Propionic Acid Market Size and Share
Propionic Acid Market Analysis by Mordor Intelligence
The propionic acid market is valued at USD 1.69 billion in 2025 and is projected to reach USD 2.23 billion by 2030, advancing at a 5.72% CAGR. Adoption gains arise from the compound’s broad utility in food preservation, animal nutrition, and specialty chemicals, while regulatory support such as the United States FDA’s GRAS status underpins global usage. Europe anchors demand with entrenched food‐safety rules and mature grain preservation chains, whereas Asia-Pacific posts the fastest expansion on the back of livestock intensification and rising packaged-food consumption. Feed efficiency demands, zero-antibiotic livestock initiatives, and the shift toward bio-based production routes collectively shape investment flows, even as petrochemical pathways maintain scale advantages. Strategic capacity additions in China, India, and Southeast Asia indicate a pivot toward regional self-sufficiency, partly propelled by recent trade frictions that heightened supply-security concerns.
Key Report Takeaways
- By application, animal feed and food preservatives led with 51.86% of propionic acid market share in 2024, while cellulose acetate propionate is forecast to grow at a 6.49% CAGR through 2030.
- By end-user industry, agriculture accounted for 56.95% of the propionic acid market size in 2024; pharmaceuticals record the highest projected CAGR at 6.02% to 2030.
- By production route, the petrochemical pathway held 92.26% share in 2024, yet the bio-based route is set to expand at 6.19% CAGR through 2030.
- By grade, feed variants captured 38.19% of the propionic acid market size in 2024, while pharmaceutical grade advances fastest at 6.14% CAGR.
- Europe dominated regional demand with 48.78% revenue share in 2024; Asia-Pacific posts the quickest rise at 6.34% CAGR to 2030.
Global Propionic Acid Market Trends and Insights
Drivers Impact Analysis
Driver | (~) % Impact on CAGR Forecast | Geographic Relevance | Impact Timeline |
---|---|---|---|
Rising demand for grain and silage preservatives | +1.20% | Global, concentrated in North America & Europe | Medium term (2-4 years) |
Increasing uptake of feed-grade acids in antibiotic-free meat chains | +0.90% | North America & EU, expanding to Asia-Pacific | Long term (≥ 4 years) |
Expansion of packaged bakery in emerging Asia | +0.80% | Asia-Pacific core, spill-over to MEA | Short term (≤ 2 years) |
Growing requirement for food preservation products | +0.70% | Global | Medium term (2-4 years) |
Rising Utilization in Animal Feed | +0.60% | Global, led by Asia-Pacific and North America | Long term (≥ 4 years) |
Source: Mordor Intelligence
Rising demand for grain and silage preservatives
Climate variability magnifies moisture-related spoilage risks in stored grain and silage, prompting wider use of propionic acid for mold control. Doses as low as 0.6% curb Aspergillus and Penicillium growth, safeguarding feed quality during long storage intervals[1]Journal of Dairy Science, “Propionic Acid Preservation of High-Moisture Feed,” journalofdairyscience.org . Buffered formulations alleviate corrosion concerns, fostering uptake by medium-sized farms previously hesitant to employ acids. Field data show that treated grain can cut dry-matter losses by 15%, translating to tangible margin protection for grain handlers. As cross-border trade lengthens logistics chains, storage stability becomes pivotal, reinforcing the propionic acid market as a core enabler of global food-security strategies.
Increasing uptake of feed-grade acids in antibiotic-free meat chains
With regulators phasing out antibiotic growth promoters, producers pivot toward organic acids that sustain feed conversion improvements. Inclusion levels of 0.2-0.4% propionic acid in broiler diets lower gastrointestinal pH and suppress Salmonella and E. coli counts, rivalling antibiotic performance outcomes[2]Veterinary World, “Effect of Organic Acids on Broiler Performance,” veterinaryworld.org . European mandates against routine antibiotics have already boosted acidifier demand, and North American retail premiums for antibiotic-free meat reinforce adoption. Feed mills thus integrate propionic acid into reformulated premixes, driving incremental volumes that underpin the long-run resilience of the propionic acid market.
Expansion of packaged bakery in emerging Asia
Urban demographic shifts and rising disposable incomes fuel demand for packaged bread that must remain mold-free in humid climates. Propionic acid extends shelf life from five to up to ten days, enabling wider distribution coverage without cold chains. ASEAN harmonization of preservative approvals accelerates cross-border bakery exports, while domestic bakery chains standardize formulations across multi-city networks. These dynamics support steady penetration of propionic-acid-based preservatives, further bolstering the propionic acid market’s regional growth trajectory.
Growing requirement for food preservation products
Governments target food-loss reduction, emphasizing ambient-stable processed foods for regions lacking robust refrigeration. Propionic acid’s broad-spectrum efficacy against molds, yeasts, and bacteria fits that policy agenda, especially in protein-rich convenience foods. Brand owners highlight its natural occurrence in cheese to satisfy clean-label claims, steering consumers toward products containing “naturally derived” preservatives. Emerging-market food processors, facing erratic electricity supply, depend on such shelf-life solutions, a fact that continually lifts the propionic acid market’s demand base.
Restraints Impact Analysis
Restraint | (~) % Impact on CAGR Forecast | Geographic Relevance | Impact Timeline |
---|---|---|---|
Volatile petro-based feedstock prices (propylene) | -0.80% | Global, affecting North America & Europe | Short term (≤ 2 years) |
Health concerns over chronic consumption in ultra-processed foods | -0.50% | North America & EU, expanding globally | Long term (≥ 4 years) |
Environmental Concerns Regarding Use of Herbicides | -0.40% | Global, stricter in EU & North America | Medium term (2-4 years) |
Source: Mordor Intelligence
Volatile petro-based feedstock prices (propylene)
Sudden swings in crude oil markets reverberate through propylene contracts, inflating production costs for petrochemical propionic acid plants. European makers, constrained by limited regional propylene output, face margin compression during price spikes. While long-term contracts dampen volatility for large players, smaller producers grapple with working-capital strain, periodically trimming operating rates to manage exposure. These episodes renew corporate interest in bio-based routes, yet fermentation economics remain challenged relative to entrenched propylene pathways. Cost turbulence, therefore, imposes a modest drag on propionic acid market expansion.
Health concerns over chronic consumption in ultra-processed foods
Public-health debates link ultra-processed diets to lifestyle diseases, prompting regulators to reassess preservative intake limits. While propionic acid is naturally present in dairy and holds GRAS recognition, consumer advocates urge stricter daily-intake thresholds. Bread and processed-meat makers, therefore, examine formulation alternatives, even if replacements demand higher dose rates and raise cost structures. Labeling transparency rules could eventually constrain propionic acid volumes in certain categories, moderating growth for segments tied to heavily processed foods.
Segment Analysis
By Application: Feed Preservation Drives Market Leadership
Animal feed and food preservative uses held 51.86% share of the propionic acid market in 2024, underscoring its role in mitigating spoilage and boosting feed efficiency. Within this anchor segment, buffered salts such as calcium propionate remain prevalent for operational safety and ease of handling. At the other end of the spectrum, cellulose acetate propionate, although niche, posts a 6.49% CAGR through 2030 as electronics coatings and controlled-release pharmaceutical excipients gain traction. Its higher unit price cushions volume volatility, supplying margin diversity that reinforces overall propionic acid market stability.
Derivative uses in herbicides and specialty solvents continue but face environmental scrutiny, leading formulators to emphasize biodegradability and limited residual toxicity. Plasticizer manufacturers trial bio-based propionic acid to differentiate products, aligning with circular-economy narratives. While volumes lag mainstream feed applications, such specialty niches frequently deliver double-digit contribution margins, supporting producers’ balanced revenue mix. The breadth of end-use verticals thus insulates the propionic acid market against isolated demand shocks.
Note: Segment shares of all individual segments available upon report purchase
By End-user Industry: Agriculture Dominance Reflects Food-Security Priorities
Agriculture captured 56.95% of propionic acid market size in 2024 as livestock producers and grain handlers prioritized loss prevention and animal-performance gains. Feed mills incorporate liquid propionic acid or its salts into mash and pelleted diets, particularly for poultry and swine. In parallel, on-farm applicators dose stored grain to suppress mold growth during increasingly variable harvest conditions. The tight linkage between propionic acid usage and core food-security metrics anchors its strategic relevance to policymakers.
Pharmaceutical demand, although smaller, advances at 6.02% CAGR, making it the fastest-growing end-use as generic NSAID production scales in South Asia and Latin America. Food-and-beverage processors sustain mid-single-digit growth, leveraging propionic acid’s clean-label positioning in bakery and dairy alternatives. Cosmetics formulators explore its antimicrobial plus conditioning benefits, widening adoption in leave-on skin-care products targeting spoilage-prone botanical extracts. This progressive diversification ensures the propionic acid market bears a balanced risk–return profile.

Note: Segment shares of all individual segments available upon report purchase
By Production Route: Petrochemical Dominance Faces Bio-based Challenge
Petrochemical plants relying on propylene oxidation accounted for 92.26% of 2024 output, benefiting from integrated crackers that deliver cost-effective feedstock and utilities. Asset footprints in Europe and North America run at high onstream factors, with many units linked to butyraldehyde value chains that share intermediates. However, bio-based fermentation garners a 6.19% CAGR through 2030, propelled by corporate net-zero targets and policy incentives such as renewable-chemical tax credits.
Research breakthroughs now exceed 2 g L⁻¹ h⁻¹ productivity, edging nearer to commercial break-even points. Scale-up partnerships pair chemical majors with synthetic-biology startups to combine market access with strain-engineering know-how. Yet capex per tonne remains materially higher than for brownfield debottlenecks at petro hubs. The competitive calculus therefore revolves around carbon-pricing trajectories and life-cycle-assessment premiums rather than headline production costs, injecting strategic nuance into propionic acid market investment decisions.
By Grade: Feed Applications Lead While Pharmaceutical Segment Accelerates
Feed grade held 38.19% propionic acid market share in 2024, with buyers prioritizing consistent acid value and corrosion-inhibitor packages that protect mill hardware. These high-volume orders deliver scale efficiencies for suppliers, although price sensitivity caps margin expansion. Food grade specifications layer on additional purity controls, especially regarding heavy-metal content, meeting bakery and cheese manufacturers’ tighter residual thresholds.
Pharmaceutical grade volumes, smallest in absolute terms, nonetheless rise at 6.14% CAGR as ketoprofen and ibuprofen intermediates draw on propionic acid backbones. In this segment, each incremental tonne commands premium pricing, rewarding producers that certify against good-manufacturing-practice regimes. Industrial grades serve herbicide and polymer customers that accept broader impurity windows yet require batch consistency. This graded spectrum empowers suppliers to segment customers and capture value across the full propionic acid market continuum.

Note: Segment shares of all individual segments available upon report purchase
Geography Analysis
Europe led with 48.78% revenue in 2024, anchored by stringent feed-and-food regulations that mandate proven preservatives and by a strong pharmaceutical manufacturing base. Germany, France, and the Netherlands collectively consume sizeable volumes for silage treatment and bakery goods, while Eastern Europe’s expanding swine sector offers incremental upside. Energy-price volatility pressures European margins, yet the region’s push for bio-economy solutions channels grant funding to pilot fermentative propionic acid units, reinforcing its innovation leadership.
Asia-Pacific is the fastest-growing territory at 6.34% CAGR, driven by China’s livestock expansion, India’s processed-food boom, and ASEAN’s bakery surge. The 2024 Chinese anti-dumping duty of 43.5% on United States imports redirected tonnage flows and triggered local capacity projects, including BASF-SINOPEC’s Nanjing expansion[3]BASF-YPC Company, “Nanjing Propionic Acid Plant Expansion,” basf-ypc.com . Regional producers leverage proximity to feed-grain hubs and emerging bio-based chemical clusters, ensuring supply agility that accelerates propionic acid market penetration.
North America shows steady, maturity-phase demand growth. The United States retains large-scale grain-storage needs, with Midwest cooperatives adopting automated acidification systems for corn and soybean harvests. Feedlots in the Central Plains integrate liquid propionic acid to curtail mycotoxin development, while Canadian wheat exporters similarly deploy preservatives for trans-oceanic shipments. Capacity rationalization has replaced pure expansions, focusing on energy recovery upgrades to improve cost positions amid cyclic propylene swings. Such incremental efficiencies safeguard competitiveness and support stable volumes within the regional propionic acid market.

Competitive Landscape
The propionic acid market is highly consolidated, with BASF, Dow, and Eastman Chemical occupying commanding positions supported by integrated propylene streams and global distribution. These incumbents invest in process intensification, installing advanced catalyst systems and energy-recovery loops that trim per-ton energy consumption by up to 12%. Partnerships with feed-additive formulators secure long-term offtake, locking in revenue stability that deters new entrants. Simultaneously, regional players such as Luxi Chemical in China are scaling aggressively, adding 80,000 t y⁻¹ by 2025 to capture accelerating domestic demand.
Sustainability credentials have become a differentiator. BASF’s Carbon Trust verification positions its Ludwigshafen output as a lower-emission option, enabling downstream buyers to cut Scope 3 footprints without reformulating. Eastman pilots carbon-capture-enabled synthesis routes in Tennessee, while Dow explores green-hydrogen integration for steam generation. At the frontier, biotechnology firms engineer Propionibacterium strains with elevated tolerance to high acid titers, targeting cost parity with petro routes by 2028.
Intellectual-property filings cluster around downstream separations that slash purification energy by leveraging hybrid membrane–distillation systems. Early adopters test continuous fermenters coupled with in situ acid extraction, promising compact footprints amenable to brownfield retrofits at corn-ethanol plants. Such technology races underscore a competitive narrative where process innovation, not merely scale, defines future winners in the propionic acid market.
Propionic Acid Industry Leaders
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BASF SE
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Eastman Chemical Company
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Dow
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Perstop
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OXEA Gmbh
- *Disclaimer: Major Players sorted in no particular order

Recent Industry Developments
- November 2024: BASF's propionic acid has achieved "Lower than Market" verification from Carbon Trust, confirming its cradle-to-gate carbon footprint is below the industry average for fossil-based supplies. This recognition is expected to enhance BASF's competitive position and drive sustainability trends within the propionic acid market.
- December 2024: As of December 2024, Luxi Chemical Group initiated the construction of an 80,000 t y⁻¹ propionic acid complex in Liaocheng, China. However, the company has not provided any further updates regarding the project's completion.
Global Propionic Acid Market Report Scope
Propionic acid is a colorless liquid with a strong odor, which is miscible with water and a few organic solvents. The other names of propionic liquids include carboxylic acid, ethane-carboxylic acid, carboxy ethane, and ethyl formic acid. Propionic acid is a naturally occurring substance that can be used in essential oils as esters. The propionic acid market is segmented based on application, end-user industry, and geography. The market is segmented by application into animal feed and food preservatives, calcium, ammonium, sodium salts, cellulose acetate propionate, herbicides, plasticizers, and other applications. The end-user industry segments the market into agriculture, food and beverage, personal care, pharmaceutical, and other industries. The report also covers the market size and forecasts for the propionic acid market in 15 countries across major regions. The market sizing and forecasts for each segment are based on volume (Tons).
By Application | Animal Feed and Preservatives | ||
Calcium, Ammonium and Sodium Salts | |||
Cellulose Acetate Propionate (CAP) | |||
Herbicides | |||
Plasticizers and Solvents | |||
Others | |||
By End-user Industry | Agriculture | ||
Food and Beverage | |||
Personal Care | |||
Pharmaceutical | |||
Other End user Industries | |||
By Production Route | Petrochemical | ||
Bio-based Fermentation | |||
By Grade | Feed Grade | ||
Food Grade | |||
Pharmaceutical Grade | |||
Industrial Grade | |||
By Geography | Asia-Pacific | China | |
India | |||
Japan | |||
South Korea | |||
Rest of Asia-Pacific | |||
North America | United States | ||
Canada | |||
Mexico | |||
Europe | Germany | ||
United Kingdom | |||
France | |||
Italy | |||
Rest of Europe | |||
South America | Brazil | ||
Argentina | |||
Rest of South America | |||
Middle East and Africa | Saudi Arabia | ||
South Africa | |||
Rest of Middle East and Africa |
Animal Feed and Preservatives |
Calcium, Ammonium and Sodium Salts |
Cellulose Acetate Propionate (CAP) |
Herbicides |
Plasticizers and Solvents |
Others |
Agriculture |
Food and Beverage |
Personal Care |
Pharmaceutical |
Other End user Industries |
Petrochemical |
Bio-based Fermentation |
Feed Grade |
Food Grade |
Pharmaceutical Grade |
Industrial Grade |
Asia-Pacific | China |
India | |
Japan | |
South Korea | |
Rest of Asia-Pacific | |
North America | United States |
Canada | |
Mexico | |
Europe | Germany |
United Kingdom | |
France | |
Italy | |
Rest of Europe | |
South America | Brazil |
Argentina | |
Rest of South America | |
Middle East and Africa | Saudi Arabia |
South Africa | |
Rest of Middle East and Africa |
Key Questions Answered in the Report
What is the current propionic acid market size?
The propionic acid market size is USD 1.69 billion in 2025, with a forecast value of USD 2.23 billion by 2030.
Which application dominates demand for propionic acid?
Animal feed and food preservation together account for 51.86% of global demand, reflecting the compound’s efficacy as a mold inhibitor and feed acidifier.
Why is Asia-Pacific the fastest-growing region?
Rapid livestock expansion, rising packaged-food consumption, and new local production capacity drive a 6.34% CAGR for the region through 2030.
What impact do anti-dumping duties have on the market?
China’s 43.5% duty on United States imports has accelerated domestic capacity additions and reshaped global trade flows toward regionalized supply chains.
Which grade segment is expanding the fastest?
Pharmaceutical grade propionic acid is advancing at 6.14% CAGR, driven by increased NSAID intermediate production and stringent quality requirements.
Page last updated on: June 26, 2025