Propionic Acid Market Report 2025

This report covers market characteristics, size and growth, segmentation, regional and country breakdowns, competitive landscape, market shares, trends and strategies for this market. It traces the market’s historic and forecast market growth by geography.

The propionic acid market size has grown steadily in recent years. It will grow from $1.5 billion in 2024 to $1.57 billion in 2025 at a compound annual growth rate (CAGR) of 4.6%. The growth in the historic period can be attributed to increasing demand in animal feed preservatives, expanding food and beverage industry, focus on grain preservation, growing awareness of food safety, rise in livestock farming, application in cellulose acetate propionate (cap) production.

The propionic acid market size is expected to see steady growth in the next few years. It will grow to $1.83 billion in 2029 at a compound annual growth rate (CAGR) of 4%. The growth in the forecast period can be attributed to continued growth in livestock farming, increasing focus on sustainable agriculture, rising demand for processed food, global food security initiatives, growing application in derivatives production, environmental regulations and sustainable practices. Major trends in the forecast period include emergence of propionic acid as a herbicide, technological innovations in production processes, growing adoption in pharmaceutical and cosmetic industries, regulatory compliance and quality standards, market expansion in developing regions.

The anticipated growth in the agricultural industry is poised to drive the expansion of the propionic acid market in the foreseeable future. The agricultural industry encompasses all activities related to cultivating plants and raising animals for various purposes, such as food production, fiber, and materials production. Propionic acid plays a crucial role in the agriculture sector as an antimicrobial and antifungal agent, utilized in the management of poultry litter and the treatment of livestock drinking water. As an illustration, in May 2023, data from the National Statistical Institute of Iceland, an official statistics institution based in Iceland, revealed a 12% growth in the production value of the agricultural industry in Iceland, increasing from $0.54 billion in 2021 to $0.61 billion in 2022. Therefore, the growth in the agricultural industry is a key factor propelling the expansion of the propionic acid market.

The increasing demand for natural beauty products is expected to contribute to the growth of the propionic acid market in the coming years. Natural beauty products, including cosmetics, skincare, and personal care items formulated with ingredients derived from nature, have seen rising popularity. Propionic acid, known for its antimicrobial properties, serves as a crucial preservative in natural beauty products, preventing bacterial growth and extending product shelf life. This contributes to increased sales in the personal care industry. For example, in 2022, a report published by the Soil Association, a UK-based registered charity, indicated that the organic and natural product market reached a value of $188 million (£147.23 million) in 2022, reflecting a growth of 6.8% from the previous year. Therefore, the rising demand for natural beauty products is playing a significant role in propelling the growth of the propionic acid market.

Major companies in the propionic acid market are actively engaged in developing innovative processes for propionic acid production, such as biomimetic fermentation for generating bio-sourced organic acids. Biomimetic fermentation involves the use of fermentation technology to produce pure organic acids, with a primary focus on propionic acid. For instance, in October 2022, AFYREN SA, a France-based chemicals manufacturing company, launched a plant for industrial production utilizing Afyren technology based on the biomimetic fermentation of GMO-free co-products. This approach allows for the production of a high-quality and pure organic family of seven fully bio-sourced acids, including afyren propionic acid.

In April 2022, BASF SE, a Germany-based chemical manufacturing company producing propionic acid, entered into a partnership with Sinopec Corp. The collaboration aims to expand production capacities for propionic acid, ethylenediamine, purified ethylene oxide, propionic aldehyde, and ethanolamine. Additionally, both companies seek to integrate state-of-the-art technologies for constructing new facilities, enhancing their competitive edge. Sinopec Corp. is a China-based oil and gas manufacturer.

Major companies operating in the propionic acid market report are BASF SE, Merck KGaA, Dow Chemical Company, Thermo Fisher Scientific Inc., Honeywell International Inc., INEOS Group Holdings S.A., Evonik Industries AG, Solvay S.A., Arkema SA, Eastman Chemical Company, Celanese Corporation, Clariant AG, Sigma-Aldrich Corporation, Daicel Corporation, Novozymes A/S, OQ Chemicals GmbH, Corbion N.V., Hawkins Inc., Nacalai Tesque Inc., Kishida Chemical Co. Ltd., Macco Organiques Inc., Niacet Corporation, Gelest Inc., Vigon International Inc., Kanto Chemical Co. Inc., Impextraco N.V., Otto Chemie Pvt. Ltd., Perstorp Holding AB, Jarchem Industries Inc., TRInternational Inc.

Europe was the largest region in the propionic acid market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the propionic acid market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the propionic acid market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The propionic acid market consists of sales of sodium propionate, calcium propionate, and potassium propionate. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

Propionic acid is a naturally occurring, colorless organic compound characterized by a pungent odor and falls under the category of carboxylic acids. Widely recognized for its applications, it serves as a food preservative, fungicide, and antimicrobial agent within the food industry. Additionally, propionic acid plays a crucial role in the production of cellulose acetate propionate, herbicides, pharmaceuticals, and plasticizers.

The primary methods for producing propionic acid involve the oxo process, Reppe process, and the by-product process. The oxo process is a chemical reaction employed in generating aldehydes and alcohols, with diverse applications spanning herbicides, rubber products, plasticizers, food preservatives, and more. Various industries, including pharmaceuticals, personal care, food and beverage, agriculture, and others, utilize propionic acid as a key component in their end products.

The propionic acid market research report is one of a series of new reports that provides propionic acid market statistics, including propionic acid industry global market size, regional shares, competitors with a propionic acid market share, detailed propionic acid market segments, market trends and opportunities, and any further data you may need to thrive in the propionic acid industry. This propionic acid market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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