Propionic Acid Market : Challenges and Opportunities Report 2013 - 2019
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Growing global food and beverage industry is expected to fuel the preservatives market which in turn is expected to drive the global propionic acid market. Rising demand from end-use industries in emerging economies such as Asia Pacific provides huge potential for growth in the propionic acid market. Moreover, the growing pharmaceutical industry has been contributing to the growth of the market. Additionally, increasing demand for Vitamin E is expected to create opportunities for the propionic acid market in the near future. However, market growth may be hampered during the forecast period due to adverse effects of propionic acid on human health and environment.
Animal feed and grain preservatives led the market with 52.5% of global demand in 2012. It is expected to experience slight increase in its market share in the next few years due to increase in livestock farming that resulted in growing demand for animal feed and grain preservatives. Calcium and sodium propionates accounted for second largest application segment of the global propionic acid demand in 2012. Cellulose Acetate Propionate (CAP) is anticipated to grow steadily at a CAGR of 1.9% from 2013 to 2019. On the other hand, the herbicides market is expected to experience sluggish growth in the coming years due to health hazards caused by herbicides.
The global propionic acid market was led by Europe with 39.9% market share in 2012. Europe is expected to show steady growth in the near future as compared to other emerging economies. North America followed Europe and is expected to experience slight decline in its market share by 2019. Asia Pacific is expected to be fastest growing segment during the forecast period. Rest of the World (RoW) that includes Latin America, Middle East and Africa is expected to experience steady growth in 2019 owing to increasing propionic acid imports in the region.
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Key market players include BASF SE, the Dow Chemical Company, Perstorp Holding GmbH and Eastman Chemical Company. The market for propionic acid is highly concentrated, with the top three players accounted for more than 80% of the global market in 2013.
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