Asia Pacific Hydrogen Peroxide Market Share was over USD 2.5 billion in 2019 and will grow at a CAGR of more than 6.0% up to 2026.
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The Asia Pacific market is projected to grow at 6% CAGR throughout the forecast time period. China and India are some of the major countries in the region attributing to this growth. China is the world’s largest paper producer, thereby complementing the growth of the hydrogen peroxide market 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, in turn, complementing the overall market growth. Moreover, the presence of a huge mining sector in the region is also projected to propel the demand for hydrogen peroxide in the coming years.
The Asia Pacific market for wastewater treatment was valued at USD 213.1 million in 2019 and is forecast to grow at 6.2% CAGR till 2026. The increasing product demand in wastewater and chemical-effluent treatments has considerably boosted hydrogen peroxide market size growth in recent times. 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.
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; hence, a negative impact can be seen in the market in terms of both volume and revenue.
Major multinational giants in the industry are using the merger & acquisition strategy to increase their presence across the region. For instance, in February 2015, 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.