[228 Pages Report] Propionic acid is a three-carbon carboxylic acid with a molecular formula of CH 3 CH 2 COOH. It is a clear, colorless liquid with a pungent odor. It is commercially manufactured by the hydrocarboxylation of ethylene in the presence of nickel carbonyl catalyst. Propionic acid and derivatives are largely used as feed and food preservatives. It inhibits the growth of molds and bacteria. It is also used to make some specialized propionates, such as cellulose acetate propionate (CAP), which is a useful thermoplastic. The other applications include herbicides, pharmaceuticals, and solvents. It may cause irritation to the human body in case of contact, so various health organizations are involved in continuously monitoring its exposure levels.

The global propionic acid market has grown significantly during the past few years and is expected to grow at a more rapid pace in the next five years, mainly driven by the growing demand from feed preservatives, grain preservatives, and food preservatives. Europe emerged as the largest market of propionic acid & derivatives mostly driven by the ban imposed on the antibiotics in some applications since 2006. The demand in the European region is likely to remain healthy due to huge demand for the feed and grain preservatives segment. The U.S. is the largest single market across the globe. Its consumption in other countries had improved over the past few years and is expected increase further over the near term. The major market production facilities are located in developed markets, such as in Germany, the U.S., the Netherlands, Sweden, and Canada. Thus, these countries will remain major exporters of propionic acid and derivatives. Countries like Spain, France, India, Brazil, South Africa, Russia, etc. will remain major importers.

This study basically aims to estimate the global Propionic acid market for 2012, and to project the expected demand of the same from 2013 to 2018. This market research study provides detailed qualitative and quantitative analysis of the global market. It provides a comprehensive review of major market drivers, restraints, opportunities, winning imperatives, challenges, and key issues in the market. The market is further segmented and forecasted for major countries like the U.S., Canada, the Netherlands, Germany, Spain, China, U.K., etc. The market is also segmented on the basis of applications of propionic acid. We have used various secondary sources such as encyclopedia, directories, and databases to identify and collect information useful for this extensive commercial study of the market. The primary sources�experts from related industries and suppliers�have been interviewed to obtain and verify critical information as well as to assess the future prospects.

Competitive scenarios of the top players in the propionic acid market & derivatives are discussed in detail. We have also profiled leading players of this industry with their recent developments and other strategic industry activities. These include: BASF SE (Germany), The Dow Chemical Company (U.S.), Perstorp (Sweden), Eastman Chemical (U.S.), Niacet Corporation (U.S.), etc.

Scope of the report:

This research report categorizes the global propionic acid market & derivatives on the basis of applications and geography, forecasting volumes, value, and analyzing trends in each of the submarkets.

On the basis of applications:

The market is segmented on the basis of industry applications, such as animal feed & grain preservatives, food preservatives, herbicides, cellulose acetate propionate, and others. Each application is further described in detail in the report with their volumes and value forecasts.

On the basis of geography:

Key countries including Spain, France, Germany, Italy, the Netherlands, China, Japan, the U.S., Canada, etc.

Propionic acid & derivatives are widely used in feed preservatives, grain preservatives, and food preservatives as they regarded as one of the safest additives available in the market. In addition, it is also used in herbicides, cellulose acetate propionate, esters, fragrances, etc.

The global demand for propionic acid & derivatives is increasing on the back of growing consumption for animal feed and grain preservatives. In addition, propionates� demand in the food preservative segments is also likely to jump in the coming years due to rising demand to increase the shelf life of the food on the global level. However, demand is likely to get affected due to limited production capacity and lack of technological innovation.

The global propionic acid market in terms of revenue was estimated to be worth $935.7 million in 2012 and is expected to reach $1,608.8 million by 2018, growing at a CAGR of 7.8% from 2013 to 2018. Europe dominated the global market in 2012. Emerging markets are likely to fuel the future growth of propionic acid & derivatives.

Propionic Acid Market & Derivatives: Market Share, By Geography, 2012 (Volume)

Source: MarketsandMarkets Analysis

Its consumption in the developed markets is more than the developing markets. There are a handful of propionic acid producers which dominate the market. Majority of these companies� propionic acid plants are located in the developed markets. However, demand from the emerging markets is increasing due to rising awareness about the benefits.

This report analyzes the propionic acid market & derivatives by key countries at present and expected key countries in the future. It also provides detailed segmentation of the market on the basis of its major applications and on the basis of raw materials employed for producing it, along with its forecast till 2018. The report discusses in detail the major supply and demand factors affecting the market at the global, regional, and country level.

The dominant producers of propionic acid are BASF SE (Germany), The Dow Chemical Company (U.S.), Perstorp (Sweden), and Eastman Chemical (U.S.), while Niacet Corporation (U.S.) and Macco (Canada) are among the major players of propionates.