Organic Peroxide Market - Growth, Trends, COVID-19 Impact, and Forecasts (2021 - 2026)


Posted April 24, 2021 by Statzyreports

The Global Organic Peroxide market was valued at around USD 940 million in 2020 and the market is projected to register a CAGR of more than 5% during the forecast period (2021-2026).
 
The Global Organic Peroxide market was valued at around USD 940 million in 2020 and the market is projected to register a CAGR of more than 5% during the forecast period (2021-2026). The organic peroxide market is hampered by the COVID-19 pandemic. Due to nationwide lockdowns, social distancing measures, and disruption in the global supply chain network, most of the factories and industries were shut down which affected the supply-demand of plastic-related materials and witnessed a decline in pulp and paper products which in turn affected the market demand for organic peroxide.

- Over the short term, the major factor driving the growth of the organic peroxide market is the increasing demand for PVC and other plastics from various end-user industries.
- Increasing regulations on product usage in food applications are likely to hinder the growth of the market.
- Growing R&D, regarding its multi-functionality, is likely to create opportunities for the market in the coming years.
- Asia-Pacific region is expected to dominate the market and is also likely to witness the highest CAGR during the forecast period.

Key Market Trends

Increasing Demand from Coatings Applications

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- Coatings is one of the largest applications of organic peroxides. They are well suited for the coating resin synthesis and are used as curing agents for coatings. They are preferred, owing to the advantages such as:
- More polymer chains generated, with lower molecular weight

- Radicals generated are more selective, reducing hydrogen abstraction (crosslinking)
- Less long chain branching, better control over molecular weight and viscosity.
- Factors, such as increasing construction activities worldwide, majorly in Asia-Pacific and Europe, and increasing production of furniture have been driving the demand for paints and coatings, which has been further increasing the demand for and production of crude tall oil derivatives.

- Moreover, in 2021, the governments of various countries, like China, India, and the United States, are expected to increase the workforce to substantiate the projects that are put on hold in 2020. This, in turn, is expected to drive the market in the construction segment, thus driving the coatings market.
- In India, the government has been actively providing a boost to housing construction, as it aims to provide homes to about 1.3 billion people. The country is likely to witness investments worth around USD 1.3 trillion in housing, over the next seven years, and the country is likely to witness the construction of 60 million new houses. The availability of affordable housing is expected to rise by around 70%, by 2024, in the country.

- Additionally, the increasing presence of foreign companies in the Asia-Pacific region has created a demand for the construction of new offices, buildings, production houses, etc., thereby, driving the growth of the construction sector in the region.

- The building and construction industries in ASEAN countries and India represent the fastest-growing markets, and they are anticipated to account for a major share in the global construction market. Countries, such as Indonesia, Singapore, Thailand, Vietnam, the Philippines, and India, in the Asia-Pacific region have been witnessing a robust growth in construction activities.

- Across the region, the prices of conventional residential properties increased beyond the reach of the working-class population. Hence, the governments of various countries came up with various policy initiatives, in order to open upthe market for the large-scale construction of affordable houses.
- Owing to all the aforementioned factors, the market for organic peroxide is projected to grow from coatings applications during the forecast period.

Asia-Pacific Region to Dominate the Market

- Asia Pacific is the largest market for organic peroxide occupying a share of around 40% and is expected to be the fastest growing market during the forecasted period. China is the largest market in Asia Pacific region and is expected to grow at a healthy rate.
- China is one of the largest producers of plastic materials in the world, accounting for approximately 30% of the global plastics production. The country has the convenience of low-cost raw materials and labor.
- Plastics is the largest end-user industry for the aluminum hydroxide market. Chinese production of bio-based (rather than petroleum-based) biodegradable plastics is likely to double by 2022, which is expected to drive the market demand.

- China is the largest pulp and paper producing country in the world, due to large forest reserves (22.5% of the land area). The industry is modern and highly mechanized, and the labor is inexpensive. Forest cover is increasing in China, due to government afforestation initiatives. While this is a positive sign, there are concerns regarding social and environmental issues. As the largest wood importer in the world with complex and opaque supply chains, significant challenges are also present.
- China is a hub for chemical processing, accounting for a major chunk of the chemicals produced globally. With the increasing demand for organic and inorganic chemicals globally, the demand for hydrogen peroxide from this sector is projected to grow during the forecast period.

- India is expected to become the world’s third largest construction market by 2022. The availability of affordable housing in the country is expected to rise around 70% by 2024. By 2022, India is expected to contribute about USD 640 billion in construction industry owing to government initiatives in infrastructure development and affordable housing, such as housing to all and smart city plan. Despite the slowdown due to COVID-19 outbreak, the potential growth in construction activities in India are projected to support the growth of organic peroxides over the forecast period.
- At present, the penetration of personal care products in the country is low when compared to developed or even other developing economies. However, improving the economic environment and increasing purchasing power of the Indian population are expected to increase the adoption of personal care products in the country.

- Even though international players dominate the Indian market, Make in India and other various reasons, including promising characteristics of the products, the demand for domestic products is gaining significance at a healthy growth.
- According to a report published by the Ministry of Economy and Industry, the beauty and personal care (BPC) industry in the country is expected to reach more than USD 10 billion by 2021, at an estimated growth rate of 5%-6% annually.
- Owing to the increasing demand of organic peroxide in the country, Nuryoun, in 2019, has completed a EUR 4 million expansion at Mahad which increased organic peroxides production capacity at the site by 80%.
- Overall, owing to the aforementioned factors, the demand for organic peroxide is expected to increase during the forecast timeframe.

Competitive Landscape

The organic peroxide market is partially consolidated in nature. Some of the major players in the market include Nouryon, Arkema Group, NOF CORPORATION, PERGAN GmbH, and Novichem Sp. z o.o., among others.

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Tags covid19 impact , organic peroxide market , organic peroxide market forecast , organic peroxide market growth , organic peroxide market share , organic peroxide market size , organic peroxide market trends
Last Updated April 24, 2021