Propionic Acid Market Size & Share Analysis - Growth Trends & Forecasts (2025 - 2030)

The Propionic Acid Market Report Segments the Industry by Application (Animal Feed and Preservatives, Calcium, Ammonium, and Sodium Salts, and More), End-User Industry (Agriculture, Food and Beverage, and More), Production Route (Petrochemical and Bio-Based Fermentation), Grade (Feed Grade, Food Grade, and More), and Geography (Asia-Pacific, North America, Europe, South America, and Middle East and Africa).

Propionic Acid Market Size and Share

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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.

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.

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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.

Propionic Acid Market
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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.

Propionic Acid Market
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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.

Propionic Acid Market CAGR (%), Growth Rate by Region
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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

  1. BASF SE

  2. Eastman Chemical Company 

  3. Dow

  4. Perstop

  5. OXEA Gmbh

  6. *Disclaimer: Major Players sorted in no particular order
Propionic Acid Market Concentration
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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.

Table of Contents for Propionic Acid Industry Report

1. Introduction

  • 1.1 Study Assumptions and Market Definition
  • 1.2 Scope of the Study

2. Research Methodology

3. Executive Summary

4. Market Landscape

  • 4.1 Market Overview
  • 4.2 Market Drivers
    • 4.2.1 Rising demand for grain and silage preservatives
    • 4.2.2 Increasing uptake of feed-grade acids in antibiotic-free meat chains
    • 4.2.3 Expansion of packaged bakery in emerging Asia
    • 4.2.4 Growing requirement for food preservation products
    • 4.2.5 Rising Utilization in Animal Feed
  • 4.3 Market Restraints
    • 4.3.1 Volatile petro-based feedstock prices (propylene)
    • 4.3.2 Health concerns over chronic consumption in ultra-processed foods
    • 4.3.3 Environmental Concerns Regarding Use of Herbicides
  • 4.4 Value Chain Analysis
  • 4.5 Porter’s Five Forces
    • 4.5.1 Bargaining Power of Suppliers
    • 4.5.2 Bargaining Power of Buyers
    • 4.5.3 Threat of New Entrants
    • 4.5.4 Threat of Substitute Products and Services
    • 4.5.5 Degree of Competition

5. Market Size and Growth Forecasts (Value)

  • 5.1 By Application
    • 5.1.1 Animal Feed and Preservatives
    • 5.1.2 Calcium, Ammonium and Sodium Salts
    • 5.1.3 Cellulose Acetate Propionate (CAP)
    • 5.1.4 Herbicides
    • 5.1.5 Plasticizers and Solvents
    • 5.1.6 Others
  • 5.2 By End-user Industry
    • 5.2.1 Agriculture
    • 5.2.2 Food and Beverage
    • 5.2.3 Personal Care
    • 5.2.4 Pharmaceutical
    • 5.2.5 Other End user Industries
  • 5.3 By Production Route
    • 5.3.1 Petrochemical
    • 5.3.2 Bio-based Fermentation
  • 5.4 By Grade
    • 5.4.1 Feed Grade
    • 5.4.2 Food Grade
    • 5.4.3 Pharmaceutical Grade
    • 5.4.4 Industrial Grade
  • 5.5 By Geography
    • 5.5.1 Asia-Pacific
    • 5.5.1.1 China
    • 5.5.1.2 India
    • 5.5.1.3 Japan
    • 5.5.1.4 South Korea
    • 5.5.1.5 Rest of Asia-Pacific
    • 5.5.2 North America
    • 5.5.2.1 United States
    • 5.5.2.2 Canada
    • 5.5.2.3 Mexico
    • 5.5.3 Europe
    • 5.5.3.1 Germany
    • 5.5.3.2 United Kingdom
    • 5.5.3.3 France
    • 5.5.3.4 Italy
    • 5.5.3.5 Rest of Europe
    • 5.5.4 South America
    • 5.5.4.1 Brazil
    • 5.5.4.2 Argentina
    • 5.5.4.3 Rest of South America
    • 5.5.5 Middle East and Africa
    • 5.5.5.1 Saudi Arabia
    • 5.5.5.2 South Africa
    • 5.5.5.3 Rest of Middle East and Africa

6. Competitive Landscape

  • 6.1 Market Concentration
  • 6.2 Strategic Moves
  • 6.3 Market Share(%)/Ranking Analysis
  • 6.4 Company Profiles (includes Global level Overview, Market level overview, Core Segments, Financials as available, Strategic Information, Market Rank/Share for key companies, Products and Services, and Recent Developments)
    • 6.4.1 BASF SE
    • 6.4.2 Celanese Corporation
    • 6.4.3 Dow
    • 6.4.4 Eastman Chemical Company
    • 6.4.5 KANTO KAGAKU
    • 6.4.6 Kishida Chemical Co., Ltd
    • 6.4.7 Luxi Group
    • 6.4.8 Merck KGaA
    • 6.4.9 OXEA Gmbh
    • 6.4.10 Perstorp
    • 6.4.11 Shanghai Jianbei Organic Chemical Co., Ltd.
    • 6.4.12 Yancheng Hongtai Bioengineering Co., Ltd.
    • 6.4.13 Yancheng Huade (Dancheng) Biological Engineering Co.,Ltd.

7. Market Opportunities and Future Outlook

  • 7.1 White-space and Unmet-Need Assessment
  • 7.2 Novel low-carbon processes (electro-oxidative CO capture to PA)
  • 7.3 Precision-fermentation routes for customised PA salts
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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
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
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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

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