Report Overview

A growing demand for hydrogen peroxide in various applications, such as pulp and paper, increasing use of the product as a disinfectant in the healthcare industry, and rapid expansion of industrial sector in the kingdom are projected to propel the expansion of Saudi Arabia hydrogen peroxide market during the forecast period between 2023 and 2029.

Saudi Arabia Hydrogen Peroxide Market - Industry Trends & Forecast Report, 2029

Saudi Arabia hydrogen peroxide market size is expected at a CAGR of 4.71% during the forecast period between 2023 and 2029. Major growth drivers for Saudi Arabia hydrogen peroxide market include increasing demand from end-use industries, supply and demand dynamics, rising government regulations, and rapid technological advancements. One of the major drivers of the market is the growing demand for pulp and paper products, which is expected to continue to drive the demand for hydrogen peroxide in the region. Also, the expansion of the textile industry is also expected to contribute to the growth of the market. The market is also impacted by supply and demand dynamics, with fluctuations in the availability of raw materials and the production capacity of manufacturers affecting the prices and availability of hydrogen peroxide in the market. The government of Saudi Arabia is supporting the growth of the chemical industry in the country, which is expected to benefit the hydrogen peroxide market as well. The government is providing incentives and subsidies to attract foreign investments in the chemical industry, which is expected to boost the production of hydrogen peroxide in the country. Technological advancements also impact the market, with manufacturers investing in research and development to improve the efficiency and safety of hydrogen peroxide production processes.

Saudi Arabia Hydrogen Peroxide Market – Overview

The hydrogen peroxide market in Saudi Arabia refers to the demand, supply, and trade of hydrogen peroxide in the country. Hydrogen peroxide is a pale blue liquid that is widely used for various industrial and consumer applications. It is a powerful oxidizing agent and disinfectant that is commonly used in the production of pulp and paper, textiles, and electronics. It is also used in the medical and dental industries as a topical antiseptic and teeth whitener. The Saudi Arabia hydrogen peroxide market is characterized by the production, distribution, and consumption of hydrogen peroxide in different grades, such as technical grade and food grade. The market is expected to benefit from the growing trend towards eco-friendly chemicals and the increasing use of hydrogen peroxide as a substitute for chlorine-based products. In order to support downstream Propylene Oxide (PO) manufacturing, which is a key ingredient for the production of Polyurethane foams, Saudi Arabia is investing significantly to increase its Hydrogen Peroxide capacity. Given the substantial market potential in the country, top peroxide manufacturers worldwide are considering expanding their capacity in Saudi Arabia over the next four years.

Saudi Arabia Hydrogen Peroxide Market

Growth Drivers

Growing Demand for Hydrogen Peroxide in Various Applications

The demand for hydrogen peroxide in the pulp and paper industry has been increasing due to its versatile nature as a bleaching agent for natural and synthetic fibers such as cotton, wool, silk, and rayon. The paper and pulp sector is a significant contributor to the hydrogen peroxide market, with its usage in bleaching and delignifying cellulose, bleaching pulp, and de-inking wastepaper. The growth of the global hydrogen peroxide market is largely driven by the rising demand for paper in the packaging and personal care industries. The application of hydrogen peroxide in bleaching recycled pulp has been particularly successful. When recycled fibers are utilized for tissue grades or printing papers, eliminating the printing ink becomes a crucial step in the paper recycling process.

Restraints

Availability of Cheaper Substitute Products

Chlorine and peracetic acid are two of the alternative products available in the market that can be used for various applications where hydrogen peroxide is also used. These substitutes can be used for purposes, such as bleaching, disinfecting, and wastewater treatment, which are some of the major applications of hydrogen peroxide. The availability of substitute products creates competition in the market and may affect the demand for hydrogen peroxide. As a result, the growth of the Saudi Arabia hydrogen peroxide market may be hindered due to the potential decrease in demand. Additionally, the price point of these substitute products could be lower than that of hydrogen peroxide, which could further impact its market growth.

Impact of COVID-19 on Saudi Arabia Hydrogen Peroxide Market

The global economy was severely impacted by COVID-19 in 2020, resulting in a significant disruption of market growth and widespread shutdowns of production facilities. As a measure to safeguard the health and well-being of employees, major industry players intentionally ceased their production activities. However, with the implementation of new COVID-19 regulations and safety protocols, the market is expected to regain its growth trajectory in the coming years. Once production facilities are fully functional, the market is projected to experience robust growth in the forecast period. There is an optimistic outlook for potential investments in the market, with steady growth projected during the forecast period.

Saudi Arabia Hydrogen Peroxide Market

Segmental Coverage

Saudi Arabia Hydrogen Peroxide Market – By Grade

By grade, Saudi Arabia hydrogen peroxide market is divided into 90% H2O2, 35% H2O2, 6–10% H2O2, and 3% H2O2 segments. The 35% and 90% H2O2 grades segments are expected to hold the highest share in the Saudi Arabia hydrogen peroxide market due to their versatile applications in various industries. The 35% grade is commonly used in the pulp and paper industry for bleaching and delignification of cellulose, while the 90% grade is often used in electronics and semiconductor industries for cleaning and etching purposes. These grades are also used in the textile industry for bleaching and in the chemical industry for producing other chemicals. The high demand for these grades in multiple industries has contributed to their dominant market share in Saudi Arabia.

Saudi Arabia Hydrogen Peroxide Market – By Application

Based on application, Saudi Arabia hydrogen peroxide market is divided into Oxidant, Disinfectant, Bleaching, and Water Treatment segments. The bleaching segment held the highest market share. Hydrogen peroxide is widely used as a bleaching agent in various industries including pulp and paper, medical, and textiles. In the medical industry, the product is utilized as a dental bleach, mouthwash, for hair bleaching, and maintaining oral hygiene. While in the textiles industry, it is extensively used to brighten clothes, remove stains from both natural and synthetic fibers, and enhance the mechanical properties of fibers in the manufacturing process. On the other hand, the disinfectant segment is expected to grow at the fastest CAGR in terms of volume during the forecast period. This is due to the high demand for the product in the manufacturing of various cleaning agents and hygiene products. COVID-19 virus in 2020 led to an increased demand for disinfectants, such as floor and glass cleaners, and hand sanitizers, which resulted in a surge in the consumption of hydrogen peroxide as a disinfectant across the globe. The trend is expected to continue in the future.

Saudi Arabia Hydrogen Peroxide Market – By End Use

By end use, Saudi Arabia hydrogen peroxide market is segmented into Pulp & Paper, Food & Beverages, Textiles & Laundry, Oil & Gas, Healthcare, and Electronics. The pulp & paper segment held the highest share in the market. The H2O2 is a vital component of the global pulp and paper industry, similar to bleach, as it is recognized as a chlorine-free element. It is widely used to improve the mechanical and chemical properties of pulp, as well as enhance the quality and brightness of paper. Due to its ability to lower production costs, offer superior quality, ease of use, and environmental safety, the demand for this substance in the industry is on the rise. Meanwhile, the healthcare segment is expected to hold the highest market share during the forecast period. This is because the product is in high demand for the production of disinfectants and sanitizers by various multinational companies around the world. With the increasing public awareness of the importance of maintaining proper hygiene in the wake of the global pandemic, the demand for these healthcare essentials is expected to rise significantly across the globe for an extended period.

Competitive Landscape

Major players operating in Saudi Arabia hydrogen peroxide market include Sadara Chemical Company, Arabian Industrial Fibers Company (Ibn Rushd), Saudi International Petrochemical Company (Sipchem), National Peroxide Limited, Gulf Peroxide Limited, FMC Corporation, Arkema SA, Evonik Industries AG, Solvay SA, and PeroxyChem LLC. To further enhance their market share, these companies employ various strategies, including mergers and acquisitions, partnerships, joint ventures, license agreements, and new product launches.

Scope of the Report

By Grade

• 90% H2O2

• 35% H2O2

• 6-10% H2O2

• 3% H2O2

By Application

• Oxidant

• Disinfectant

• Bleaching

• Water Treatment

By End Use

• Pulp & Paper

• Food & Beverages

• Textiles & Laundry

• Oil & Gas

• Healthcare

• Electronics