Organic Peroxide Market

Market Definition

Organic peroxide is a class of chemical compounds that contain a peroxide functional group, commonly used as initiators, crosslinking agents, and curing agents in various polymer-related processes.

The market includes a wide range of product types such as dialkyl peroxides, diacyl peroxides, ketone peroxides, peroxyesters, hydroperoxides, peroxy ketals, and specialty peroxides. Key application segments include chemicals and plastics, coatings and adhesives, paper and textiles, detergents, and personal care products.

Organic Peroxide Market Overview

The global organic peroxide market size was valued at USD 1,243.1 million in 2024 and is projected to grow from USD 1,303.3 million in 2025 to USD 1,894.0 million by 2032, exhibiting a CAGR of 5.48% during the forecast period.

Market growth is fueled by the expansion of polypropylene production facilities, where organic peroxides play a key role in polymer processing and modification. A notable trend in the market is the rising use of organic peroxides in the production of ethylene-vinyl acetate (EVA) sheets, which serve as encapsulates in solar panel manufacturing.

Major companies operating in the organic peroxide industry are Zibo Zhenghua Auxiliary Co., Limited, AKPA Kimya, R.T. Vanderbilt Holding Company, Inc., NOF CORPORATION, Plasti Pigments Pvt. Ltd., PERGAN GmbH, Lianyungang Hualun Chemical Co., Ltd., Nouryon, ACE CHEMICAL CORP., United Initiators GmbH, Dongsung, Jiangsu qiangsheng chemical co. LTD, Arkema, Novichem Sp. z o.o., and MPI.

Manufacturers are modernizing production systems to improve efficiency and safety in organic peroxide manufacturing. They are implementing advanced process technologies, including automation, controlled reaction setups, and enhanced thermal controls, to ensure consistent product quality and minimize risks. By upgrading their operations, they achieve higher output, reduce waste, and comply with stricter safety and environmental standards.

Key Highlights:

1. The organic peroxide industry size was recorded at USD 1,243.1 million in 2024.
2. The market is projected to grow at a CAGR of 5.48% from 2025 to 2032.
3. North America held a market share of 38.27% in 2024, with a valuation of USD 475.7 million .
4. The dialkyl peroxides segment garnered USD 410.2 million in revenue in 2024.
5. The chemicals & plastics segment is expected to reach USD 969.1 million by 2032.
6. Asia Pacific is anticipated to grow at a CAGR of 5.83% over the forecast period.

Market Driver

Expansion of Polypropylene Production Facilities

The growth of the organic peroxide market is propelled by the expansion of global polypropylene production facilities. Organic peroxides are key processing agents used in the polymerization and modification of polypropylene. 

Manufacturers are increasing polypropylene capacity to meet rising demand across the automotive, packaging, and consumer goods industries. This capacity growth is increasing the need for organic peroxides, as they enable consistent resin quality and performance. The continued expansion of polypropylene production is creating a strong demand for organic peroxide solutions.

• In June 2025, Borealis announced an investment of over USD 115 million to establish a new production line for foam-based recyclable polypropylene at its Burghausen facility in Germany. The project aims to triple the production capacity of Daploy, a high melt strength polypropylene (HMS PP) foam developed by Borealis Innovation Center in Linz, Austria.

Market Challenge

Supply Chain Disruptions Due to Dependence on Limited Raw Material Sources

The organic peroxide market faces ongoing supply challenges due to its reliance on a limited number of raw materials. Key inputs such as hydrogen peroxide and phthalic anhydride are produced in select regions, which increases exposure to trade restrictions and localized supply issues. 

This dependence leads to price instability and delays that affect production timelines and customer deliveries. To address this, companies are diversifying supplier bases, investing in backward integration, and improving inventory planning to reduce the impact of supply interruptions.

Market Trend

Rising Use of Organic Peroxides in Ethylene-Vinyl Acetate (EVA) Sheets

The organic peroxide market is witnessing a growing trend towards the rising use in the solar energy sector. Organic peroxides, such as dicumyl peroxide, are used as crosslinking agents in the production of ethylene-vinyl acetate (EVA) sheets. These EVA sheets serve as encapsulates in photovoltaic (PV) panels, providing durability, adhesion, and weather resistance. 

As global solar panel production increases to meet renewable energy targets, the demand for high-performance encapsulate materials continues to rise. This shift supports the consumption of organic peroxides in solar module manufacturing and expands their use beyond traditional polymer applications.

• In September 2023, Arkema announced a capacity expansion of its organic peroxide production at the Changshu site in China. The project, valued at approximately USD 57.5 million, will increase production by 2.5 times to meet rising demand in Asia, particularly from renewable energy sectors. The investment supports the manufacturing of polymers and photovoltaic panels using Arkema’s Luperox-branded organic peroxides.

Organic Peroxide Market Report Snapshot

Segmentation	Details
By Type	Dialkyl Peroxides, Diacyl Peroxides, Ketone Peroxides, Peroxyesters, Hydroperoxides, Peroxy Ketals, Others
By Application	Chemicals & Plastics, Coatings & Adhesives, Paper & Textiles, Detergents, Personal Care & Others
By Region	North America: U.S., Canada, Mexico
	Europe: France, UK, Spain, Germany, Italy, Russia, Rest of Europe
	Asia-Pacific: China, Japan, India, Australia, ASEAN, South Korea, Rest of Asia-Pacific
	Middle East & Africa: Turkey, U.A.E., Saudi Arabia, South Africa, Rest of Middle East & Africa
	South America: Brazil, Argentina, Rest of South America

Market Segmentation

• By Type (Dialkyl Peroxides, Diacyl Peroxides, Ketone Peroxides, Peroxyesters, Hydroperoxides, Peroxy Ketals, and Others): The dialkyl peroxides segment earned USD 410.2 million in 2024, mainly due to their widespread use as initiators in polymer manufacturing and crosslinking processes for plastics and elastomers.

• By Application (Chemicals & Plastics, Coatings & Adhesives, Paper & Textiles, Detergents, and Personal Care & Others): The chemicals & plastics segment held a share of 48.50% in 2024, fueled by high demand for organic peroxides in polymerization, resin production, and thermoplastic processing.

Organic Peroxide Market Regional Analysis

Based on region, the market has been classified into North America, Europe, Asia Pacific, Middle East & Africa, and South America.

North America organic peroxide market share stood at 38.27% in 2024, valued at USD 475.7 million. This dominance is reinforced by the strong presence of polymer and plastics manufacturing industries, particularly in the United States. 

High consumption of organic peroxides in polyethylene and polypropylene processing supports steady demand. Leading chemical producers in the region maintain advanced production capabilities, which ensure consistent use of peroxides in high-volume applications such as packaging, automotive components, and industrial goods.

The Asia-Pacific organic peroxide industry is poised to grow at a CAGR of 5.83% over the forecast period. This growth is propelled by the ongoing expansion of manufacturing plants across countries such as China, India, and Southeast Asia. 

These expansions support large-scale production of polymers, coatings, and industrial chemicals, which are major end-use sectors for organic peroxides. The shift of global manufacturing to the Asia Pacific region is increasing local consumption and attracting investments in peroxide production facilities.

• In November 2024, Solvay entered into a licensing agreement with North Huajin Refining and Petrochemical Company to provide its hydrogen peroxide process technology for a new propylene oxide plant in Panjin, China. The facility will produce 300 kilotons of propylene oxide annually, with operations expected to begin in 2026.

Regulatory Frameworks

• In the U.S., the Occupational Safety and Health Administration (OSHA) regulates organic peroxides under the Hazard Communication Standard (29 CFR 1910.1200), while the Environmental Protection Agency (EPA) oversees their handling and disposal under the Resource Conservation and Recovery Act (RCRA).
• In Europe, organic peroxides are monitored under the Classification, Labelling and Packaging (CLP) Regulation (EC) No 1272/2008 and the Registration, Evaluation, Authorisation and Restriction of Chemicals (REACH) Regulation (EC) No 1907/2006.
• In Japan, organic peroxides fall under the control of the Industrial Safety and Health Act and the Fire Service Act, which classify them as hazardous materials requiring specific storage and transport protocols.

Competitive Landscape

Key players in the organic peroxide industry are focusing on capacity expansions, product portfolio enhancement, and strategic collaborations to strengthen their market position. Several manufacturers are investing in upgrading production facilities to meet growing demand from polymer and specialty chemical applications. 

Companies are developing advanced formulations with improved stability, storage safety, and performance to address industry-specific needs. Strategic partnerships with regional distributors and raw material suppliers are helping streamline supply chains and improve delivery capabilities. 

Additionally, several players are prioritizing geographic expansion by establishing production units in high-growth regions to reduce lead times and enhance local availability.

• In December 2023, Evonik acquired Thai Peroxide Company Limited (TPL) by purchasing the remaining 50% stake previously held by Aditya Birla Group entities. The acquisition strengthens Evonik’s hydrogen peroxide and peracetic acid specialties business in the Asia Pacific region.

List of Key Companies in Organic Peroxide Market:

• Zibo Zhenghua Auxiliary Co., Limited
• AKPA Kimya
• R.T. Vanderbilt Holding Company, Inc.
• NOF CORPORATION
• Plasti Pigments Pvt. Ltd.
• PERGAN GmbH
• Lianyungang Hualun Chemical Co., Ltd.
• Nouryon
• ACE CHEMICAL CORP.
• United Initiators GmbH
• Dongsung
• Jiangsu qiangsheng chemical co. LTD
• Arkema
• Novichem Sp. z o.o.
• MPI

Recent Developments (Partnerships/Investment)

• In March 2025, Evonik and China Pingmei Shenma Group Nylon Technology (Shenma) signed a hydrogen peroxide licensing agreement. The partnership enables Shenma to construct a 200-kiloton-per-annum hydrogen peroxide megaplant in Pingdingshan, Henan Province, using Evonik’s production technology. The plant will supply hydrogen peroxide for Shenma’s upcoming 600-kilotons-per-annum caprolactam facility.
• In November 2023, Dongsung Chemical announced a USD 10 million investment to expand its organic peroxide production facilities at its Yeosu plant in South Korea. The project is expected to increase annual organic peroxide capacity by over 4,000 tons and improve productivity by 36% through streamlined manufacturing processes.