H1 2023: During the first half of 2023, the Asia Pacific region emerged as the predominant consumer of Propionic Acid. However, prices of Propionic Acid fluctuated in the Asia Pacific region. At the beginning of the year, prices fell amid declining production costs and weak offtakes from the food sector. However, in mid-February, the price trend shifted due to a rise in demand in the food and beverage industries, especially from India, and a surge in food prices. Simultaneously, production costs rose due to the stressed availability of the feedstock Ethylene. Ethylene feedstock prices increased until March 2023, resulting in a hike in production costs. Consumption levels stabilized in March, while production costs remained firm amid volatile upstream Crude Oil prices. Starting in April, a bearish trend was observed in the Indian propionic acid market as prices declined. This drop was influenced by an abundance of inventory in the market and decreasing prices of imported propionic acid entering India. The supply situation remained moderate, with cheaper imports from neighbouring countries helping to ease prices. The freight and energy markets also returned to normalcy, with limited impact on final negotiations. Demand for propionic acid in the food sector remained at a moderate level, marked by active procurement and numerous new inquiries. Despite these dynamics, propionic acid prices remained relatively stable in May 2023 in Asia. This stability was attributed to consistent demand-supply dynamics and unchanged ethylene feedstock prices during the period.
The global Propionic Acid market stood at approximately 400 thousand tonnes in 2022 and is anticipated to grow at a CAGR of 2.90% during the forecast period until 2032.
Propionic Acid belongs to the carboxylic acid family. It is classified as a saturated fatty acid and is represented by the chemical formula CH3CH2COOH. In industrial scale, the production of propionic acid involves the hydrocarboxylation of ethylene, facilitated by a catalyst. During this hydrocarboxylation process, carbon monoxide (CO) and water (H2O) undergo a reaction with ethylene to yield Propanoic Acid. The catalyst most commonly employed for this reaction is Nickel tetracarbonyl (Ni(CO)4). Propionic acid, sometimes referred to as propanoic acid, is used extensively in a variety of industries. Propionic acid is commonly used as a food preservative, as are its salts, such as sodium and calcium propionate. By preventing the formation of Mold and certain bacteria, they contribute to the extension of the shelf life of bread, baked goods, and other food products. Propionic acid is a flavouring and preservative used in a variety of packaged foods. Also, Propionic Acid is added to animal feed to stop spoiling and the growth of germs. This contributes to keeping pet and animal feed safe and of high quality. The pharmaceutical industry uses propionic acid as a chemical intermediary to synthesize a range of medications and active pharmaceutical ingredients (APIs). Propionic acid or its derivatives are active components in several herbicides used to control weeds and undesirable plants in agricultural settings. Propionic acid is utilized in the synthesis of specific polymers and plastics, like polypropionate compounds. In chemical processes, propionic acid is employed as a reagent as well as an intermediate. Propionate esters can be created by esterifying propionic acid. These esters are used in many sectors, such as solvents, plasticizers, and as constituents in the fragrance and flavours.
In the agricultural domain, propionic acid serves as a preservative for grain and animal feed. It also plays a role in disinfecting storage areas for grain and silage. Furthermore, it acts as an antibacterial agent in livestock drinking water and is employed to eliminate bacteria and fungi in poultry litter. The expansion of the livestock industry is anticipated to drive an increase in feed consumption. The market's optimistic trajectory is attributed to significant growth in the agriculture industry and increasing global consumption of dairy, livestock, and poultry products. Propionic acid plays a crucial role in this context, serving as an efficient grain preservative by curbing microbial growth in stored grains, hay, poultry litter, and livestock water. Furthermore, market expansion is being propelled by the growing demand for natural preservatives in ready-to-eat (RTE) and canned food products. Propionic acid also contributes to extending the shelf life of cheese and baked goods. Additionally, acid esters are being utilized as substitutes for chemical alternatives, serving as artificial flavourings or solvents, aligning with the trend toward natural and clean label food products. The global Propionic Acid market is anticipated to reach nearly 530 thousand tonnes by 2032.
Asia Pacific region is the largest consumer of Propionic Acid due to a range of factors. Its extensive and diverse agriculture sector employs Propionic Acid as a grain preservative, particularly in warm and humid regions where microbial growth is a concern. The livestock and poultry industries utilize it to preserve animal feed, supporting the growing demand for meat and dairy products. In the food and beverage sector, Propionic Acid acts as a preservative, aligning with the trend for convenient, longer-lasting foods. Changing consumer preferences for natural and clean-label products drive this demand. Additionally, the chemical and manufacturing sectors benefit from Propionic Acid as an intermediate, and it aids Asian countries in exporting processed foods, adhering to international quality standards. Government regulations also play a role in mandating its use for food safety and quality. Propionic Acid plays a crucial role in maintaining food security, quality, and international competitiveness in the region.
Based on the end-user industry, the global Propionic Acid market is segmented into Animal feed & Grain Preservation, Calcium and Sodium propionates, and Others. Among these, Animal feed & Grain Preservation industry is the largest segment and held a market share of roughly 44% in 2022. In order to limit mold and bacterial growth, prevent spoilage, and maintain freshness, calcium propionate is frequently used in bread and baked goods. It's an essential component used in baking. On the other hand, sodium propionate, which stops the growth of undesirable microbes, is commonly used in processed cheese, meat products, and other dairy goods. In the food sector, preservatives are vital because they keep food fresh and safe by preventing deterioration and preserving product integrity.
Major players in the Global Propionic Acid market are BASF SE, The Dow Chemical Company, Eastman Chemical Company, Oxea GMBH, PERSTORP ORGNR, Krishna Chemicals, Celanese Corporation, Biomin Holding Gmbh, M. Food Chemical Co. Ltd, And Daicel Corporation.
Years considered for this report:
Historical Period: 2015- 2022
Base Year: 2022
Estimated Year: 2023
Forecast Period: 2024-2032
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Objective of the Study:
• To assess the demand-supply scenario of Propionic Acid which covers production, demand and supply of Propionic Acid market in the globe.
• To analyse and forecast the market size of Propionic Acid
• To classify and forecast Global Propionic Acid market based on end-use and regional distribution.
• To examine competitive developments such as expansions, mergers & acquisitions, etc., of Propionic Acid market in the globe.
To extract data for Global Propionic Acid market, primary research surveys were conducted with Propionic Acid manufacturers, suppliers, distributors, wholesalers and Traders. While interviewing, the respondents were also inquired about their competitors. Through this technique, ChemAnalyst was able to include manufacturers that could not be identified due to the limitations of secondary research. Moreover, ChemAnalyst analyzed various segments and projected a positive outlook for Global Propionic Acid market over the coming years.
ChemAnalyst calculated Propionic Acid demand in the globe by analyzing the historical data and demand forecast which was carried out considering the production of raw material to produce Propionic Acid. ChemAnalyst sourced these values from industry experts and company representatives and externally validated through analyzing historical sales data of respective manufacturers to arrive at the overall market size. Various secondary sources such as company websites, association reports, annual reports, etc., were also studied by ChemAnalyst.
Key Target Audience:
• Propionic Acid manufacturers and other stakeholders
• Organizations, forums and alliances related to Propionic Acid distribution
• Government bodies such as regulating authorities and policy makers
• Market research organizations and consulting companies
The study is useful in providing answers to several critical questions that are important for industry stakeholders such as Propionic Acid manufacturers, customers and policy makers. The study would also help them to target the growing segments over the coming years (next two to five years), thereby aiding the stakeholders in taking investment decisions and facilitating their expansion.
Report Scope:
In this report, Global Propionic Acid market has been segmented into following categories, in addition to the industry trends which have also been detailed below:
Attribute
Details
Market size Volume in 2022
400 thousand tonnes
Market size Volume in 2032
530 thousand tonnes
Growth Rate
CAGR of 2.90% from 2023 to 2032
Base year for estimation
2023
Historic Data
2015 – 2022
Forecast period
2024 – 2032
Quantitative units
Demand in thousand tonnes and CAGR from 2023 to 2032
Report coverage
Industry Market Size, Capacity by Company, Capacity by Location, Operating Efficiency, Production by Company, Demand by End- Use, Demand by Region, Demand by Sales Channel, Demand-Supply Gap, Company Share, Foreign Trade, Manufacturing Process.
Segments covered
By End-Use: (Animal feed & Grain Preservation, Calcium and Sodium propionates, and Others)
By Sales Channel: (Direct Sale and Indirect Sale)
Regional scope
North America, Europe, Asia Pacific, Middle East and Africa, and South America.
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Market Data & Insights
Table of Content
1. Industry Market Size
It is an essential metric for market analysis, as it provides insights into the overall size and growth potential of Propionic Acid market in terms of value and volume.
2. Capacity By Company
On our online platform, you can stay up to date with essential manufacturers and their current and future operation capacity on a practically real-time basis for Propionic Acid.
3. Capacity By Location
To better understand the regional supply of Propionic Acid by analyzing its manufacturers' location-based capacity.
4. Plant Operating Efficiency
To determine what percentage manufacturers are operating their plants or how much capacity is being currently used.
5. Production By Company [Quarterly Update]
Study the historical annual production of Propionic Acid by the leading players and forecast how it will grow in the coming years.
6. Demand by End- Use [Quarterly Update]
Discover which end-user industry (Animal feed & Grain Preservation, Calcium and Sodium propionates, and Others) are creating a market and the forecast for the growth of the Propionic Acid market.
7. Demand by Region
Analyzing the change in demand of Propionic Acid in different regions, i.e., North America, Europe, Asia Pacific, Middle East and Africa, and South America, that can direct you in mapping the regional demand.
8. Demand by Sales Channel (Direct and Indirect)
Multiple channels are used to sell Propionic Acid. Our sales channel will help in analyzing whether distributors and dealers or direct sales make up most of the industry's sales.
9. Demand-Supply Gap
Determine the supply-demand gap to gain information about the trade surplus or deficiency of Propionic Acid.
10. Company Share
Figure out what proportion of the market share of Propionic Acid is currently held by leading players across the globe.
11. Country-wise Export
Get details about quantity of Propionic Acid exported by major countries.
12. Country-wise Import
Get details about quantity of Propionic Acid imported by major countries.
13. Manufacturing Process
Discover insights into the intricate manufacturing process of Propionic Acid.
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of force majeure, affects the plant's operating rate for the given duration. Disruption tracker gives a clear insight
into the worldwide outages affecting the commodity of interest. With every shutdown, it also reflects the impact on
supply of the product in the market at a Global level.
What was the net market size of Propionic Acid in terms of volume in 2022?
Ans:
The global market size of Propionic Acid has reached approximately 400 thousand tonnes in 2022.
Q2.
Which region is the major consumer of Propionic Acid?
Ans:
Asia Pacific region is the leading consumer of Propionic Acid globally.
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