The range of hydrogen peroxide applications includes chemical processing, textile and pulp bleaching, metal treating, cosmetic applications, waste treatment and catalysis of reactions. The major factors responsible for the growth of the Bangladeshi hydrogen peroxide market are the rising demand for H2O2 due to the growing textile & clothing industry, the extensive usage of hydrogen peroxide in the pulp & paper industry, and the increased use of hydrogen peroxide in water treatment. Industrial grade is the most significant grade consumed in Bangladesh, and Textiles & Clothing is the dominant end-user industry.

Hydrogen peroxide is the most preferred bleaching agent for treating natural and synthetic fibers (cotton, wool, silk, linen, rayon). Hydrogen peroxide is suitable for most fibers, and it can be used in a wide range of machines under different conditions. The use of hydrogen peroxide not only allows for a high degree of brightness but also protects the mechanical qualities of the fibers.  Consumers have accepted color-safe laundry bleaches containing hydrogen peroxide as an alternative to bleaches containing hypochlorite. One advantage of chlorine-based bleaches is that it does not damage modern dyes. Bangladesh is the world's second-largest textiles & clothing exporter, contributing 20% to the country’s GDP. With robust demand in the garment sector, the textiles industry has enormous potential and is expected to grow further. The sector has navigated well, and its GDP contribution is increasing daily. Abundant manpower and favorable government legislations are the major driving forces for the textile industry growth in Bangladesh.

According to Export Promotion Bureau, ready-made garments (RMG) exports increased by 12.55% to USD 31.456 billion in fiscal 2020-21, which was USD 27.949 billion in fiscal 2019-2020. Over the years, Bangladesh has registered growth in cotton and cotton products production which is expected to grow due to the increasing demand from Europe and other markets.  As cotton is the primary fiber that is bleached. Practically all cotton produced nowadays is bleached; about 80-90% of all cotton fabrics are bleached with hydrogen peroxide. With the increasing production of cotton and cotton products, the demand for hydrogen peroxide is expected to increase in the country. Bangladesh's textile and apparel industry has expanded rapidly over the last decade, making it one of the top three garment exporters in the world. The RMG (Ready Made Garments) sector and other garment exports provide up to 81% of the country's export revenues. Bangladesh's rapidly increasing apparel industry contributes up to 20% of GDP, more than any other secondary industrial sector. Bangladesh's clothing manufacturers are driving the country's economic progress.

The quota-free textile rule gives Bangladesh free access to the EU market and select quotas for the American and Canadian markets, other advantageous government policies. Its geographical location making transportation across the water, air and land easier, has helped the country to emerge as a major textile and clothing exporter. The Bangladesh Textiles Mills Association (BTMA) represents the textile industry and Primary Textile Sector (PTS). The PTS consists of 510 spinning mills, 901 weaving (small and large) & 317 dyeing finishing mills, wherein the employment is made around one million, beyond that, many mills are not members of BTMA. The spinning sector in Bangladesh is seeing massive investment as local firms expand their production capacities or establish new facilities as demand for textile raw materials rises. There are over 500 spinning mills in Bangladesh. Native spinners have a combined annual ability of about 13.43 million cotton bales.

Recent Developments:-

• June 2022: Central Government of India revokes the anti-dumping duty imposed on 'Hydrogen Peroxide,' falling under tariff item 28470000 of the First Schedule to the said Act, originating in or exported from Bangladesh, Taiwan, Korea RP, Indonesia, Pakistan and Thailand, and imported into India.

• August 2022: PSA Corporation Ltd, the port authority of the island state, on August 10, lifted the embargo with immediate effect. The PSA Corporation order reads: "This circular supersedes HCSD/CC/L2205 on hydrogen peroxide restriction, with immediate effect.“

Economic Overview of Bangladesh:-

• Bangladesh is now in financial turmoil, similar to Sri Lanka. The currency is falling, the foreign exchange reserves are depleting, the trade deficit is widening, and inflation is skyrocketing.

• The global rise in the oil process has destabilized the Bangladesh energy market. The state-run Bangladesh petroleum corporation alone has incurred losses of USD 85 million in the last six months.

• Russia's war on Ukraine mainly affected Bangladesh as it imports significant essential items such as cooking oil and other food items as well as fuel. Due to the ongoing tension, the gap has led to a soring food and energy costs, which eventually increased the cost of living apart from these significant reasons, corruption in power supply, the banking sector and several other scams in recent times have added to worsening the situation.

• In August 2022, the country applied for an IMF bailout it sought a USD 4.5 billion rescue package. Dhaka has also reached World Bank for USD 1 billion and the Asian Development Bank for USD 1 billion, but the talk is still underway.

Some of the leading players in the hydrogen peroxide market include Samuda Chemical Complex Limited (SCCL), Al-Razi Chemical Complex Limited (ARCCL), Tasnim Chemical Complex Ltd. (TCCL), HP Chemicals LTD and Infinia Chemicals Ltd.