Propionic Acid Market Report 2026

Propionic Acid Market Overview

• Propionic Acid market size has reached to $1.55 billion in 2025 • Expected to grow to $1.84 billion in 2030 at a compound annual growth rate (CAGR) of 3.5% • Growth Driver: Expanding Agricultural Sector Boosting The Propionic Acid Market • Market Trend: Strategic Partnerships Drive Innovation And Sustainable Production In Specialty Chemicals • Europe was the largest region in 2025 and Asia-Pacific is the fastest growing region.

What Is Covered Under Propionic Acid Market?

Propionic acid is a naturally occurring colorless organic compound with a pungent odor and is classified as a carboxylic acid. It is used as a food preservative, fungicide, and antimicrobial agent in the food industry and to produce cellulose acetate propionate, herbicides, pharmaceuticals, and plasticizers. The main products of propionic acid are prepared by oxo process, Reppe process, and by-product process. Oxo process refers to a chemical reaction used in the production of aldehydes and alcohols. It is used for various applications such as herbicides, rubber products, plasticizers, food preservatives, and others by pharmaceuticals, personal care, food and beverage, agriculture, and other end-user industries.

What Is The Propionic Acid Market Growth Forecast?

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.

Global Propionic Acid Market Segmentation

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

What Is The Driver Of The Propionic Acid Market?

Growth in the agricultural industry is expected to propel the growth of the propionic acid market going forward. The agriculture industry refers to a sector of the economy that encompasses all activities related to cultivating plants and raising animals for various purposes, including food production, fiber, and materials production. Propionic acid is used in the agriculture industry as an antimicrobial and antifungal agent employed in managing poultry litter and treating livestock drinking water. For instance, in December 2024, according to the Food and Agriculture Organization (FAO), an Italy-based government agency, in 2023, global wheat exports rose to 199.1 million tonnes, marking an increase of 8.1 million tonnes compared to 2022. Therefore, the growth in the agricultural industry is driving the growth of the propionic acid industry.

What Is The Driver Of The Propionic Acid Market?

Growth in the agricultural industry is expected to propel the growth of the propionic acid market going forward. The agriculture industry refers to a sector of the economy that encompasses all activities related to cultivating plants and raising animals for various purposes, including food production, fiber, and materials production. Propionic acid is used in the agriculture industry as an antimicrobial and antifungal agent employed in managing poultry litter and treating livestock drinking water. For instance, in December 2024, according to the Food and Agriculture Organization (FAO), an Italy-based government agency, in 2023, global wheat exports rose to 199.1 million tonnes, marking an increase of 8.1 million tonnes compared to 2022. Therefore, the growth in the agricultural industry is driving the growth of the propionic acid industry.

Global Propionic Acid Market Trends and Insights

Major companies operating in the propionic acid market are adopting strategic partnerships to enhance production capabilities, expand market reach, and accelerate the development of advanced, sustainable formulations. Strategic partnerships propel the growth of the propionic acid market by enabling technology sharing, joint R&D initiatives, and access to new regional and industrial applications. For instance in October 2023 LG Chem Ltd a South Korea-based chemical company and partnered with GS Caltex Corporation a South Korea-based energy and chemical company signed a Memorandum of Understanding (MOU) to accelerate commercialization of 3HP (3-hydroxypropionic acid), a bio-based material produced via microbial fermentation of plant-derived sources like glucose and crude glycerol. The partnership combines LG Chem’s proprietary fermentation technology with GS Caltex’s expertise in separation, purification, and process scale-up to enable large-scale production of 3HP. Prototype production is expected to begin in early 2024, targeting applications in biodegradable plastics, superabsorbent polymers, and other eco-friendly materials.

What Are Latest Mergers And Acquisitions In The Propionic Acid Market?

In November 2024, Perstorp Holding AB a Sweden-based specialty chemicals company, acquired OQ Chemicals Nederland for an undisclosed amount. Through this acquisition, Perstorp aims to strengthen its propionic acid production capabilities and expand its footprint in Europe’s specialty chemicals landscape. OQ Chemicals Nederland B.V is a Netherlands-based chemical manufacturer specializing in high-purity organic acids, including propionic acid, catering to applications in food preservation, animal feed, and industrial chemicals.

Regional Insights

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 this market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa The countries covered in this market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain

What Defines the Propionic Acid Market?

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.

How is Market Value Defined and Measured?

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.

What Key Data and Analysis Are Included in the Propionic Acid Market Report 2026?

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