Global Propionic Acid Market: Snapshot
The global propionic acid market is gaining traction due to rising application of propionic acid in the food and beverage industry. Moreover, rising demand for end-users industries from emerging market especially from the Asia Pacific to provide huge growth potential for the global propionic acid market.
The demand for propionic acid is also rising from animal feed and grain preservation acting as one of the major growth factors for this market. Though there are several health risks and environmental issues affecting the market growth and may hamper the growth of the market during the forecast tenure. However, rising use of propionic acid that is used as preservatives in food, grains, and feed is likely to push the market in near future. Moreover, it is also used as cellulose acetate propionate, herbicides, fragrances, esters, and various other use to boost the demand for propionic acid benefiting the market growth.
The global propionic acid market is projected to reach a valuation of US$1.54 bn by the end of 2019 progressing from US$ 0.9 bn estimated in 2012. The market is anticipated to grow at a healthy CAGR of 7.7% during the forecast period.
Rising Livestock Farming to Boost Demand for Animal Feed and Grain Preservatives
The global propionic acid market is categorized on the basis of the application that includes animal feed and grain preservatives, cellulose acetate propionate, calcium and sodium propionates, and others including herbicides and various others. Out of these, animal feed and grain preservatives led the market in 2012 by holding 52.5% of shares in the market. This segment is projected to increase during the forecast period because of increased livestock farming that has resulted in high demand for animal feed and grain preservatives. The second segment leading this market is of calcium and sodium propionates in 2012. However, during the forecast period, cellulose acetate propionate (CAP) is projected to grow at a steady CAGR of 1.9%. In addition to that, the others segment that includes herbicides is anticipated to experience sluggish growth during the forecast tenure because of various health hazards caused by herbicides.
Europe to Lead Market Due to Ban Imposed in Antibiotics that Further Boosted Demand for Propionic Acid
Europe led the global propionic acid market and held 39.9% market shares in 2012. During the course of six years, this region is projected to experience steady growth as compared to other regions on the global platform. The high growth of this region is because of ban imposed on antibiotics that further increased the demand for propionic acid. The second region led the global propionic acid market is North America which is projected to experience slight decline in its market share by the end of 2019. On the other hand, Asia Pacific is anticipated to grow at a fast rate during the forecast tenure. In addition to that, the Middle East and Africa and Latin America are projected to experience steady growth due to increasing imports of propionic acid in these regions.
The report has also given the in-depth analysis of the key market players. The global propionic acid market is highly concentrated as the leading three players held more than 80% shares in the global market in 2013. Some of the key players in this market are the Dow Chemical Company, Perstorp Holding GmbH, BASF SE, and Eastman Chemical Company.
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