Organic Peroxide Market

Organic peroxide Market Size (2023-2028)

The Organic Peroxide Market was valued at around $ 930 million in 2022 and the market is expected to exhibit a CAGR of over 6% during the forecast period 2023-2028

Organic peroxide is a compound obtained from the process of combining two oxygen atoms. The organic peroxide is mainly found in three forms: liquid, solid, and pasty. In addition, the organic peroxide may or may not be diluted. The diluted organic peroxide is safer to handle and produce, which is why it is used more in industry. Industries such as coatings and adhesives, paper and textiles, detergents, etc. use organic peroxide for its unique self-accelerating decomposition properties.

Factors such as the increase in construction activity around the world, mainly in Asia-Pacific and Europe, and the increase in furniture production has boosted the demand for paints and coatings, further increasing demand and production. of crude oil derivatives. In addition, in 2021, governments in several countries, such as China, India, and the United States, are expected to increase staffing levels to support projects that are crippled in 2020. In the construction segment, thus boosting the coatings market. The country is likely to see investments worth around $ 1.3 trillion in housing, over the course of the next seven years, and the country is likely to witness the construction of 60 million new homes.

The availability of affordable housing is expected to increase by around 70% by 2026 in the country. In addition, the growing presence of foreign companies in the Asia-Pacific region has created a demand for the construction of new offices, buildings, production houses, etc., thus stimulating the growth of the construction industry in the region. The building and construction industries in ASEAN countries and India represent the fastest-growing markets and are expected to represent a significant share of the global construction market. Countries like Indonesia, Singapore, Thailand, Vietnam, the Philippines, and India in the Asia-Pacific region have seen strong growth in construction activity. Across the region, prices for conventional residential real estate have risen beyond the reach of the working population. Thus, the governments of several countries have proposed various policy initiatives, in order to open the market to large-scale construction of affordable housing. Due to all of the above factors, the organic peroxide market is expected to expand from the coatings applications during the forecast period.

Organic peroxide Market Drivers

Increased adoption of rubber in automotive industries, which has improved peroxide usage and fuel market growth. The high usability of organic peroxide in various applications such as construction, automotive, composites, electrical, and electronics is also driving the market during the forecast period. The main driver of organic peroxide market growth is the increasing demand for PVC and other plastics from various end-user industries. Increased adoption of rubber in automotive industries, which has improved peroxide usage and fuel market growth. The high ease of use of organic peroxide in various applications such as construction, automotive, composites, electrical, and electronics is also driving the market during the forecast period. Factors such as rapid urbanization, increased infrastructure activities and changing lifestyles will eventually drive the dominant demand, generally facilitating the growth of plastics and related products on a global scale. The growth in the application of rubber in the automotive industry will play a leading role in determining peroxide consumption globally. The excess rubber production is mainly due to the large-scale plantation program implemented in recent years, which has clearly increased world production, exceeding demand.

Organic Peroxide Market Restraints

Increasing regulations on product usage in food applications are likely to restrain the growth of the market.

Opportunities in the Organic Peroxide Market

The multi-functionality of organic peroxides along with increasing applications in the food and pharmaceutical industry is expected to create vast market opportunities during the forecast period. The high use of organic peroxides in the aviation industry, due to the increasing demand for low-cost tariffs, is expected to change the requirements for high-end fiberglass and could be an opportunity for various manufacturers.

Challenges in the organic peroxide Market

Increased regulation on the import and export of organic peroxide is expected to jeopardize the growth of the organic peroxide market. Strict regulations related to the use of organic peroxides, such as European Regulation EC 1907/2006 (REACH), as well as safety concerns related to the handling of organic peroxides, are expected to be the main challenging factor during the period.

ORGANIC PEROXIDE MARKET REPORT COVERAGE:

Organic peroxide Market Segmentation

Organic Peroxide Market - By Product

• Diacetyl Peroxide

• Ketone Peroxide

• Benzoyl Peroxide

In terms of volume, benzoyl peroxide has dominated the market, accounting for 34% of the global organic peroxide market share in 2020. It is used both as a medicine and as an industrial chemical. As part of the drug, the product finds its application in the treatment of moderate to mild acne. Other application segments include flour bleaching, hair bleaching, teeth whitening, and textile bleaching. Industrial use includes the manufacture of polystyrene, reinforced plastics, and the production of SBR latex.

Global demand for ketone peroxide is expected to experience a forecast CAGR of 3.9% by volume during the forecast period. The increasing demand for glass reinforced with plastic or commonly referred to as fiberglass due to the production of ships in marine parts, which replaces the use of wood and steel structures, and the growing demand for automobiles in emerging economies is expected to stimulate the consumption of ketones. for various cross-links. . The increasing growth of the aviation sector, based on the increasing demand for low-cost fares, is expected to modify the need for high-end fiberglass, increasing the consumption of products in the projected years.

Global demand for diacetyl peroxide is expected to experience a projected CAGR of 3.3% by volume during the forecast period. The growing demand for quenched polymers in the construction and manufacturing industry, together with the growing demand for resins for improved flooring solutions, are expected to continue to be a crucial factor in determining the Diacetyl market over the course of the projected period.

Organic Peroxide Market - By Application 

• Polymers

• Textiles

• Personal Care

• Detergent

The textile sector dominated the market in terms of market share, accounting for 27.02% of global demand in 2020 in terms of volume. The growing demand for ready-to-wear among the emerging middle-class population due to trends such as the adaptation of western fashion, designer clothing, and brand preferences is expected to drive the need for organic peroxide over the course of the year. over the next eight years. The remodeling of interior architecture as part of the improvement of a creative decoration is expected to increase the demand of the carpet and drapery industry in general, improving the requirements of the mentioned products in the future.

Organic peroxide Market - By Region

• North America 

• Europe 

• Asia Pacific

• Latin America 

• Middle East & Africa 

Asia-Pacific is the largest organic peroxide market with around 40% share, and it is expected to be the fastest-growing market during the forecast period. China is the largest market in the Asia-Pacific region and is expected to grow at a strong pace.

China is one of the world's largest producers of plastics, accounting for around 30% of global plastics production. The country has the convenience of having low-cost raw materials and labor. China is the largest producer of pulp and paper due to its large forest reserves (22.5% of the land surface). Forest cover is increasing in China thanks to government afforestation initiatives. While this is a positive sign, there are concerns about social and environmental issues. As the world's largest importer of timber with complex and opaque supply chains, there are also significant challenges. China is a chemical processing center, accounting for a large part of the chemicals produced in the world. Considering the increasing demand for organic and inorganic chemicals globally, the demand for hydrogen peroxide from this industry is expected to increase during the forecast period.

India is expected to become the third-largest construction market in the world by 2026. The availability of affordable housing in the country is expected to increase by around 80% by 2026. By 2026, India is expected to contribute to the tune of 641 billion USD in the construction sector. Despite the slowdown due to the COVID-19 outbreak, the potential growth of construction activity in India is expected to support the growth of organic peroxides during the forecast period. Currently, the penetration of personal care products in the country is low when compared to developed economies or even other developing economies. However, the improvement of the economic environment and the increase in the purchasing power of the Indian population are expected to increase the adoption of personal care products in the country. Although international players dominate the Indian market, Make in India and various other reasons including promising product characteristics, the demand for domestic products is gaining importance with healthy growth.

Impact of Covid-19 on the organic peroxide Market

The organic peroxide market is hindered by the COVID-19 pandemic. Due to nationwide lockdowns, social distancing measures and disruption of the global supply chain network, most factories and industries have been closed, affecting both supply and demand. of plastics. and has witnessed a decline in pulp and paper products, which in turn has affected the market demand for organic peroxide.

Recent Developments

• In February 2019, Nouryon (formerly AkzoNobel Specialty Chemicals) more than doubled the capacity of emulsion-based organic peroxides at its Los Reyes, Mexico site to meet growing customer demand in the chloride market. Polyvinyl (PVC) from North America.

• In May 2018, Nouryon began to expand its production capacity and modernize its organic peroxide plant in Mahad, India. Organic peroxides are essential for the manufacture of a wide range of polymer products, including the soles of athletic shoes, wind turbines, and PVC pipes used in the construction industry.

• In May 2017, AkzoNobel expanded its business portfolio by completing an expansion project for the Polymer Chemistry production plant in Los Reyes, Mexico.

• In March 2016, United Initiators (UI) and Wanhua Chemical Group (Wanhua) entered into a joint venture to form a company called UI Wanhua (Yantai) Peroxide Co. Ltd. of organic peroxides, starting with the key raw material TBHP - 70 - AQ.

Organic peroxide Market Key Players:

Some of the key market players in this market include Akzo Nobel N.V., Solvay,  Arkema, United Initiators, NOF Corporation, Pergan GmbH,  Chinasun Specialty Chemicals, Novichem, MPI Chemie, Akpa Kimya Ambalaj Sanayi Ticaret Ltd., and Vanderbilts Chemicals LLC among others.