HS Code:
Propionic acid (HS Code: 2915.50) is a naturally occurring carboxylic acid used primarily as a preservative in food and animal feed, as well as in the production of pharmaceuticals, herbicides, and plastics. It is a colorless liquid with a pungent odor and is produced industrially through the oxidation of propionaldehyde or as a byproduct of acetic acid production. The global trade of propionic acid and its derivatives is driven by demand in agriculture, food safety, and chemical industries.
Total Trade Volume
USD 1.2 billion
Data from 2022
Source
United Nations Comtrade Database & International Trade Centre (ITC)
USD 300 million
25% of total trade of total trade
Increasing
USD 250 million
21% of total trade of total trade
Stable
USD 200 million
17% of total trade of total trade
Increasing
USD 150 million
12.5% of total trade of total trade
Stable
USD 100 million
8.3% of total trade of total trade
Decreasing
Average Rate
5.2% ad valorem
Highest Rate
12% (imposed by certain developing countries)
Lowest Rate
0% (under free trade agreements like EU-USMCA)
Rising demand for food preservatives
Increased trade volume due to growing global population and food safety concerns, especially in developing countries.
2021-2022
Shift towards bio-based propionic acid
Growing interest in sustainable production methods is boosting innovation and trade in bio-based alternatives, impacting traditional markets.
2022
Supply chain disruptions
Global supply chain issues, including raw material shortages and shipping delays, have led to price volatility in the propionic acid market.
2020-2022
The European Union introduced stricter guidelines for the use of propionic acid as a food preservative, requiring detailed safety certifications for imports.
March 2023
Increased compliance costs for exporters to the EU, potentially reducing trade volumes from non-compliant regions.
A new bilateral agreement reduced tariffs on chemical intermediates, including propionic acid, between the US and China.
January 2023
Boosted trade volumes between the two countries, with a projected 10% increase in exports from China to the US.
Major chemical companies in Germany and the Netherlands announced investments in bio-based propionic acid production facilities.
June 2023
Expected to increase supply of sustainable propionic acid, potentially lowering prices and shifting trade patterns in favor of European exporters.