local manufacturers are adopting advanced production technologies to enhance efficiency and reduce environmental impact, which is expected to reshape the competitive landscape in the region.

Latin America

• The rising awareness of food safety and quality in Latin America is leading to increased adoption of propionic acid in food preservation, particularly in Brazil and Argentina.
• Local companies are forming partnerships with international firms to enhance their production capabilities and meet the growing demand for propionic acid in various applications.

North America

• The U.S. Food and Drug Administration (FDA) has recently approved new uses for propionic acid in food preservation, which is expected to boost its application in the food industry significantly.
• Major companies like BASF and Eastman Chemical are investing in research and development to create more efficient production methods for propionic acid, which could lead to lower costs and increased availability in the market.

Middle East And Africa

• The agricultural sector in the Middle East is increasingly utilizing propionic acid as a feed preservative, driven by the need to improve livestock health and productivity.
• Government initiatives aimed at enhancing food security in the region are promoting the use of propionic acid in food preservation, which is expected to drive market growth.

Did You Know?

“Propionic acid is not only used as a food preservative but also plays a crucial role in the production of herbicides and fungicides, making it a versatile compound in agricultural applications.” — International Journal of Chemical Engineering

Segmental Market Size

Propionic acid is a crucial segment of the market, primarily driven by its applications in the food, animal feed, and pharmaceutical industries. This segment is currently growing steadily, backed by the growing demand for natural preservatives among consumers and the rising need for effective feed additives among livestock farmers. This trend is also being driven by the increasing awareness of food safety and quality among consumers, coupled with stricter government regulations encouraging the use of safe and non-toxic preservatives in food products. Propionic acid is currently being used in the food and pharmaceutical industries in mature applications. Leading players such as BASF and Perstorp are currently leading the production and innovation of this segment. Propionic acid is mainly used as a preservative in baked products and as a feed additive for the health and growth of animals. Propionic acid is also being used in the cosmetics industry for its antiseptic properties. The growing trend for organic farming and the adoption of sustainable farming practices are also expected to drive the growth of this segment. Propionic acid is also expected to benefit from the development of advanced production methods such as the use of biotechnology for the synthesis of the acid, which will help reduce its production costs and improve its eco-friendliness.

Future Outlook

Propionic acid market size from 2023 to 2030 will rise from $1.1 billion to $1.4 billion, indicating a compound annual growth rate (CAGR) of 3.7 percent. This growth is largely attributed to the increasing demand for propionic acid in various applications, especially in the food and feed industries. Preservatives, which are gaining ground as consumers are increasingly concerned about food safety, will help propionic acid to gain market share. By 2030, the proportion of propionic acid used in the food industry will be about 25 percent, driven by regulatory support and consumers’ growing preference for natural preservatives. The key technological innovations and policy changes will shape the future of the propionic acid market. The development of new fermentation methods is expected to bring down the cost of production and improve the environment, making propionic acid more accessible. Propionic acid is also a safe and effective preservative, and is therefore likely to benefit from the implementation of stricter food and feed safety regulations. The increasing shift towards sustainable and bio-based chemicals will also spur the market as manufacturers seek to align with the UN’s sustainable development goals. The propionic acid market is expected to grow steadily, driven by evolving consumer demand and supportive regulations.