What Has Been the Progress and Growth of the Propionic Acid Market in Recent Years?
The propionic acid market has seen considerable growth due to a variety of factors.
• In recent times, the propionic acid market has seen a consistent increase in size. It is projected to expand from $1.5 billion in 2024 to $1.57 billion the subsequent year, progressing at a compound annual growth rate (CAGR) of 4.6%.
The growth perceived in the previous period can be credited to the escalating demand for animal feed preservatives, the development in the food and beverage sector, emphasis on grain preservation, enhanced consciousness regarding food safety, the surge in livestock farming, along with its use in cellulose acetate propionate (cap) production.
How Does the Forecast Look for the Propionic Acid Market?
The propionic acid market is expected to maintain its strong growth trajectory in upcoming years.
• The market for propionic acid is set to enjoy consistent expansion in the forthcoming years, with predictions suggesting growth to $1.83 billion by 2029 at a 4.0% compound annual growth rate (CAGR). Such progression over the forecast period can be linked to the ongoing expansion in livestock farming, a heightened emphasis on sustainable farming, an increasing demand for processed food, initiatives aimed at global food security, a rise in its use in the production of derivatives, along with environmental regulations and eco-conscious practices. Notable shifts in the forecast timeline include the emergence of propionic acid as a plant protection product, advancements in production technologies, its growing uptake in pharmaceutical and beauty sectors, adherence to regulations and high-quality standards, and market growth in emerging regions.
What Are The Leading Drivers Of Growth In The Propionic Acid Market?
The upward trend in the agricultural industry is projected to spur on the development of the propionic acid market. The sphere of agriculture comprises all activities linked to plant cultivation and animal rearing for an array of uses including food, fiber, and material production. Propionic acid has a wide range of applications in this industry, especially as an antimicrobial and antifungal agent used in poultry litter management and livestock drinking water treatment. A pertinent example is witnessed in May 2023 when the National Statistical Institute of Iceland confirmed an increased production value in the country's agriculture sector, rising from $0.54 billion in 2021 to $0.61 billion in 2022, marking a 12% growth. Consequently, this progressive trend in the agricultural industry is propelling the expansion of the propionic acid market. The propionic acid market is experiencing a surge due to a growing demand for natural beauty products. These are cosmetic, skincare, and personal care items that are made using ingredients obtained naturally from sources like plants, minerals, and other organic substances. The antimicrobial properties of propionic acid make it a crucial preservative in these products, helping to prevent bacterial growth and extend product shelf life, thereby escalating sales in the personal care sector. This increase in demand was affirmed in 2022 by a Soil Association report, a UK-based registered charity, which revealed that the organic and natural product market touched a value of $188 million (£147.23 million) in that year, marking a 6.8% increase from the year before. Therefore, the burgeoning demand for natural beauty products is fuelling the growth of the propionic acid market.
How Are The Segments Defined Within The Global Propionic Acid Market?
The propionic acid market covered in this report is segmented –
1) By Product: Oxo Process, Reppe Process, By-product Process
2) By Application: Herbicides, Rubber Products, Plasticizers, Food Preservatives, Other Applications
3) By End-User Industry: Pharmaceuticals, Personal Care, Food And Beverage, Agriculture, Other End-User Industries
Subsegments:
1) By Oxo Process: Propionic Acid From Propionaldehyde, Catalytic Hydrogenation Of Acetaldehyde, Use Of Carbon Monoxide And Hydrogen In Production
2) By Reppe Process: Acetylene-Based Process For Propionic Acid, Production Of Propionic Acid Through Acetylene And Carbon Monoxide Reaction, Catalytic Reaction With Phosgene Derivatives
3) By By-Product Process: Production Of Propionic Acid As A By-Product Of Acetone Manufacturing, By-Product Formation During The Production Of Acrylic Acid Or Acetate, Recovery Of Propionic Acid From Fermentation Or Other Processes
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What Trends Are Shaping The Propionic Acid Market?
Leading businesses in the propionic acid market are investing in the creation of innovative production methods, such as biomimetic fermentation, to yield bio-sourced organic acids. The fundamental principle behind biomimetic fermentation of bio-sourced organic acids lies in the unique fermentation technology that gives birth to pure organic acids, predominantly propionic acid. For example, AFYREN SA, a chemical production company based out of France, inaugurated a facility for the mass production of bio-sourced acids in October 2022. They used Afyren technology, which leans heavily on biomimetic fermentation of GMO-free co-products to generate a quality-assured, pure family of seven completely bio sourced acids, including afyren propionic acid.
Who Are the Key Players In The Propionic Acid Market?
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.
What Is The Most Dominant Region In The Propionic Acid Market?
Europewas 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.
