Asia Pacific Hydrogen Peroxide Market size surpassed USD 2.5 billion in 2019 and is estimated to witness 6% CAGR from 2020 to 2026.
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China is the world’s largest paper producer, thereby complementing the growth of the hydrogen peroxide industry in the region. Moreover, with the growing retail sector in the region, the demand for paper packaging is projected to exhibit tremendous growth in the coming years. Moreover, the presence of a huge mining sector in the region is also projected to propel the market demand.
Nationwide lockdowns in major economies in the region due to the COVID-19 pandemic are anticipated to contract the market size in 2020. The supply of hydrogen peroxide to the industries has been affected substantially owing to the shutdown of major production facilities across the region. The ongoing coronavirus crisis in China along with lockdown announced during the period of March 2020 to June 2020 is expected to affect the overall shipment of raw materials in 2020. Similarly, the demand for hydrogen peroxide will drop in the end-user sector owing to the shutdown or partial closure of industries including pulp & paper, chemical, mining, textile, and others. These trends have resulted in the disruption of supply and demand balance in the market especially in the second & third quarter of the year.
The Asia Pacific hydrogen peroxide market for wastewater treatment segment was valued at USD 213.1 million revenue in 2019 and will observe around 6% growth rate during the forecast period, due to the increasing product demand in wastewater and chemical-effluent treatments. Being a strong oxidizing agent, it decomposes toxic elements in wastewater, making it suitable for discharge in water bodies. It also acts as a cleansing agent in purifying drinking water by destroying ozone residues during the treatment. Other examples include reducing toxicity and odors at paper mills, metal smelters, pesticides, chemical manufacturing, or petrochemical facilities.
Major players involved in the Asia Pacific hydrogen peroxide market are using the merger & acquisition strategy to increase their presence across the region. For instance, one of Aditya Birla Chemicals subsidiaries, Aditya Birla Chemicals (India) Limited merged with Grasim Industries Limited. The move strengthened the market position of Aditya Birla Chemicals. Other major companies working in the market are Avantor Performance Materials, LLC, Solvay S.A., Evonik AG, AkzoNobel, Arkema, and Mitsubishi Gas Chemical Company, Inc.