Peracetic Acid Market Unleashed: Unraveling the Potential for Disinfection Breakthroughs

Peracetic acid (PAA) is an organic compound widely used as a sterilant and disinfectant in various industries including food, healthcare, and water treatment. It provides effective antimicrobial activity against viruses, bacteria, yeasts, molds, and spores. PAA breaks down into acetic acid, oxygen, and water and does not leave any toxic residues. It is adopted as an eco-friendly alternative to chlorine-based disinfectants. Increasing concerns regarding waterborne diseases have augmented the demand for PAA from water treatment applications. The global peracetic acid market is estimated to be valued at US$ 872.06 mn in 2023 and is expected to exhibit a CAGR of 7.8% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.

Market Opportunity:

The growing water scarcity around the world has emphasized the need for improved water treatment processes. Peracetic acid effectively inactivates microorganisms in water and aids in disinfecting drinking water. It leaves no disinfection by-products and residue, unlike chlorine. Various governments and international organizations are undertaking initiatives and investments towards expanding access to clean water. This growing focus on water treatment infrastructure development presents significant opportunities for peracetic acid manufacturers. Advanced purification technologies using peracetic acid can help address critical issues of water contamination. This will further drive the demand for peracetic acid from the water treatment segment over the forecast period.

Porter’s Analysis
Threat of new entrants: The peracetic acid market requires large capital investments for R&D, manufacturing facilities and distribution channels. Therefore threat of new entrants is moderate.
Bargaining power of buyers: The buyers have moderate bargaining power due to presence of multiple established manufacturers.
Bargaining power of suppliers: Few manufacturers control global supply of key raw materials which gives them strong bargaining power over buyers.
Threat of new substitutes: No major substitutes currently exist for peracetic acid. However hydrogen peroxide can partly substitute peracetic acid.
Competitive rivalry: The market is mature with established players. Price competition is high due to availability of substitutes.

SWOT Analysis
Strength: Wide industrial uses of peracetic acid as sterilant and disinfectant. Stringent food safety regulations driving demand.
Weakness: Highly unstable and corrosive in nature requiring safe handling and transportation. Fluctuating raw material prices.
Opportunity: Growing end-use industries especially food and medical sectors in Asia Pacific region. Development of innovative application specific products.
Threats: Stringent environmental regulations around the use of hazardous chemicals. Competition from substitutes like hydrogen peroxide.

Key Takeaways
The global peracetic acid market is expected to witness high growth over the forecast period of 2023 to 2030. The market size for 2024 is US$ 872.06 Mn.

Regional analysis: North America dominates currently due to stringent food safety regulations. Asia Pacific is growing fastest with increasing consumption in China, India.

Key players: Kemira Oyj, Solvay S.A., Promox S.p.A., Evonik Industries, Ecolab Inc are major players. They are focusing on capacity expansion to cater to growing demand.