Propionic Acid Market To Reach USD 3.12 Billion, Globally, by 2032

Introduction

The global propionic acid market is poised for substantial growth, with its market size anticipated to expand from USD 1.57 billion in 2023 to approximately USD 3.12 billion by 2032, registering a compound annual growth rate (CAGR) of 7.3% during the forecast period from 2023 to 2032. This growth is driven primarily by increasing demand for grain preservatives and safe animal feed, which are significant applications of propionic acid in agriculture. The rising global consumption of packaged foods, which use propionic acid as a preservative to extend shelf life and inhibit bacterial growth, also contributes significantly to market expansion.

Recent developments in the propionic acid market include BASF SE’s launch of a carbon-neutral propionic acid product and the expansion of manufacturing facilities by key players such as Perstorp and Oxea. BASF’s initiatives towards sustainability and capacity enhancements in China and Germany aim to meet the growing demand, particularly in the Asia-Pacific region, which is expected to experience the fastest growth due to its expanding agricultural sector and increased use of herbicides.

However, the market faces several challenges. The detrimental health effects of propionic acid and environmental concerns regarding its use in herbicides pose significant restraints. Additionally, geopolitical tensions and supply chain disruptions have impacted market stability, affecting the consistent supply of raw materials and final products. Despite these challenges, the market outlook remains positive, buoyed by strategic investments and collaborations among key industry players.

Companies like BASF, Eastman Chemical Company, and Dow are actively enhancing their production capacities and developing innovative solutions to address environmental concerns and health issues, thereby ensuring sustained growth in the coming years. In September 2022, BASF SE achieved carbon-neutral certification for its propionic acid and neopentyl glycol products from the Carbon Trust. This move aligns with their commitment to sustainability and reducing carbon footprints. Expansion in China: In May 2022, BASF and SINOPEC started production at their second propionic acid plant in Nanjing, China, increasing the combined annual production capacity to 69,000 metric tons​​​.

Dow Inc. continues to enhance its lubricant offerings with high-performance lubricants designed for various applications, including industrial and automotive sectors. They emphasize the development of lubricants that can withstand extreme conditions and improve efficiency and sustainability​​​. Capacity Expansion: Dow has been expanding its production capabilities to meet the growing demand for lubricants. This includes investments in its Texas City plant to enhance the production of propionic acid.

Eastman Chemical Company has introduced Synergex™ neutralizing amine additives, which extend the life of metalworking fluids by offering excellent buffering and pH stability. This product aims to improve the efficiency and lifespan of lubricants used in industrial applications. High-Performance Oils: Eastman’s Turbo Oil 2197™ continues to be a leading product in the market, providing high-performance capabilities for aero-derivative turbine engines, reducing maintenance intervals, and enhancing equipment reliability.

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Statistics

• Propionic acid inhibits the growth of mold and some bacteria at levels between 0.1 and 1% by weight. As a result, some propionic acid produced is consumed as a preservative for both animal feed and food for human consumption.
• Some propionic acid is oxidized to lactic acid during absorption, but most passes to the liver, which removes nearly all of it from the portal blood 9. Propionic acid represents 20-25% of absorbed volatile fatty acids.
• Three days after a single oral administration of labeled sodium propionate, 77% of the radioactivity was found in expired air, and 7% in urine and feces
• Obesity has reached epidemic proportions and is still escalating at an alarming rate worldwide. World Health Organization reported that the population living on earth is approximately 7.77.7 billion of which more than 1.9 billion adults.
• adults (~39%) with overweight and over 600 million with obese (~13%). In Palestine, the prevalence of obesity is approximately 4 times among women (49%) and 2 times among men (30%) higher than the worldwide observed prevalence.
• Propionic acidemia affects about 1 in 100,000 people in the United States. The condition appears to be more common in several populations worldwide, including the Inuit population of Greenland, some Amish communities, and Saudi Arabians.
• Cells were cultured in RPMI1640 medium supplemented with 10% fetal calf serum, 0.1 mg/ml streptomycin, 100 U/ml penicillin, and 2 mM glutamine. Cell viability was 98%–100% as assessed by the Trypan blue exclusion assay.
• After blocking with 5% skim milk for 30 minutes, the membrane was incubated with primary antibodies of interest
• The price of Propionic Acid (United States) increased during April 2019 to 1,080 USD per metric ton, which represents a slight rise of 3% compared to the previous month’s value. On a year-over-year basis, the prices of Propionic Acid (United States) increased modestly by 0.9%.
• average price of Propionic Acid (China) amounted to 1,320 USD per metric ton, from 1,110 USD per metric ton one year earlier. On a month-over-month basis, the price of Propionic Acid (China) is 6% lower than the price one month before.
• The price of Propionic Acid (Southeast Asia) declined slightly throughout April 2019, reaching 1,420 USD per metric ton.  The price is 0.7% lower than the average price in the previous month and 0.7% higher than the average price one year before.
• In contrast, the prices of Propionic Acid (Central Europe) increased significantly during April 2019, reaching 1,420 USD per metric ton, which means a rise of 15% from the previous month’s price and a decline of 12% from the previous year’s price.
• Propionic Acid Handling. Classified as corrosive, pure Propionic Acid can be stored in containers made of aluminum (with a purity of 99.5 %) or alloyed steels. This acid may also be temporarily stored in polyethylene containers and polyethylene small packing drums.
• Propionic Acid Uses. The uses and applications of Propionic Acid may vary according to its specifications. The main forms of Propionic Acid have a minimum purity of 99.5 wt%.
• The correlation coefficient of the calibration curve was R2≥0.999 and the recovery rates were 85.84∼111.66%, with a relative standard deviation of 0.08∼2.13%.
• The fermentative production of propionic acid in cod gurry hydrolysate containing from 2.5 to 4.0% glucose by strains of Propionibacterium was studied. Yields of 1.3 to 1.7% propionic acid plus 0.52 to 0.71% acetic acid with resulting pH values of 4.2 to 4.0 were achieved with steam-sterilized hydrolysates after 192 h of incubation.
• 1.0% propionic acid or more at a pH value at or near 4.0 is considered sufficient to achieve permanent preservation. The rates of the fermentations and resulting rates of reduction of pH were notably slow due to generation times of 6 h or longer.

Emerging Trends

The global propionic acid market is experiencing several emerging trends driven by various factors. One significant trend is the increasing use of propionic acid as a preservative in food and feed due to its effectiveness in inhibiting mold and bacteria, enhancing food safety and shelf life. This is coupled with rising demand in the agricultural sector for grain preservation and safe animal feed.

Additionally, technological advancements and innovations in production processes, such as BASF’s zero carbon footprint propionic acid, highlight a shift towards sustainability and environmentally friendly practices. The market is also seeing growth in pharmaceutical and personal care applications due to the compound’s role as a chemical intermediate. However, challenges such as raw material price fluctuations and regulatory constraints persist.

Use Cases

Food and Beverage Industry: Propionic acid is extensively used as a food preservative due to its ability to inhibit mold and bacterial growth. It is commonly found in products like bread, baked goods, and processed cheese. This sector accounted for approximately 44% of the market in 2022, highlighting its significance in ensuring food safety and extending shelf life​​​.

Animal Feed and Grain Preservation: Propionic acid is vital in the agriculture sector, used to preserve animal feed and grains. It prevents mold and bacterial contamination, ensuring the nutritional quality and safety of feedstocks. This application is critical for maintaining the health of livestock and supporting the agricultural supply chain​.

Pharmaceuticals: In the pharmaceutical industry, propionic acid serves as a chemical intermediate in the production of various drugs, including antifungal and antimicrobial agents. Its role in synthesizing pharmaceutical compounds underscores its importance in healthcare applications​.

Personal Care Products: The chemical is also used in the personal care industry, particularly in products that require antimicrobial properties, such as cosmetics and skincare items. This application helps extend the shelf life of personal care products by preventing microbial contamination​.

Chemical Intermediates: Propionic acid is used to manufacture cellulose acetate propionate (CAP), which is utilized in coatings, plastics, and films. CAP production is expected to continue growing, driven by demand in various industrial applications.

Key Players Analysis

BASF SE is a leading producer of propionic acid, which is primarily used as a mold inhibitor for food and feed preservation. The company has implemented a zero carbon footprint production process for propionic acid at its Ludwigshafen Verbund site in Germany, using renewable raw materials through its biomass balance approach. This initiative supports BASF’s commitment to sustainability and the circular economy. Additionally, BASF has expanded its production capacity in Nanjing, China, to meet the growing demand in Asia Pacific.

Dow Inc. is also a significant player in the propionic acid sector, producing the compound at its Texas City, Texas facility. Dow utilizes propionic acid in various applications, including as a preservative in food and feed, and in the production of pharmaceuticals, crop protection agents, and solvents. The company is expanding its facility to meet the rising global demand driven by the need for longer-lasting food products and sustainable agricultural practices.

Eastman Chemical Company is a key player in the propionic acid market, offering high-quality products for various applications, including food preservation, animal feed, and agricultural chemicals. Their propionic acid is utilized as a mold inhibitor and preservative, benefiting from its antimicrobial properties. Eastman’s Popcorn product, designed for grain preservation, showcases the company’s innovation in creating effective solutions for on-farm grain storage, ensuring high-quality feed and reduced losses.

Perstorp Holding AB is another prominent entity in the propionic acid sector, known for its extensive range of high-performance products. Perstorp’s propionic acid is used in animal feed to inhibit mold growth, enhancing feed quality and safety. Additionally, their propionic acid is a key component in the manufacture of herbicides, food preservatives, and plasticizers. Perstorp’s innovative approach and strong market presence underscore its significance in the propionic acid industry, providing reliable and efficient solutions across various applications.

Hawkins, Inc. is a key player in the propionic acid sector, providing essential bulk chemicals and specialty formulations to various industries. The company, headquartered in Roseville, Minnesota, operates through three main segments: Industrial, Water Treatment, and Health and Nutrition. Hawkins manufactures and distributes propionic acid, which is utilized extensively as a preservative in food products to prevent mold and bacterial growth.

Corbion N.V. is a prominent company in the propionic acid sector, known for its sustainable biochemical products. Based in the Netherlands, Corbion produces propionic acid mainly for food preservation, animal feed, and agricultural applications, leveraging its expertise in lactic acid and its derivatives. The company focuses on providing natural and effective solutions that align with consumer demands for clean-label products. Through continuous innovation and strategic investments, Corbion enhances its production efficiency and expands its market reach, ensuring a stable supply of high-quality propionic acid.

Otto Chemie Pvt. Ltd. specializes in the production of propionic acid with a purity of 99%, primarily used in the manufacturing of solvents, artificial flavorings, and nickel electroplating solutions. The company’s offerings also extend to pharmaceuticals and perfumes, demonstrating versatility in applications across various industries. Otto Chemie provides both small-scale and bulk quantities, catering to both research and commercial needs.

Merck KGaA is a prominent player in the propionic acid market, providing high-purity propionic acid used extensively in pharmaceuticals, food preservatives, and agriculture. The company’s propionic acid is crucial in preventing mold growth in stored grains and animal feed, contributing to enhanced shelf life and quality. Merck KGaA’s rigorous quality standards and innovative solutions support its reputation in the chemical manufacturing sector, serving diverse industries.

Oman Oil Company SAOC, through its subsidiary Oxea, is actively involved in the production of oxo intermediates and derivatives, including propionic acid. Oxea operates a global network of plants, utilizing competitive raw materials from Oman to expand its chemicals portfolio. This strategic investment aims to position Oman Oil as a leading player in the chemicals industry, leveraging its geographical advantages for access to emerging markets in Asia.

Celanese Corporation is a key player in the propionic acid sector, primarily focusing on manufacturing and supplying chemicals and advanced materials. The company’s operations in this sector are geared towards producing propionic acid for use as a preservative in animal feed and food products and as an intermediate in the production of herbicides and pharmaceuticals. Celanese’s extensive product portfolio and global reach enable it to meet the growing demand for propionic acid in various industries.

Conclusion

The propionic acid market is poised for significant growth in the coming years, driven by increasing demand across various sectors such as food preservation, animal feed, and agriculture. Propionic acid is widely used as a preservative due to its effectiveness in inhibiting mold and bacterial growth, thus extending the shelf life of food products. Increased industrialization and urbanization, particularly in developing regions, are major factors contributing to market expansion. North America and Europe are key markets due to the established food and agriculture industries, with Europe projected to maintain a leading position thanks to stringent food safety regulations and growing demand for convenience foods. Meanwhile, the Asia-Pacific region is expected to witness the fastest growth, driven by rising disposable incomes, changing dietary preferences, and increased use of propionic acid in herbicides and other industrial applications​​.

Sources :

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