The Global Peracetic Acid Market is projected to register a CAGR of over 7% during the forecast period (2021-2026).
Peracetic acid is used as a preservative to prevent microbial action in food and beverages. The spread of COVID-19 across the world in the first half of 2020 negatively impacted the food and beverage industry temporarily due to the closure of stores in lockdowns, unavailability of laborers, shortage of raw materials, and disruption in the supply chain. However, the end-user demand was not heavily impacted as every nation in lockdown primarily focused on the proper food supply and allowed the food and beverage industry's manufacturing units to run with proper safety guidelines. However, Peracetic acid-based disinfectants are effective against a broad range of bacteria, viruses (including SAR-CoV-2, the virus responsible for COVID-19) and fungi, on both clean and soiled surfaces. They work by oxidizing the protein cell wall which destroys the pathogens, even at very low concentrations. According to the Centers for Disease Control and Prevention (CDC), in the United States, during January-March 2020, poison centers received 45,550 exposure calls related to cleaners (28,158) and disinfectants (17,392), representing overall increases of 20.4% and 16.4% from January-March 2019 (37,822) and January-March 2018 (39,122), respectively.
- Over the medium term, the major factor driving the market studied is the rapidly increasing demand for potable water across the globe.
- The increase in the use of Peracetic Acid in aseptic packaging presents an opportunity to the market.
- The major hindrance to this market is the adverse health effects from the prolonged use of Peracetic Acid, resulting in lung, eye, and skin damage.
Key Market Trends
Disinfectant Application to Dominate the Market
- Peracetic acid is a popular biocidal disinfectant with uses across many industries.
- Peracetic acid can destroy and control harmful bacteria, viruses, spores, and fungi. It is a very powerful oxidant and fast-acting antimicrobial, peracetic acid penetrates through cell membranes, irreversibly disrupting the enzyme system and destroying pathogenic microorganisms.
- PAA's antimicrobial properties make a popular, reliable biocidal disinfectant in agricultural, food, and pharmaceutical settings, as well as in the home. Peracetic acid (PAA) is a widely used antimicrobial in the food and protein industries.
- Amongst many other industrial applications, it also holds use in water treatment, able to prevent biofilm formation and pathogenic growth.
- Furthermore, peracetic acid also has an environmental edge as it is efficacious even at low temperatures with no traces of chlorine. After use, it simply breaks down into its ecologically harmless components. It acts as an excellent alternative to traditional chemicals used for disinfectant and cleansing purposes thus growing the demand for the market.
- It is also applied for the disinfection of medical supplies, to prevent bio film formation in pulp industries, and as a water purifier and disinfectant.
- COVID-19 has created the need for surface disinfection in places like public spaces, hospitality buildings, transportation, and cleaning in place (CIP) in the food & beverage industry.
- According to US Census Bureau, In January 2021, United States food and beverage store sales were estimated to be about 70.9 billion U.S. dollars.
- In response to COVID-19, the global healthcare community is being challenged to answer the increasing demand for disinfectants ensuring their efficiency, but also controlling their impact on the environment thus fuelling the demand for PAA.
- Owing to all the above mentioned factors the demand for PAA as a disinfectant is expected to drive the market.
Asia-Pacific Region to Dominate the Market
- The Asia Pacific is expected to dominate the market for peracetic acid during the forecast period. In countries, like China, India, and Japan, due to the increasing demand from various end-user industries, such as pharmaceutical, food and beverage, and chemical the demand for PAA has been increasing in the region.
- PAA is also used for oxidative degradation of toxic substances and chemicals in wastewater, making the water treatment process easy. Due to this, there is a surge in demand for PAA for water treatment applications.
- In the Asia-Pacific, China is the largest economy in terms of GDP. China is one of the fastest-growing economies globally and almost all the end-user industries have been growing, owing to the rising population, living standards, and per capita income.
- China is a hub for chemical processing, accounting for a major chunk of the chemicals produced, globally. With the increasing demand for various chemicals globally, the demand for hydrogen peroxide from this sector is projected to rise during the forecast period.
- China's wastewater treatment industry broadly covers the treatment of influent, sewage treatment, and water recycling and the industries are investing more to treat industrial wastewater. According to the National Bureau of Statistics of China, China has invested YUAN 6.99 billion in the treatment of industrial wastewater in 2019.
- According to US International Trade Commission report, countries like China and India by 2035 would consume the largest volume of water in Municipal and Domestic, Industry and Agriculture consumption thus increasing the demand for PPA in wastewater treatment.
- Thus, the rising demand from various regions is expected to drive the market in the region, during the forecast period.
The global peracetic acid market is partially fragmented with many competitors in the market. The major companies Evonik Industries AG, Solvay, MITSUBISHI GAS CHEMICAL COMPANY, INC., Airedale Chemical, and Ecolab, among others.
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