Peracetic acid market is estimated to be valued at USD 1,093.1 Mn in 2024, exhibiting a CAGR of 7.8% over the forecast period (2024-2031). Peracetic acid is seeing increasing usage as a sanitizer and disinfectant in food processing applications owing to rising health awareness. Furthermore, peracetic acid's effectiveness as a sterilizing and bleaching agent is fueling its demand from the pulp & paper industry.
The global peracetic acid market is expected to be driven by the robust demand from the food industry and growing industrial applications over the forecast period. Firstly, peracetic acid is being widely adopted as a sanitizer by the food processing industry due to stringent food safety regulations. It is an effective antimicrobial agent for disinfecting equipment and facilities in food plants. Secondly, peracetic acid consumption is increasing in wastewater treatment and pulp & paper applications due to its bleaching properties. It helps brighten paper products without producing toxic by-products like chlorine-based bleaches.
Increased Demand from the Food and Beverage Industry Is Driving the Market Growth
The food and beverage industry is one of the major end-use industries of peracetic acid. It is widely used as a sanitizing and disinfecting agent in the industry. Peracetic acid offers several advantages over traditional sanitizers like chlorine as it is more effective in killing a broad spectrum of microorganisms including bacteria, yeast, mold, and viruses. It leaves no residue and reduces the risk of cross-contamination. With the growing concerns regarding food safety and hygiene, the demand for sanitizers from the food industry is increasing significantly. Furthermore, rising health awareness among consumers is fueling the demand for safe and organic food products, which is positively impacting the peracetic acid market growth.
Stringent Environmental Regulations Regarding Chlorine Usage Is Boosting the Market Growth
Several countries and regulatory agencies have imposed stringent regulations regarding the use of chlorine in water treatment as it poses risks to the environment and human health. Chlorine produces harmful disinfection by-products (DBPs) when it reacts with organic matter in water. Growing environmental concerns and safety issues associated with chlorine are prompting end-use industries and governments to shift towards chlorine-free alternatives like peracetic acid. Peracetic acid decomposes into non-toxic by-products and does not leave behind any harmful residues. The rising environmental regulations on chlorine are providing a strong impetus to the adoption of peracetic acid in applications like wastewater treatment and cleaning.
Volatility in Raw Material Prices May Restrain the Market Growth
Peracetic acid is manufactured by the reaction of acetic acid and hydrogen peroxide. Fluctuations in the prices of acetic acid and hydrogen peroxide directly impact the production cost of peracetic acid. Over the past few years, the prices of raw materials experienced significant volatility due to various economic and geopolitical factors. Any increase in raw material costs leads to a corresponding rise in the prices of peracetic acid, which negatively influences its demand from price-sensitive end-use industries. Efforts must be taken to develop innovative production technologies and optimize the supply chain to minimize the effect of raw material price fluctuations on the overall costs.
Occupational and Safety Hazards Associated with Peracetic Acid May Limit Its Adoption
Peracetic acid is a powerful oxidizing agent and can cause severe burns to skin and eyes on contact. Exposure or inhalation of its vapor may lead to serious health issues. Stringent safety protocols must be followed during its transportation, storage, and handling. Highly trained and skilled workforce is required to handle peracetic acid safely. However, many small-scale end-users lack adequate safety measures and training facilities. The inherent health hazards associated with peracetic acid discourage its adoption, especially in developing nations with lax occupational safety regulations. Companies must spread awareness regarding safe handling practices and offer training programs to alleviate safety concerns surrounding peracetic acid.
Growing Demand from the Water Treatment Industry Presents Significant Opportunities
Peracetic acid has emerged as a viable chlorine alternative in various municipal and industrial water treatment applications due to its effective biocidal properties and eco-friendly nature. It is widely used for controlling algae, bacteria, and other microorganisms in wastewater, ballast water, and cooling water. With growing industrialization and urbanization, the need for advanced water treatment solutions is increasing consistently. Stringent regulations regarding discharge of untreated water into the environment are also driving the demand. Furthermore, peracetic acid helps operators comply with various Environment Protection Agency (EPA) guidelines. The water treatment industry offers lucrative untapped opportunities for peracetic acid manufacturers over the coming years.
Rising Agricultural Demand with Increasing Organic Farming Will Propel the Market Growth
Organic farming has gained significant momentum globally due to rising health awareness and demand for safe food. Peracetic acid has demonstrated excellent potential as a niche disinfectant and sanitizer in the agricultural industry, especially for organic crops and livestock. It is approved for use in organic cultivation by regulatory bodies due to its rapid decomposition into non-toxic residues. Peracetic acid can effectively control fungal and bacterial diseases in fruits and vegetables without leaving any chemical residues. It also finds usage for equipment sanitation, food-contact surface sanitation, and land application in organic farming. With the growing organic farmland and shift towards sustainable agriculture, the demand from the agricultural sector is expected to stimulate the peracetic acid market growth substantially over the forecast period.
*Link: https://www.coherentmarketinsights.com/market-insight/peracetic-acid-market-4267
Key Developments
- In 2023, Evonik launched 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 launched several new peracetic acid-based products
Key Players
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, and Brainerd Chemical Company