Propionic Acid Price Trend

Propionic Acid Prices June 2023

In June 2023, the market price for propionic acid in the United States was 1245 USD/MT. The market faced several price fluctuations as it entered the first quarter of 2024. During January and February, the rates saw a hike due to increased demand from downstream industries like food, and the elevated prices of feedstock ethylene. Moreover, there was a scarcity of the product as many plants were shut down during that time. However, towards the end of March, the market saw a dip in rates owing to increased supply and low-cost support from feedstock ethylene.

Propionic Acid Price Trend, Market Analysis, and News

IMARC’s newly published report, titled “Propionic Acid Pricing Report 2024: Price Trend, Chart, Market Analysis, News, Demand, Historical and Forecast Data,” offers an in-depth analysis of propionic acid pricing, covering an analysis of global and regional market trends and the critical factors driving these price movements.

It encompasses an in-depth review of spot price of propionic acid at major ports, a breakdown of prices including Ex Works, FOB, and CIF, alongside a region-wise dissection of propionic acid price trend across North America, Europe, Asia Pacific, Latin America, the Middle East and Africa.

The report examines the elements influencing propionic acid price fluctuations, such as changes in raw material costs, supply-demand dynamics, geopolitical factors, and industry-specific developments. Additionally, it integrates the latest market news, providing stakeholders with up-to-date information on market shifts, regulatory changes, and technological advancements, thereby offering a comprehensive overview that aids in strategic decision-making and forecasting.

Propionic Acid Market Analysis

The global propionic acid market size reached US$ 1.8 Billion in 2023. By 2032, IMARC Group expects the market to reach US$ 2.3 Billion, at a projected CAGR of 2.70% during 2023-2032.

• Propionic acid is an important ingredient in the food industry. Its demand in this sector as a food preservative that prolongs shelf life and maintains product safety is expanding the market share. The food and beverage (F&B) sector is rising at an incredible rate. In emerging economies like India, it will reach a valuation of US$ 470 billion by 2025, up from US$ 263 billion in 2021. Regionally, in Europe, the F&B industry created a turnover of Euro 1.1 trillion in 2023. It has antimicrobial and antifungal properties, which are known to help prevent spoilage and ensure the longevity of food products in packaged and baked goods. The market for packaged food is also elevating at an increasing pace, with a 7% growth rate. It is expected to touch US$ 4,581.6 Billion by 2032. 
• The pharmaceutical sector relies heavily on propionic acid for the synthesis of many pharmaceuticals, including painkillers and anti-inflammatory drugs. The pharmaceutical sector is growing at an astounding rate due to increased healthcare spending, better infrastructure, and greater awareness. For instance, by 2030, the pharmaceutical sector in India is projected to grow to $130 billion. Additionally, India exports a lot of medications to more than 200 nations. The country supplies over 50% of Africa’s requirement for generics, 40% of generic demand in the US, and 25% of all medicine in the UK. Also, the pharmaceutical industry in the UK has a turnover of 40.8 billion pounds.
• The cosmetic industry is embracing propionic acid thanks to its role in maintaining the optimal pH of cosmetics. As a result, propionic acid is incorporated into skincare and haircare products like body lotions, face creams, shampoos, sunscreens, and hair sprays. The market for cosmetics is growing at a yearly pace of 4.8% annually and will reach US$ 618.7 billion by 2032. Also, Europe is a huge market for cosmetics, with a value of €88 billion in sales. Its market is divided into nations that contribute to its rising popularity in the cosmetics and personal care sector. Germany amounted to €14.3 billion share, France €12.9 billion, Italy €11.5 billion, the UK €10.5 billion, Spain €9.3 billion, and Poland €4.5 billion. This has increased the need for propionic acid in Europe to deliver effective cosmetic products.
• The increase in population and demand for livestock products is favoring the product use in the animal feed industry. The compound is being used as a preservative in animal feed and grain to protect against mold and bacteria, which are known to spoil feed and cause disease in livestock. By 2050, there will be 10 billion people in the world. This number will keep increasing in the future, which is increasing the demand for effective preservatives like propionic acid.

Propionic Acid News

The report covers the latest developments, updates, and trends impacting the global propionic acid market, providing stakeholders with timely and relevant information. This segment covers a wide array of news items, including the inauguration of new production facilities, advancements in propionic acid production technologies, strategic market expansions by key industry players, and significant mergers and acquisitions that impact the propionic acid price trend.

Latest developments in the propionic acid industry:

• In April 2022, BASF and SINOPEC announced the expansion of their Verbund site operated by BASF-YPC Co., Ltd. (BASF-YPC). It is a 50-50 joint venture of both companies in Nanjing. The expansion includes new capacities of several downstream chemical plants to serve the growing demand from various industries in the Chinese market. The new facility can produce 30,000 metric tons of propionic acid annually.
• In April 2022, Perstorp announced its plans to build a new carboxylic acid manufacturing plant in Sweden by 2024, adding a production capacity of around 70,000 metric tons per year for naturally occurring carboxylic acids such as propionic acid. The investment will enable Perstorp to increase output significantly and strengthen its position as the sustainable solutions provider.

Product Description

Propionic acid (C3H6O2), also known as propanoic acid, is a naturally occurring carboxylic acid. It is a colorless and oily liquid with a pungent odor and is soluble in water. It is produced industrially through the hydrocarboxylation of ethylene using nickel carbonyl as the catalyst and is also formed by the bacterial fermentation of sugars. It is characterized by its antimicrobial and antifungal properties. It is produced using ethylene, carbon monoxide, and water, primarily in the presence of a catalyst.

Propionic acid finds application in food preservatives, herbicide production, plasticizer manufacturing, pharmaceuticals, animal feed preservation, perfume industry, paint solvent, and flavoring agent. It offers numerous benefits, such as extending food shelf life, inhibiting microbial growth, enhancing flavor, and contributing to sustainable practices in agriculture and industry. Moreover, it is lauded for its effectiveness at low concentrations, cost-efficiency, minimal toxicity, and environmental safety.

Regional Coverage

The report provides a detailed analysis of the propionic acid market across different regions, each with unique pricing dynamics influenced by localized market conditions, supply chain intricacies, and geopolitical factors. This includes price trends, price forecast and supply and demand trends for each region, along with spot prices by major ports. The report also provides coverage of ex-works, FOB, and CIF prices, as well as the key factors influencing the propionic acid price trend.

Global Propionic Acid Price

The report offers a holistic view of the global propionic acid pricing trends in the form of propionic acid price charts, reflecting the worldwide interplay of supply-demand balances, international trade policies, and overarching economic factors that shape the market on a macro level. This comprehensive analysis not only highlights current price of propionic acid but also provides insights into historical price trends, enabling stakeholders to understand past fluctuations and their underlying causes.

The report also delves into price forecast models, projecting future price movements based on a variety of indicators such as expected changes in supply chain dynamics, anticipated policy shifts, and emerging market trends. By examining these factors, the report equips industry participants with the necessary tools to make informed strategic decisions, manage risks, and capitalize on market opportunities. Furthermore, it includes a detailed propionic acid demand analysis, breaking down regional variations and identifying key drivers specific to each geographic market, thus offering a nuanced understanding of the global pricing landscape.

Europe Propionic Acid Price

The European region experienced a hike in prices in January and February of 2024. This is due to a growth in product demand from the food industry, a rise in feedstock ethylene prices, and continuous plant shutdowns, which led to a scarcity of propionic acid. In addition, disruptions in the supply chain owing to adverse weather conditions were also responsible for the hike in rates. However, as Q1 concluded in March 2024, the market saw a dip in rates because of excess product supply and reduced cost of ethylene.

This analysis can be extended to include detailed propionic acid price information for a comprehensive list of countries.

North America Propionic Acid Price

In North America, the propionic acid market witnessed a bullish trend in the first two months of Q1 2024. This is due to increased product demand from the food industry and a hike in feedstock ethylene prices. The reported shutdown of plants that created a scarcity of propionic acid also contributed to the hiked rates. However, as the market moved towards March, there was a decline in prices because of oversupply and low-cost support from ethylene.

Specific propionic acid historical data within the United States and Canada can also be provided.

Middle East and Africa Propionic Acid Price

The report explores the propionic acid pricing trends in the Middle East and Africa, considering factors like regional industrial growth, the availability of natural resources, and geopolitical tensions that uniquely influence market prices.

In addition to region-wise data, information on propionic acid prices for countries can also be provided.

Asia Pacific Propionic Acid Price

The propionic acid market in the Asia Pacific region witnessed a mixed price trajectory in the first quarter of 2024. The first half of the quarter saw stable market sentiment due to continued demand from end-use industries and the availability of stockpiles. However, the second half saw a slight decline in prices as the demand from the food and beverage (F&B) industry reduced, and there was an anticipated decline in procurement activities. 

This propionic acid price analysis can be expanded to include a comprehensive list of countries within the region.

Latin America Propionic Acid Price

The analysis of propionic acid prices in Latin America provides a detailed overview, reflecting the unique market dynamics in the region influenced by economic policies, industrial growth, and trade frameworks.

This comprehensive review can be extended to include specific countries within the region.

Report Coverage

Key Benefits for Stakeholders:

• IMARC’s report presents a detailed analysis of propionic acid pricing, covering global and regional trends, spot prices at key ports, and a breakdown of Ex Works, FOB, and CIF prices.
• The study examines factors affecting propionic acid price trend, including raw material costs, supply-demand shifts, geopolitical impacts, and industry developments, offering insights for informed decision-making.
• The competitive landscape review equips stakeholders with crucial insights into the latest market news, regulatory changes, and technological advancements, ensuring a well-rounded, strategic overview for forecasting and planning.
• IMARC offers various subscription options, including monthly, quarterly, and biannual updates, allowing clients to stay informed with the latest market trends, ongoing developments, and comprehensive market insights. The propionic acid price charts ensure our clients remain at the forefront of the industry.