Propionitrile Market is Estimated to Witness Significant Growth Owing to Rising Demand and Increasing Applications
Propionitrile market is estimated to be valued at USD 105.2 Mn in 2024, exhibiting a CAGR of 5% over the forecast period (2024-2031). Propionitrile is widely used in agrochemicals, pharmaceutical intermediates, and other applications which is driving the market growth. Furthermore, rapid urbanization and demand for food are increasing the need for pesticides and herbicides, thereby fuelling the propionitrile consumption.
Market Dynamics:
The growth of the propionitrile market is driven by increasing demand from the agrochemical and pharmaceutical sectors. Propionitrile acts as an important intermediate in manufacturing various pesticides and herbicides. Rising concerns regarding food security and the need to increase crop yield are significantly boosting the adoption of agrochemicals. According to The Food and Agriculture Organization (FAO), the global population is expected to reach around 9.7 billion by 2050 which is increasing the pressure on the agriculture sector. This is anticipated to augment the demand for propionitrile over the forecast period. Additionally, propionitrile is widely utilized in making pharmaceutical intermediates and active ingredients. The expanding pharmaceutical industry globally is therefore positively impacting the market growth.
Growing Demand from Pharmaceutical Industry is driving the Propionitrile Market
The pharmaceutical industry has seen increasing demand for propionitrile due to its widespread applications in manufacturing active pharmaceutical ingredients and intermediates. Propionitrile is commonly used as a solvent in the synthesis of various drugs and molecules. It acts as an excellent reaction medium for acid-base reactions and nucleophilic substitutions. The growing generic and biosimilar drug markets have further boosted the consumption of propionitrile. This rapid growth of the pharmaceutical sector is expected to drive the demand for propionitrile in the coming years.
Increasing Usage in Pesticides Manufacturing Augmenting Market Growth
Propionitrile finds significant usage as an intermediate in producing various pesticides and insecticides. It acts as a building block for synthesizing pyrethroid pesticides that are widely used for crop protection. The global pesticide market has been growing steadily due to the rising global population and increasing requirement for food production. Expanding cultivated area and growing demand for high-value agricultural commodities are also propelling the pesticide consumption. This uptrend in the agricultural sector is positively impacting the sales of propionitrile. Manufacturers are anticipated to utilize propionitrile on a larger scale for producing pest control chemicals to meet the growing global food demand.
Stringent Environmental Regulations Hampering Market Expansion
Propionitrile is categorized as toxic and hazardous under various environmental regulations due to its flammable and volatile nature. Prolonged or repeated exposure to propionitrile can cause harmful health impacts. Hence, its production, usage, storage, transportation and disposal are strictly governed by worldwide protocols. For example, Registration, Evaluation, Authorization and restriction of Chemicals or REACH in Europe has listed propionitrile as a substance of very high concern. Stringent norms around emissions, discharges, and safety measures increase the production cost of propionitrile. This acts as a key restraint in the market. Moreover, the availability of substitute chemicals for specific applications also challenges the market growth to some extent.
Emerging Economies Present Attractive Growth Opportunities
Emerging countries spanning Asia Pacific, Latin America, Africa, and the Middle East offer a plethora of untapped opportunities for propionitrile producers and suppliers. Rapid industrialization and infrastructure development in these regions have bolstered the demand for chemicals, petrochemicals, plastics, polymers, agrochemicals, and pharmaceuticals where propionitrile has applications. India, China, Brazil, South Africa, GCC countries are witnessing rising manufacturing and agricultural activities. This presents lucrative growth prospects for the propionitrile market players seeking to extend their geographical footprint. Additionally, these developing nations have lenient regulations compared to developed markets of North America and Europe, giving propionitrile companies an edge to capitalize gains.
Demand from Nitrile Butadiene Rubber Industry is Promising for Growth
Propionitrile acts as a core monomer in the production of nitrile butadiene rubber (NBR). NBR finds widespread application across diverse end-use industries including automotive, construction, oil & gas and healthcare owing to its oil and chemical resistance properties. The global NBR market has been demonstrating healthy expansion over the recent years driven by rising automotive sales, increasing oil extraction activities and growing infrastructure development projects across emerging Asian and Latin American nations. This burgeoning demand for NBR is likely to positively influence the consumption of propionitrile in the rubber industry.
In conclusion, the propionitrile market is driven by increasing usage in pharmaceutical and agrochemical industries but faces challenges due to stringent environmental regulations. However, emerging economies present lucrative opportunities for propionitrile suppliers and producers to enhance their geographic footprint and tap into high-growth application areas including Nitrile Butadiene Rubber production.
Link: https://www.coherentmarketinsights.com/market-insight/propionitrile-market-2234
Key Player:
Air Liquide, Alfa Aesar, Ascend Performance Materials, Indo Amines Limited, Shanghai Worldyang Chemical Co., Ltd., Sigma Solvents Private Limited, TCI, Toronto Research Chemicals, Inc., and Triveni Chemicals
