Analysis by Application (Disinfectant, Oxidizer, Sterilant, and Others) and by End-user Industry (Food and Beverage, Waste Water, Paper, Pharmaceutical, Chemical, and Others) – Global Supply & Demand Analysis & Opportunity Outlook 2023-2035
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The global peracetic acid market is estimated to garner a revenue of ~USD 2 billion by the end of 2035 by growing at a CAGR of ~8% over the forecast period, i.e., 2023 – 2035. Further, the market generated a revenue of ~USD 1 billion in 2022. The growth of the market can be attributed to its various uses in the food processing and packaging industry. The chemical is used effectively for sanitizing sealing systems and containers that are used to store food before distribution. Good food packaging plays a crucial role in preventing food spoilage and in extending its shelf life, eventually reducing food wastage. It is estimated that more than 1 billion tons of food is wasted worldwide annually.
Another significant factor that is expected to lead to unprecedented growth in the market for peracetic acid is the growing demand for disinfectants following the COVID-19 pandemic. The pandemic made the use of sanitizers and disinfectants necessary to check the spread of the virus attack. SARS-CoV-2 was observed to survive in the air for more than 2 hours while it survived on cardboard surfaces for a whole day. Similarly, the persistence of the virus on plastic and stainless steel was observed to be up to 4 hours. This varying range of persistence of the virus makes it imperative to regularly disinfect hospitals and other public places to contain the pandemic effectively, and this is expected to drive market growth.
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Base Year |
2022 |
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Forecast Year |
2023-2035 |
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CAGR |
~8% |
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Base Year Market Size (2022) |
~ USD 1 Billion |
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Forecast Year Market Size (2035) |
~ USD 2 Billion |
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Regional Scope |
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Growth Drivers
Rapid Growth of the Food Processing Industry in Different Parts of the World - Food processing is an important sector in all parts of the world. It is through food processing that food is made more safe, edible, and palatable for consumers. Food processing also brings a variety of choices of products to consumers. The improvement in the shelf life of the food products from processing should help farmers in the better storage and transportation of their agricultural produce. Thus, food processing plays a very significant role in the economic development of a nation. For instance, as per the Ministry of Food Processing Industries under the Government of India, the food processing sector contributed to 1.69% of the total Gross Value added (GVA) in the nation in 2019-20.
Effective Waste Water Treatment Measures World Wide - For instance, the European Union has a strong urban wastewater treatment directive that has helped improve the quality of the waterbodies in the region over the years significantly. Further, according to the Organization for Economic Co-operation and Development (OECD), 99.5% of the population in the Netherlands was connected via a public sewage network to a wastewater treatment plant in 2020. Peracetic acid is a strong disinfectant of wastewater, as about 91% of its effects can be observed within a minute. Hence, the evolving wastewater management systems in the world, which also emphasizes eco-friendliness, are expected to lead to market growth.
Rapid Rise in the Demand for Cleaning Products All Over the World - Even at a low concentration, peracetic acid acts as an effective antimicrobial. This trait of the chemical is relevant for its market growth in the days to come as the demand for cleaning products has risen unprecedentedly following the pandemic. For instance, there was a growth of about 385% in the sales of aerosol disinfectants alone in the United States (U.S.) in 2020.
Significant Rise in the Production of Poultry Meat World Wide - Peracetic acid is an approved cleaning agent, disinfectant, and anti-microbial in the processing of chicken and other poultry meat. It is also used to disinfect the equipment used in poultry processing. Hence, the rising production of various kinds of poultry meat is expected to lead to market growth. For instance, the total volume of broiler meat produced in the world was observed to increase from about 93 million metric tons in 2018 to more than 100 million metric tons in 2021.
Challenges
The global peracetic acid market is segmented and analyzed for demand and supply by application into disinfectant, oxidizer, sterilant, and others. Out of the four types of applications, the segment of disinfectant is estimated to gain the largest market share during the forecast period. The growth of the segment can be attributed to its significance in maintaining stipulated hygiene standards in various industries around the world. Peracetic acid, being a strong antimicrobial, is used vastly in industries such as agriculture, food processing, and pharmaceuticals. Their demand got a boost during the pandemic, as it can be observed from the increased use of many surface disinfectant chemicals. The demand for hand sanitizers went up dramatically after their use was declared one of the major measures for maintaining the health of the public by reducing SARS-CoV-2 transmission. For instance, significant growth was observed in the use of hand sanitizer among the Canadian population in non-occupational settings after the onset of COVID-19. It was observed that ~66% of adults in the country were using hand sanitizer up to 5 times a day while ~36% had more than 5 times of application of hand sanitizers daily.
The global peracetic acid market is also segmented and analyzed for demand and supply by end-user industry into food and beverage, waste water, paper, pharmaceutical, chemicals, and others. Amongst these segments, the food and beverage segment are expected to garner a significant share of the global market. The effectiveness of peracetic acid in killing pathogens, bacteria, fungi, and spores is what makes the chemical highly preferred anti-microbial in the food and beverage sector. Peracetic acid is also used as a sanitizer of bottles and surfaces in the brewing process of various beverages, including beer. It is estimated that the beer industry helped raise tax revenue of ~USD 267 billion for the governments of over 69 countries around the world. This tremendous growth of the brewing industry worldwide is expected to lead to an increased demand for peracetic acid and thus, to market growth.
Our in-depth analysis of the global peracetic acid market includes the following segments:
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By Application |
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By End-user Industry |
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The Asia Pacific peracetic acid market, amongst the market in all the other regions, is projected to grow at the fastest rate by the end of 2035. China should play a significant role in the regional market growth in the Asia Pacific region. Moreover, China is one of the major producers of chemicals in the world. The country also stands out as a main hub for the processing and production of specific chemicals such as hydrogen peroxide. It is estimated that the demand for hydrogen peroxide in China, which stood at about 363000 tons in 2020, should surpass 654000 tons by 2030. Peracetic acid is one of the major raw materials in the production of hydrogen peroxide. Hence, this projected increase in hydrogen peroxide demand is expected to be favorable for regional market growth. Further, the increasing demand for peracetic acid in different industries in China and other developing countries in the region, such as Japan and India, should benefit the chemical's regional market. The massive consumption of water for domestic, municipal, agricultural, and industrial purposes in China and India is expected to surge the market’s growth in the Asia Pacific.
Europe is the region that is expected to hold the largest market share in the market by 2035. The regional market growth in Europe is expected to be driven majorly by the priority given to the treatment of wastewater by the different nations in the region. Many countries in Europe, such as Belgium, France, Norway, and Finland, had more than 80% of their population connected to a wastewater treatment plant in 2020. In places such as the Netherlands, Luxembourg, and Denmark, the share of such population ranged between 90 and 100%. Another factor that is expected to benefit the market for peracetic acid in Europe is the vast presence of various end-user industries. Also, new processes followed in Europe, including membrane filtration and UV disinfection, are also thought to influence the market’s growth favorably.
In 2023, market players might incur losses due to huge gap in currency translation followed by contracting revenues, shrinking profit margins & cost pressure on logistics and supply chain.
Controlling Inflation has become the first priority for global economies from last quarter of 2022 and to be followed in 2023. With skewed economic situations, rise in interest rate by governments to control spending and inflation, spiked oil and gas prices, high inflation, geo-political issues including U.S. & China trade war, Russia-Ukraine conflict to intensify the global economic issues.
The interest rates in the U.S. may be less sensitive in 2023 as compared to 2022; sigh of relief for businesses. Positive business sentiments, healthy business balance sheets, growth in construction spending (private construction value in 2022 stood at $1,429.2 billion, 11.7 percent (±1.0 percent) above the $1,279.5 billion spent in 2021, Residential construction in 2022 was $899.1 billion, up by 13.3 percent (±2.1 percent) from $793.7 billion in 2021, non-residential construction touched $530.1 billion, 9.1 percent (±1.0 percent) above the $485.8 billion in 2021.) showcases minimal impact of recession in the country.
Similarly, spiked spending in the European and major Asia economics including, India, China & Japan to showcase less impact on the global demand.
Ans: The growth of the food processing industry and the surging demand for cleaning products are the major factors driving the market growth.
Ans: The market is anticipated to attain a CAGR of ~8% over the forecast period, i.e., 2023 – 2035.
Ans: Peracetic acid’s high reactivity, lack of awareness about the acid’s uses, and the health hazards as a result of prolonged use are estimated to be the growth-hindering factors for the market expansion.
Ans: The market in the European region is projected to hold the largest market share by the end of 2035 and provide more business opportunities in the future.
Ans: The major players in the market are Aditya Birla Management Corporation Private Ltd., Airedale Chemical Company Limited., Belinka Perkemija, d.o.o., Biosan LLC, BioSafe Systems, LLC, and others.
Ans: The company profiles are selected based on the revenues generated from the product segment, the geographical presence of the company which determines the revenue generating capacity as well as the new products being launched into the market by the company.
Ans: The market is segmented by end-user industry, application, and by region.
Ans: The disinfectant segment captures the largest market size in the application in the peracetic acid market by the end of 2035 and display significant growth opportunities.
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