Propionic Acid Market Size, Share, Trends, Industry Analysis, and Forecast (2025 – 2031)

Propionic Acid Market Size

The global propionic acidmarket size was valued at $1.26 billion in 2025 and is projected to reach $1.66 billion by 2031, growing at a CAGR of 4.7% during the forecast period.

Propionic Acid Market Overview

Propionic acid is a short-chain carboxylic acid known for its potent antibacterial and antifungal properties, making it a valuable compound in various industries. Its primary applications include serving as a preservative in the food industry, particularly in baked goods and dairy products, where it helps prevent mold and bacterial growth, thus extending shelf life. Additionally, propionic acid is utilized in agriculture to preserve animal feed and control microbial growth in livestock environments.

Companies can benefit from propionic acid through its diverse applications, which not only enhance product longevity but also improve food safety standards. The increasing demand for processed foods and the growing livestock industry, especially in developing regions, are driving market growth. Manufacturers can leverage propionic acid to produce derivatives like calcium and sodium propionates, which are gaining popularity as food preservatives. Furthermore, the versatility of propionic acid allows it to be used as a chemical intermediate in the production of herbicides, pharmaceuticals, and various industrial chemicals, thereby opening new avenues for companies to expand their product lines and meet evolving market needs. As the global market for propionic acid continues to grow at an estimated annual rate of 3%, companies that strategically integrate this compound into their operations stand to gain a competitive edge by enhancing product quality and meeting consumer demands effectively.

Propionic Acid Market Dynamics

The propionic acidmarket is expected to witness significant growth in the future due to the increasing demand for natural preservatives in the food industry, growing consumption of packaged and convenience foods, and rising use of propionic acid in the cosmetic and personal care sectors. However, the volatile pricing due to geopolitical tensions and supply chain disruptions, health and safety concerns regarding the use of propionic acid and its residues, and limited production facilities in certain regions impacting supply are restraining the growth of the market.

Furthermore, untapped markets in developing economies for food preservation and animal feed, potential to replace antibiotics in livestock with propionic acid-based solutions, innovations in producing propionic acid from renewable resources, such as food waste are the key trends propelling the propionic acidmarket.

Increasing Demand for Natural Preservatives in the Food Industry is Driving the Propionic Acid Market

The increasing demand for natural preservatives in the food industry is significantly impacting the propionic acidmarket, by driving growth through various initiatives and product developments.

• For instance, BASF SE established a second production plant for propionic acid in Nanjing, China, in May 2019 to meet the rising market demand, particularly for its use as a food preservative in baked goods and dairy products.
• Additionally, the International Food Information Council conducted a survey in 2022, revealing that 40% of consumers prefer food products with natural preservatives over those with artificial ones, highlighting the shift towards natural ingredients.

Government initiatives also play a crucial role; for example, the Indian Ministry of Food Processing Industries has implemented several schemes such as the Pradhan Mantri Kisan SAMPADA Yojana (PMKSY) and the Production Linked Incentive Scheme (PLISFPI), which aim to enhance food processing infrastructure and promote the use of natural preservatives. These programs support entrepreneurs and encourage innovation in food preservation techniques, thereby boosting the demand for propionic acid. Overall, these developments indicate that the growing preference for natural preservatives is not only enhancing market opportunities for propionic acid but also fostering innovation and investment within the food processing sector.

By Application, the Agrochemicals Segment is projected to be the Largest Segment in the Propionic Acid Market

Agrochemicals are the largest segment in the propionic acidmarket, driven by its effectiveness as a preservative and fungicide, particularly in agricultural applications. Propionic acid is primarily utilized to control bacteria and fungi in stored grains, hay, and livestock environments, which is crucial for maintaining food safety and quality. For instance, the U.S. Environmental Protection Agency (EPA) has registered propionic acid as a bactericide and fungicide for use in stored grains and animal feed, ensuring compliance with modern safety standards while promoting sustainable agricultural practices.

• In 2023, BASF SE launched a new line of products incorporating propionic acid derivatives aimed at enhancing crop protection against pests and diseases, reflecting the growing interest in natural agrochemicals.

Additionally, government initiatives like India's push for biopesticides have led to increased investments in natural alternatives to synthetic pesticides, encouraging the use of propionic acid as a safer option. The Indian propionic acid market is projected to grow significantly, with estimates suggesting it could reach USD 1.77 billion by 2028 due to rising agricultural productivity demands and the need for effective pest control solutions. This trend is further supported by global food security initiatives that emphasize sustainable farming practices, thereby driving the adoption of propionic acid in agrochemical formulations.

By Geography, North America Holds the Largest Share in the Market Revenue

North America holds the largest share of the propionic acidmarket, driven by its extensive applications in food preservation, agriculture, and animal feed. The U.S. market, which held a substantial share of approximately 32.45% of the global propionic acid market in 2023, has seen a notable increase in demand due to the rising consumption of processed and packaged foods. This trend is supported by consumer preferences for longer shelf-life products and stringent food safety regulations that mandate reliable preservatives like propionic acid.

• In 2022, the U.S. Department of Agriculture (USDA) initiated programs promoting sustainable feed additives, including propionic acid, to enhance livestock health and reduce reliance on antibiotics in animal feed.
• Additionally, companies such as BASF SE and Celanese Corporation have been actively expanding their production capabilities; for instance, BASF announced plans in 2023 to enhance its propionic acid production facility in North Carolina to meet growing market needs.

These developments highlight how robust agricultural practices and increasing food safety awareness are driving the demand for propionic acid across North America, positioning it as a critical component in various industrial applications.

Key Target Audience:

• Chemical Manufacturers
• Agricultural Companies
• Food and Beverage Industry
• Pharmaceutical Companies
• Regulatory Bodies

List of the Key Players Profiled in the Report Includes:

• BASF Se
• The Dow Chemical Company
• Eastman Chemical Company
• Oxea GMBH
• PERSTORP ORGNR
• Krishna Chemicals
• Celanese Corporation
• BIOMIN HOLDING GMBH
• M. FOOD CHEMICAL CO. LTD
• DAICEL CORPORATION

Recent Developments:

• In March 2025, BASF SE announced the expansion of its propionic acid production capacity at its Nanjing, China facility, operated in joint venture with Sinopec. This expansion is part of BASF’s strategy to meet growing global demand for bio-based and sustainable propionic acid, supporting applications in food preservation, animal feed, and chemical intermediates with a focus on reducing carbon footprint.
• In early 2025, The Dow Chemical Company continued to innovate in propionic acid production by enhancing process efficiency and exploring bio-based feedstocks. Dow is focusing on sustainable manufacturing technologies to provide propionic acid for food-grade preservatives and herbicide intermediates, aligning with increasing regulatory and environmental standards worldwide.
• In 2024, Eastman Chemical Company partnered with Sealed Air to develop bio-based propionic acid for use in lightweight, disposable food packaging trays, offering an environmentally friendly alternative to polystyrene foam. This initiative highlights Eastman’s commitment to sustainability and circular economy principles in propionic acid applications
• In August 2024, Celanese reported a 2% increase in net sales to $2.7 billion for Q2 2024, despite facing external challenges. The company declared force majeure for acetic acid and VAM due to supplier outages.

Market Segmentation:

The research report includes in-depth coverage of the industry analysis with size, share, and forecast for the below segments:

Market by, Application:

• Animal Feed
• Food & Beverages
• Agrochemicals
• Personal Care
• Pharmaceuticals
• Others Applications

Market by, Geography:

The propionic acidmarket report also analyzes the major geographic regions and countries of the market. The regions and countries covered in the study include:

• North America (The United States, Canada, Mexico), Market Estimates, Forecast & Opportunity Analysis
• Europe (Germany, France, UK, Italy, Spain, Rest of Europe), Market Estimates, Forecast & Opportunity Analysis
• Asia Pacific (China, Japan, India, South Korea, Australia, New Zealand, Rest of Asia Pacific), Market Estimates, Forecast & Opportunity Analysis
• South America (Brazil, Argentina, Chile, Rest of South America), Market Estimates, Forecast & Opportunity Analysis
• Middle East & Africa (UAE, Saudi Arabia, Qatar, Iran, South Africa, Rest of Middle East & Africa), Market Estimates, Forecast & Opportunity Analysis

The report offers insights into the following aspects:

• Analysis of major market trends, factors driving, restraining, threatening, and providing opportunities for the market.
• Analysis of the market structure by identifying various segments and sub-segments of the market.
• Understand the revenue forecast of the market for North America, Europe, Asia-Pacific, South America, and Middle East & Africa.
• Analysis of opportunities by identification of high-growth segments/revenue pockets in the market.
• Understand major player profiles in the market and analyze their business strategies.
• Understand competitive developments such as joint ventures, alliances, mergers and acquisitions, and new product launches in the market.

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