Propionic Acid Market is Expected to Reach $1.6 Billion by 2026

According to a new report published by Allied Market Research, titled, "Propionic Acid Market by Application and End-Use Industry: Global Opportunity Analysis and Industry Forecast, 2019-2026," the propionic acid market accounted for revenue of $1.2 billion in 2018, and is anticipated to generate $1.6 billion by 2026. The market is projected to experience growth at a CAGR of 3.5% from 2019 to 2026. Propionic acid (PA) is increasingly used as an antifungal agent in food. It is also used in dairy products with other short-chain fatty acids (SCFA), as well as found naturally in the gastro-intestinal tract of humans and other mammals. Factors such as rise in application of propionic acid in the food & beverage industry and increase in demand for safe animal feed boost the growth of the market. 

Environment Protection Agency (EPA) first registered propionic acid-containing products in the early 1970s.  The currently registered products are used as fungicides and bactericides. However, in 1975 EPA exempted propionic acid from tolerances for residues following post-harvest application in grains or hays. Further, propionic acid is also exempt from the requirement of a tolerance when applied as an inert ingredient to growing crops or to raw agricultural commodities. Propionic acid is generally recognized as safe by FDA for use in food. Propionic acid products are also safe to be utilized for both human food and animal feed.  However, propionic acid can expose off odor and taste to a treated commodity.

The global propionic acid market is segmented on the basis of application, end-use industry, and region. On the basis of application, the market is classified into herbicides, rubber products, plasticizers, food preservative, and others. The food preservative segment was the highest contributor to the market and is expected to grow with a CAGR of 3.1% during the forecast period. The rubber products segment is estimated to grow with the highest CAGR of 5.1%.

According to end-use industry, the market is categorized into pharmaceuticals, personal care, food & beverage, agriculture, and others. The food & beverage segment was the highest contributor to the market and is expected to grow with the CAGR of 2.9% during the forecast period. The agriculture segment is estimated to grow with the highest CAGR of 4.4%.

Region wise, the market is analyzed across North America, Europe, Asia-Pacific, and LAMEA. Europe was the highest revenue contributor and North America is estimated to grow with a significant CAGR of 4.0%. The key players operating in the global propionic acid market are BASF SE,Dow Inc., Eastman Chemical Company, Perstorp Holding AB, Hawkins, Inc., Corbion N.V., Otto Chemie Pvt. Ltd., Merck KGaA, Oman Oil Company SAOC, and Celanese Corporation. These players are adopting various strategies such as acquisitions, partnerships, collaboration, joint ventures, agreements, expansions, and new product launches to create a strong consumer base in the market.

Key Findings of the Study:

• In 2018, the Europe market held 40.0% in the global propionic acid market share.
• The U.S. and Canada collectively accounted for around 96.4% share in 2018, with the former constituting around 74.5% share.
• The food preservative and herbicides segments collectively accounted for around 65.4% market share in 2018, with the former constituting around 42.8% share.
• The rubber product segment is expected to grow with the highest CAGR during the forecast period.
• The qualitative data in the report aims on the propionic acid trends, dynamics, and developments, while the quantitative data provides information about the market share and propionic acid market size in terms of revenue and volume.