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Published Date: 2014-05-12Number of Pages: 73

Propionic Acid Market for Animal Feed & Grain Preservatives, Calcium & Sodium Propionates, Cellulose Acetate Propionate and Other Applications - Global Industry Analysis, Size, Share, Growth, Trends and Forecast, 2013 - 2019

Propionic acid (CH3CH2COOH) is a naturally occurring carboxylic acid. It is a colorless oily liquid with pungent odor. Propionic acid is miscible in water. It is used to manufacture a number of salts and esters, and flavoring agents. It is also used in food. Propionic acid is used mainly as a preservative for both animal feed and food for humans. Its primary function is to inhibit the growth of bacteria and molds that thrive on crops and agricultural yields. 

 

Increasing demand from animal feed and grain preservative sectors is expected to be a key driving factor for the propionic acid market. Furthermore, rising demand for flavoring agents from end-use industries due to growth in food industry, and from plastic industry for thermoplastics is anticipated to boost the market for propionic acid. Environmental concerns regarding the role of herbicides in air and water pollution may hamper demand for propionic acid. Furthermore, the adverse effect on human health, including genetic changes, tumors and skin irritation, is estimated to be a restraint for the propionic acid market.

 

Propionic acid is used in host of applications in various industries including pharmaceutical industry. Rising demand from the pharmaceutical industry in production of solvents and non-steroidal anti-inflammatory drugs is expected to fuel demand for propionic acid globally. Increasing demand for Vitamin E to improve the quality of poultry feed and as key ingredient to manufacture skin creams, hairspray and other personal care products is expected to open up opportunities for the propionic acid market in the near future .

 

Propionic acid is primarily used to control the growth of fungi and bacteria in stored hay, grains, poultry litter among others. The major applications of propionic acid include animal feed and grain preservatives, Cellulose Acetate Propionate (CAP), calcium and sodium propionates and herbicides among others. Animal feed and grain preservatives protect feed and grains from bacteria and molds. CAP is a free flowing, low odor powder that has its applications in printing inks and personal care products. CAP application segment accounted for around 9% of the total revenue generated by the propionic acid market in 2012. 

 

Europe is the largest market growing at a CAGR of 2.1% in terms of volume from 2013 to 2019. The ban imposed on antibiotic and few other applications increased demand for propionic acid in Europe. However, the market is anticipated to experience steady growth in the near future as emerging economies are contributing to rising demand for propionic acid. Europe was followed by North America with 29.8% of the total propionic acid volume consumed in 2012. Emerging economies are expected to fuel the demand for propionic acid owing to growth trends in end use industries. However, Asia Pacific is expected to be the fastest growing market at a CAGR of 2.9% in terms of volume demand from 2013 to 2019.

 

The major players producing propionic acid include, BASF SE, The Dow Chemical Company, Perstorp Holding GmbH, Biomin Holdings GmbH and Eastman Chemical Company among others. These manufacturers exhibit high level of integration across value chain of propionic acid and are engaged in the manufacturing of propionic acid as well as it raw materials. This helps them overcome the dependence on other companies for raw materials. Some propionic acid manufacturers are forward integrated as well and supply propionic acid and products to various end-user industries. Most of the companies distribute their products through their own distribution network and few companies avail services of third party distributors and supply contracts.

 

 

Chapter 1 Preface

1.1 Report description

1.2 Market segmentation

1.3 Research Scope and Assumptions

1.4 Research methodology

 

Chapter 2 Executive Summary

2.1 Global propionic acid market estimates and forecast, 2012–2019 (Kilo tons) (USD Million)

2.2 Global propionic acid market snapshot 2012 - 2019

 

Chapter 3 Propionic Acid: Global Industry Analysis

3.1 Introduction

3.2 Value chain analysis

3.3 Market Drivers

      3.3.1 Increasing demand from animal feed and grain preservative

      3.3.2 Potential market in developing economies

3.4 Restraints

      3.4.1 Adverse effects of propionic acid

              3.4.1.1 Environmental impact of propionic acid

              3.4.1.2 Health hazards associated with propionic acid

3.5 Opportunities

      3.5.1 Increasing demand from pharmaceutical industry

      3.5.2 Growing demand for Vitamin E

3.6 Porter’s five forces analysis

      3.6.1 Bargaining power of suppliers

      3.6.2 Bargaining power of buyers

      3.6.3 Threat from substitutes

      3.6.4 Threat of new entrants

      3.6.5 Degree of competition

3.7 Global propionic acid market: Company Market share analysis (2012)

3.8 Global propionic acid market: Market attractiveness analysis

 

Chapter 4 Propionic Acid Market –Application Analysis

4.1 Global Propionic Acid Market: Application overview

      4.1.1 Global propionic acid market volume share, by application, 2012 and 2019

4.2 Animal feed and grain preservatives

      4.2.1 Global propionic acid market for animal feed and grain preservatives, 2012–2019 (Kilo tons) (USD Million)

4.3 Calcium and sodium propionates

      4.3.1 Global propionic acid market for calcium and sodium propionates, 2012–2019 (Kilo tons) (USD Million)

4.4 Cellulose acetate propionate (CAP)

      4.4.1 Global propionic acid market for cellulose acetate propionate, 2012–2019 (Kilo tons) (USD Million)

4.5 Others (Herbicides, etc)

      4.5.1 Global propionic acid market for others, 2012–2019 (Kilo tons) (USD Million)

 

Chapter 5 Propionic Acid Market: Regional Analysis

5.1 Global Propionic acid market: Regional overview

      5.1.1 Global propionic acid volume share by region, 2012–2019(Kilo tons)

5.2 North America

      5.2.1 North America propionic acid market, 2012–2019(Kilo tons) (USD Million)

      5.2.2 North America propionic acid market volume, 2012–2019 (Kilo tons), by application

      5.2.3 North America propionic acid market revenue, 2012–2019 (USD Million), by application

5.3 Europe

      5.3.1 Europe propionic acid market, 2012–2019 (Kilo tons) (USD Million)

      5.3.2 Europe propionic acid market volume, 2012–2019 (Kilo tons), by applications

      5.3.3 Europe propionic acid market revenue, 2012–2019 (USD Million), by application

5.4 Asia Pacific

      5.4.1 Asia Pacific propionic acid market, 2012–2019(Kilo tons) (USD Million)

      5.4.2 Asia Pacific propionic acid market volume, 2012–2019 (Kilo tons), by application

      5.4.3 Asia Pacific propionic acid market revenue, 2012–2019 (USD Million), by application

5.5 Rest of the World (RoW)

      5.5.1 RoW propionic acid market, 2012–2019(Kilo tons) (USD Million)

      5.5.2 RoW propionic acid market volume, 2012–2019 (Kilo tons), by application

      5.5.3 RoW propionic acid market revenue, 2012–2019 (USD Million), by application

 

Chapter 6 Company Profiles

6.1 A.M Food Chemical Co., Ltd.

      6.1.1 Company overview

      6.1.2 Business strategy

      6.1.3 SWOT analysis

      6.1.4 Recent developments

6.2 BASF SE

      6.2.1 Company overview

      6.2.2 Financial overview

      6.2.3 Business strategies

      6.2.4 SWOT analysis

      6.2.5 Recent developments

6.3 Biomin Holding GmbH

      6.3.1 Company overview

      6.3.2 Business strategy

      6.3.3 SWOT analysis

      6.3.4 Recent developments

6.4 Celanese Corporation

      6.4.1 Company overview

      6.4.2 Financial overview

      6.4.3 Business strategy

      6.4.4 SWOT analysis

6.5 Daicel Corporation

      6.5.1 Company overview

      6.5.2 Financial overview

      6.5.3 Business strategy

      6.5.4 SWOT analysis

6.6 Eastman Chemical Company

      6.6.1 Company overview

      6.6.2 Financial overview

      6.6.3 Business strategy

      6.6.4 SWOT analysis

      6.6.5 Recent developments

6.7 Perstorp Holding AB

      6.7.1 Company overview

      6.7.2 Financial overview

      6.7.3 Business strategy

      6.7.4 SWOT analysis

      6.7.5 Recent developments

6.8 Prathista Industries Ltd

      6.8.1 Company overview

      6.8.2 Business strategy

      6.8.3 SWOT analysis

      6.8.4 Recent developments

6.9 The Dow Chemical Company

      6.9.1 Company overview

      6.9.2 Financial overview

      6.9.3 Business strategy

      6.9.4 SWOT analysis

      6.9.5 Recent developments

List of Figures

 

FIG. 1 Global propionic acid : Market segmentation

FIG. 2 Global propionic acid market estimates and forecasts (2012–2019) (USD Million)

FIG. 3 Propionic acid Market: Value chain analysis

FIG. 4 Global food and feed preservative market revenue, (USD Billion), 2011 –2019

FIG. 5 Asia Pacific Thermoplastic demand (USD Billion) , 2005-2013

FIG. 6 Porter’s five forces analysis for propionic acid  market

FIG. 7 Global propionic acid market: Company market share analysis (2012)

FIG. 8 Global propionic acid market: Market attractiveness analyis

FIG. 9 Global propionic acid market volume share, by application, 2012 and 2019

FIG. 10 Global propionic acid market for animal feed and grain preservatives, 2012–2019(Kilo tons) (USD Million)

FIG. 11 Global market for calcium and sodium propionates, 2012–2019 (Kilo Tons) (USD Million)

FIG. 12 Global propionic acid market for cellulose acetate propionate, 2012–2019 (Kilo tons) (USD Million)

FIG. 13 Global propionic acid market for others, 2012–2019 (Kilo tons) (USD Million)

FIG. 14 Global propionic acid market volume share by region, 2012 and 2019

FIG. 15 North America propionic acid market, 2012–2019(Kilo tons) (USD Million)

FIG. 16 Europe propionic acid market, 2012–2019 (Kilo tons) (USD Million)

FIG. 17 Asia Pacific propionic acid market, 2012–2019(Kilo tons) (USD Million)

FIG. 18 RoW propionic acid market, 2012–2019(Kilo tons) (USD Million)

List of Tables

 

TABLE 1 Global propionic acid market snapshot, 2012 - 2019 

TABLE 2 Drivers of the global propionic acid market: Impact analysis 

TABLE 3 Resraints of global propionic acid market: Impact analysis 

TABLE 4 North America propionic acid market volume, 2012–2019 (Kilo tons), by application 

TABLE 5 North America propionic acid market revenue, 2012–2019 (USD Million), by application 

TABLE 6 Europe propionic acid market volume, 2012–2019 (Kilo tons), by application 

TABLE 7 Europe propionic acid market revenue , 2012–2019 (USD Million), by application 

TABLE 8 Asia Pacific propionic acid market volume, 2012–2019 (Kilo tons), by application 

TABLE 9 Asia Pacific propionic acid market revenue, 2012–2019 (USD Million), by application 

TABLE 10 RoW propionic acid market volume, 2012–2019 (Kilo tons), by application 

TABLE 11 RoW propionic acid market revenue, 2012–2019 (USD Million), by application 

The global propionic acid market has been exhibiting steady growth in the last few years. Potential market opportunities in developing countries are likely to further boost the growth potential of the global propionic market during the forthcoming years. Propionic acid (CH3CH2COOH) is a colorless liquid that emits a pungent odor and is miscible in water. It is a naturally occurring carboxylic acid and is used extensively in the manufacture of several salts and esters. The use of propionic acid as a flavoring agent in the food and beverages industry has increased substantially in the last few years. However, it is mainly used as a preservative in both human food and animal feeds. Propionic acid helps in inhibiting bacterial growth or molds on agricultural yields, which explains its high demand across economies that are mainly driven by agriculture. 

For the purpose of the study, the global propionic acid market is segmented in terms of parameters including industrial application and regional distribution. The key application segments of the global propionic acid market include cellulose acetate propionate (CAP), calcium and sodium propionates, animal feed and grain preservatives, and others such as herbicides. Regionally, the global propionic acid market is segmented into Asia Pacific, Europe, North America, and Rest of the World. 

The report presents a comprehensive overview of the market, providing insights into the key growth drivers and restraints. Using industry-leading analytical tools such as SWOT analysis, the report weighs out the market strengths and opportunities and cites the potential opportunities and threats that the market is likely to witness during the forecast period. The effect of Porter’s five forces on the market is also studied in detail in the report. 

Overview of the Global Propionic Acid Market

The global propionic acid market, which stood at US$0.9 bn in 2012, is anticipated to reach US$1.5 bn by 2019, rising at a CAGR of 7.7% during the 2013-2019 period. In terms of volume, the global propionic acid market stood at 381.7 kilo tons in 2012 and is expected to exhibit a CAGR of 2.3% during the forecast period. 

The market at present is witnessing high demand from industries such as food, pharmaceuticals, and plastic. This trend will continue over the next few years, thereby significantly fuelling the demand from the global propionic acid market. Furthermore, the increasing demand for Vitamin E is expected to boost market opportunities for the propionic acid industry. 

The rapid expansion of the food and beverages industry is expected to fuel the demand for preservatives, which subsequently will drive the global propionic acid market. The market is also expected to capitalize on the rising demand from emerging Asia Pacific economies. With the growing pharmaceutical industry, the demand for Vitamin E will surge exponentially, which will create lucrative market opportunities for the propionic acid industry. Despite registering impressive growth, the adverse effects of propionic acid on the environment and human health may hamper the market growth to an extent. 

Companies mentioned in the research report 

The global market for propionic acid is highly concentrated, with only a handful of players collectively occupying the major share in the market. Some of the leading companies profiled in the report are The Dow Chemical Company, BASF SE, Celanese Corporation, Biomin Holdings GmbH, Perstorp Holdings GmbH, Daicel Corporation, A.M Food Chemical Co Ltd, and Prathista Industries Ltd.

The report segments the global propionic acid market as:

Propionic Acid Market - Application Segment Analysis,

  • Animal feed and grain preservatives
  • Calcium and sodium propionates
  • Cellulose Acetate Propionate
  • Others (Herbicides etc.)

By Geography

  • North America
  • Europe
  • Asia Pacific
  • Rest of the World

This report gives you access to decisive data such as:

  • Market growth drivers 
  • Factors limiting market growth
  • Current market trends 
  • Market structure
  • Market projections for the coming years 

Key highlights of this report

  • Overview of key market forces propelling and restraining market growth 
  • Up-to-date analyses of market trends and technological improvements 
  • Pin-point analyses of market competition dynamics to offer you a competitive edge
  • An analysis of strategies of major competitors 
  • An array of graphics and SWOT analysis of major industry segments 
  • Detailed analyses of industry trends
  • A well-defined technological growth map with an impact-analysis 
  • Offers a clear understanding of the competitive landscape and key product segments