Organic Peroxide Market

The global organic peroxide market size was valued at USD 1.9 billion in 2023 and is projected to reach USD 2.6 billion by 2030, growing at 4.2% cagr from 2023 to 2030.

Organic peroxides are commonly used in specialty chemicals. They have witnessed significant growth over the past decade, and are being used as accelerators, initiators, cross-linking agents, hardeners, activators, and curing & vulcanization agents in polymer chemistry. Organic peroxides are also used for their bleaching and disinfecting properties. Moreover, some organic peroxides find application as active ingredients in explosives. The increased consumption of organic peroxides in coating, adhesives, and synthetic rubber manufacturing is a major opportunity for various market players. Moreover, the high consumption of organic peroxides in chemicals & plastics applications is another opportunity for market players. Safety issues are the major factor restraining the development of this market as organic peroxides are extremely hazardous materials. Regulations and restrictions on the transportation of organic peroxides are also restraining market growth.

Organic Peroxides Market Size, Dynamics & Ecosystem

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Organic peroxide Market Dynamics

Driver: Increasing demand for organic peroxide from polymer industry

Organic peroxides are the most extensively used material in the polymer industry. Organic peroxides are used for the polymerization of LDPE such as PVC. They are used widely as initiators in free radical polymerization reactions. They are also used in the curing of unsaturated polymer molding resins. Organic peroxides are also used as a cross-linking agent for elastomers. The organic peroxide market has shown promising growth because of the high demand from the industry in the past five years. Polymers are used extensively in almost all end-use sectors, such as automotive, construction, electronic & electrical, and composites.

Restraint: Safety issues restricting import/export

Organic peroxides are considered severe fire and explosion hazardous substances. Some organic peroxides may also be corrosive or toxic and could harm the human body on inhalation, eye/skin contact, swallowing, or exposure. Peroxides are chemically unstable and can quickly decompose, releasing heat when temperature rises. Vapors released by peroxides are flammable and can catch fire easily. Some organic peroxides are highly reactive. They can react explosively if they are exposed to friction or heat or are mixed with unsuited materials. Organic peroxides are also great oxidizing agents, thus making them highly combustible.

Opportunity: Emerging market for organic peroxide

The expanding market for organic peroxides in regions like Asia Pacific, North America, and Europe presents a significant opportunity for industry growth. With increasing industrialization and demand for polymer-based products in these regions, there is a growing need for organic peroxides as initiators in polymerization processes. The Asia Pacific region is witnessing robust economic development and infrastructure projects, further fueling the demand for plastics and composite materials. In North America and Europe, the emphasis on technological advancements and sustainable practices in various industries, including automotive and construction, is driving the adoption of organic peroxides for enhanced polymer manufacturing. This growing market in key global regions provides a favorable landscape for the organic peroxide industry to expand its applications and cater to the rising demand for in diverse sectors.

Challenge: Logistics and storage issues

Organic peroxides pose significant safety risks due to their inherent instability and reactivity. With a composition containing both oxygen and organic matter, these compounds are highly susceptible to combustion, emitting flammable gases or vapors. The primary concerns associated with organic peroxides revolve around the heightened risk of fires and explosions. Their propensity to catch fire easily, burn intensely, and resist extinguishing makes them particularly hazardous. Some varieties may even undergo explosive reactions under elevated temperature or pressure conditions, necessitating refrigeration to prevent spontaneous ignition at room temperature.

ECOSYSTEM

Organic Peroxides Market Segmentation & Geographical Spread

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By Type diacyl peroxides segment to have the highest share in the forecast period.

Diacyl peroxides have the general structure RC (O) OO (O) CR’ wherein R and R’ mostly represent alkyl and/or aryl groups. These are thermally unstable compounds, which start decomposing at low temperatures to form free radicals. They are used as free radical initiators in the polymerization process and for the polymerization of PVC. These peroxides also act as initiators for vinyl monomer polymerizations.

By application, the chemicals and plastics segment led the market in 2022.

In 2022, the chemicals and plastics segment stood out as the largest application of organic peroxide, commanding the largest share of the market. Organic peroxides are commonly used in the chemical industry as intermediates or as catalysts in numerous reactions. They are effective initiators, accelerators, and curing agents, and are used for free radical polymerization initiators in reactions and for the polymerization of LDPE and PVC. Thus, organic peroxides play a crucial role in the chemicals & plastics applications.

Asia Pacific to register the highest CAGR during the forecast period.

The Asia Pacific region accounted for the largest share in 2022, in terms of value, followed by North America and Europe. Asia Pacific is a major manufacturing hub for various polymers, including polyethylene, polypropylene, and rubber. Organic peroxides play a crucial role as initiators in polymer production, leading to increased demand. China is projected to be the fastest-growing market across the globe during the forecast period.

Key Market Players

The Organic peroxide market comprises key manufacturers such as Nouryon Chemical Holding B.V. (Netherlands), Arkema SA (France), NOF Corporation (Japan), United Initiators GmbH (Germany), and PERGAN GmbH (Germany), and others. Expansions, collaborations, and deals were some of the major strategies adopted by these key players to enhance their positions in the organic peroxide market. A major focus was given to the acquisitions and expansions.

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Scope of the Report

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This research report categorizes the global organic peroxide market based on type, application, and region.

On the basis of Type:

• Diacyl Peroxides
• Ketone Peroxides
• Percarbonates
• Dialkyl Peroxides
• Hydro-Peroxides
• Peroxy Ketals
• Peroxyesters

On the basis of the Application:

• Chemicals & Plastics
• Coatings, Adhesives, & Elastomers
• Paper & Textiles
• Detergents
• Healthcare & Personal Care
• Others

On the basis of Region:

• North America
• Asia Pacific
• Europe
• South America
• Middle East & Africa

The market has been further analyzed for the key countries in each of these regions.

Recent Developments

• In Apr 2023, Nouryon Chemical Holding B.V. announced an investment in its facility in Ningbo, China, to substantially enhance the capacity of organic peroxide products.
•  In September 2023, Arkema SA announced a two-and-a-half-fold increase in its organic peroxide production capacities at its Changshu site in China.
• In July 2022, United Initiators GmbH announced that it had completed construction and started operating its 25-kilo tons/annum TBHP-TBA facility in China.
• In December 2021, Nouryon Chemical Holding B.V. initiated full-scale production at its innovative organic peroxide site in Tianjin, China, catering to growing demand from packaging, paints and coatings, and construction customers in the region.

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