The global propionic acid market is evolving steadily, supported by its versatile applications across food preservation, animal feed, and industrial manufacturing. In 2023, the market was valued at USD 1,110.07 million. It is expected to grow to USD 1,146.48 million in 2024 and reach USD 1,494.59 million by 2032, exhibiting a compound annual growth rate (CAGR) of 3.4% during the forecast period (2024–2032).

Propionic acid (C₃H₆O₂) is a short-chain saturated carboxylic acid, primarily used as a preservative and antifungal agent. It is widely adopted in animal feed and food preservation, as well as in the production of cellulose acetate propionate, herbicides, and pharmaceuticals. Increasing global concerns regarding food security, livestock health, and sustainable agricultural practices continue to bolster the demand for propionic acid.

Market Growth Drivers

1. Rising Demand for Food Preservatives

The use of propionic acid as a food preservative is one of its most significant applications. Its antifungal properties inhibit the growth of mold and bacteria, making it ideal for preserving baked goods, cheese, and processed foods. As consumer demand for convenience foods and longer shelf life grows globally, especially in developing regions, the market for food-grade propionic acid is expanding.

2. Growth in Animal Feed Industry

The animal feed sector is a major driver of the propionic acid market. It is used as an antimicrobial additive in poultry, cattle, and swine feed to prevent spoilage and improve gut health. With rising meat consumption and livestock production, especially in Asia-Pacific and Latin America, the demand for high-quality feed preservatives is growing rapidly.

3. Expansion of Agriculture and Herbicide Usage

Propionic acid is a precursor in the manufacture of certain herbicides, including synthetic plant growth regulators. As the global demand for high agricultural productivity rises, especially in densely populated regions, propionic acid plays a crucial role in supporting crop protection and yield enhancement.

4. Rising Demand in Industrial Applications

In the chemical industry, propionic acid is used in the production of cellulose acetate propionate (CAP), which finds applications in coatings, plastics, and film production. The demand for eco-friendly and biodegradable materials has increased CAP’s usage, especially in electronics, automotive coatings, and packaging.

5. Shift Toward Sustainable and Green Chemicals

As sustainability becomes a focal point in chemical manufacturing, bio-based production of propionic acid from renewable sources such as corn, sugar, and biomass is gaining attention. This shift opens new doors for market growth among environmentally conscious manufacturers.

Key Companies

• BASF SE


• Celanese Corporation


• Daicel Corporation


• Dow


• Eastman Chemical Company


• Junsei Chemical Co., Ltd.


• KANTO KAGAKU.


• Merck KGaA


• OQ Chemicals GmbH


• Otto Chemie Pvt. Ltd.


• Perstorp


• SONTARA ORGANO

Key Trends in the Market

• Growth of Bio-Based Propionic Acid

Conventional propionic acid is produced via petrochemical processes, but innovations in bio-fermentation using anaerobic bacteria have led to more sustainable alternatives. Biotech companies are investing in green chemistry to cater to the rising demand for biodegradable and non-toxic chemicals, particularly in food and pharmaceutical applications.

• Stringent Food Safety Regulations

Governments and regulatory bodies like the FDA, EFSA, and FSSAI are pushing for stringent monitoring of food preservatives. This has both boosted demand for GRAS (Generally Recognized as Safe) substances like propionic acid and driven quality standard upgrades, especially in developing markets.

• Asia-Pacific Emerges as a Key Growth Market

Rapid urbanization, population growth, and increasing meat consumption in countries such as India, China, and Indonesia have expanded opportunities for propionic acid in both feed and food sectors. Additionally, regional manufacturing hubs are improving their production infrastructure to reduce import dependency.

• Integrated Supply Chain and Feedstock Optimization

Manufacturers are investing in integrated facilities that utilize crude oil derivatives, carbon monoxide, or bioethanol as feedstocks. Process improvements that optimize yield and minimize emissions are helping companies remain competitive while aligning with climate targets.

• Growing Use in Pharmaceutical and Cosmetic Sectors

Emerging applications in pharmaceutical excipients, topical formulations, and cosmetic preservatives are expanding the addressable market. Propionic acid’s antimicrobial characteristics make it suitable for skin creams, lotions, and medicinal syrups.

Research Scope and Opportunities

Research and development are key to unlocking new applications and improving production processes:

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  Bio-fermentation scalability and cost-effectiveness remain critical research areas for future growth.

  
  


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  Development of multi-functional propionate derivatives for use in personal care, drug delivery, and biodegradable packaging.

  
  


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  Enhancing the environmental performance of production processes through carbon capture and renewable feedstock utilization.

  
  


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  Expansion of custom formulations in feed and food industries to meet specific shelf-life or nutritional requirements.

  
  

Collaborations between academic institutions, biotech firms, and agrochemical companies are fostering innovation in this domain.

Market Segmentation

Propionic Acid Market, Application Outlook (Revenue, USD Million, 2019 - 2032)

• Animal Feed


• Calcium and Sodium Propionate


• Cellulose Acetate Propionate


• Chemicals


• Others

Propionic Acid Market, Regional Outlook (Revenue, USD Million, 2019 - 2032)

• North America
  
  
  
  • Application
    
    
    
    • Animal Feed
    
    
    • Calcium and Sodium Propionate
    
    
    • Cellulose Acetate Propionate
    
    
    • Chemicals
    
    
    • Others
    
    
    
    
  
  
  
  


• Europe
  
  
  
  • Application
    
    
    
    • Animal Feed
    
    
    • Calcium and Sodium Propionate
    
    
    • Cellulose Acetate Propionate
    
    
    • Chemicals
    
    
    • Others
    
    
    
    
  
  
  
  

Explore More:

https://www.polarismarketresearch.com/industry-analysis/propionic-acid-market

Conclusion

The propionic acid market is set for stable and diversified growth, backed by robust demand in food preservation, livestock feed, and industrial applications. With increasing emphasis on sustainability, innovation in bio-based production, and evolving regulatory landscapes, the market is poised to adapt and expand across sectors and regions. Industry players that focus on quality, innovation, and eco-friendly practices will be best positioned to thrive in this dynamic market environment.