Organic Peroxide Market Size, Share & Trends Analysis Report By Product (Diacetyl Peroxide, Ketone Peroxide, Benzoyl Peroxide), By Application (Polymers, Textiles, Personal Care, Detergent), And Segment Forecasts, 2018 - 2025

Industry Insights

The global organic peroxide market size was valued at USD 834.5 million in 2016 which is likely to grow on account of increasing demand for fabrics and end use polymers among growing middle-class population. The rising demand of peroxide as a catalyst in manufacturing commodities for personal care, packaging, and detergents is anticipated to fuel the growth of product over the projected period.

The expanding interest of consumer’s preference to use engineered plastics has increased the existing manufacturing capacity of industries, thereby escalating the requirement of product for polymerization processes. Drivers such as rapid urbanization, increasing infrastructure activities, and change in lifestyles will eventually push the prevailing demand, overall facilitating the growth of plastics and related products globally.

The rubber industry has been one of the stable pillars in emerging economies, where the demand is projected to increase over the next few years. The application growth of rubber in the automobiles sector will act as a driving force in determining the consumption of peroxide globally. The surplus production of rubber is primarily driven by large scale plantation program which took place in the last few years, that evidently has increased the global output, surpassing demand.

The paradigm shift in the global textile industry is highly based on application of new information and communication technologies which has entirely improved the long-distance supply chain capabilities and established a virtual exchange base that made a stable interactive platform for both suppliers and buyers. Such revolutionary change in the entire industry had brought consumers much closer to varied products and enabled all interested parties to reconsider the role of stakeholder in the entire value chain. Higher the demand for textile over the forecast period, will substantially increase the requirement of peroxide altogether.

Rapid urbanization, rising trend of spending, and growing concerns toward cosmetics among consumers is expected to play a crucial role for products growth in textile, polymer and personal care market

Fluctuating raw material prices often plays a major role in determining the future demand in manufacturing of such catalysts. High raw material prices tend to reflect the market price over the end products which eventually contributes for higher profits. The presence or absence of any end-use industry, will certainly swing the demand on either side, in fact, over the projected period, the requirement of the prime product is anticipated to surge.

Product Insights

In terms of volume, benzoyl peroxide dominated the market, accounting for 35% of global organic peroxide market share in 2016. It is both used as a medication and industrial chemical. As a part of medication, the product finds its application in treating moderate to mild acne. Other segments of application include bleaching of flour, hair bleaching, teeth whitening, and bleaching of textile. The industrial use of includes manufacturing of polystyrene, reinforced plastics, and in production of SBR latex.

The global demand for ketone peroxide is expected to witness a predicted CAGR of 3.8% in terms of volume over the forecast period. Growing demand for plastic reinforced glass or commonly known as fiberglass on account of production of water craft in marine parts, substituting the use of wood and steel structures, and increasing demand of automotive in emerging economies are expected to propel the consumption of ketone for various crosslinking. Surging growth in aviation sector based on increasing demand of low cost fares is anticipated to swing the requirement of high end fiberglass’s thus increasing the consumption of the product over the projected years

The global demand for Diacetyl Peroxide is expected to witness a predicted CAGR of 3.4% in terms of volume over the forecast period. Increasing requirement of hardened polymers across construction & manufacturing sector, as well as growing demand of resins for enhanced flooring solutions is expected to remain as a crucial factor in determining the market for diacetyl’s over the projected period

Application Insights

The textile sector dominated the market in terms of market share, accounting for 28.02% of the global demand in 2016 in terms of volume. Increasing demand for readymade clothing among emerging middle-class population on account of trends such as adaptation of western fashion, designer wears and brand preferences is anticipated to propel the requirement of organic peroxide over the next eight years. Remodeling of interior architecture as a part of enhanced creative 1decoration, is expected to increase the demand of carpet and curtain industry overall upscaling the requirement of mentioned products in future.

The polymer sector accounted for 18.50 % of the global market volume in 2016. The increasing requirement of hardened plastics such as polyvinyl chloride, thermosetting plastics, and plastic reinforced glasses on account of growing demand in residential construction and profile application is anticipated to multiply the production rate, which will surge the demand for the market over the next eight years.

Paper & pulp is expected to be the third-largest application segment which will be driven with the penetration of smart packaging materials that is expected to account for a global share of 21.06% by the end of 2025.

Regional Insights

Asia Pacific accounted for 27.43% of the global market in 2016. Asia Pacific has been one of the largest consumer of plastic products accounting for over 42% of global demand, which is anticipated to grow over the coming eight years. The emergence of China and India as major product manufacturing destination coupled with gains in exports and domestic demand is expected to promote the product's usage over the projected period.

Factors such as free trade agreement in Singapore which is among the fastest growing market for technical textiles in addition to the U.S. producers entering new regions is anticipated to bring substantial growth over the next eight years.

North America is expected to witness a mild decline in growth over the forecast period owing to the shifting interest of manufacturers towards competitive regions that has abundant raw material and low-cost labor. Availability of low cost gas in North America is expected to generate over 23 billion pounds of different polymers over the next four years. Increasing expenditure in establishing new product lines depending on the type of plastic, process, and application will overall surge the demand as catalyst over the coming years. North America is likely to witness a growth of 17.35% in terms of volume by 2025.

Organic Peroxide Market Share Insights

The market is highly competitive in nature owing to the presence of large and small-scale manufacturers, especially in the U.S., China, and India. The entire platform is dominated by various major participants including BASF, AkzoNobel, Arkema, Evonik, and Dow Chemicals

Key players rely on strategies such as mergers, acquisitions, and joint ventures in order to increase their presence in the market. They also focus on increasing their share and profitability through market expansion and R&D activities. Industry rivalry is expected to be high over the forecast period with fluctuating raw material prices resulting in entry barriers for new participants.

In May 2017, AkzoNobel enlarged its business portfolio by completing an expansion project for Polymer Chemistry production facility in Los Reyes, Mexico. The expansion is expected to increase the company’s peroxyester capacity in North America by 40%.

In March 2016, United Initiators (UI) and Wanhua Chemical Group (Wanhua) entered into a joint venture to form a company named UI Wanhua (Yantai) Peroxide Co. Ltd. The entire focus of the joint venture is to focus on the production and sales of organic peroxides, starting with the key raw material TBHP‐70‐AQs.

Recent Developments

• In October 2022, Arkema expanded its partnership with Univar Solutions, Weber & Schaer, and Dolder for the distribution of its organic peroxides. Arkema intended to expand its business in the European plastics cross-linking and rubber markets, and meet customer needs globally

Report Scope

Segments covered in the report:

This report forecasts volume and revenue growth at a global, regional & country level, and provides an analysis on the industry trends in each of the sub-segments from 2017 to 2025. For the purpose of this study, Grand View Research has segmented the global organic peroxide market on the basis of product, application, and region:

• Product Outlook (Volume, Kilotons; Revenue, USD Million; 2014 - 2025)

  • Diacetyl Peroxide

  • Ketone Peroxide

  • Benzoyl Peroxide

• Application Outlook (Volume, Kilotons; Revenue, USD Million; 2014 - 2025)

  • Polymers

  • Textile

  • Personal care

  • Paper & pulp

  • Detergent

• Regional Outlook (Volume, Kilotons; Revenue, USD Million; 2014 - 2025)

  • North America

    • The U.S.

  • Europe

    • Germany

    • France

    • Italy

  • Asia Pacific

    • China

    • India

    • Bangladesh

  • Central & South America

    • Brazil

    • Argentina

  • Middle East & Africa

    • South Africa