Hydrogen Peroxide Market

Increasing demand in the pulp and paper industry is driving market growth

An increase in demand in various industries is driving the market CAGR for Hydrogen Peroxide. The pulp and paper industry is another major end-user of hydrogen peroxide. It is used as bleaching in producing high-quality paper products. The demand for high-quality paper products is increasing globally, driven by factors such as the growth of the e-commerce industry and the rising demand for sustainable packaging. It, in turn, is driving the demand for hydrogen peroxide in the pulp and paper industry.

Hydrogen peroxide is also used in the food industry as a disinfectant and preservative. It treats raw materials, equipment, and food products to ensure safety and quality. The rising demand for packaged and processed food items is driving the demand for hydrogen peroxide in the food industry. Hydrogen peroxide is also a bleaching agent in producing food-grade oils and fats.

Hydrogen peroxide is widely used in the healthcare industry for its disinfectant properties. It is used as a cleaning agent for medical equipment, surfaces, and wound care. With the outbreak of pandemic, the demand for hydrogen peroxide-based disinfectants has increased significantly. The healthcare industry is expected to remain a major end-user of hydrogen peroxide in the coming years, driving the market's growth.

For instance, the hydrogen peroxide market is witnessing a significant growth driven by the increasing demand from the healthcare, pulp, paper, and food industries. With the ongoing COVID-19 pandemic and the growing demand for sustainable packaging and food products, hydrogen peroxide demand will remain strong in the coming years, driving the Hydrogen Peroxide market revenue.

January 2024

Evonik has confirmed the complete acquisition of Thai Peroxide Company Limited (TPL), a former joint venture situated in Saraburi, Thailand. The acquisition, finalized on December 15, 2023, enables the worldwide manufacturer of peroxides to broaden its product portfolio in the rapidly expanding Asia Pacific market to include hydrogen peroxide and peracetic acid of specialty grade. The action facilitates the Active Oxygens division of Evonik's pursuit of its strategic emphasis on specialized knowledge and cutting-edge applications.

TPL is a significant regional provider of specialty hydrogen peroxide and peracetic acid, which are utilized in a variety of processes including water treatment, food safety, and microprocessor and solar cell fabrication.  

TPL was previously a partnership between Aditya Birla Group and PeroxyChem prior to Evonik's acquisition of PeroxyChem in February 2020. Then, Evonik owned a 50% stake in TPL prior to completing the acquisition.

The Global Hydrogen Peroxide Market Industry is on a robust growth trajectory, with projections indicating a market value of 48.3 USD Billion in 2024 and an anticipated increase to 166.6 USD Billion by 2035. This growth reflects a compound annual growth rate (CAGR) of 11.9% from 2025 to 2035. Various factors, including rising demand in healthcare, environmental applications, and technological advancements, are driving this expansion. The market's diverse applications across multiple industries underscore its potential for sustained growth in the coming years, positioning hydrogen peroxide as a critical component in various industrial processes.

The textile industry is increasingly adopting hydrogen peroxide for its bleaching and cleaning properties, significantly influencing the Global Hydrogen Peroxide Market Industry. As manufacturers strive for higher quality and sustainability in textile production, hydrogen peroxide emerges as a preferred alternative to chlorine-based bleaches. This shift is driven by consumer demand for eco-friendly products and compliance with environmental regulations. The textile sector's growth, particularly in emerging markets, is likely to enhance the demand for hydrogen peroxide, further contributing to the market's expansion and the anticipated growth trajectory towards 166.6 USD Billion by 2035.

The Global Hydrogen Peroxide Market Industry experiences a notable surge in demand from the healthcare sector, primarily driven by its applications as a disinfectant and antiseptic. Hospitals and healthcare facilities increasingly utilize hydrogen peroxide for sterilization and infection control, particularly in surgical settings. The global emphasis on hygiene and safety standards further propels this trend. As of 2024, the market is projected to reach 48.3 USD Billion, with the healthcare segment contributing significantly to this growth. This trend is expected to continue, as the industry adapts to evolving health regulations and the need for effective sanitization methods.

Environmental concerns are increasingly influencing the Global Hydrogen Peroxide Market Industry, particularly in wastewater treatment and pollution control. Hydrogen peroxide serves as an eco-friendly oxidizing agent, effectively breaking down organic pollutants and disinfecting water supplies. Governments worldwide are implementing stricter regulations regarding water quality, thereby enhancing the demand for hydrogen peroxide in environmental applications. This trend is likely to bolster market growth, as industries seek sustainable solutions. The anticipated growth in this sector aligns with the overall market projection of 166.6 USD Billion by 2035, reflecting a growing recognition of hydrogen peroxide's environmental benefits.

The Global Hydrogen Peroxide Market Industry is significantly impacted by the expansion of the pulp and paper sector, where hydrogen peroxide is utilized as a bleaching agent. This application not only enhances the brightness of paper products but also aligns with the industry's shift towards environmentally friendly practices. The demand for high-quality, sustainable paper products is on the rise, prompting manufacturers to adopt hydrogen peroxide in their processes. As the pulp and paper industry continues to grow, the hydrogen peroxide market is expected to benefit, contributing to the projected CAGR of 11.9% from 2025 to 2035.

Technological advancements in the production of hydrogen peroxide are poised to reshape the Global Hydrogen Peroxide Market Industry. Innovations in production methods, such as the anthraquinone process, enhance efficiency and reduce costs, making hydrogen peroxide more accessible across various industries. These advancements not only improve yield but also minimize environmental impact, aligning with global sustainability goals. As production technologies evolve, the market is likely to witness increased competition and lower prices, fostering growth. This trend is expected to support the overall market expansion, contributing to the projected CAGR of 11.9% from 2025 to 2035.

By region, the study provides market insights into North America, Europe, Asia-Pacific, and the Rest of the World. The North American Hydrogen Peroxide market area is expected to have significant growth in the market due to the increasing demand for hydrogen peroxide in various end-use industries such as paper and pulp, textiles, and healthcare. The growing demand for eco-friendly and sustainable products drives the demand for hydrogen peroxide in the US. The US is also a great exporter of hydrogen peroxide to other regions.

Further, the major countries studied in the market report are The US, Canada, German, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.

Figure 2: HYDROGEN PEROXIDE MARKET SHARE BY REGION 2022 (%) Source: Secondary Research, Primary Research, Market Research Future Database, and Analyst Review

Europe's Hydrogen Peroxide market accounts for the second-largest market share due to the increasing demand for hydrogen peroxide in various end-use industries such as pulp and paper, textiles, and water treatment. Further, the German Hydrogen Peroxide market held the largest market share, and the UK Hydrogen Peroxide market was the fastest-growing market in the European region. The European Union has implemented stringent regulations to reduce hazardous chemicals, expected to drive the demand for hydrogen peroxide in the region.

The Asia-Pacific Hydrogen Peroxide Market will dominate the market from 2023 to 2032. The rising demand for hydrogen peroxide in various end-use industries, such as pulp and paper, textiles, and electronics, drives the market. The increasing use of hydrogen peroxide in the electronics industry is also expected to drive the demand for hydrogen peroxide in the region. Moreover, China’s Hydrogen Peroxide market held the largest market share, and the Indian Hydrogen Peroxide market was the fastest-growing market in the Asia-Pacific region.

For instance, the hydrogen peroxide market is expected to grow steadily during the forecast period. The increasing demand for hydrogen peroxide in various end-use industries such as pulp and paper, textiles, and healthcare drives the market.

Leading market players are investing heavily in research and development to expand their product lines, which will help the Hydrogen Peroxide market grow even more. Market participants are also undertaking numerous strategic activities to expand their footprint, with important market developments including new product launches, contractual agreements, mergers and acquisitions, higher investments, and collaboration with other organizations. The industrial Hydrogen Peroxide must offer cost-effective items to expand and survive in a more competitive and rising market climate.

Manufacturing locally to minimize operational costs is one of the key business tactics manufacturers use in the Hydrogen Peroxide industry to benefit clients and increase the market sector. In recent years, the Hydrogen Peroxide industry has offered some of the most significant advantages to medicine. Major players in the Hydrogen Peroxide market, including Solvay (Belgium), Evonik Industries AG (Germany), Kemira (Finland), Arkema SA (France), Mitsubishi Gas Chemical Company Inc (Japan), Nouryon (the Netherlands), Chang Chun Group (Taiwan), National Peroxide Ltd (India), FMC Corporation (US), OCI Company Ltd (South Korea), Indian Peroxide Limited (India), Thai Peroxide Co.

Limited (Thailand), Merck KGaA (Germany), Huatai Group (China), Hansol Chemical (South Korea), and others, are attempting to increase market demand by investing in research and development operations.

Arkema S.A., located in Colombes, near Paris, France, was founded in 2004 as a multi-national manufacturer of specialty materials. It specializes in several segments, such as adhesives, advanced materials, coatings, and chemical intermediaries. In September 2022, Arkema propounded a rise in price of hydrogen peroxide in Europe. This step was taken to manage the rising energy prices in Europe.

Solvay S.A. is a multi-national chemical company established in 1863 in Neder-Over-Heembeek, Brussels, Belgium. It was founded to produce sodium carbonate by the Solvay process; the company has diversified into two main sectors of activity: chemicals and plastics. In July 2022, Solvay announced building high-grade production facilities for electronic-grade hydrogen peroxide in Arizona, United States. The production is likely to begin in 2023.

"TPL's expertise precisely aligns with Evonik's mission to provide customized solutions to address present and future challenges," said Evonik Smart Materials division chief Lauren Kjeldsen. "Among these are the provision of environmentally friendly and sustainable chemistries for applications that are in high demand." The electronic industry serves as a significant illustration: "Hyperoxide is an indispensable component in the production of microchips, which are indispensable to the world."

"TPL is led by a formidable, seasoned management team that utilizes cutting-edge technologies and application expertise," Claus Rettig, Evonik's Asia Pacific regional president, further stated. We eagerly anticipate the contribution of this team's invaluable expertise to the expansion of Evonik's specialty business in the Asia-Pacific region.

Peracetic acid and hydrogen peroxide are both potent oxidizers that find utility in a wide range of industrial contexts. However, they decompose into biodegradable components following use, making them more environmentally friendly than alternative chemistries. Furthermore, Active Oxygens is executing a tangible sustainability strategy with the aim of eradicating the environmental impact of its production network.