Sodium propionate is a food additive that is naturally occurring but can be industrially produced. It is highly used as an additive in various baked food products because they are highly toxic for molds and some bacteria. Baked food is highly susceptible to spoilage. Basically, sodium propionate is a salt form of propionic acid and is produced during the degradation of sugar. Moreover, it is also synthesized in the body during the metabolization of amino acids and certain fatty acids. The chemically produced sodium propionate is widely used as an additive in the food industry.
Global sodium propionate market is estimated to account for around US$ 40,268.4 thousand in terms of value in the year 2019 and it predicted to grow at a CAGR of 5.4% during the forecast period (2020-2027)
Increasing production, as well as consumption of meat products, is expected to fuel the market growth of sodium propionate. According to the North American Meat Institute, the meat and poultry industry is the largest segment of U.S. agriculture. U.S. meat production totaled 52 billion pounds in 2017 and U.S. poultry production totaled 48 billion pounds in 2017. Thus, growing production of sodium propionate market size.
Robust growth in the bakery industry is expected to provide potential growth opportunities to the market of the sodium propionate. According to The University of British Columbia, the Canadian bakery product market is expected to grow at a compound annualized rate of 3.4% from 2018-2022. Bread sales accounted for the largest portion of baked goods sales each year. In 2017, bread sales accounted for $3.5 billion (USD) or almost 63% of total sales that years.
The high and unregulated cost of raw materials is expected to hinder the market growth of sodium propionate. Ethylene is a basic ingredient used in the production of sodium propionate. In recent years ethylene has experienced a fluctuation in the prices which is impacting the overall increase in the price of the sodium propionate. This is expected to hinder the market growth of sodium propionate over the forecast period.
On the basis of region, the North America dominated the global sodium propionate market in 2019 with a 44.6% of market share in terms of value, followed by Europe and Asia Pacific respectively.
On the basis of the application, the food segment dominated the global sodium propionate material market in 2019 with 83.7 % of market share in terms of value.
The growing use of sodium propionate in the pharmaceutical industry is expected to augment the market growth of sodium propionate. The growth of the market is also attributed to the increasing production of pharmaceutical products and growing investment in the industry. According to the Global Use of Medicines report from the IQVIA Institute for Human Data Science. The global market for pharmaceuticals reached $1.2 trillion in 2018, up to $100 billion from 2017.
Increasing advancement in sodium propionate-based medical practices for treating patients suffering from cornea infections, conjunctiva, and lids. Furthermore, the rising use of sodium propionate in the agrochemical industry is further expected to accelerate the market growth of sodium propionate over the forecast period.