The global organic peroxide market is estimated to witness a healthy growth, at an estimated CAGR of over 4%, over the forecast period. The major factors driving the growth of the market studied is the increasing demand for plastics from various end-user industries.
- Safety issues regarding imports/exports and increasing regulations on the product usage in food applications are likely to hinder the markets growth.
- 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 highest CAGR during the forecast period.
Key Market Trends
Increasing Demand from Coatings Applications
- 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.
- Fast growth in emerging and frontier markets in South and Southeast Asia, is expected to continue balancing the ongoing slowdown in China and many developed markets. At the same time, governments are expected to ramp up efforts to encourage private participation in infrastructure development plans.
- 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.
- Owing to all the aforementioned factors, the market for organic peroxide is projected to grow 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.
The organic peroxide market is partially consolidated in nature. Some of the major players in the market include Nouryon, Arkema Group, NOF CORPORATION, Vanderbilt Chemicals LLC, and Novichem Sp. z o.o., among others.
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