Peracetic Acid Market

Updated on : June 17, 2024

Peracetic Acid Market

The global peracetic acid market was valued at USD 1.0 billion in 2023 and is projected to reach USD 1.4 billion in 2028, growing at 7.4% cagr from 2023 to 2028. The market is rapidly growing and is projected to exhibit strong growth in the future with increasing demand from end-use industries. The development of the product as per the needs of specific applications in various industries will be a vital factor in the growth of the peracetic acid market in the next five years. The current market growth is fueled by the demand in the Asia Pacific, approval for manufacturing by environmental associations, and enhanced performance of peracetic acid in various end-use markets in Europe and the US.

Peracetic acid is a multi-characteristic biocide used across different industry verticals such as healthcare, food, water treatment, and pulp & paper. The growing usage of peracetic acid in end-use industries and the demand for high-quality biocide products are driving the market. The availability of different product grades is also an important driver of the market. The restraining factor of the peracetic acid market is the lack of awareness about the product and its high cost. However, an increase in the use of peracetic acid in new applications (laundry, breweries, wineries, and agriculture) is expected to change the market dynamics. The growing demand in India, China, Brazil, Southeast Asia, and Mexico is expected to drive the market during the forecast period.

Attractive Opportunities in the Peracetic Acid Market

Source: Expert Interviews, Secondary Sources, and MarketsandMarkets Analysis

To know about the assumptions considered for the study, Request for Free Sample Report

Source: Expert Interviews, Secondary Sources, and MarketsandMarkets Analysis

Peracetic Acid Market Dynamics

Driver: Within the dynamic landscape of the chemical industry, the peracetic acid market is driven by the advancement of peracetic acid over other substitute biocide. Disinfectants, sanitizers, chemical sterilants, and other biocide chemicals play an essential role in preventing microbial growth. Peracetic acid is an effective product and is generally used as an environment-friendly alternative to chlorine for wastewater treatment. It is an ideal replacement for chlorine for use as a bleach and disinfectant.

Peracetic acid is one of the innovative developments in the biocide industry due to its performance benefits compared to other biocides. Product awareness and favorable features (long shelf life, optimum performance, safe by-products, and slow thermal degradation) of peracetic acid are attracting end users to use this product in various applications. The growing demand for peracetic acid in various applications is driving the market in various end-use industries.

Restraints: The main restraint for the peracetic acid market is the lack of awareness. Consumers have less knowledge about this product and its benefits in different application areas. Many potential users, particularly in sectors like healthcare, agriculture, and water treatment, are not aware of the benefits of peracetic acid as a disinfectant and sterilant. This lack of awareness can result in reluctance to adopt the chemical.

Additionally, peracetic acid is more expensive compared to its substitutes, such as hydrogen peroxide, chlorine, sodium hypochlorite, and calcium hypochlorite. The Price of industrial grade hydrogen peroxide is approximately USD 3 to USD 6 per Kg, whereas industrial grade peracetic acid with higher concentration costs more than USD 5 per liter. This is also acting as a restraint to the growth of the market.

Opportunity: In the dynamic landscape of the peracetic acid market, the key growth opportunity is high growth potential in the Asia Pacific region. The major end-use industries of peracetic acid are food, pharmaceutical, pulp & paper, and water treatment which are growing at a rapid rate in the Asia Pacific. Peracetic acid has been used in these industries since its development and is still a strong segment in the biocides industry. It is extensively used in the food industry, mainly in food processing and packaging products such as juices, milk, soft drinks, and tea. Due to the growing healthcare sector, peracetic acid is also used in pharmaceutical, life sciences, hospitals, and other sectors. It exhibits a stronger oxidation potential than competitive products and faster degrading residuals with fewer by-products.

Leading pharmaceutical companies are establishing their plants in the Asia Pacific due to the increased demand for medical products from emerging countries of the region. The pharmaceutical industry is showing significant growth in the region. Thus, the demand in the Asia Pacific region is expected to be a key driver for the growth of the global peracetic acid market in the next five years.

Challenges: Peracetic acid is a highly reactive product, which is also a challenge for this market.

Peracetic acid is a complex solution with different concentration grades. It is a corrosive, strong oxidizing agent and is more reactive than other low-concentration products. For instance, 35% peracetic acid grade is unstable and has explosive characteristics. It can be dangerous when it comes in contact with combustible materials or other chemicals. Global manufacturers are, however, offering stabilized peracetic acid to minimize such risks.

Peracetic Acid Market Ecosystem

Based on grade, the 5%-15% grade segment is estimated to account for the largest share of the peracetic acid market.

5%-15% grade is the largest grade in the global peracetic acid market. It is on the upsurge and is expected to register a high growth rate in the next five years. The growing and developing economies of Asia Pacific, such as China and India, with their growing technologies and advanced infrastructural in the end-use industries, are expected to increase the demand for 5%-15% grade peracetic acid.

5-15% grade PAA is used in the food and beverage industry to disinfect equipment, surfaces, and food products. The concentration chosen may vary based on the type of application and the need for effective pathogen control. In water treatment, PAA is used to disinfect drinking water and wastewater. The concentration within this range is selected based on the required disinfection levels and the characteristics of the water source.

Based on application, the disinfectant segment is projected to be the fastest growing segment in the peracetic acid market.

Disinfectant is one of the major application in peracetic acid. Peracetic acid's favorable properties (low toxicity, effectiveness at low dosages, quick breakdown into innocuous compounds, etc.) make it a perfect food adjuvant for uses like disinfecting fruits and vegetables. Despite the fact that sodium hypochlorite is still the disinfectant of choice for this purpose, peracetic acid is gradually making its way onto the market thanks to its benefits. The EU treaty's mutual recognition concept is beneficial to all of the member states of the EU. Peracetic acid has been licensed for use in France as a food technology adjuvant for the purpose of disinfecting spinach and other vegetables before they are packaged.

Based on the end-use industry, the water treatment segment is estimated to be the fastest growing segment in the peracetic acid market during the forecast period.

The wastewater treatment industry is on the upsurge and is expected to register a high growth rate in the next five years. The growing and developing emerging economies of the Asia Pacific, such as China and India, with their ongoing infrastructural and technological developments in the end-use industries, are expected to increase the demand for disinfectants.

Technological developments and innovations focus on improving drinking water quality and reducing wastewater discharge. The use of conventional water and wastewater treatment processes is increasingly falling due to diminishing water resources, rapid industrial developments, and population growth. The global water treatment market is expected to grow at a high rate, which will also drive the overall market for water treatment products.

The European market is projected to contribute to the largest shares of the peracetic acid market.

Europe is one of the largest markets for peracetic acid. With the recovery of the global economy and the reviving demand, the market for peracetic acid is expected to grow significantly in the coming years. The European market is segmented into the key countries: Germany, France, Italy, the UK, Russia, and the Rest of Europe. These countries together account for a significant share of the global peracetic acid market. The market for peracetic acid in the European region is driven by its increased demand in the biocides industry. Another important driving factor is the implementation of environmental regulations and VOC emissions. Peracetic acid is eco-friendly as the by-products after the use of peracetic acid are water, H2O2, and acetic acid.

To know about the assumptions considered for the study, download the pdf brochure

Peracetic Acid Market Players

Solvay (Belgium), Evonik Industries AG (Germany), Ecolab Inc. (US), Mitsubishi Gas Chemical Company (Japan), Enviro Tech Chemical Services (US), Jubilant Life Sciences (India), National Peroxide Ltd. (India), Kemira Oyj (Finland), Seeler Industries Inc. (US), and Airedale Chemicals (UK) are the key players operating in the global market.

Peracetic Acid Market Report Scope

Based on Grade, the peracetic acid market has been segmented as follows:

• <5% Grade
• 5-15% Grade
• >15% Grade

Based on application, the peracetic acid market has been segmented as follows:

• Disinfectant
• Sterilant
• Sanitizer
• Others

Based on the end use, the peracetic acid market has been segmented as follows:

• Healthcare
• Food & Beverages
• Water Treatment
• Pulp & Paper
• Others
  • Agriculture
  • Wineries
  • Breweries
  • Laundry

Based on the region, the peracetic acid market has been segmented as follows:

• North America
• Europe
• Asia Pacific
• Middle East & Africa
• South America

Recent Developments

In February 2020, Evonik acquired PeroxyChem for USD 640 million. PeroxyChem is a manufacturer of hydrogen peroxide and peracetic acid and is well positioned in high margin specialty applications. The acquisition unlocked additional growth opportunities for Evonik, especially in the market for environment friendly disinfectants.

Frequently Asked Questions (FAQ):

To speak to our analyst for a discussion on the above findings, click Speak to Analyst