Organic Peroxide Market size is forecast to reach $1.1 billion by 2025, after growing at a CAGR of 3.2% during 2020-2025. The increasing demand for peroxide as a catalyst in the production of goods for personal care, packaging, and detergents is expected to drive the growth of the organic peroxide over the forecast period. Drivers such as rapid urbanization, rising construction activities and changing lifestyles will eventually push the current market forward, making it easier for plastics and related goods to expand globally.
The report: “Organic Peroxide Market – Forecast (2020-2025)”, by IndustryARC, covers an in-depth analysis of the following segments of the Organic Peroxide Industry.
- Rapid urbanization, increasing spending trends and growing customer concerns about cosmetics are expected to play a crucial role in the growth of products in the textile polymer and personal care industry.
- Organic peroxides are highly utilized as bleaching agents and disinfecting agents. For instance, benzoyl peroxide is effective for treating most forms of acne.
- Fluctuating prices of raw materials also play a key role in evaluating future demand for such catalysts. High prices of raw materials tend to reflect market prices for end products, which eventually contribute to higher profits.
- Factors such as the Singapore Free Trade Agreement, which is among the fastest growing market for technical textiles in addition to U.S. manufacturers entering new markets, are expected to bring significant growth over the next five years.
- Increasing demand from the chemical industry and increasing applications for bleaching in China and India and developments in the processing industry are expected to drive the future growth of the market for organic peroxides over the forecast period.
Product Type - Segment Analysis
In 2018, diacyl peroxides dominated the market and accounted for a significant share of the total volume in 2018. Diacyl peroxides are widely accepted as curing agents across various end-use industries. Diacyl peroxide is used as a free radical initiator in the process of polymerization and polymerization of PVC. Furthermore, it is also used in the polymerization of styrene, dental supplies paints and skin care. The increasing demand for organic diacyl peroxides mainly from Asia Pacific and Latin America is expected to further increase the growth of the segment during the forecast period.
Application - Segment Analysis
Textile sector is expected to be the dominant application segment in the organic peroxide market in 2018. Increased demand for ready-made clothing among the emerging middle-class population due to trends such as adaptation of western fashion, designer clothing and brand preferences is expected to boost organic peroxide requirements over the forecast period.
Geography - Segment Analysis
Asia Pacific holds the largest share in the organic peroxides market in 2018, up to 37%. Increased disposable income in the region has increased demand for personal care and textiles, among others, adding to the revenue of the global organic peroxide market. In addition, the growing construction activities in the region have resulted in the penetration of paints and coatings resulting in an increase in the market in the region.
Drivers – Organic Peroxide Market
• Growing plastic applications in various end-use industries.
Organic peroxides are used in the polymer industry as a source of free radicals for the polymerization of unsaturated monomers used for the manufacture of various polymers, such as, polyvinyl chloride, polystyrene, polyacrylate, low-density polyethylene and polybutadiene. Growing plastic applications in various end-users, such as healthcare, biotechnology and the automotive industry, are expected to drive the market during the forecast period due to their chemical properties.
Challenges – Organic Peroxide Market
Ø Safety, handling and transportation of organic peroxide is a major concern restricting the market growth.
Peroxides are also strong oxidizers and react easily with skin cotton and wood pulp. The temperature of the sample which should be maintained below the self-accelerating decomposition temperature of the material is an important factor for the safe handling of concentrated organic peroxides. In many countries, the shipping of organic peroxides is restricted. The US Department of Transportation lists restrictions on organic peroxide shipping and forbidden materials in 49 CFR 172.101.
Technology launches, acquisitions and R&D activities are key strategies adopted by players in the Organic Peroxide Market. In 2019, the market of Organic Peroxide has been consolidated by the top five players accounting for xx% of the share. Major players in the Organic Peroxide Market are Akzo Nobel N.V., Arkema, United Initiators, Pergan GmbH, NOF Corporation, Novichem, Chinasun Specialty Chemicals Co., Ltd, MPI Chemie B.V., Akpa Kimya Ambalaj Sanayi Ticaret Ltd., and Vanderbilts Chemicals LLC., among others.
In May 2017, AkzoNobel expanded its company portfolio by launching an expansion project for the Polymer Chemistry production facility in Los Reyes, Mexico.
In March 2016, United Initiators and Wanhua Chemical Group entered into a joint venture to form a company called UI Wanhua Peroxide Co. Uh, Ltd. The whole aim of the joint venture is to concentrate on the production and sale of organic peroxides, beginning with the main raw material TBHP?70?AQs.