Hexane Market

Hexane Market was valued at USD 2.4 billion in 2022 and is projected to reach USD 3.1 billion by 2027, growing at a cagr 4.8% from 2022 to 2027. Factors such as the increase in demand for the solvent in paints & coatings sector is increasing growth opportunities for the hexane market.

Global Hexane Market Trends

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Hexane Market Dynamics

Driver: Steady demand from edible oils market

Hexane has a greater ability to extract oil when compared to other solvents, such as petroleum ether, and ethyl acetate. Therefore, it is mainly used in the extraction of edible oils from vegetables and seeds, including soybean, mustard seed, cottonseed, rape seed, flax, groundnut, corn germ, safflower seed, and palm. It helps extract the maximum possible quantity of oil, while also eliminating undesirable odour from oil. The solvent is recyclable and can be reused after oil extraction. Particularly, food-grade hexane is utilized in oil extraction, owing to its efficiency and safety. It has a low boiling point, and the solvent retains its liquid state in cool temperatures. Hexane extracts oil from fruits, and seeds, without disturbing their nutritional value. Thus, steady demand from edible oils market is expected to drive the hexane market.

Restraints: End-use industries shifting focus toward green solvents

Industries, particularly, conventional solvent manufacturers, are shifting their focus towards green solvents due to their biodegradability, non-toxic nature, and higher solvency than petroleum-derived solvents, for instance, hexane. Also, consumers across different end-use industries, such as food & beverages, pharmaceutical, cosmetics, and textile, prefer green solvents over petroleum-derived solvents. This is due to the stringent regulations being implemented by various countries across the globe pertaining to the use of hydrocarbons. Several tire manufacturing companies are focusing on the development of green tires, which offer improved performance and are sustainable. These tires also ensure the safety of vehicles. Bridgestone, Continental, and Goodyear, among others, are the major manufacturers of green tires. These factors are expected to restrain the growth of the hexane market.

Opportunity: Increase in demand for solvents in paints & coatings industry

As a solvent, hexane can dissolve various components, such as additives, pigments, that are used in the formulation of paints & coatings. Solvents assist in the regulation of paint viscosity and improve the quality of films. In paints, the product is highly used to avoid clumps or globs, and thereby provide the desired consistency. They also expedite the curing and drying process. Furthermore, the surging demand for paints due to the rapid growth across the construction industry and the mounting infrastructure development in China, India, the US, among other countries, are expected to further boost the adoption of solvents in the paints & coatings industry.

Challenge: Fluctuations in global crude oil prices

Crude oil is the most important energy resource for conducting economic activities, and the uncertainty in the evolution of crude oil prices has a significant effect on economic stability. Hydrocarbon solvents, such as hexane is a refined, processed, and purified products of crude oil. Therefore, the fluctuations in the price of crude oil will have a direct impact on the hexane manufacturers, creating a situation of uncertainty. Crude oil prices have constantly been fluctuating since the drop in 2014, and the declining trend continued until 2016. However, prices witnessed a rising trend in 2017 and 2018, which resulted in higher demand for production enhancement activities. The prices again dipped in 2019 and 2020, with a steady increase from January 2021 to March 2022.

Based on grade, industrial segment is expected to grow at the highest CAGR during the forecast period, in terms of volume

The hexane market by grade is segmented into oil extraction/food grade, pharmaceutical, and industrial. The industrial grade is expected to grow at the highest CAGR during 2022 to 2027, owing to its usage in various industries such as oil and grease extraction, furniture, and printing industries. Also, the growth is aided by the increase in demand for textiles in emerging economies for industrial grade hexane.

Based on application, polymerization segment is expected to grow at the highest CAGR during the forecast period, in terms of volume

The hexane market, by application, is segmented into oil extraction, pharmaceutical, industrial cleaning & greasing, polymerization, and others. The polymerization segment is expected to grow at the highest CAGR during 2022 to 2027, owing to increase in demand for polymers. Hexane is used as a reaction medium for polymerization. This is expected to create opportunities for the growth of hexane market.

Asia Pacific is expected to be the largest hexane market during the forecast period, in terms of volume

Asia Pacific is the largest hexane market followed by North America, in terms of volume, during the forecast period of 2022 to 2027. The major economies of the Asia Pacific region contributing significantly to the growth of the hexane market are China, India, Japan, and South Korea. The region has emerged as an important consumer of hexane due to the increasing demand for vegetable oil, aided by rise in the standard of living of the people and disposable income. This further increases the growth of hexane market in Asia Pacific.

Source: Secondary Research, Expert Interviews, and MarketsandMarkets Analysis

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Hexane Market Players

Major companies in the hexane market include China Petroleum & Chemical Corporation (China), Shell plc (UK), Exxon Mobil Corporation (US), Rompetrol-Rafinare (Romania), Junyuan Petroleum Group (China), TotalEnergies (France), Phillips 66 Company (US), Indian Oil Corporation Ltd (India), Petróleo Brasileiro S.A. (Brazil), Bharat Petroleum Corporation Limited (India), Hindustan Petroleum Corporation Limited (India), Honeywell International Inc. (US), Sumitomo Chemical (Japan), among others. A total of 23 major players have been covered. These players have adopted product launches, acquisitions, and expansions as the major strategies to consolidate their position in the market.

Hexane Market Report Scope

This research report categorizes the Hexane market based on grade, application, and region.

Based on grade, the hexane market has been segmented as follows:

• Oil Extraction/ Food Grade
• Industrial Grade
• Pharmaceutical Grade

Based on application, the hexane market has been segmented as follows:

• Oil Extraction
• Industrial Cleaning and Degreasing
• Pharmaceutical
• Polymerization
• Others

Based on region, the hexane market has been segmented as follows:

• Asia Pacific
• Europe
• North America
• Middle East & Africa
• South America

Hexane Market Recent Developments

• In December 2021, Sumitomo Chemical decided to build new research facilities in Chiba and Osaka, and reorganize research laboratories in Osaka, Tsukuba, and Chiba, to accelerate the creation of next generation businesses.
• In February 2021, GFS Chemicals, Inc. announced its new partnership with Hanna Instruments USA, Inc. With this approach, GFS expanded its customer base by product offerings, that include Karl Fischer titration solutions and other specialty solvents and reagents for applications like peroxide value, acid number, and more.
• In January 2021, Indian Oil Corporation Ltd announced the plans for more than 400 USD thousand expansion project at its Chennai refinery. The refinery produced highest quantity of food grade hexane in 2020-21.

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