Propionic Acid Global Market Report 2026

Propionic acid is a naturally occurring, colorless organic compound characterized by a pungent odor and falls under the category of carboxylic acids. Widely recognized for its applications, it serves as a food preservative, fungicide, and antimicrobial agent within the food industry. Additionally, propionic acid plays a crucial role in the production of cellulose acetate propionate, herbicides, pharmaceuticals, and plasticizers.

The primary methods for producing propionic acid involve the oxo process, Reppe process, and the by-product process. The oxo process is a chemical reaction employed in generating aldehydes and alcohols, with diverse applications spanning herbicides, rubber products, plasticizers, food preservatives, and more. Various industries, including pharmaceuticals, personal care, food and beverage, agriculture, and others, utilize propionic acid as a key component in their end products.

Note that the outlook for this market is being affected by rapid changes in trade relations and tariffs globally. The report will be updated prior to delivery to reflect the latest status, including revised forecasts and quantified impact analysis. The report's Recommendations and Conclusions sections will be updated to give strategies for entities dealing with the fast-moving international environment.

Tariffs have affected the propionic acid market by increasing costs for imported raw materials and chemical intermediates used in production processes. These impacts are most noticeable in food preservatives, pharmaceuticals, and agricultural chemical segments, particularly across Asia Pacific and Europe. Elevated tariffs have pressured pricing and supply continuity. Conversely, tariffs have stimulated domestic production capacity, long term supplier agreements, and regional sourcing strategies, strengthening supply chain reliability and reducing import dependence over time.

The propionic acid market research report is one of a series of new reports from The Business Research Company that provides propionic acid market statistics, including propionic acid industry global market size, regional shares, competitors with a propionic acid market share, detailed propionic acid market segments, market trends and opportunities, and any further data you may need to thrive in the propionic acid industry. This propionic acid market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The propionic acid market size has grown steadily in recent years. It will grow from $1.55 billion in 2025 to $1.6 billion in 2026 at a compound annual growth rate (CAGR) of 3.7%. The growth in the historic period can be attributed to growth of food preservation demand, expansion of agriculture chemicals, pharmaceutical industry growth, development of plasticizers, industrial chemical production.

The propionic acid market size is expected to see steady growth in the next few years. It will grow to $1.84 billion in 2030 at a compound annual growth rate (CAGR) of 3.5%. The growth in the forecast period can be attributed to rising packaged food consumption, increased pharmaceutical output, demand for bio based acids, expansion of agriculture chemicals, focus on sustainable production. Major trends in the forecast period include growing use as food preservative, rising demand in pharmaceutical manufacturing, expansion of plasticizer applications, increasing adoption in herbicide production, focus on efficient production processes.

The growth in the agricultural industry is expected to propel the growth of the propionic acid market going forward. The agriculture industry includes all activities related to cultivating plants and raising animals for food production, fiber, and material supply. Propionic acid is widely used in agriculture as an antimicrobial and antifungal agent, particularly for managing poultry litter and treating livestock drinking water to maintain hygiene and prevent contamination. For instance, in December 2024, according to the Food and Agriculture Organization (FAO), an Italy-based government agency, global wheat exports in 2023 increased to 199.1 million tonnes, representing an 8.1-million-tonne rise compared to 2022. Therefore, growth in the agricultural industry is driving the expansion of the propionic acid market.

Major companies operating in the propionic acid market are adopting strategic partnerships to enhance production capabilities, broaden market reach, and accelerate the development of advanced and sustainable chemical formulations. These partnerships support market growth by enabling technology sharing, joint R&D efforts, and access to new industrial and regional applications. For instance, in October 2023, LG Chem Ltd., a South Korea-based chemical company, partnered with GS Caltex Corporation, a South Korea-based energy and chemical firm, through a Memorandum of Understanding (MOU) to advance commercialization of 3HP (3-hydroxypropionic acid). This bio-based material is produced through microbial fermentation of plant-derived feedstocks such as glucose and crude glycerol. The collaboration integrates LG Chem's fermentation technology with GS Caltex's expertise in purification, separation, and large-scale processing to enable commercial-scale production. Prototype production is set to begin in early 2024, targeting applications in biodegradable plastics, superabsorbent polymers, and other sustainable materials.

In November 2024, Perstorp Holding AB, a Sweden-based specialty chemicals company, acquired OQ Chemicals Nederland for an undisclosed amount. This acquisition enables Perstorp to strengthen its propionic acid production capabilities and expand its position within Europe's specialty chemicals sector. OQ Chemicals Nederland B.V. is a Netherlands-based chemical manufacturer specializing in high-purity organic acids, including propionic acid, serving markets such as food preservation, animal feed, and industrial chemicals.

Major companies operating in the propionic acid market are BASF SE, Dow Chemical Company, INEOS Group, Evonik Industries AG, Solvay S.A., Eastman Chemical Company, Celanese Corporation, OQ Chemicals GmbH, Corbion N.V., Niacet Corporation, Perstorp Holding AB, Arkema SA, Clariant AG, Macco Organiques Inc., Daicel Corporation, OXEA GmbH, Yara International ASA, Zibo Xinglu Chemical Co. Ltd., Shandong Kunda Biotechnology Co. Ltd., Eastman Performance Films & Chemicals, Anhui Huaxing Chemical Industry Co. Ltd.

Europewas the largest region in the propionic acid market in 2025. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the propionic acid market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa

The countries covered in the propionic acid market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain

The propionic acid market consists of sales of sodium propionate, calcium propionate, and potassium propionate. Values in this market are 'factory gate' values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

Propionic Acid Market Global Report 2026 from The Business Research Company provides strategists, marketers and senior management with the critical information they need to assess the market.

This report focuses propionic acid market which is experiencing strong growth. The report gives a guide to the trends which will be shaping the market over the next ten years and beyond.

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Where is the largest and fastest growing market for propionic acid ? How does the market relate to the overall economy, demography and other similar markets? What forces will shape the market going forward, including technological disruption, regulatory shifts, and changing consumer preferences? The propionic acid market global report from the Business Research Company answers all these questions and many more.

The report covers market characteristics, size and growth, segmentation, regional and country breakdowns, total addressable market (TAM), market attractiveness score (MAS), competitive landscape, market shares, company scoring matrix, trends and strategies for this market. It traces the market's historic and forecast market growth by geography.

• The market characteristics section of the report defines and explains the market. This section also examines key products and services offered in the market, evaluates brand-level differentiation, compares product features, and highlights major innovation and product development trends.
• The supply chain analysis section provides an overview of the entire value chain, including key raw materials, resources, and supplier analysis. It also provides a list competitor at each level of the supply chain.
• The updated trends and strategies section analyses the shape of the market as it evolves and highlights emerging technology trends such as digital transformation, automation, sustainability initiatives, and AI-driven innovation. It suggests how companies can leverage these advancements to strengthen their market position and achieve competitive differentiation.
• The regulatory and investment landscape section provides an overview of the key regulatory frameworks, regularity bodies, associations, and government policies influencing the market. It also examines major investment flows, incentives, and funding trends shaping industry growth and innovation.
• The market size section gives the market size ($b) covering both the historic growth of the market, and forecasting its development.
• The forecasts are made after considering the major factors currently impacting the market. These include the technological advancements such as AI and automation, Russia-Ukraine war, trade tariffs (government-imposed import/export duties), elevated inflation and interest rates.
• The total addressable market (TAM) analysis section defines and estimates the market potential compares it with the current market size, and provides strategic insights and growth opportunities based on this evaluation.
• The market attractiveness scoring section evaluates the market based on a quantitative scoring framework that considers growth potential, competitive dynamics, strategic fit, and risk profile. It also provides interpretive insights and strategic implications for decision-makers.
• Market segmentations break down the market into sub markets.
• The regional and country breakdowns section gives an analysis of the market in each geography and the size of the market by geography and compares their historic and forecast growth.
• Expanded geographical coverage includes Taiwan and Southeast Asia, reflecting recent supply chain realignments and manufacturing shifts in the region. This section analyzes how these markets are becoming increasingly important hubs in the global value chain.
• The competitive landscape chapter gives a description of the competitive nature of the market, market shares, and a description of the leading companies. Key financial deals which have shaped the market in recent years are identified.
• The company scoring matrix section evaluates and ranks leading companies based on a multi-parameter framework that includes market share or revenues, product innovation, and brand recognition.

Scope

• Markets Covered:1) By Product: Oxo Process; Reppe Process; By-product Process
• 2) By Application: Herbicides; Rubber Products; Plasticizers; Food Preservatives; Other Applications
• 3) By End-User Industry: Pharmaceuticals; Food And Beverage; Agriculture; Other End-User Industries
• Subsegments:
• 1) By Oxo Process: Propionic Acid via Hydroformylation of Ethylene; Propionic Acid via Propionaldehyde Oxidation; Carbon Monoxide and Hydrogen-Based Oxo Route
• 2) By Reppe Process: Acetylene and Carbon Monoxide-Based Reppe Process; Catalytic Acetylene Carbonylation Route
• 3) By By-Product Process: Production Of Propionic Acid As A By-Product Of Acetone Manufacturing; By-Product Formation During The Production Of Acrylic Acid Or Acetate; Recovery Of Propionic Acid From Fermentation Or Other Processes
• Companies Mentioned: BASF SE; Dow Chemical Company; INEOS Group; Evonik Industries AG; Solvay S.A.; Eastman Chemical Company; Celanese Corporation; OQ Chemicals GmbH; Corbion N.V.; Niacet Corporation; Perstorp Holding AB; Arkema SA; Clariant AG; Macco Organiques Inc.; Daicel Corporation; OXEA GmbH; Yara International ASA; Zibo Xinglu Chemical Co. Ltd.; Shandong Kunda Biotechnology Co. Ltd.; Eastman Performance Films & Chemicals; Anhui Huaxing Chemical Industry Co. Ltd.
• Countries: Australia; Brazil; China; France; Germany; India; Indonesia; Japan; Taiwan; Russia; South Korea; UK; USA; Canada; Italy; Spain
• Regions: Asia-Pacific; South East Asia; Western Europe; Eastern Europe; North America; South America; Middle East; Africa
• Time Series: Five years historic and ten years forecast.
• Data: Ratios of market size and growth to related markets, GDP proportions, expenditure per capita,
• Data Segmentations: country and regional historic and forecast data, market share of competitors, market segments.
• Sourcing and Referencing: Data and analysis throughout the report is sourced using end notes.
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