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Organic Peroxide Market | Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

Organic Peroxide Market | Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

  • April 2022
  • 187 pages
  • ID: 6271873
  • Format: PDF
  • Mordor Intelligence LLP


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The organic peroxide market is projected to register a CAGR of more than 4% during the forecast period (2022-2027).

Organic peroxide is a carbon-based molecule with two oxygen atoms joined together. Adhesives, coatings, textile, rubber, and paper industries are few applications of Organic Peroxide. Several end-use industries, such as automotive, construction, electrical and electronics, and composites, are driving the industry.

Key Highlights
Over the short term, the major factor driving the growth of the organic peroxide market is the increasing demand for Polymers from various End-user Industries.
IDifficulty in storage, transport, and handling of organic peroxides is likely to hinder the growth of the market.
Growing demand for light-weight materials, is likely to create opportunities for the market in the coming years.
The 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 for Polymers from various End user Industries.

Polymers are 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 2023, which is expected to drive the market demand.
Organic peroxides are employed as an initiator in the synthesis of thermoplastics such as PE, PVC, EPS, and as a modifier for polymers like polypropylene, a curing agent for thermoset resins, and a cross-linking agent for elastomers.Low-density polyethylene (LDPE), polystyrene (PS), polyvinyl chloride (PVC), and polyvinyl acetate are some of the polymers made from organic peroxides.
PVC is the most extensively used plastic material for disposable medical equipment such as flexible tubing and flexible containers. Hence, polymers play an essential role in the healthcare industry.
According to the Malaysian Rubber Council, the global production of rubber climbed by 8.9% to 21.6 million metric ton in the first nine months of 2021, compared to 19.8 million tones in the same period of 2020. For the first nine months of 2021, the ratio of natural rubber (NR) to synthetic rubber (SR) produced was 46:54. Malaysia is the world’s seventh-largest producer of natural rubber.
The United Kingdom is another major country consuming polymers. According to PlasticsEurope, the United Kingdom is the fifth-largest consumer of plastics in the European Union.
Therefore, all the aforementioned factors are likely to enhance polymers’ usage, leading to a significant increase in the consumption of organic peroxides for polymerization applications, augmenting the growth of the market studied.

Asia-Pacific Region to Dominate the Market

The Asia-Pacific region dominated the global market share, with China dominating the market.
In 2021, China produced 8,117 kilo metric ton of synthetic rubber, which increased by 9.1% compared to 2020.
According to China Rubber Industry Association, China imported a total of 775 kilo metric ton of synthetic rubber from January to August 2021, which increased by 10% compared to the same period 2020. In the first eight months of 2021, China exported around 190 kilo metric ton of synthetic rubber, which increased by 89% compared to the same period in 2020.
According to the National Bureau of Statistics China, the country produced 807.47 million units of tires in 2020 which declined from 844.45 million units produced in 2019. From January to August 2021, the country produced 596.04 million tires which increased by 22.1% compared to the same period in 2020. The increasing synthetic rubber production in the country is estimated to drive the market for organic peroxides, as they are used for the processing of polymers.
India produced around 12,143.62 kilo metric ton of polymers (five basic plastics – PVC, PP, PE, and others) in FY2020-21, which declined by 2.1% compared to 12,403.69 kilo metric ton in FY2019-20.
In India, over 65% of the rubber produced is used for manufacturing of automotive (50%) and bicycle tires and tubes (15%), 12% for footwear, 6% for belts and hoses, and 17% for other products. Moreover, there are almost 66 tire producing plants in the country and about 41 tire producing companies with a turnover of around USD 8.5 billion and exports of about USD 1.28 billion.
Owing to all the above mentioned factors Asia Pacidic Region is expected to dominate the market in the upcoming years.

Competitive Landscape

The organic peroxide market is partially consolidated in nature. Some of the major players in the market include (not in any particular order) Nouryon, Arkema Group, United Initiators, NOF Corporation, and Pergan GmbH, among others.

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