Propionic Acid Market- By Grade , By Packaging, By Application, By End-Use Industry, By Geography - Global Opportunity Analysis & Industry Forecast, 2023-2030

Propionic Acid Market Overview:

Propionic Acid Market size is estimated to reach $2.3 billion by 2030, growing at a CAGR of 4.0% during the forecast period 2024-2030. Propionic acid is a colorless liquid with a pungent scent, it is miscible in water and almost all normal organic solvents. It is used as a food preservative, plasticizer, coating additives, perfume, intermediates, and solvent among other uses. Propionic acid has antibacterial and mold-inhibiting properties, due to which it is used as a food preservative. The growing demand for natural preservatives from the food industry, increasing consumption of cosmetics and the growing demand for rubber are the factors that are set to drive the growth of the global Propionic Acid Market during the forecast period 2024-2030.

Antibiotics are added to animal feed to treat and prevent infections and to improve growth and production. The usage of antibiotics in the animal feed industry is causing an increase of disease resistant infections among humans. According to an article in The Lancet, in 2023, 1.27 million people died due to antibiotic drug-resistant bacteria. According to the Environmental Working Group, by 2048 antibiotic resistance could cause more casualties than cancer. As propionic acid has antibacterial and mold-inhibiting properties it is used as a safer alternative to antibiotics in animal feed. This represents the Propionic Acid Industry Outlook.

Market Snapshot: 

Propionic Acid Market - Report Coverage:

The “Propionic Acid Market Report - Forecast (2024-2030)” by IndustryARC, covers an in-depth analysis of the following segments in the Propionic Acid Market.

COVID-19 / Ukraine Crisis - Impact Analysis:

The COVID-19 pandemic had an adverse effect on the chemical industry resulting in complete shutdown of production of certain chemicals. Recovery of the sector was also affected due to supply chain woes. 
Russia’s Invasion of Ukraine resulted in high inflation and higher manufacturing costs which impacted production. To keep up with costs, several manufacturers were forced to increase the price of their products. For instance, in March 2022, Perstorp increased the price of propionic acid citing soaring raw material and energy costs in Europe.

Key Takeaways:

Dominance of Europe

• Geographically, Europe held the largest share with 37% of the overall market in 2023 and it is poised to dominate the market over the period 2024-2030. Propionic acid is mainly used in baked goods and cheese. The food & beverage sector in Europe has seen significant growth over the years, resulting from an increase in government budgets, investment inflows and food consumption. As per data released by Clal, an Italian consulting firm, exports of Italian cheese in the first half of 2022 showed growth in volume (14.1%) and value (21.7%), with unit prices rising 6.6%. Thus, the growing food industry in the regions boosts the Propionic Acid Industry in the region.

Food Preservative holds the largest market share

• Based on Application, the food preservative segment held the largest Propionic Acid Market share in 2023 and it is estimated to grow with a CAGR of 4.2% during the forecast period 2024-2030. According to Perstorp AB, more than half of the produced propionic acid is used for preservation of food. Baked goods are considered staple breakfast particularly in the Americas and Europe. According to Waitrose, on an average more than 98% of British shoppers buy bread. The growing demand for bread and other baked goods boosts the Propionic Acid Market.

 Food & Beverage is the largest market 

• Based on End-Use Industry, food & beverage segment held the largest Propionic Acid Market share in 2023 and it is estimated to grow with a CAGR of 4.4% during the forecast period 2024-2030 owing to the growing need to extend the shelf-life of bread, dairy products, processed meats, and baked goods.

High Demand for Natural Preservatives to Drive the Market

• According to a survey of 1,054 adults conducted in 2022 by the International Food Information Council, 40% of respondents seek out food products with natural preservatives while only about one in 10 consumers buy food products with artificial preservatives. There is high demand for natural food additives owing to consumer awareness as consumers are worried about the side-effects of synthetic preservatives. 

Increasing Consumption of Cosmetics

• The rising awareness of beauty products, increasing premium on personal grooming, changes in consumption patterns and lifestyles and improved purchasing power among women are expected to boost the cosmetics industry. Propionic acid is a safe and non-toxic skin brightening agent that can be used to minimize hyperpigmentation. The growing demand for safe cosmetics is set to drive the growth of the Propionic Acid Market during the forecast period 2024-2030.

Volatile Prices to hamper market growth

• The prices of propionic acid have been affected due to the pandemic as well as geopolitical tensions. In April 2022, Eastman Chemical Company announced an increase in the price of propionic acid in North America and Latin America. This is a major factor that hampers the growth of the Propionic Acid Market.

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Key Market Players: 

Product/Service launches, approvals, patents and events, acquisitions, partnerships and collaborations are key strategies adopted by players in the Propionic Acid Market. The top 10 companies in the Propionic Acid Market are:

1. BASF SE
2. The Dow Chemical Company
3. Eastman Chemical Corporation
4. Perstorp Holdings AB
5. Celanese Corporation
6. Merck KGaA
7. BIOMIN
8. Hawkins Inc.
9. Niacet Corporation
10. Prathista Industries

Scope of Report: