Peracetic acid is an organic liquid chemical compound that is highly acidic in nature. It is produced due to the reaction between hydrogen peroxide and acetic acid. Moreover, it is a water-soluble compound and is mainly used for its biocidal properties. It helps in disinfectant the processing equipment used across various industries. Paper and pulp bleaching, food and beverages, medical, water treatment, and agriculture are some of the key end-user of the peracetic acid.
The global peracetic acid market is estimated to account for US$ 895.0 Mn in terms of value in 2027.
Robust growth in the food &beverage industry is a prime factor driving the market growth of peracetic acid. This chemical product plays a key role in the anti-microbial chemical treatment for food processing equipment. It usually disinfects the surface by oxidizing the cells of the bacterial cells and mold spores. Moreover, peracetic acid is also non-toxic in nature and easy to apply which is again fueling their demand as a disinfectant, thereby augmenting the market growth.
Expansion of the chemical industry due to the increasing production of chemicals is expected to offer lucrative growth opportunities. According to the Cefic Facts & Figures 2020, the global chemical turnover was valued at €3,347 billion in 2018. Global sales grew by 2.5% from €3,266 billion in 2017 to €3,347 billion in 2018. With revenue generation of €1,198 billion in 2018, China was the largest chemical producer in the world, contributing 35.8% of global chemical sales.
Side-effects associated with the high exposure of peracetic acid is restricting its use across consumers. It can lead to allergy and severe skin irritation. This may affect the health of the workers across manufacturing industries, thus hindering the market growth of the peracetic acid.
On the basis of end-user, food and beverages segment dominated the global tallow fatty acids market in 2019 with around 29.67% of market share in terms of revenue, followed by agriculture, among others.
On the basis of region, North America dominated the global tallow fatty acids market in 2019 with around 35.40% of market share in terms of revenue, followed by Europe, among other regions.
Increasing production capacity of the hydrogen peroxide by key players for enhancing the supply of peracetic acid is one of the key trends in the market. For instance, in July 2019, Solvay announced capacity expansion at its hydrogen peroxide plant in Jemeppe-sur-Sambre (Belgium) allowing an increase of H2O2 production. The Solvay plants produce a range of hydrogen peroxide grades serving customers in diverse markets such as pulp and paper, aquaculture, food, chemicals, and electronics.
Strategic merger and acquisition by key manufacturers for business expansion on regional as well as the global level is one of the major trends in the industry and this ongoing trend is projected to spur the market growth. For instance, in June 2020, Evonik acquired U.S. Company PeroxyChem (Philadelphia) for $640 million. PeroxyChem, is a manufacturer of hydrogen peroxide and peracetic acid and is well-positioned in high-margin specialty applications.
Global Peracetic Acid Market - Impact of Coronavirus (Covid-19) Pandemic
Coronavirus (Covid-19) has majorly impacted the peracetic acid industry and has in turn changed the dynamics of their raw material suppliers supplying these products. However, rising demand for peracetic acid owing to rising disposable income and increasing population is expected to stabilize the growth of the market and reach US$ 678.0 Mn by the end of 2021.
Key players operating in the global Peracetic acid market include Kemira Oyj, Solvay S.A., Promox S.p.A., Evonik Industries, Ecolab Inc., Thai Peroxide Limited, Mitsubishi Gas Chemical Company, Inc., PeroxyChem LLC, and Diversey Inc.
Few Recent Developments
In July 2019, Solvay announced capacity expansion at its hydrogen peroxide plant in Jemeppe-sur-Sambre (Belgium) allowing an increase of H2O2 production. The Solvay plants produce a range of hydrogen peroxide grades serving customers in diverse markets such as pulp and paper, aquaculture, food, chemicals, and electronics.