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Propionic Acid

Chemical Economics Handbook

Published April 2020

With only six major producers worldwide, the propionic acid business can be considered a global one, with trade playing a significant role in the global supply/demand pattern. Production capacity is geographically concentrated in Western Europe, the United States, and to a minor extent, in China, and is largely managed by western firms. BASF is the only western producer operating a facility in Asia via its 50% subsidiary BASF-YPC. The propionic acid business is characterized by a high level of integration and most manufacturers produce propionic acid as well as its raw materials—either ethylene or propionaldehyde, or both. Ethylene is the major factor determining the price of propionic acid and can account for up to 80% of the final production cost.

The following pie chart shows world consumption of propionic acid:


Animal feed and grain preservation account for roughly half of the propionic acid consumed worldwide. Propionic acid, or a buffered solution with ammonium salt, is added to animal feed to prevent the growth of mold (acquired as contaminants in the field or during storage). In general, usage depends on the moisture level of the feed, the storage time, and the type of livestock, with ruminants showing a higher tolerance compared with poultry and pigs.

About another third of the propionic acid consumed is used in the manufacture of calcium and sodium propionates. Calcium and sodium propionates are permitted additives for both food and feed preservation. The use of calcium and sodium propionates in food is growing fast in India, mainland China, and the Middle East, as well as in South America. This is also driving propionic acid consumption in Western Europe and North America, as these countries are major producers and exporters of the propionate salts.

Other significant end uses of propionic acids are in the manufacture of herbicides and diethyl ketone, while smaller-volume applications include cellulose acetate propionate, solvent esters, flavors and fragrances, and plasticizers.

The global market for propionic acid has been growing at an average annual rate of around 3% during the past three years and this is expected to continue during 2019–24. Consumption for food and feed preservatives, especially in Asia and South America, will be the major driver of this growth. In these regions, improving standards of living and the increasing popularity of processed food are supporting the use of propionate salts in food. Furthermore, increasing demand for meat in developing countries as well as the trend toward industrialized farming will also drive the use of propionic acid in feed applications. Other fast-growing markets include propionate esters for solvents, such as n-butyl and pentyl propionate; these esters are increasingly being used as replacements for solvents listed as hazardous air pollutants.

Thanks to recent capacity expansion in China and in the United States, the market is presently adequately supplied. However, capacity additions might become necessary in the future, depending on the demand development of other carboxylic acids that share the same multiproduct oxidation units with propionic acid.

For more detailed information, see the table of contents, shown below.

S&P Global’s Chemical Economics Handbook – Propionic Acid is the comprehensive and trusted guide for anyone seeking information on this industry. This latest report details global and regional information, including

Key benefits

S&P Global’s Chemical Economics Handbook – Propionic Acid has been compiled using primary interviews with key suppliers and organizations, and leading representatives from the industry in combination with S&P Global’s unparalleled access to upstream and downstream market intelligence and expert insights into industry dynamics, trade, and economics.

This report can help you

  • Identify trends and driving forces influencing chemical markets
  • Forecast and plan for future demand
  • Understand the impact of competing materials
  • Identify and evaluate potential customers and competitors
  • Evaluate producers
  • Track changing prices and trade movements
  • Analyze the impact of feedstocks, regulations, and other factors on chemical profitability

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Table of Contents

Section Page Number

Executive summary 5
Summary 7
Introduction 12
Regulatory status 13
Manufacturing processes 14
Supply and demand by region 15
United States 15
Producing companies 15
Salient statistics 15
Production 16
Consumption 16
Animal feed and grain preservation 17
Calcium and sodium propionates 18
Cellulose acetate propionate (CAP) 18
Herbicides 19
Other 19
Price 19
Trade 20
Canada 22
Salient statistics 22
Trade 23
Imports 23
Exports 24
Mexico 25
Salient statistics 25
Trade 26
Imports 26
Exports 27
Central and South America 28
Salient statistics 28
Consumption 28
Trade 29
Western Europe 30
Producing companies 30
Salient statistics 31
Production 31
Consumption 32
Animal feed and grain preservation 34
Calcium and sodium propionates 35
Diethyl ketone 36
Herbicides 36
Other 36
Price 37
Trade 38
Imports 38
Exports 39
Central and Eastern Europe 39
Middle East 41
Africa 43
Producing companies 43
Salient statistics 43
Asia and Oceania 44
Producing companies 44
Salient statistics 45
Consumption 48
Trade 50
Imports 50
Exports 51
Additional resources 53
Revisions 54

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