Market Trends of North America Hydrogen Peroxide Industry
Pulp and Paper Segment to Dominate the Market
- Hydrogen peroxide is a good bleaching agent for mechanical wood pulp. It makes mechanical wood pulp achieve higher whiteness. It is non-toxic and non-polluting and hardly damages the fiber during bleaching, with less than 1% bleaching.
- The use of this bleaching agent increased significantly in the pulp and paper industry due to ease of use, improved paper quality, lower production costs, increased yield percentage, and being environmentally friendly. The brightness of the paper that is made from hydrogen peroxide bleach is more stable.
- The United States' leading paper companies generated net sales of roughly USD 21 billion for the year ending December 31, 2022. WestRock and International Paper were the leading paper companies in the United States based on revenue. Texas-based Kimberly-Clark followed closely, with revenue of USD 20.18 billion.
- According to the Food and Agriculture Organization (FAO), in 2022, the production capacity of paper and paperboard in the United States amounted to around 74.7 million metric tons (air dry). The production capacity is expected to remain constant at least until 2026.
- Further, the production capacity of paper and paperboard in Canada was 9.4 million metric tons (air dry) in 2022, according to the Food and Agriculture Organization (FAO).
- In May 2023, JMC Paper Tech Private Limited, one of the largest manufacturers and suppliers of pulp and paper, planned to set up its own paper mill in North America, scheduled to be commissioned in May 2024 and expected to propel the market growth.
- Additionally, Cascades Inc., an industry leader in Canada and the fourth-largest tissue paper manufacturer in North America, will increase the demand for hydrogen peroxide.
- Therefore, increasing paper production for various end uses is likely to enhance the demand for hydrogen peroxide in the forecasted period.
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United States to Dominate the Market
- The United States is expected to dominate the hydrogen peroxide market during the forecast period due to the more substantial presence of end-user industries and higher per capita consumption of end products.
- The United States plays an important role in the global paper industry. It exports paper to various countries, thus increasing the demand for hydrogen peroxide.
- According to the US Census Bureau, India is the leading importer of recovered waste and scrap paper and paperboard from the United States, with more than 3 million tons imported in 2022. It was followed by Mexico, Thailand, and Vietnam, each with more than 1.6 million tons imported that year. The United States exported around 15 million tons of recovered paper scrap in 2022.
- Further, in the textile industry, hydrogen peroxide is used as a bleaching agent. In the United States, the textile industry, along with its suppliers and customers, is a crucial element of the country's economy, which is spread across all regions of the country. It plays a significant role in the national defense by providing over 8,000 products annually to the armed forces.
- In 2022, the value of United States man-made fiber, textile, and apparel shipments totaled an estimated USD 65.8 billion, compared with USD 64.04 billion in shipments in the previous year.
- Additionally, the electronics industry often utilizes hydrogen peroxide for cleaning and etching. It is also commonly used to produce flat panel displays and clean semiconductor wafers.
- In the United States, the electronics industry is expected to grow at a moderate rate. An increase in the demand for new technological products is expected to help the market expansion in the future.
- The rapid pace of innovation in terms of the advancement of technologies and R&D activities in the electronics industry in the United States is driving the demand for newer and faster electronic products, thus increasing the demand for hydrogen peroxide.
- According to the Consumer Technology Association, the retail revenue from consumer electronics or technology sales in the United States was estimated at USD 505 billion in 2022.
- In addition, the United States launched the CHIPS and Science Act in August 2022 to support domestic production and innovation in the semiconductor industry.
- The government announced an investment of USD 52 billion in chip manufacturing incentives and research investments. This also includes an investment tax credit for semiconductor and equipment manufacturing.
- Therefore, all the aforementioned factors are likely to boost the demand for hydrogen peroxide in the forecasted period.
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