Propionic Acid Market Report 2026

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.

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