Hydrogen Peroxide Market

Hydrogen Peroxide Market Outlook

“According to Fairfield Market Research, the global hydrogen peroxide market is estimated to be worth US$ 5.8 Bn by the end of 2033 from US$ 3.8 Bn in 2026, with a CAGR of 6.0% between 2026 and 2033. 

Hydrogen Peroxide: A Versatile and Green Chemical Transforming Modern Industries

Hydrogen peroxide is one of the simplest compounds in the peroxide family. This product is naturally present in all living beings and is a well-documented element of living cells. Although it is a natural compound, being a powerful oxidant, it can easily react with other products. Hydrogen peroxide is a versatile, environmentally friendly chemical and combined with commercial availability and easy of handling make it an effective solution in a variety of applications. Being highly powerful oxidizer as well as a bleaching agent, the product is used in commercial applications ranging from food safety to electronics and from pulp processing to aeronautics. Owing to its versatility and eco-friendliness the hydrogen peroxide market is forecasted to grow.   

Although hydrogen peroxide is well known as a strong oxidizing agent, its reduction, and disinfectant properties play an important role in some key applications. The hydrogen peroxide market has seen significant growth in the past few years with growing interest in pure hydrogen peroxide, especially in specialty applications such as electronics. As it can be used in so many ways, hydrogen peroxide relishes significant demand worldwide-which is consistent with the current trend toward sustainable products.

35%-70% Concentration Range to Hold the Largest Share in the Hydrogen Peroxide Market

Based on concentration, the hydrogen peroxide market can be segregated as: Upto 35%, 35% to 70% and Above 70%. In general, lower concentration levels upto 35% are preferred in personal care, home care, pharmaceuticals, and some specialty applications such as food processing, electronics, etc. Although the concentration levels are low in these products, the highest purity is desired during application. Though dilute hydrogen peroxide is a mild irritant, high concentrations can be caustic, causing necrosis and ulceration of mucosal tissue. Diluted H₂O₂ (around 3%-5%) find applications in hair bleach, wound cleaning, etc.

In 2021, 35% to 70% concentration held more than 70% share in the global hydrogen peroxide market. These concentration levels are preferred for industrial applications such as pulp & paper, textile, water treatment, mining, and chemical synthesis. The demand for 35% to 70% concentration is chiefly driven by a huge demand for bleaching and oxidizing agents from pulp & paper industry, water treatment coupled with downstream chemicals usage, especially in Europe and North America.        

Above 70% concentrations are ideal for the aeronautics industry and some industrial applications. It is the only compound which possesses features of being both a propellant and an oxidizer. Due to these features, H₂O₂ can be used as a propellant for gas generators used in auxiliary power units (APUs) or as an oxidizer for satellite correction engines.

Pulp & Paper Coupled with Chemical Synthesis to Lead the Demand, Electronics to be the Fastest Growing    

Hydrogen peroxide is used as a pulp bleaching agent and deinking of recycled paper. In 2021, pulp & paper accounted for more than 30% share in the hydrogen peroxide market. The hydrogen peroxide market is expected to exhibit robust growth in pulp & paper, especially with healthy growth rates in the packaging and hygiene paper sector. In the past few years, the graphic paper market has seen a decline and the COVID-19 pandemic has accelerated the drop in the consumption levels. Strong growth in packaging and tissue & hygiene paper will counterbalance the decline and outperform the adverse effects. The anti-plastic sentiment among the consumer in food packaging is also likely to drive the paper-based packaging.

Recently, the demand for hydrogen peroxide in chemical synthesis is also on the rise. The segment is expected to displace pulp & paper as the leading application segment in the next 5-7 years. There has been a growing demand for hydrogen peroxide in the HPPO process for propylene oxide production. The chlorine method (CHPO) is the oldest PO production method that has been implemented industrially. Co-production methods such as PO/SM and PO/TBA along with CHPO accounted for more than 2/3^rd share in PO production technologies. The HPPO process is a cost-competitive and ecologically superior technology as there is no worry of market dependencies co-products with water as the only waste product.

In the past few years, there has been a rise in demand for hydrogen peroxide in specialty applications such as water treatment, food & beverage, electronics etc. In the electronics industry, hydrogen peroxide is used as a cleaning agent in the semiconductor industry. The ultrafine debris created during the semiconductor fabrication and processing must be removed from the chips. Hydrogen peroxide perfectly dominates the demand for wet chemicals in the semiconductor industry. It is also used as etchant on printed circuit boards (PCBs). Semiconductor demand is projected to grow owing to the full-fledged deployment of 5G infrastructure.   

Asia Pacific Continues to Hold Highest Share in the Hydrogen Peroxide Market

In revenue terms, Asia Pacific accounted for around 50% of the total hydrogen peroxide market in 2021. Asia Pacific region has immense growth potential for the pulp & paper industry as per capita levels are largely below the global average of 57 Kg. Countries such as India (15 Kg), Indonesia (32.5 Kg), and China (84 Kg) have very low per capita paper consumption as compared to developed economies such as U.S., Germany, and Japan (>200 Kg). This situation offers encouragement to the pulp & paper manufacturers in the region. Furthermore, there is a growing demand for hydrogen peroxide from specialty applications such as electronics, food & beverage, and chemical synthesis. The region is one of the larger PO producers and is expected to add new HPPO based plants, especially in China. Countries such as Pakistan and Bangladesh are major textile hubs in Asia Pacific and with the rising trends seen in the textile & fashion industry, the demand for H₂O₂ will grow.      

Europe and North America are mature markets for hydrogen peroxide, especially with stable growth for traditional applications such as pulp & paper and chemical synthesis. The demand is projected to grow in specialty applications such as food processing, water treatment, aquaculture, and cosmetics wherein growing environmental awareness and eco-friendly alternatives have been the key market driver. Middle East & Africa region is projected to experience the highest growth rate in the hydrogen peroxide market. The pulp & paper industry in African region is very much underpenetrated with per capita consumption at a meagre 8 Kg. The increasing demand for paper and textile in the region will open new business avenues and an opportunity for the hydrogen peroxide market.     

Companies Focusing on Capacity Expansion and High-value Applications

Most of the companies operating in the hydrogen peroxide market are European. These companies have strong presence in the domestic as well as global markets. The top 5 companies in the market include Solvay S.A., Evonik Industries AG, Arkema S.A., Nouryon Holding B.V., and Mitsubishi Gas Chemical Company. Together these companies held more than 75% in the global hydrogen peroxide market in 2021. The competition is intense with maximum focus on new developing sustainable products targeting high-value applications such as electronics, water treatment, etc. With increasing demand, the capacity expansion has been a key factor in strengthening the market position.

In 2021, Solvay build a new electronic-grade production facility for high-purity H₂O₂ at its site in Germany. It is a wet chemical used in the manufacture of semiconductor chips and electronics.

Leading Companies

• Solvay S.A.
• Evonik Industries AG
• Arkema S.A.
• Nouryon Holdings B.V.
• Mitsubishi Gas Chemical Company Inc.
• Kemira Oyj
• Thai Peroxide Company Limited
• Taekwang Industrial Co, Ltd.
• Hansol Chemical Co. Ltd.
• Gujarat Alkalies and Chemicals Limited

The Global Hydrogen Peroxide Market is Segmented as Below:

By Product Coverage

• Upto 35%
• 35% to 70%
• Above 70%

By Application Coverage

• Pulp & Paper
• Chemical Synthesis
• Electronics
• Textiles
• Water Treatment
• Mining
• Cosmetics
• Food Packaging
• (Propulsion Systems, Defence, etc.)

By Geographical Coverage

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