Peracetic Acid Market

Market Overview

The global peracetic acid market was valued at USD 975.43 million in 2023. It is estimated to reach USD 1,923.22 million by 2032, growing at a CAGR of 7.76% during the forecast period (2024–2032). Peracetic acid is biodegradable and decomposes into harmless byproducts, making it an environmentally friendly alternative to other disinfectants. This eco-friendliness has contributed to its popularity, especially as regulations focus on sustainability. Moreover, ongoing research and development efforts to improve the efficiency, safety, and application range of peracetic acid are driving innovation in the market.

Peracetic acid, known as peroxyacetic acid (PAA), is a potent oxidizing agent widely used for its disinfectant and sterilization properties. This organic compound, composed of hydrogen peroxide and acetic acid, is valued for its broad-spectrum antimicrobial activity and eco-friendly profile. Upon decomposition, it breaks down into water, oxygen, and acetic acid, making it a more environmentally sustainable option than other disinfectants.

Peracetic acid is utilized in various industries, including food and beverage processing, healthcare, and water treatment, where it is critical in ensuring cleanliness and safety. Its versatility also extends to industrial applications, such as pulp and paper manufacturing, where it is used for bleaching and purification. The compound's rapid action and effectiveness against many microorganisms, including bacteria, fungi, and viruses, make it an increasingly popular choice in a world where sanitation and hygiene are more critical than ever.

Highlights

• Asia-Pacific is the highest shareholder in the global market

Market Dynamics

Global Peracetic Acid Market Drivers:

Rising Food Safety Regulations

As governments and international bodies tighten standards to prevent foodborne illnesses and ensure consumer safety, the demand for effective sanitization and disinfection solutions has surged. The regulations to improve food safety include stricter hygiene, traceability, and quality control guidelines. These require food producers and processors to maintain cleanliness throughout their operations. The ability of peracetic acid to quickly and effectively kill various pathogens, including bacteria, viruses, and fungi, makes it an invaluable tool for meeting these requirements. 

Moreover, as the global food supply chain becomes more complex, the risk of contamination at various stages increases, further underscoring the need for reliable sanitization agents like peracetic acid. Its biodegradability and low residual toxicity align with the growing trend toward environmentally friendly practices, ensuring safety and environmental regulations compliance. As a result, the rising food safety regulations are a key driver in the global peracetic acid market, fostering innovation and expanding its application across diverse food-related industries.

Global Peracetic Acid Market Restraint:

Volatility and Corrosive Nature

A significant restraint for the global peracetic acid market is the volatility and corrosive nature of the chemical. Peracetic acid is a potent oxidizing agent, and its high reactivity can lead to the degradation of various materials, including metals, plastics, and coatings. This reactive property can compromise the integrity of industrial equipment, causing premature wear and tear and increasing the likelihood of equipment failure. Such issues can adversely affect operational efficiency and safety in facilities where peracetic acid is used, requiring more frequent maintenance and component replacements.

Moreover, peracetic acid's corrosiveness raises maintenance costs and necessitates the use of specialized materials that can withstand its harsh effects. Industries must invest in corrosion-resistant materials, such as stainless steel or specific high-performance plastics, for equipment and storage containers. This added investment in infrastructure can significantly drive up operational costs, affecting the overall cost-effectiveness of using peracetic acid.

Global Peracetic Acid Market Opportunities:

Innovative Product Development and Customization

Innovative product development and customization offer significant global peracetic acid market opportunities, particularly in improving microbial water quality. As the need for clean and safe water continues to rise, driven by population growth, urbanization, and industrial expansion, peracetic acid has emerged as a critical solution in water treatment applications. Its potent antimicrobial properties and environmentally friendly decomposition into non-toxic byproducts make it an attractive option for disinfecting and purifying water. For instance, researchers discovered that treating samples in a pharmaceutical water system using a combination of peracetic acid (PAA) and ultraviolet light (UV) dramatically reduced the number of microorganisms present.

A monitoring program for the microbiological disinfection and sanitation of purified water (PW) and water for injection (WFI) systems at a pharmaceutical facility was provided in the research, which was published in the Journal of Water, Sanitation, and Hygiene for Development. Customizing peracetic acid formulations to meet specific water treatment needs represents a promising area of innovation. Water quality can vary greatly depending on geographical location, source (such as surface water or groundwater), and intended use (drinking water, wastewater, or industrial processes). Companies can address these diverse needs more effectively by developing tailored peracetic acid products with optimized concentrations and application methods.

Regional Analysis

Asia-Pacific Dominates the Global Market

Based on region, the global peracetic acid market is bifurcated into North America, Europe, Asia-Pacific, Latin America, and the Middle East and Africa. 

Asia-Pacific is the most significant global peracetic acid market shareholder and is expected to expand substantially during the forecast period. The Asia-Pacific peracetic acid market is experiencing significant growth, driven by rapid industrialization, urbanization, and a growing sanitation and hygiene awareness. This region, which encompasses various countries with varying economic landscapes, has seen a surge in demand for peracetic acid across multiple industries, including food and beverage, healthcare, water treatment, and agriculture. The need for effective disinfectants and sanitizers is crucial in nations like China and India, where manufacturing and food processing industries are expanding rapidly.

Peracetic acid's strong antimicrobial properties, coupled with its biodegradability, make it an attractive choice for these industries. With a growing population and an increasing need for good and nutritious packaged foods, China is one of the world's biggest consumers of food and beverages, and the food processing business is only set to develop further. Beverages, bakery goods, and other wholesome food items are a few of the prominent food products in the nation. For example, the output of beverages increased by 6% annually in the nation to 44.35 million tons in Q1 2023, as per the  Ministry of Industry and Information Technology data. This is expected to propel regional market growth.

Furthermore, Asia-Pacific's paper and paperboard industry is experiencing a significant upsurge due to rapid industrialization, urbanization, and rising consumer demand for sustainable packaging solutions. The Indian Paper Manufacturers Association (IPMA) reported that in 2021–2022, exports of paper and paperboard from India reached a record value of INR 13,963 crore (~USD 1,692.17 million), a growth of around 80%. Moreover, the Pulp & Paper Research Institute (CPPRI) research states that there are around 861 paper mills in India, of which 526 are now in operation and have an installed capacity of more than 25 million tons in 2020–21. As a result, the need for effective bleaching and disinfection agents has grown, with peracetic acid emerging as a preferred choice for its strong oxidative properties and environmentally friendly profile.

Segmental Analysis

The global peracetic acid market is bifurcated into grade, application, and end-user.

Based on grade, the global peracetic acid market is segmented into <5% grade, 5-15% grade, and >15% grade.

The 5-15% grade of peracetic acid is a widely used concentration level in the global peracetic acid market, offering a versatile balance between efficacy and safety for a variety of applications. This grade is particularly popular in industries like food and beverage processing, healthcare, and water treatment, where effective disinfection is crucial, but high concentrations might pose safety risks or be unnecessary. In food and beverage processing, the 5-15% grade is used to sanitize equipment, surfaces, and packaging materials, ensuring compliance with stringent food safety regulations. Its moderate concentration is sufficient to eliminate common foodborne pathogens, while its rapid action minimizes downtime, allowing for efficient operations. 

Based on application, the global peracetic acid market is segmented into disinfectant, oxidizer, sterilant, and other applications.

Peracetic acid (PAA) serves as a potent oxidizer in a range of industrial applications, making it an integral component in the global market. Its strong oxidizing properties allow it to break down organic matter and microbial contaminants, which is critical in applications where sanitation and sterilization are key. In water treatment facilities, for example, peracetic acid is used to oxidize contaminants and purify wastewater, reducing harmful bacteria and pathogens levels before the water is discharged back into the environment.

In the F&B industry, peracetic acid sterilizes equipment, bottles, and packaging materials. Its powerful oxidizing capability ensures that surfaces and equipment are free from bacterial contamination, thus helping to maintain high food safety standards. Further, because peracetic acid decomposes into harmless byproducts like water, oxygen, and acetic acid, it is ideal for applications with minimal chemical residue, aligning with the growing emphasis on sustainability and environmental safety.

Based on end-users, the global peracetic acid market is bifurcated into food and beverage, wastewater treatment, pulp and paper, healthcare, chemicals, and others.

The food and beverage industry is a significant end-user in the global peracetic acid market, relying on this versatile chemical for its potent disinfectant properties. High standards of cleanliness must be upheld during food processing in order to avoid contamination and guarantee the safety of the finished product. Being a potent antibacterial, peracetic acid can destroy various pathogens, such as bacteria, viruses, and fungi. This makes cleaning the machinery used in food processing, the production lines, and the packing materials crucial.

Moreover, the need for peracetic acid in the food and beverage sector is driven by strict food safety regulations and the need to comply with industry standards such as Hazard Analysis and Critical Control Points (HACCP). These standards require rigorous sanitation practices to prevent foodborne illnesses, and peracetic acid, with its rapid action and broad-spectrum efficacy, is ideally suited for this purpose.

Recent Developments

• February 2023 - The Jubilant Bhartia Group announced plans to establish a cutting-edge laboratory in Hyderabad's Genome Valley. Following a meeting between Telangana Industries' founder and co-chairman, Hari S. Bhartia, and IT Minister KT Rama Rao, the news was made on the fringes of the city's ongoing BioAsia 2023. "I'm thrilled that Jubilant Group, a leading pharmaceutical company in the world, is about to open a cutting-edge facility in Hyderabad's Genome Valley. According to Rama Rao, "Jubilant's arrival in Hyderabad is evidence of the city's dynamic ecosystem, exceptional infrastructure, and rich talent pool that drives innovation."