Hexane Market by Grade (Oil Extraction/Food, Pharmaceutical, and Industrial), Application (Oil Extraction, Pharmaceutical, Industrial Cleaning and Degreasing, Polymerization), and Region (North America, APAC, Europe, MEA, South America) - Global Forecast to 2027
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
|
Report Metric |
Details |
|
Market Size Available for Years |
2018–2027 |
|
Base Year Considered |
2021 |
|
Forecast Period |
2022–2027 |
|
Forecast Units |
Value (USD Million), Volume (Kiloton) |
|
Segments Covered |
Grade, Application, and Region |
|
Geographies Covered |
Asia Pacific, Europe, North America, Middle East & Africa, and South America |
|
Companies Covered |
The major market players include China Petroleum & Chemical Corporation (China), Shell plc (UK), Exxon Mobil Corporation (US), Rompetrol-Rafinare (Romania), Junyuan Petroleum Group (China), among others. |
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.
Frequently Asked Questions (FAQ):
What is the current size of the global hexane market?
The hexane market is projected to reach USD 3.1 Billion by 2027 from USD 2.4 Billion in 2022, at a CAGR of 4.8%, during the forecast period.
Who are the leading players in the global hexane market?
Some of the key players operating in the hexane market are 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.
Which is the largest segment, by grade, in the global hexane market?
Oil extraction/food grade is the largest segment in the global hexane market, by value. Food grade hexane is majorly used as solvent in the solvent extraction units for vegetable oil.
Which is the largest segment, by application, in the global hexane market?
Oil extraction, by application, is the largest segment in the global hexane market. The growth in demand of vegetable oil is expected to drive the market for hexane.
Which is the largest region in the global hexane market?
Asia Pacific, by region, is the largest hexane market. The major economies of the Asia Pacific region contributing significantly to the growth of the hexane market are China, India, Japan, and South Korea. .
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The study involved four major activities in estimating the current size of the hexane market. Exhaustive secondary research was done to collect information on the market, peer markets, and parent market. The next step was to validate these findings, assumptions, and sizing with the industry experts across the hexane value chain through primary research. Both top-down and bottom-up approaches were employed to estimate the complete market size. Thereafter, market breakdown and data triangulation were used to estimate the market size of segments and subsegments.
Secondary Research
Secondary sources for this research study include annual reports; press releases, and investor presentations of companies; white papers; certified publications; and articles by recognized authors, gold- and silver-standard websites, hexane manufacturing companies, regulatory bodies, trade directories, and databases. The secondary research was mainly used to obtain key information about the industry’s supply chain, the total pool of key players, market classification, and segmentation according to industry trends to the bottom-most level and regional markets. It has also been used to obtain information about key developments from a market-oriented perspective.
Primary Research
The hexane market comprises several stakeholders, such as raw material suppliers, processors, end-use industries, and regulatory organizations in the supply chain. The demand side of the market is characterized by the presence of hexane manufacturers, importers/exporters, and manufacturers engaged in the production of various products. The supply side is characterized by key technology providers for hexane, end-users, researchers, and service providers.
In the primary research process, various primary sources from the supply and demand sides of the market have been interviewed to obtain qualitative and quantitative information. The primary interviewees from the demand side included key opinion leaders, executives, vice presidents, and CEOs of manufacturing companies. The primary sources from the supply side included research institutions involved in R&D activities to introduce new technologies, key opinion leaders, distributors, and hexane manufacturing companies.
Breakdown of the Primary Interviews
Notes: Other designations include sales managers, engineers, and regional managers.
Tier 1 company—revenue >USD 5 billion, tier 2 company—revenue between USD 1 billion and USD 5 billion, and tier 3 company—revenue <USD 1 billion
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Market Size Estimation
Both the top-down and bottom-up approaches have been used to estimate and validate the total size of the hexane market. These approaches have also been used extensively to estimate the size of various dependent subsegments of the market. The research methodology used to estimate the market size included the following:
The following segments provide details about the overall market size estimation process employed in this study
- The key players in the market were identified through secondary research.
- The market shares in the respective regions were identified through primary and secondary research.
- The value chain and market size of the hexane market, in terms of value and volume, were determined through primary and secondary research.
- All percentage shares, splits, and breakdowns were determined using secondary sources and verified through primary sources.
- All possible parameters that affect the market covered in this research study were accounted for, viewed in extensive detail, verified through primary research, and analyzed to obtain the final quantitative and qualitative data.
- The research included the study of annual and financial reports of the top market players and interviews with industry experts, such as CEOs, VPs, directors, sales managers, and marketing executives, for key insights, both quantitative and qualitative.
Global Hexane Market Size: Bottom-Up Approach
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Data Triangulation
After arriving at the overall market size from the estimation process explained below, the total market was split into several segments and subsegments. The data triangulation and market breakdown procedures were employed, wherever applicable, to complete the overall market engineering process and arrive at the exact statistics for all the segments and subsegments. The data was triangulated by studying various factors and trends from both the demand and supply sides. Along with this, the market was validated using both the top-down and bottom-up approaches.
Report Objectives
Market Intelligence
- To analyze and forecast the size of the hexane market in terms of value and volume
- To define, describe, and forecast the market size by grade, application, and region
- To forecast the market size with respect to five main regions, namely, Asia Pacific, Europe, North America, Middle East & Africa, and South America
- To provide detailed information about the key factors influencing the growth of the market (drivers, restraints, opportunities, and challenges)
- To strategically analyze the market segments with respect to individual growth trends, prospects, and their contribution to the market
- To analyze the opportunities in the market for stakeholders and provide a competitive landscape for market leaders
- To analyze competitive developments, such as acquisitions, partnerships, and expansions in the hexane market
Competitive Intelligence
- To identify and profile the key players in the hexane market
- To determine the top players offering various products in the hexane market
- To provide a comparative analysis of the market leaders based on the following:
- Product offerings
- Business strategies
- Strengths and weaknesses
- Key financials
- To understand the competitive landscape of the market and identify the key growth strategies adopted by the leading players across key regions
Available Customizations
MarketsandMarkets offers the following customizations for this market report:
- Product matrix, which gives a detailed comparison of the product portfolio of each company
Generating Response ...
Growth opportunities and latent adjacency in Hexane Market