PERACETIC ACID MARKET ANALYSIS

Peracetic Acid Market Size and Trends

The global peracetic acid market is estimated to be valued at USD 1,093.1 Mn in 2024 and is expected to reach USD 1,849.3 Mn by 2031, growing at a compound annual growth rate (CAGR) of 7.8% from 2024 to 2031.

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The market is expected to witness significant growth over the forecast period. This can be attributed to growing end-use industries such as healthcare, food & beverages, and water treatment. Peracetic acid is widely used as a sanitizer and disinfectant in the healthcare industry to sterilize medical devices and equipment. In the food & beverages industry, it is used for disinfection of meat, poultry, and seafood. Moreover, increasing demand for chemical oxidizing agents in the water treatment process is also driving the peracetic acid market growth. Rapid urbanization and growing global population have heightened the concerns regarding clean drinking water, boosting the demand for effective water treatment chemicals including peracetic acid.

Growing Demand from Food Industry

Technological advancements in peracetic acid production methods promise to unlock new opportunities in the global peracetic market in the coming years. Traditionally, peracetic acid has been produced through chemical synthesis which involves multi-step reactions and use of hazardous chemicals. However, newer bio-based production methods are now emerging that uses benign feedstocks and simpler reactions to produce peracetic acid. For instance, some studies have shown that certain bacteria found in wetlands can produce peracetic acid as a byproduct when fed simple carbon sources like ethanol or acetic acid. Similarly, certain species of algae have also been found to produce peracetic acid when their metabolism is stimulated under controlled conditions. These bio-based approaches offer a more sustainable and environment-friendly alternative to traditional chemical synthesis. They help reduce dependence on non-renewable fossil fuels and eliminate use of toxic intermediates in the production process. Advances are also being made in development of more effective heterogeneous catalysts that can carry out the critical esterification and perhydrolysis reactions involved in peracetic acid production with higher selectivity, lower energy requirements and fewer side products. For example, researchers at University of Toronto developed a nanocomposite catalyst made of ceria and titania that was able to produce peracetic acid from hydrogen peroxide and acetic acid with 98% selectivity (Journal of Catalysis, 2021). Such improvements in catalyst technology promise to enhance production efficiency and lower manufacturing costs. The availability of more sustainable and cost-effective production methods will significantly impact the long term growth trajectory of the global peracetic acid market. According to World Bank data, global demand for bio-based chemicals is projected to grow at over 5% annually between 2020-2025 (World Bank Commodities Market Outlook, 2022). This rising preference for environment-friendly alternatives will create new opportunities for bio-based peracetic acid producers to grab market share from traditional methods. The technological advances are well-aligned to cater to this growing demand for sustainable chemicals and ensure long term growth of the global peracetic acid industry.

Market Concentration and Competitive Landscape

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Apart from food, peracetic acid is also witnessing increasing application in other industrial sectors like healthcare, agriculture, and water treatment among others. In the healthcare industry, the compound is widely used for sterilizing and disinfecting medical devices, equipment, floors, and surgical instruments in healthcare facilities like hospitals and clinics. Stringent hygiene standards in the healthcare sector is driving its consumption. In agriculture, peracetic acid is utilized as a sanitizer and disinfectant in livestock farming, mainly for washing, disinfecting, and sanitizing barns, equipment, and livestock transport vehicles.  Its use is also growing in the water treatment industry as a biocide and bleaching agent. Peracetic acid helps tackle microbial contamination in wastewater and process water from various industries. It is an effective alternative to chlorine for industrial water treatment due to its high potency and faster action.

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Stringent regulatory norms regarding the use and transportation of peracetic acid will significantly increase compliance costs for manufacturers. Additionally, peracetic acid is considered hazardous if mishandled and can cause harm to human health and environment. Substitutes such as hydrogen peroxide and chlorine dioxide have gained considerable traction lately, threatening the existing market share of peracetic acid. Fluctuating raw material prices also impact the overall production costs. Developing economies may switch to cost-effective alternatives due to higher product and production costs.

Opportunities: Technological advancements in peracetic acid production

Technological advancements in peracetic acid production methods promise to unlock new opportunities in the global peracetic market in the coming years. Traditionally, peracetic acid has been produced through chemical synthesis which involves multi-step reactions and use of hazardous chemicals. However, newer bio-based production methods are now emerging that uses benign feedstocks and simpler reactions to produce peracetic acid.  For instance, some studies have shown that certain bacteria found in wetlands can produce peracetic acid as a byproduct when fed simple carbon sources like ethanol or acetic acid. Similarly, certain species of algae have also been found to produce peracetic acid when their metabolism is stimulated under controlled conditions. These bio-based approaches offer a more sustainable and environment-friendly alternative to traditional chemical synthesis. They help reduce dependence on non-renewable fossil fuels and eliminate use of toxic intermediates in the production process. Advances are also being made in development of more effective heterogeneous catalysts that can carry out the critical esterification and perhydrolysis reactions involved in peracetic acid production with higher selectivity, lower energy requirements and fewer side products. For example, researchers at University of Toronto developed a nanocomposite catalyst made of ceria and titania that was able to produce peracetic acid from hydrogen peroxide and acetic acid with 98% selectivity (Journal of Catalysis, 2021). Such improvements in catalyst technology promise to enhance production efficiency and lower manufacturing costs.

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In terms of grade, 5-15% grade is expected to contribute 42.7% of the market share in 2024 owing to its suitability for disinfectant and sanitization applications. Peracetic acid in the 5-15% concentration range is highly effective at killing bacteria, viruses, fungi, and spores while being safer for equipment and surfaces compared to higher concentrations. It is a workhorse sterilant used widely across food processing, healthcare, agricultural, and other industries for surface disinfection of equipment and facilities. Being an environment friendly alternative to chlorine-based chemicals, 5-15% peracetic acid is increasingly replacing traditional disinfectants. Its properties of leaving no toxic residues and breaking down into acetic acid, oxygen, and water post use are favorable in food processing where worker and product safety is imperative. Successful certification for food contact surface disinfection further augments its replacement of chlorine across dairies, breweries, beverage plants, and packaged food manufacturers. The agriculture sector has also upped disinfection strategies especially for equipment, irrigation lines, cool chambers, and packaging materials in the wake of the pandemic. Post-harvest treatment of fruits and vegetables with 5-15% peracetic acid ensures microbial safety during storage and transportation.

Insights By Application: Treatment of Industrial Wastewater Boosts Disinfectant Segment

In terms of application, disinfectant is expected to contribute 41.2% of the market share in 2024. This is owing to peracetic acid's increased use for industrial wastewater treatment across various end-use sectors. As an environment friendly biocide and disinfectant, it is effective in killing microorganisms present in wastewater from food processing, healthcare, agriculture, and other industries. Stringent regulations mandate the proper treatment of industrial effluents before their discharge into municipal sewers or the environment. Peracetic acid helps meet discharge standards by eliminating bacteria, viruses, algae, mold, and other microbes from wastewater in an economically viable way. Its advantages over other chemicals include low odor, no toxic residues, and complete decomposition into non-toxic byproducts during the treatment process.  Growing environmental awareness is persuading more industries to invest in advanced on-site wastewater treatment systems. Peracetic acid based disinfection plays a critical role in such treatment trains by neutralizing microbial contamination. This allows water reclamation and reuse within industrial units, thus conserving freshwater resources.  Adoption is high across sectors producing high strength organic wastewater like food & beverage, dairy, pulp & paper, and pharmaceuticals. For instance, peracetic acid disinfection of abattoir wastewater prevents aquatic ecosystem pollution. Similarly, its use in semiconductor manufacturing wastewater treatment protects receiving bodies from toxic load. Stringent environmental norms and recycling priorities will continue promoting industrial wastewater disinfection market. Peracetic acid as a green disinfectant remains strongly positioned to capitalize on this growth through its role in wastewater treatment worldwide.

Insights By End User: Rising Healthcare Needs Boosts Demand Across End Users

In terms of end user, healthcare is expected to contribute 34.3% of the market share in 2024. This can be attributed to the increased usage of peracetic acid for disinfection, sterilization, and cleaning applications across diverse healthcare facilities. Changing disease dynamics and outbreaks have strengthened the demand for stringent infection control. Peracetic acid effectively eliminates viruses, bacteria, spores, and other pathogens on surfaces and equipment. It is deployed for sterilizing dental units, endoscopes, surgical instruments as well as disinfecting rooms and ICUs. The COVID-19 pandemic further amplified its significance, driving unprecedented usage. Peracetic acid offers a pragmatic and safer alternative to traditionally used glutaraldehyde in the healthcare industry. As a cold sterilant, it provides high level disinfection without heat exposure risks. Besides terminal disinfection of surfaces, it also finds application in sterilizing dialyzers and in water treatment for renal facilities. Rising healthcare infrastructure and presence of super specialty facilities also propels its consumption. Strict protocols require the disinfection of various patient care equipment, OTs, and linen between each case. Peracetic acid effectively addresses such rigorous standards through its rapid broad-spectrum efficacy and safe evaporation profile. With aging populations increasing healthcare needs worldwide, the industry is projected to grow rapidly.

Regional Insights

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North America has dominated the global peracetic acid market for many years owing to a strong presence of end-use industries such as healthcare and food & beverage processing in the region. North America is expected to account for over 38.6% of the market share in 2024 of the total PAA demand due to stringent regulatory standards for disinfection and sterilization applications in healthcare and food processing industries. Major PAA producers have well established manufacturing facilities as well as supply chains across the region to effectively cater to local demand.  Moreover, the growing awareness about superior characteristics of PAA such as low toxicity and fast action over other chemical disinfectants has propelled its consumption in hospitals, pharmaceuticals, and agriculture sectors.

On the other hand, the Asia Pacific region has emerged as the fastest expanding market for peracetic acid globally. China represents the largest PAA market in Asia Pacific due to the concentration of the manufacturing capacity of downstream industries including pulp & paper and wastewater treatment. Rising environmental concerns have led the Chinese government to promote the use of green chemicals in place of conventional hazardous disinfectants. This has significantly boosted the adoption of peracetic acid in the country.  India and Southeast Asian countries have also witnessed a spike in PAA consumption from water treatment plants to meet strict effluent discharge norms. The rapid expansion of the food processing and healthcare infrastructure provides enormous untapped opportunities for peracetic acid producers to offset sluggish demand from developed regions. The entry of new market players to tap into Asia Pacific's growing need for eco-friendly alternatives will further propel the regional market at an exponential rate in the near future.

Market Report Scope

Peracetic Acid Industry News

• In 2023, Evonik launches EPA-registered VIGOROX Trident for water quality control in aquaculture
• In April 2020, Solvay, a multinational chemical company launched Proxitane AHC against Covid-19. It is a concentrated liquid disinfectant composed of peracetic acid and hydrogen peroxide
• In February 2020, Evonik acquired Peroxy Chem (US) for US$ 640 million. Peroxy Chem produces hydrogen peroxide (H2O2) and peracetic acid (PAA), making it suitable for high-margin special applications. This acquisition opens up further growth opportunities for Evonik, especially in the environmentally friendly disinfectant market
• In 2020, Pilot Chemical and its subsidiary Mason Chemical Company have launched several new peracetic acid-based products

*Definition: The global peracetic acid market is focused on the manufacturing and distribution of peracetic acid on an international level. Peracetic acid is an organic compound that is used as a bleaching agent and sterilizing agent in various industries including food, healthcare, and water treatment. The global peracetic acid market caters to the growing worldwide demand for safe and effective sanitizing and disinfecting solutions from sectors dealing with food processing and medical equipment sterilization.

Market Segmentation

• Grade Insights (Revenue, USD Mn & KT, 2019 - 2031)
  • Less than 5% Grade
  • 5-15% Grade
  • Greater than 15% Grade
•  Application Insights (Revenue, USD Mn & KT, 2019 - 2031)
  • Disinfectant
  • Sterilant
  • Sanitizer
  • Others
•  End User Insights (Revenue, USD Mn & KT, 2019 - 2031)
  • Food and Beverages
  • Pulp and Paper Bleaching
  • Water Treatment
  • Healthcare
  • Agriculture
  • Others
• Regional Insights (Revenue, USD Mn & KT, 2019 - 2031)
  • North America
    • U.S.
    • Canada
  • Latin America
    • Brazil
    • Argentina
    • Mexico
    • Rest of Latin America
  • Europe
    • Germany
    • U.K.
    • Spain
    • France
    • Italy
    • Russia
    • Rest of Europe
  • Asia Pacific
    • China
    • India
    • Japan
    • Australia
    • South Korea
    • ASEAN
    • Rest of Asia Pacific
  • Middle East & Africa
    • GCC Countries
    • Israel
    • Rest of Middle East & Africa

Key Players Insights

• Kemira Oyj
• Solvay S.A.
• Promox S.p.A.
• Evonik Industries
• Ecolab Inc.
• Thai Peroxide Limited
• Mitsubishi Gas Chemical Company, Inc.
• PeroxyChem LLC
• Diversey Inc.
• Aditya Birla Chemicals Ltd.
• Christeyns NV
• Acuro Organics Limited
• RX CHEMICALS
• Swiss Chemi Pvt. Ltd
• Brainerd Chemical Company