Hydrogen Peroxide Market - Growth, Trends, and Forecasts (2023 - 2028)

The hydrogen peroxide market is projected to register a CAGR of over 3% during the forecast period.

Due to the impact of COVID-19, the hydrogen peroxide market was negatively impacted because of nationwide lockdowns, social distancing mandates, etc., which caused supply chain disruptions. But in the post-pandemic period, with the government's support, the market recovered significantly and is expected to reach pre-pandemic levels in the forecast period.

Key Highlights

• Rising demand from the paper and pulp industry and increasing consumption of hydrogen peroxide as raw material for propylene oxide production (HPPO Process) are expected to drive market growth.
• Health hazards and side effects associated with exposure to hydrogen peroxide are likely to hinder the market's growth.
• The growth of the electronic industry in developing Asian countries and the usage of hydrogen peroxide in water treatment will likely increase the demand for the market studied.
• The Asia-Pacific region is expected to dominate the market and will also witness the highest CAGR during the forecast period.

Hydrogen Peroxide Market Trends

Increasing Demand from the Paper and Pulp Industry

• Hydrogen peroxide is extensively used in the paper and pulp industry as a bleaching agent to produce various types of pulps, including mechanical, chemical, and recyclable. It is also used to optimize whitening the pulps for these industries.
• Hydrogen peroxide also finds its application in the re-pulping of wastepaper over other bleaching agents, as it aids in reducing the bleaching costs and decreases the effluent color.
• The major pulp and paper goods markets, namely the United States and China, are witnessing an increase in online sales. This is partly because internet shopping has necessitated package innovation to improve product placement on shelves. This increase is due to improved demand for raw materials and corrugated boxes.
• As per data published by the FAO (United Nations), paper and paperboard production capacity has been consistent in the United States and is expected to rise consistently in the forecast period. According to the FAO, in 2021, the production capacity of paper and paperboard was around 74,728,000 tons and production was around 68,177,000 tons.
• India's proportion of global paper consumption is increasing as local demand continues to rise at a constant rate. The demand for upstream paper products (such as tissue paper, filter paper, tea bags, lightweight online coated paper, and medical-grade coated paper), along with the demand for better quality packaging of FMCG products marketed through organized retail, is expected to drive the paper & paper products market in India in the coming years.

Asia Pacific region to Dominate the Market

• In Asia-Pacific, India and China are the major economies booming in the current scenario, and this trend is likely to sustain in the forecast period.
• As per data published by the National Bureau of Statistics of China, the production output of processed paper and cardboard in China was evaluated at 11.6 million metric tonnes in September 2022.
• Furthermore, according to FAO, paper and paperboard production in China was around 121,100,000 tons, which increased from 112,600,000 tons in 2020.
• The electronics industry in China is the largest in the world. Electronic products, such as smartphones, OLED TVs, tablets, etc., have the highest growth in the market in the consumer electronics segment. According to data from the Ministry of Business and Information Technology (MIIT), China's electronic information manufacturing industry grew steadily in the first eight months of 2021.
• The petrochemical industry in India will undergo a sizeable expansion from 2021 to 2025 with 281 new projects lined up for construction and commencement. India's state-controlled Petronet LNG will add 9 million tons per year of LNG capacity in India in the coming years. Other important upcoming projects include Nayara Energy's USD 20 billion complex at Vadinar in Gujarat, HPCL Barmer refinery, Haldia Petrochemical's integrated complex at Balasore, Orissa, and BPCL Kochi project among others.
• The food and beverage industry of South Korea is one of the largest in the region, supported by the surge in organic food processing. It is estimated to increase by 2024 and reach USD 13,646 million, at an 8.1% growth rate during the forecast period. This growth is expected to be attributed to the increase in the demand for low-friction coatings in the organic food processing industries in the country.

Hydrogen Peroxide Market Competitor Analysis

The hydrogen peroxide market is consolidated in nature. Some of the major players (not in any particular order) in the market include Solvay, Evonik Industries AG, MITSUBISHI GAS CHEMICAL COMPANY INC., Arkema, and Kemira, among others.

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support