Global Propionic Acid Market: Snapshot
The propionic acid market has been growing at a progressive rate with the rising number of applications across the globe. The increasing research and development activities in this field is likely to accelerate the growth of the overall market in the next few years. The rising applications of propionic acid in the pharmaceutical industry is anticipated to generate promising opportunities in the near future. Key players in the market are focusing on the expansion of product portfolio and innovations, which will supplement the market’s growth in the next few years.
According to the research study, in 2012, the global propionic acid market was worth US$908.0 mn and is likely to reach a value of US$1,540.5 mn by the end of 2019. The market is predicted to register a healthy 7.70% CAGR between 2013 and 2019.
Expansion of Application Base to Encourage Growth of Global Market
The growing demand for propionic acid from grain preservation and animal feed is one of the primary factors predicted to encourage the growth of the global market throughout the forecast period. In addition, the untapped opportunities in emerging economies are expected to accelerate the growth of the overall market in the coming few years. On the other hand, environmental impact of propionic acid and the health hazards related to the use of propionic acid are anticipated to restrict the growth of the overall market in the next few years. Nonetheless, the rising number of players in the global propionic acid market is anticipated to contribute extensively towards the development in the forecast period.
In terms of application, in 2012, the animal feed and grain preservatives segment led the global propionic acid market and accounted for a share of 52.5%. This segment is expected to remain in the leading position throughout the forecast period, thanks to the significant rise in the livestock farming. The calcium and sodium propionates segment is expected to hold the second position in the market, further followed by cellulose acetate propionate. The rising number of application of propionic acid, including food and beverages and pharmaceutical industries are anticipated to fuel the growth of the market in the next few years.
Rising Demand for Food to Augment Propionic Acid Market in Asia Pacific
From a geographical viewpoint, the global propionic acid market can be categorized into Asia Pacific, North America, Europe, and the Rest of the World. In 2012, Europe led and accounted for a share of 39.9% of the global propionic acid market. This region is expected to register a steady 2.10% CAGR between 2013 and 2019. The high growth of this region can be attributed to the ban imposed on antibiotic which has further likely to drive the demand for propionic acid in the next few years. Europe is expected to be followed by North America in the coming years.
Furthermore, Asia Pacific is expected to witness robust growth throughout the forecast period. The rising population and the growing demand for food and feed are some of the primary factors expected to augment propionic acid market in the coming years. In addition, the high contribution from India and China is estimated to accelerate the growth of the overall market. As per the research study, the rest of the world segment is expected to grow at a steady pace throughout the forecast period.
The global propionic acid market is extremely concentrated in nature with a few players holding a key share of the market. Some of the prominent players operating in the global market are Celanese Corporation, The Dow Chemical Company, Biomin Holdings GmbH, A.M Food Chemical Co. Ltd., Daicel Corporation, Prathista Industries Ltd., BASF SE, and Perstorp Holdings GmbH.
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.)
- North America
- 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