Hydrogen Peroxide Market Overview:
The global hydrogen peroxide market was estimated to be around USD 3.4 billion in 2023. This market is projected to register a CAGR of 4.3% during 2024-2036, reaching around $4.3 billion by 2036. The Asia-Pacific region dominates the global hydrogen peroxide market, commanding a 45% share, fueled by factors such as increasing usage of disinfectants, growing population, and surging demand for paper products, particularly in India and China.
Hydrogen Peroxide Demand Supply Analysis, 2016-2036 (Kilo Tons)
Source: Secondary & Primary Research and Prismane Consulting estimates
Hydrogen peroxide is a versatile and environmentally friendly compound that offers a wide range of applications, making it a valuable product in various industries. In the global market, major producers like Solvay, Arkema, and Evonik contribute to a total hydrogen peroxide capacity of around 5,000 Kiloton. Western Europe leads the world in hydrogen peroxide production, accounting for approximately 45% of the global capacity due to the presence of key companies in Germany, France, and Belgium. The hydrogen peroxide market is segmented by application, with the pulp & paper industry being the largest consumer, representing almost 50% of the global market. Following closely behind are the textile industry and wastewater treatment sectors.
Hydrogen Peroxide Region Analysis:
Asia-Pacific dominates the global hydrogen peroxide market, driven primarily by strong demand in pulp & paper, textile, and water treatment applications. China stands out as the largest consumer, accounting for over 40% of the global market and more than half of the Asia Pacific market. The region is projected to experience the highest growth rate between 2024 and 2036, fuelled by robust hydrogen peroxide demand from China, India, and ASEAN countries.
Hydrogen Peroxide Demand, By Region, 2023 (Kilo Tons)
Source: Secondary & Primary Research and Prismane Consulting estimates
China is expected to maintain its dominant position in the forecast period, while Asia-Pacific is anticipated to have the fastest growth, with a close to 7% compound annual growth rate in terms of revenue. This growth can be attributed to the shift of the paper and pulp industry to developing countries such as China, India, and ASEAN countries, driven by lenient government regulations and cost-effective labor forces. Notably, Thailand and South Korea serve as major exporters of hydrogen peroxide in the Asia-Pacific region.
In the Asia-Pacific region, India emerges as a leading consumer of hydrogen peroxide, with a projected growth rate of 8% between 2024 and 2036. The growth of the paper and pulp industry, along with the establishment of textile parks, will further drive the hydrogen peroxide market in the country. Imports account for around 18-22% of India's hydrogen peroxide demand, with major supply originating from South Korea, Thailand, and Taiwan. Key hydrogen peroxide producers in India include Gujarat Alkalies & Chemicals Ltd, Hindustan Organic Chemicals, National Peroxide, Epigral (Meghmani), Chemplast Sanmar Ltd, and DCM Shriram Limited. India's hydrogen peroxide demand was estimated to be around 300 Kiloton in 2023, and it is projected to register strong growth in forecast period mainly driven by increasing its consumption in paper and pulp bleaching, textile bleaching, and water treatment.
Hydrogen Peroxide Competitive Landscape
Key players in the hydrogen peroxide market include AkzoNobel NV, Arkema Group, Evonik Industries AG, Gujarat Alkalies and Chemicals Limited, Meghmani Finechem, Thai Peroxide Company Limited (TPL), Kemira Oyj, Mitsubishi Gas Chemicals, Peroxy Chem LLC, Kingboard Chemical Holdings, and Solvay S.A. These companies are actively expanding their capacities to meet the growing hydrogen peroxide demand. For example, Solvay has announced capacity expansions at its European sites, while Evonik boasts a combined capacity of over 1,000 Kiloton. Mitsubishi Gas Chemicals plans to construct a 40-kiloton hydrogen peroxide plant in Taiwan. As hydrogen peroxide demand is estimated to grow at a CAGR of ~4% between 2024 and 2036, producers are focusing on capacity expansions and efficiency improvements.
Global Hydrogen Peroxide Demand, By Application, 2016-2036 (Kilo Tons)
Source: Secondary & Primary Research and Prismane Consulting estimates
Hydrogen Peroxide Recent Developments
National Peroxide, is one of the leading hydrogen peroxide manufacturer in India, the company is expanding its production capacity at its facility in Kalyan, Maharashtra. The company plans to increase hydrogen peroxide capacity from 95 kilo tons to 150 kilo tons. National Peroxide, has a history of capacity expansions, having undertaken similar initiatives in 2006, 2011, and 2014. During its most recent expansion in 2014, the company increased capacity from 84 kilo tons to 95 kilo tons.
Solvay, in collaboration with Shandong Huatai Interox Chemical plans to strengthening its leadership in the global hydrogen peroxide market by expanding its China. By 2025, the company aims to produce around 48 kilo tons of photovoltaic grade hydrogen peroxide, to cater growing demand in the renewable energy sector in.
In June 2022, Solvay made an announcement regarding the construction of a state-of-the-art facility in Casa Grande, Arizona to cater to the increasing demand in the U.S. semiconductor production market. Its primary focus will be the conversion of hydrogen peroxide into a high-purity grade specifically formulated for the cleaning of silicon wafers. These wafers are crucial components in semiconductor manufacturing and play a vital role in electronic devices.
In October 2022, POSCO Chemical and OCI completed the construction of a hydrogen peroxide plant with an annual capacity of 50 Kiloton in Gwangyang-si, South Korea to address the soaring demand of the semiconductor industry.
Solvay and Guangxi Chlor-Alkali Chemical (GHCAC) have entered into a license agreement, granting GHCAC access to Solvay's exclusive hydrogen peroxide process technology. As per the agreement, GHCAC will construct a hydrogen peroxide plant in Qinzhou, China. The primary purpose of this plant will be to facilitate the production of 300,000 tons of propylene oxide annually at the site, while also providing support to other operational units.
Additionally, it has been mutually agreed upon that Solvay will have an offtake arrangement for hydrogen peroxide following the commencement of operations at the mega plant. This agreement will contribute to the strategic expansion of Solvay's hydrogen peroxide business in China, with a particular focus on the southern region. The semiconductor industry, a key market for hydrogen peroxide, has seen notable developments in this area.
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