Paracetic Acid Market - Industry Analysis, Market Size, Share, Trends, Growth And Forecast 2022 - 2027
Peracetic Acid Market Overview
The Peracetic Acid Market size is forecasted to reach US$610 million by 2027, after growing at a CAGR of 6.3% during 2022-2027. Peracetic acid is a liquid mixture of acetic acid and hydrogen peroxide and is a colorless, bright liquid with a penetrating odor. It is formed in the environment through a series of photochemical reactions including formaldehyde and photo-oxidant radicals and also, by acetaldehyde liquid-phase oxidation. The demand for peracetic acid and ethylene oxide to sterilize medical devices in the medical and healthcare industry, to disinfect food contact surfaces and sanitize food-processing equipment and utensils in the food and beverages industry is driving the peracetic acid industry’s growth. Moreover, the surging demand for peracetic acid in the pulp & paper industry as an environment-friendly oxidizing biocide is further estimated to propel the growth of the peracetic acid market size in the forecast period. The global economic downturn caused by the COVID-19 pandemic resulted in a huge drop in demand for chemicals, textile & apparel and others, all across the world and had a significant impact on the growth of the peracetic acid market.
Peracetic Acid Market Report Coverage
The report: “Peracetic Acid Market Report – Forecast (2022 - 2027)” by Industry ARC, covers an in-depth analysis of the following segments in the Peracetic Acid Industry.
- The Europe region dominates the Peracetic Acid market owing to the increasing investments in the textile & apparel industry. For instance, TreeToTextile AB invested EUR 35 million (US$ 41.4 million) in the development of a new sustainable textile fiber manufacturing plant in Sweden in February 2021.
- Rapidly rising demand for peracetic acid in the pulp & paper industry to remove inorganic and pure microbial slime deposits from the pulp, has driven the growth of the peracetic acid market.
- The increasing demand for peracetic acid in the medical & healthcare sector, due to its usage in the sterilization of medical devices, has been a critical factor driving the growth of the peracetic acid market in the upcoming years.
- However, the increasing health and environmental problems associated with the peracetic acid can hinder the growth of the peracetic acid market.
Figure: Europe Peracetic Acid Market Revenue, 2021-2027 (US$ Million)
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Peracetic Acid Market Segment Analysis – By Application
The disinfectant segment held the largest Peracetic Acid Market share in 2021 and is estimated to grow at a CAGR of 6.5% during the forecast period 2022-2027. It is important to maintain a clean work environment to prevent foodborne illness. Peracetic acid and ethylene oxide are extensively used as disinfectants in the food and beverage industry to maintain hygiene. Since disinfectants kill bacteria and bacteria can grow on unsanitary surfaces and then contaminate food. Disinfectants are used on clean surfaces, they do not work effectively if the surface is covered with dirt. Moreover, the food processing industry is growing, for instance, in 2021, Paulig invested US$47.5 million in the construction of a new food processing plant in Roeselare, Belgium. Thus, with such rising investment in the food processing industry the demand for peracetic acid, as a food disinfectant chemical is increasing, which will drive the peracetic acid market growth over the forecast period.
Peracetic Acid Market Segment Analysis –By End-Use Industry
The food & beverages industry held the largest Peracetic Acid Market share in the peracetic acid market in 2021 and is estimated to grow at a CAGR of 6.9% during the forecast period 2022-2027, owing to the changing lifestyles and increasing health-conscious consumers, rising the requirement for processed food items. The companies producing processed foods utilize various additives and chemicals to keep the food and beverages fresh. Therefore, the peracetic acid demand is rising globally, for reducing the pathogens in fruits and vegetables. The food & beverages industry is growing, for instance, in May 2021, Bunge Loders Croklaan, invested more than EUR 300 million (US$ 346.5 million) to build a new sustainable food processing facility in Amsterdam, Netherlands, which is estimated to be completed by the end of 2024. Additionally, in March 2021, Nature Bio Foods BV (NBF BV) launched its organic food processing plant in Rotterdam, Netherlands. The new facility of Nature Bio Foods aims at providing organic food ingredients to customers throughout the country. Thus, the growing food & beverages industry will require more peracetic acid for disinfecting purposes, which will drive the peracetic acid industry growth during the forecast period.
Peracetic Acid Market Segment Analysis – By Geography
Europe dominated the Peracetic Acid Market share of 39% in 2021. In Europe, end-use industries such as food & beverages, chemical processing and pulp & paper, have a high demand for peracetic acid, which is a mixture of acetic acid and hydrogen peroxide, to be utilized for disinfection, purification and clarification of wastewater. Peracetic acid market in Germany is increasing due to the growing food & beverages sectors, for instance, according to Germany Trade and Invest (GTAI), in 2020, total food retailing revenue grew significantly by 8.2 percent, reaching EUR 227 billion (US$236.43 billion) and the industry enlarged production capacities and adjusted supply chains to meet demand patterns and changing production. Also, in 2022, French manufacturer Ecotone invested €20 million (US$21 million) to increase its production capacity of plant-based beverages by 30%, by 2030. Therefore, the growing food & beverages industry has increased the usage of peracetic acid and is proving to be a market booster for the peracetic acid market size in this region.
Peracetic Acid Market Drivers
Growing Medical & Healthcare Industry:
In the medical & healthcare industry, Peracetic Acid and ethylene oxide is utilized for sterilization to remove surface contaminants. It is formed naturally through a series of reactions including formaldehyde and also, by acetaldehyde liquid-phase oxidation. Peracetic acid chemically sterilizes medical, surgical and dental devices such as endoscopes, arthroscopes and others, by using an automated machine. This acid inactivates gram-positive and gram-negative bacteria, yeasts and fungi. The medical and healthcare sector is growing, for instance, according to Invest India, the medical device sector is growing steadily at a CAGR of 15 percent over the last 3 years and the medical devices industry in India is poised for significant growth with the market size expected to reach US$50 billion by 2025. Additionally, according to the U.S. Food & Drug Administration, in 2022, the government announced a US$5 million increase towards the improvement in the safety and security of medical devices. Thus, with the growing medical devices sector in the medical and healthcare industry, the demand for the peracetic acid industry would further rise over the forecast period.
Surging Pulp & Paper Industry:
The pulp & paper industry utilizes Peracetic Acid as an environment-friendly oxidizing biocide. It is efficient at removing inorganic and pure microbial slime deposits from the pulp. The pulp & paper industry is growing, for instance, according to the government of Canada, in 2021, the Minister of Natural Resources, announced an investment of US$3.8 million in Kelowna-based Red Leaf Pulp through Sustainable Development Technology Canada (SDTC). Additionally, according to Invest India, India’s paper and paperboard market is estimated to grow at 6-7% per annum. The per capita consumption of paper in India is 15kgs. The Indian packaging market was valued at US$50.5 billion in 2019 and it is expected to reach US$204.81 billion by 2025, registering a CAGR of 26.7% during the period 2020-2025. Thus, the growing pulp & paper industry will require more peracetic acid, which will drive the peracetic acid industry growth during the forecast period.
Peracetic Acid Market Challenges
Increasing Health and Environmental Problems:·
Peracetic Acid, which is a mixture of acetic acid and hydrogen peroxide, is a highly toxic and flammable chemical and acts as an explosive at temperatures above 40.50C. As per the International Chemical Safety Card (ICSC) for stabilized peracetic acid, this acid is corrosive to the eyes, skin and respiratory tract and therefore, requires adequate ventilation and personal protective equipment. On disposal of peracetic acid to water bodies with waste streams, it affects the aquatic life. A 0.4ppm (1.24mg/m3) Threshold Limit Value–Short-Term Exposure Limit (TLV-STEL) is established by ACGIH, for peracetic acid as a 15-minute time-weighted average (TWA) exposure, that should not be exceeded at any time throughout the workday. Thus, with the increasing health and environmental problems associated with peracetic acid, the growth of the peracetic industry is anticipated to be hindered in the forecast period.
Peracetic Acid Market Industry Outlook
Technology launches, acquisitions and R&D activities are key strategies players adopt in the peracetic acid markets. The top 10 companies in the peracetic acid market are:
- Evonik Industries AG
- Solvay SA
- Mitsubishi Gas Chemical Company
- Ecolab Inc.
- Enviro Tech Chemical Services
- Kemira Ojy
- SEITZ GmBH
- Jubilant Life Sciences
- In February 2020, Evonik successfully closed the acquisition of PeroxyChem (US), for US$640 million. PeroxyChem is a manufacturer of hydrogen peroxide (H2O2) and peracetic acid (PAA) 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.
- In April 2020, Solvay’s PROXITANE AHC was approved for use against SARS-CoV-2 – the virus strain that causes COVID-19 – by the US Environmental Protection Agency (EPA). It has been added to the list of disinfectants, made from peracetic acid for use against SARS-CoV-2 (List N) under EPA Registration Number 68660-11.
- In September 2019, Enviro Tech invested US$8 Million to build a new manufacturing facility at the Levelland, Texas Industrial Rail Park. It processes around 10,000 tons of domestically sourced raw materials a year and is equipped with state-of-the-art automation, rail service and environmental technologies.