Propionic Acid Market Size, Share Industry Analysis Report, Regional Outlook, Growth Potential, Competitive Market Share & Forecast, 2021 – 2027
Report ID: GMI3611
Propionic acid market size is set to witness notable proceeds from 2021 to 2027 owing to the rapid developments in the food, feed, and pharmaceutical sector. The growth of the convenience food industry has propelled the requirement for safe animal feed, grains and preservatives.
Propionic acid is primarily a colorless liquid that limits the growth of mold as well as several bacteria. Increasing focus on packaging of ready-to-eat food commodities along with higher penetration of propionic acid in rubber products will bolster the market expansion
Propionic acid industry share from the animal feed applications will grow with the rising concerns over animal nutrition. The growing intake of dairy and poultry products has given rise to numerous animal feed options. The surging rate of beef and pork exports, specifically from the U.S. is another important driver for the industry growth. The mounting farming incomes have also stirred the higher need for mold & bacteria curbing additives in animal feed. The increasing public awareness will also influence the market dynamics.
Based on end-use, the consumption of propionic acid in the agricultural sector is anticipated to rise with the growing requirement for preservatives in animal feed and grains. The rising consumer per capita incomes have led to the consistently increasing demand for food. Higher adoption to kill fungi and bacteria and the need for anti-bacterial agents in water will favor the market growth. However, growing environmental concerns pertaining to pesticides and the detrimental effects caused by human exposure may limit the product demand to some extent.
The food & beverage sector will record higher adoption of propionic acid owing to the growing intake of hydrating drinks. The rapid economic growth together with the booming population has resulted in increasing developments in food & beverages. The rising penetration of common food preservatives for extended shelf life will act as a significant contributor to the product demand spurt.
Regionally, Europe is likely to account for a significant propionic acid industry share due to the optimum manufacturing rate and the presence of leading product manufacturers in the region. The flourishing food and agriculture sector coupled with the favorable regulatory scenario mainly in Germany has paved the path for numerous food-related investments. There is also higher production of chicken feed in Italy. The expanding need for cosmetics, as well as the higher consumption of herbicides & bakery preservatives, will drive the regional market proliferation.
Asia Pacific propionic acid market is expected to observe inclination through 2027 on account of the increasing utility of food preservatives and pharmaceuticals. Improved standard of living coupled with the higher consumption of meat has led to rising advancements in the animal feed additives sector. The booming agricultural vertical has made way for a growing need for preservatives to help protect crops from infections, further complimenting the product adoption in APAC.
The propionic acid industry amalgamates the presence of players that include Daicel Corporation, BASF SE, Eastman Chemical Company, Celanese Corporation, Perstorp Holding (Financière Forêt S.À.R.L.), Dow Chemical Company (Dow Inc.), and Biomin Holding (ERBER Group).
Capacity expansions, development of new products, partnerships through acquisitions and mergers, and investments are some inorganic strategies adopted by these leading industry participants to sustain competition and enhance their global presence. For instance, in December 2017, Dow Industrial Solutions disclosed its plans of expanding its propionic acid facility located in Texas City to cater to escalating requirements across the globe.
In another instance, in June 2019, BASF SE joined forces with Sinopec to commence the production at the second propionic acid manufacturing plant at the Verbund site of BASF-YPC Co Ltd, a 50-50 joint venture (JV) in Nanjing, China.
Impact of the COVID-19 crisis on propionic acid market trends
In response to the COVID-19 pandemic, which brought ructions in the global economy, the propionic acid industry suffered a significant blow on account of the dearth of raw materials and workforce. The bans imposed on the export of animal feed to the neighboring and other outer countries, mainly in Europe contributed to the hampered supply and production. However, with the gradual releasing of the lockdown policies in the present day, the demand for propionic acid will pick up at a significant pace.
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