Organic Peroxide Market Size, Share, Analysis, Trends, Growth, 2032

Organic Peroxide Industry Prospective:

The global organic peroxide market size was worth around USD 1,785.35 million in 2023 and is predicted to grow to around USD 2,621.38 million by 2032 with a compound annual growth rate (CAGR) of roughly 4.36% between 2024 and 2032.

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Organic Peroxide Market: Overview

Organic peroxides are derivatives of hydrogen peroxides. The production of organic peroxides involves substituting one of both hydrogen molecules of hydrogen peroxides with organic free radicals.

The end product has several applications across major industries. Some prominent uses of organic peroxide include rubber and plastic manufacturing, along with several sanitation applications.

According to market experts, free radicals of organic peroxides are used for the modification of polymers, allowing them to be easily molded in several forms, such as food caps and cosmetic jars.

Furthermore, they are also used in the production of rigid fiberglass-reinforced plastics, such as chemical-resistant storage tanks. Formulations containing organic peroxide are thermally unstable. It means that the compound can self-react if it is exposed to specific temperatures.

Hence, the storage of organic peroxide is a major concern among end-user industries. Industry leaders suggest that the maximum utilization of organic peroxide is obtained once the compound decomposes and forms useful free radicals.

The demand for organic peroxide is expected to grow steadily during the forecast period due to higher applications across thriving industries.

However, safety concerns associated with the use and storage of organic peroxide may limit the organic peroxide industry’s expansion rate.

Key Insights:

• As per the analysis shared by our research analyst, the global organic peroxide market is estimated to grow annually at a CAGR of around 4.36% over the forecast period (2024-2032)
• In terms of revenue, the global organic peroxide market size was valued at around USD 1,785.35 million in 2023 and is projected to reach USD 2,621.38 million by 2032.
• The organic peroxide market is projected to grow at a significant rate due to its increasing use in the automotive and aerospace industries.
• Based on end-user industry, the chemicals & plastics segment is growing at a high rate and will continue to dominate the global market as per industry projections.
• Based on application, the dialkyl peroxide segment is anticipated to command the largest market share.
• Based on region, Asia-Pacific is projected to dominate the global market during the forecast period.

Organic Peroxide Market: Growth Drivers

Increasing use in the automotive and aerospace industries will drive the market demand rate

The global organic peroxide market is expected to grow due to the increasing applications of the compound in the automotive and aerospace industries.

Organic peroxide is a crucial raw material required for the production of certain rubber types, which are widely popular in the automotive sector. They are used for the production of seals and gaskets used in aerospace and automotive manufacturing sectors.

The growing investments in the development of new automotive producing facilities, especially influenced by rising demand for electric vehicles, are expected to create growth momentum for organic peroxides as well.

According to the US Electric Drive Transportation Association, the country can expect an investment of USD 312 billion for electric vehicle manufacturing.

Similarly, emerging countries such as India and China have also intensified the production of affordable vehicles, including fuel and electric energy.

In October 2024, BYD, one of China’s largest automotive companies, announced that it was expecting ease in investments as the company plans to manufacture vehicles in the Indian market.

In Fiscal Year 2024, India’s auto component industry is expected to invest more than USD 2 billion, according to industry officials. Such large-scale investments in the aerospace and automotive sectors are likely to fuel the consumption rate of organic peroxides.

Increased applications in personal care and medical industries to continue revenue addition in the market

Organic peroxides have high demand in the personal care industry. The compound is generally used in acne-treatment creams. Organic peroxides are known to have antibacterial properties and hence enjoy wide popularity among producers of personal care products.

Furthermore, the compound is also extensively used as a disinfecting agent. According to industry leaders, specific solutions available in the global organic peroxides market are used for sanitation activities such as cleaning medical instruments, packaging areas, and meat cutting.

Organic Peroxide Market: Restraints

High unstability and reactivity of the compound to restrict market expansion trends

The global industry for organic peroxide is projected to be restricted due to the high reactivity of the compound. Instability is the intrinsic characteristic of organic peroxides.

In case the compound is exposed to friction, shock, heat, or pressure, organic peroxides can violently decompose posing serious risk to the environment and living organisms.

Hence, the compounds must be stored in a carefully designed environment, and handling protocols must be adhered to without any margin for error. Such factors are likely to impede the industry’s growth trend in the future.

Organic Peroxide Market: Opportunities

Growing investments in upgrading organic peroxide production volume will generate expansion possibilities

The global organic peroxide market is projected to generate growth opportunities due to rising investments in upgrading the production infrastructure.

In September 2023, Arkema, a leading player in the global chemicals and materials industry, announced a 2.5 times increase in the production capacity of organic peroxides at its Changshu site located in China. Arkema is expected to invest nearly EUR 50 million to achieve the new production vision which will allow the firm to meet its consumers’ needs. Luperox® brand organic peroxides produced by Arkema are niche additives used as reaction initiators in critical missions.

Similarly, in April 2023, Nouryon announced its plans to invest significant amounts in upgrading the production rate of Trigonox 101 and Perkadox 14. By mid-2024, the company was expected to double the production of critical organic peroxides following the investment announcement.

The growing introduction of new organic peroxide manufacturing techniques will further promote exceptional growth in the industry. Companies are investing in digitizing the process of organic peroxide production to optimize the development process with the use of advanced technologies such as automation, artificial intelligence (AI), and others.

Organic Peroxide Market: Challenges

Availability of safer alternatives to challenge the market expansion rate

The global organic peroxide industry is expected to be challenged by the availability and growing demand for safer alternatives.

For instance, market players and end-user industries are focusing on stable cross-linking agents that are also environmentally friendly. The steady shift toward green chemistry may impact the consumption rate of organic peroxides.

Organic Peroxide Market: Segmentation

The global organic peroxide market is segmented based on end-user industry, application, and region.

Based on the end-user industry, the global market segments are personal care & cosmetics, detergents, papers & textiles, elastomers, coatings & adhesives, chemicals & plastics, and others.

In 2023, the highest growth was witnessed in the chemicals & plastics industry. Organic peroxides are critical raw materials required in the polymerization processes concerning the production of several polymers, such as polypropylene, polyethylene, and others.

Furthermore, the growing demand in the plastics industry will fuel segmental revenue during the forecast period. In 2023, the global plastics market was valued at over USD 700 billion.

Based on the application, the organic peroxide industry segments are peroxy ketals, dialkyl peroxides, diacyl peroxides, peroxy ester, percarbonates, and others.

In 2023, the highest revenue-generating segment was dialkyl peroxide due to their extensive role as initiators in the polymerization process.

Furthermore, they are also used as cross-linking agents in the rubber production processes. The global rubber production market is expected to reach over USD 66 billion by the end of the decade.

Organic Peroxide Market: Report Scope

Organic Peroxide Market: Regional Analysis

Asia-Pacific to be led by China during the projection period

The global organic peroxide market is expected to be led by Asia-Pacific during the forecast period. China will emerge as the major shareholder in the regional revenue. China’s dominance in the global chemicals & materials industry will be the leading regional market growth driver, according to market research.

China is home to some of the leading players in terms of manufacturing and supplying organic peroxide, including brands such as AkzoNobel, Arkema, and Nouryon.

According to recent findings, AkzoNobel has plans to expand its production capacity in China by 100% in the coming years. India, on the other hand, is witnessing a surge in investments in the chemicals industry.

In August 2024, India’s Gujarat state witnessed the inauguration of a new hydrogen peroxide (H2O2 facility with a production capacity of  52,500 tons per annum.

Europe is a prominent market for organic peroxides. The regional market is influenced by several chemical companies operating on an international scale and originating from European nations. The growing applications across major end-user industries will promote regional expansion during the forecast period.

In April 2024, Evonik announced the launch of carbon-neutral hydrogen peroxide across Europe. The company will use an independent certification approach to enable the sale of new formulations using the “Way to GO2” certificate.

Organic Peroxide Market: Competitive Analysis

The global organic peroxide market is led by players like:

• United Initiators GmbH
• Asahi Kasei Corporation
• NOF Corporation
• Kawaguchi Chemical Industry Co.
• Ltd.
• BASF SE
• Nouryon
• AKPA Kimya
• Arkema S.A.
• MPI Chemie B.V.
• Evonik Industries AG
• Plasti Pigments Pvt. Ltd.
• AkzoNobel N.V.
• Ace Chemical Corp.
• Pergan GmbH
• Covestro AG.

The global organic peroxide market is segmented as follows:

By End-User Industry

• Personal Care & Cosmetics
• Detergents
• Papers & Textiles
• Elastomers
• Coatings & Adhesives
• Chemicals & Plastics
• Others

By Application

• Peroxy Ketals
• Dialkyl Peroxides
• Diacyl Peroxides
• Peroxyesters
• Percarbonates
• Others

By Region

• North America
  • The U.S.
  • Canada
• Europe
  • France 
  • The UK
  • Spain
  • Germany
  • Italy
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Southeast Asia
  • Rest of Asia Pacific
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• Middle East & Africa
  • GCC
  • South Africa
  • Rest of Middle East & Africa