Organic compounds containing the peroxide functional group (ROOR’) are known as organic peroxides. Organic peroxides are highly flammable and explosive. They are commonly used in various industries such as polymers, rubber, and explosives. They are also used as a disinfectant and for bleaching.

The global organic peroxide market is estimated at USD 902.4 Million in 2017 and is expected to reach USD 1,069.1 Million by 2022, at a CAGR of 3.4% from 2017 to 2022. The growth of the organic peroxide market is driven by the increasing demand for organic peroxide from various end-use industries, such as construction, automotive, composites, and electrical & electronics.

The diacyl peroxide type segment is projected to be the largest type segment of the organic peroxide market during the forecast period. Diacyl peroxide is used as a free radical initiator in the polymerization process and for the polymerization of PVC. It also acts as an initiator for vinyl monomer polymerization. Furthermore, it is used as a curing agent for thermoset resins and for cross-linking of thermoplastics and elastomers. Some diacyl peroxides are also used as active pharmaceutical ingredients.

The chemicals & plastics segment is estimated to be the largest application segment of the organic peroxide market in 2017. Most of the organic peroxides are used as catalysts or intermediates in various chemical reactions. Organic peroxides are also used as initiators, accelerators, curing agents, and as free radicals for the polymerization of LDPE, PVC, and plastics. The coatings, adhesives & elastomers segment is expected to witness the highest growth during the forecast period. The growth of this segment can be attributed to the increasing infrastructural development and building activities in emerging countries.

North America is estimated to be the largest market for organic peroxide in terms of value in 2016. The growth of the market can be attributed to the increasing demand from industries, such as electrical & electronics and automotive in the region. Asia Pacific is expected to be the fastest-growing market for organic peroxide. The growth of the market in the region can be attributed to the rising demand for organic peroxides in emerging countries such as China and India.

Organic peroxides are considered as severe fire and explosion hazards. Peroxides are chemically unstable and can easily decompose, releasing heat at high temperatures. The vapors released by peroxides are flammable. Due to these properties, organic peroxides are transported in smaller quantities. This may act as a restraint for the growth of the organic peroxide market.

Companies have adopted strategies such as mergers & acquisitions, expansions, and joint ventures to enhance their market shares and widen their distribution networks in the organic peroxide market. Companies such as Akzo Nobel N.V., Arkema, United Initiators, and Pergan GmbH adopted these strategies.

For instance, Akzo Nobel N.V., in May 2017, planned to increase its organic peroxide capacity at its polymer chemistry production facility in Los Reyes, Mexico. The expansion will increase the company’s peroxyester production capacity by 40%. With this expansion, the company aims to serve the increasing demand from its customers in the polymer industry.

Arkema announced the construction of a new organic peroxide plant at Changshu site, China. This expansion doubled the production capacity at the site. The expansion was aimed at catering to the high demand for organic peroxides in Asia.

Visionary leaders are the market players in the industry with established brands and a wide range of products. Akzo Nobel N.V. (Netherlands) and Arkema (France), are considered as the visionary leaders in the organic peroxide market and account for the largest shares in the market. These companies have established brand names in the organic peroxide market. In addition, they continuously focus on R&D for developing new products and processes, and to improve their existing products and processes. They have made major investments in the production of organic peroxide. Akzo Nobel, in 2015, announced plans to invest more in its organic peroxide production facilities in Mons, Belgium, and Houston (Pasadena), Texas, in the U.S.

Innovators are the leading players in the market undertaking innovative strategies and product innovation. They introduce new products, methodologies, and technologies to improve the quality of products and increase customer satisfaction. The companies in this group are Akpa (Turkey), NOF Corporation (Japan), Chinasun Specialty Products (China), and Vanderbilt Chemicals, LLC (U.S.). These players have recently introduced new products in the organic peroxide market. For example, NOF Corporation continuously invests in R&D for new products and applications in the field of organic peroxide. The company has developed high performance polymers such as graft and block copolymers applied to the improvement of plastics and other synthetic resins.

This group includes companies that are in the introduction phase of their business in the organic peroxide market. Lianyuangang Hualun Chemical Co., Ltd. (China), MPI Chemie B.V. (Netherlands), Dongying Haijing Chemical Co., Ltd. (China), Novichem (Poland), Kawaguchi Chemical Co., Ltd. (Japan), Lanzhou Auxiliary Agent Plant (China), Shaoxing Shangyu Shaofeng Chemical Co., Ltd (China), Jiangsu Yuanyang Pharmaceutical Co., Ltd (China), ACE CHEMICAL CORP. (Taiwan), and Plasti Pigments Pvt. Ltd. (India) are among the emerging companies in the organic peroxide market. Some of these companies are not new to the market, but they have been considered emerging companies, as there were no new developments made by these companies in the field of organic peroxide during the period of study.

organic peroxide market (global) competitive leadership mapping, 2017

Source: Secondary Research, Expert Interviews, and MarketsandMarkets Analysis