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How will pulp & paper industry applications foster hydrogen peroxide market growth?
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Constant demand generated from key end use industries such as mining, chemical, water treatment, and pulp & paper is driving hydrogen peroxide market trends. In terms of revenue, global hydrogen peroxide market size is likely to gain revenues worth USD 6.39 Bn by 2024. The consolidating trend of paper recycling and augmenting demand for flexible packaging materials is anticipated to bolster hydrogen peroxide industry size.
The product is extensively used in the water treatment sector, as well as in various chemical processes. In addition, the commercialization of hydrogen peroxide propylene oxide or HPPO process for the production of propylene oxide is likely to further push market trends. Other factors contributing to the industry growth include electronic grade applications of the product, usage in metal treatment, and concrete investment in R&D activities, which has resulted in significant development in product grades.
The application spectrum of hydrogen peroxide encompasses a plethora of use cases. Usage in wastewater treatment is among the major applications of hydrogen peroxide, where it is deployed as an oxidizing agent. The ability to minimize the toxicity of organic compound and improve biodegradability makes the product highly desirable in the vertical.
In the chemical industry, the product has routine applications in the production of sodium perborate, sodium percarbonate, and various other peracids. Hydrogen peroxide market share from chemical industry applications stood at over USD 1,300 mn in 2015 and is expected to expand with an anticipated CAGR of 6% over 2016-2024.
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Hydrogen peroxide market size from pulp & paper sector accumulated around USD 1,550 mn in 2015 and is expected to dominate the market throughout the forecast period.
The burgeoning growth of the wastewater treatment industry has ignited pockets of growth in the Europe hydrogen peroxide market. As per reliable estimates, around 18,000 wastewater treatment plants are currently operational in the region, which is generating massive hydrogen peroxide market demand. The region is endeavoring to achieve 100% sludge reuse targets in the coming years, 60% of which has already been achieved. Moreover, the presence of major manufacturers in the region is spurring the market growth.
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However, owing to stringent regulatory norms pertaining to the production of hydrogen peroxide, manufacturers are increasingly shifting focus towards Asia Pacific, making it a potential avenue for hydrogen peroxide industry growth in the coming years. As per estimates, APAC constituted more than 50% of the global hydrogen peroxide market share in 2015 with a valuation of USD 2 billion.
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