Market Research Report
Global Propionic Acid & Derivatives Market - 2022-2029
|Global Propionic Acid & Derivatives Market - 2022-2029|
Published: July 31, 2022
Content info: 211 Pages
Delivery time: 2 business days
The global propionic acid & derivatives market size was worth US$ XX million in 2021 and is estimated to reach US$ XX million by 2029, growing at a CAGR of XX% during the forecast period (2022-2029).
Propionic acid and derivatives are three-carbon carboxylic acids with the chemical formula CH3CH2COOH that have a pungent odor and a clear, colorless liquid. Bacteria ferment carbohydrates such as glucose to create propionic acid. Aryl propionic acid and its derivatives have various biological activities, including antibacterial, anticonvulsant, anticancer, analgesic and anti-inflammatory effects. It also contains the most potent analgesic and antipyretic chemicals, such as ibuprofen, Oxaprozin, Ketoprofen and Phenoprofen, among others. The use of propionic acid derivatives in the therapy of cancer symptoms is essential.
In a fermentation reaction, propionic bacteria in sweat glands and the intestines generate propionic acid and carbon dioxide. Propionic acid and its derivatives are widely used as feed and food preservatives. Paints and coatings, food & drinks, medicines, personal care & cosmetics and other end-user sectors rely heavily on propionic acid and derivatives.
Rising demand for pharmaceutical medications to treat disorders like nausea, vomiting, gastrointestinal bleeding, constipation, or diarrhea drives the global propionic acid and derivatives market. The market has been fueled by rising demand for propionic acid and derivatives in the food & beverage manufacturing industries and increasing population needs. Propionic acid and derivatives are in high order because they are employed as preservatives in the food and beverage industries.
The growing demand for paint and coatings
The market is supported by increased demand for paints and coatings due to increased urban populations and the global building and construction sector. Propionic acid and derivatives bind the ingredients in the paints and coatings business.
Propionic acid and derivatives are in high demand due to worldwide growth in the paint and coating industries. According to the American Coating Association, the global paints and coatings market reached roughly US$ 158 billion in 2019, with China accounting for around 28% of the worldwide market, or US$44.5 billion.
The rising demand for preservatives for animal feed manufacturing
Propionic acids and their derivatives are in high demand for animal feed production because they serve as preservatives and improve the shelf life of the feed. The market's expansion has been fueled by rising commercial animal feed output worldwide.
According to the UNFAO- United Nations Food and Agriculture Organization, the global commercial feed manufacturing industry generates over US$400 billion yearly. The demand for animal protein, such as livestock, dairy and seafood, is mostly to blame. It resulted in a surge in demand for propionic acid and its derivatives worldwide.
The high price of propionic acid
Due to a lack of manufacturing facilities in many countries, supply has been limited, resulting in a global average price increase for propionic acid and its derivatives. Over the next six years, the high price of propionic acid and limited manufacturing technology pose a severe threat to market growth.
COVID-19 Impact Analysis
The COVID-19 outbreak prompted the shutdown of several major production industries and the worldwide propionic acid and derivatives market has experienced a modest reduction. Due to the COVID-19 pandemic, some countries have temporarily banned manufacturing. Further, due to poor demand in June 2020, the textile and apparel industry's growth slowed.
In August 2020, however, demand for propionic acid and derivatives climbed slightly as several significant manufacturers began production. Due to increased demand, the biggest makers of pharmaceuticals and animal feed have planned investments to increase production. For example, BASF and SINOPEC launched a joint venture to increase neopentylglycol production capacity in Nanjing, China. The annual capacity is expected to be 80,000 metric tonnes. The propionic acid and derivatives market has a significant opportunity due to the growing need for pharmaceutical medications to alleviate the symptoms of COVID-19.
By type, the propionic acid market & derivatives are classified into encapsulated, synthetic and natural.
The rising preservation of foods and production of cereals & grains
The encapsulated sector had the largest market share, owing to the rising demand for food grain preservation and increased grain output worldwide. Because encapsulated propionic acid and its derivatives are commonly used to safeguard dry agricultural items like grains.
According to research published by the Food and Agriculture Organization of U.S. (FAO), worldwide cereal production reached 2707 million tonnes in 2019 and is expected to reach 2 745 million tonnes by 2021. It resulted in huge demand for encapsulated propionic acid to preserve such a large amount of cereal grains worldwide.
The rising investments by leading players in various industries in Europe
Due to several manufacturing companies related to food & beverages and pharmaceuticals with growing demand and increasing investments by the major players in the region, Europe dominates the global propionic acid and derivatives market, accounting for the largest market share, followed by North America and Asia-Pacific.
Due to many food and beverage production industries, UK supplied the most significant demand for propionic derivatives in Europe. According to the food and drink federation organization, the presence of various food & drink manufacturing companies in UK contributed roughly US$ 35 billion to the country's economy.
The propionic acid and derivatives market is moderately competitive with domestic and international players. Product launches, mergers & acquisitions and partnerships are among the leading players' growth strategies, contributing to the global growth of the propionic acid and derivatives market. For example, on June 1, 2017, BASF and SINOPEC launched a joint venture to increase propionic acid production capacity at its Verbund plant by 30,000 metric tonnes per year. At its Verbund plant in Nanjing, China, annual propionic acid production capacity reached roughly 69,000 metric tonnes.
Key players in the global market for propionic acid market & derivatives include A.M. Food Chemicals Co. Ltd, ADDCON GROUP GMBH, BASF SE, Biomin Holding Gmbh, Daicel Corporation, Eastman Chemical Company, Alpha Animal Feed & Grain Preservatives, Inc, KEMIN Industries Inc, Niacet Corporation and Perstorp Holding AB.
Overview: BASF SE is a German multinational and one of the world's top chemical producers. Ludwigshafen, Germany, is the company's headquarters formed in 1865. BASF SE has 396 integrated and other manufacturing locations in Europe, Asia, Australia, the Americas and Africa, with subsidiaries and joint ventures in more than 80 countries.
Product Portfolio: Luprosil and Amasil are two products in its propionic acid and derivatives portfolio: It is used to keep feed fresh and safeguard its quality. It comprises propionic and formic acids and can be found in liquid form in plants, hay and even meals. Luprosil and Amasil are organic acids that are entirely digested as natural preservatives. By perfecting what nature already has to provide, Luprosil and Amasil help tackle the problems of feed contamination and loss. Salmonella and E. coli are among the infections used to combat.
Key Development: BASF extended its location on August 25, 2020, investing over US$ 70 million to help farmers and local communities. By contributing to the economic development of the communities it serves, its expansion enabled advancements in seed treatment formulations for farmers. It boosted the demand for propionic acid used in seed formulations.
The global propionic acid market & derivatives report would provide access to an approx. 66 market data table, 61 figures and 211 pages.
LIST NOT EXHAUSTIVE