Peracetic Acid Market Analysis

Peracetic Acid Market Deep Dive – PESTLE, Porter, SWOT

Peracetic acid market is expected to show a significant growth as the industry has been recognizing the effectiveness of this compound as a disinfectant and oxidizing agent. Peracetic acid is a powerful biocide and is being used in the food, pharmaceutical, and water treatment industries, where the demand for high-quality and safe products is growing. Its ability to decompose into non-toxic products makes it an attractive alternative to traditional chemical disinfectants, in line with the growing demand for environment-friendly products. It is expected that as the regulatory environment changes and consumers’ preferences change, the peracetic acid market will also undergo a transformation. The report explains the major trends, drivers, and challenges that will shape the future of the peracetic acid market.

PESTLE Analysis

• Political:
  In 2024, the market for peracetic acid will be influenced by the government's policy of promoting environmentally friendly chemicals. Among the measures taken to achieve this is the REACH regulation, which requires registration of all chemicals produced or imported in quantities of one tonne or more per year. It will affect about 30,000 chemicals, including peracetic acid, and will impose on manufacturers and importers the obligation to ensure safety and protect the environment.
• Economic:
  The global demand for peracetic acid is closely linked to the growth of the food and water industries, which are expected to spend around $ 5 billion on disinfectant and sanitizing solutions by 2024. The cost of raw materials, acetic acid in particular, which has fluctuated between $ 300 and $ 500 per metric ton in recent months, has a significant impact on the production costs of peracetic acid manufacturers, which will have a significant impact on market prices.
• Social:
  Awareness of hygiene and safety has risen sharply, especially since the COVID-19 pandemic. In 2024, 78% of consumers put hygiene and safety above all else. This is why there is a great demand for effective disinfectants such as peracetic acid. This has led to a change in the way companies operate. Sixty-five per cent of manufacturers say they are increasing their research and development efforts to produce more eco-friendly and effective disinfectants.
• Technological:
  In 2024 the production of peracetic acid shows a marked increase in efficiency. The introduction of continuous flow re-actors increases the yield and at the same time reduces the energy consumption by 15 per cent. These technical improvements are of paramount importance for the manufacturers if they are to meet the rising demand and still keep the cost down.
• Legal:
  By 2024, the market for peracetic acid is regulated by strict laws on chemical safety and the environment. During a working day, the Occupational Health and Safety Administration (OSHA) has set the permissible exposure limit (PEL) for peracetic acid at a maximum of 0.2 ppm. In order to avoid a fine and to ensure the safety of the workers, it is essential that the legal limits are respected. In this way, the operational practice in the industry is influenced.
• Environmental:
  In 2024 the Environmental Protection Agency (EPA) was examining the impact of the use of peracetic acid on the environment. The EPA has reported that peracetic acid decomposes into nontoxic by-products, making it an attractive alternative to chlorine-based disinfectants. However, the manufacture of peracetic acid produces about 0.4 tons of CO2 per ton of peracetic acid produced, which has led some producers to seek more sustainable production methods to minimize their carbon footprint.

Porters Five Forces

• Threat of New Entrants:
  The barriers to entry in the peracetic acid market are medium, because of the need for special knowledge and technology for the production process. New entrants will find it difficult to establish a distribution network and compete with the established players in gaining market share. The growing demand for environmentally friendly disinfectants may, however, attract new companies, thereby resulting in a moderate threat level.
• Bargaining Power of Suppliers:
  “The suppliers of raw materials for the manufacture of peracetic acid are relatively numerous, which lessens their bargaining power. The availability of alternative suppliers and the possibility of obtaining the raw materials from different regions also weaken the power of suppliers.” “In addition, the growing market may encourage suppliers to maintain competitive prices in order to obtain contracts.”
• Bargaining Power of Buyers:
  The bargaining power of the buyers of peracetic acid is moderate, because of the presence of many suppliers and the availability of other disinfectants. Large buyers, such as industrial users and hospitals, can obtain better conditions, but the unique properties of peracetic acid may restrict their choice, resulting in a balance of power.
• Threat of Substitutes:
  The threat of substitutes is high for peracetic acid. There are various alternatives in the market for disinfectants and sanitizers, including chlorinated products and other organic acids. The performance and price of these substitutes may have an effect on buyers’ preferences, making it important for producers of peracetic acid to differentiate their products and highlight their unique benefits.
• Competitive Rivalry:
  Competition is high in the Peracetic Acid Market. This is because of the presence of several established players and the increasing demand for disinfectants in various industries. The companies are competing on the basis of price, quality, and innovation. This has resulted in the adoption of aggressive marketing strategies and product development efforts. This intense competition has resulted in the reduction of profit margins and the lowering of market share.

SWOT Analysis

• Strengths:
  • Highly effective as a disinfectant and sanitizer across various industries.
  • Environmentally friendly alternative to traditional chemical disinfectants.
  • Broad application range including food processing, water treatment, and healthcare.
  • Rapid decomposition reduces residual toxicity concerns.
• Weaknesses:
  • Potential safety hazards if not handled properly, including corrosiveness.
  • Limited shelf life compared to some other disinfectants.
  • Higher production costs may affect pricing competitiveness.
  • Market awareness and education on proper usage are still developing.
• Opportunities:
  • Growing demand for eco-friendly and sustainable cleaning solutions.
  • Expansion in emerging markets with increasing industrialization.
  • Technological advancements in production methods to reduce costs.
  • Rising health and safety regulations driving demand for effective disinfectants.
• Threats:
  • Intense competition from established chemical disinfectant manufacturers.
  • Regulatory changes that may impact production and usage guidelines.
  • Economic downturns affecting industrial spending on cleaning products.
  • Potential negative perceptions regarding chemical disinfectants in general.

Peracetic Acid Market in 2024 is characterized by its strength in effectiveness and environmental friendliness, which makes it a strong competitor to traditional disinfectants. But it is also a challenge to its development due to the challenges of high production costs and safety. Opportunities for peracetic acid are mainly driven by increasing demand for green disinfectants and technological progress. However, competition and regulatory changes will affect the development of peracetic acid. Strategic emphasis on education and cost reduction is the key to capturing growth opportunities.