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Home ➤ Chemicals & Materials ➤ Hexane Market
Hexane Market
Hexane Market
Published date: July 2024 • Formats:
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  • Home ➤ Chemicals & Materials ➤ Hexane Market

Global Hexane Market By Grade(Food Grade, Industrial Grade, Pharmaceutical Grade), By Application(Edible Oil Extraction, Industrial Solvent, Adhesives Formulation, Leather Treatment, Others), By End-Use(Food and Beverages, Pharmaceuticals, Textile, Automotive, Oil and Gas, Others) , By Region and Companies - Industry Segment Outlook, Market Assessment, Competition Scenario, Trends and Forecast 2024-2033

  • Published date: July 2024
  • Report ID: 123747
  • Number of Pages: 241
  • Format:
  • Overview
  • Table of Contents
  • Major Market Players
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    • Report Overview
    • Key Takeaways
    • By Grade
    • By Application
    • By End-Use
    • Key Market Segments
    • Driving Factors
    • Restraining Factors
    • Growth Opportunities
    • Trending Factors
    • Regional Analysis
    • Key Players Analysis
    • Recent Developments
    • Report Scope

    Report Overview

    The global Hexane Market size is expected to be worth around USD 3.7 billion by 2033, from USD 2.5 billion in 2023, growing at a CAGR of 3.9% during the forecast period from 2023 to 2033.

    The global hexane market is a vital segment within the chemical industry, primarily derived from petroleum and extensively used across various sectors due to its effectiveness as a solvent. Its primary application is in the edible oil industry, where it is used to extract vegetable oils from seeds. Additionally, hexane finds applications in manufacturing adhesives, cleaning textiles and leather products, and serving as a specialized solvent in laboratory settings. This versatility in usage underscores its widespread demand.

    Market segmentation reveals that hexane is categorized based on types and grades that cater to specific industrial needs. For instance, polymer-grade hexane is crucial in producing polymers and plastics, whereas extraction-grade is indispensable for oil extraction processes. These distinctions help in tailoring products to meet the precise requirements of different applications, enhancing efficiency and product performance in respective industries.

    Investments from both government and private sectors play a significant role in expanding the hexane market. A notable example is Chevron Phillips Chemical’s initiative to boost its alpha olefins production by setting up a new unit in Texas, specifically designed to produce 1-hexene with a capacity of 266 kilotons per annum, set to start operations in 2023. This expansion not only enhances production capacity but also demonstrates the industry’s responsiveness to market demands.

    Regulatory influences like the REACH regulations in Europe also significantly impact the market. These regulations enforce strict controls on chemical usage, ensuring safety and environmental sustainability, which in turn influences market dynamics and operational strategies within the industry.

    Strategic activities such as mergers, acquisitions, and partnerships are pivotal in driving innovation and expanding market reach. Prominent companies like Exxon Mobil Corporation, Shell Chemicals, and Bharat Petroleum Corporation Limited are deeply invested in research and development, aiming to enhance their product offerings and operational efficiencies. Such strategic decisions are crucial for maintaining competitiveness and catering to the growing global demand for hexane.

    Key Takeaways

    • Hexane market is to grow from USD 2.5 billion in 2023 to USD 3.7 billion by 2033, at a 3.9% CAGR.
    • Dominated by edible oil extraction 34.7% share in 2023, critical for vegetable oil production.
    • Industrial grade holds a 56.8% market share in 2023, vital for coatings and adhesives.
    • Asia-Pacific leads with over 50% market share, driven by China and India’s industrial growth.

    Hexane Market

    By Grade

    In 2023, industrial-grade hexane held a dominant market position, capturing more than a 56.8% share. This segment’s prominence is attributed to its extensive use across various manufacturing processes including coatings, adhesives, and the cleaning of machinery and equipment. Industrial-grade hexane is favored for its effectiveness in degreasing and cleaning applications, making it indispensable in sectors such as automotive and electronics manufacturing.

    Food-grade hexane also plays a critical role, primarily used in the extraction of edible oils from seeds. Its ability to efficiently extract oils without altering the flavor, aroma, or nutritional value of food products makes it a preferred choice in the food processing industry. Despite its smaller market share compared to industrial grade, the demand for food-grade hexane is bolstered by the growing consumer preference for processed foods and the expansion of food production capacities globally.

    Pharmaceutical-grade hexane is essential in the pharmaceutical industry, where it is used as a solvent in the formulation of various medicines and as a cleaning agent for precision equipment used in drug production. Although it holds the smallest share among the three grades, its importance is underscored by stringent regulatory standards and the need for high purity and safety levels in pharmaceutical applications. The growth in this segment is driven by the expanding pharmaceutical sector and increasing investments in healthcare infrastructure.

    By Application

    In 2023, Edible Oil Extraction held a dominant market position in the hexane market, capturing more than a 34.7% share. This segment benefits from the widespread use of hexane in the extraction of vegetable oils from seeds, a critical step in the production of refined cooking oils. The efficiency of hexane in extracting maximum oil content while maintaining the quality of the oil supports its strong market presence.

    Industrial Solvents are another significant application of hexane, used extensively in the formulation of products such as paints, glues, and varnishes. Its ability to effectively dissolve various organic compounds makes it valuable in industrial settings, contributing to a substantial market share.

    In the Adhesives Formulation segment, hexane is prized for its volatility and non-polar characteristics, making it ideal for use in the production of rubber cement and various types of glues. Its rapid evaporation rate helps in the quick setting of adhesives, which is essential for high-speed manufacturing processes.

    Leather Treatment also utilizes hexane, particularly in the degreasing of leather goods before dyeing and finishing. Hexane’s effectiveness in removing oils and fats from raw leather without damaging the material supports its use in high-end leather production.

    By End-Use

    In 2023, the Food and Beverages sector held a dominant market position in the hexane market, capturing more than a 26.7% share. This industry relies heavily on hexane for the extraction of edible oils from seeds, a process essential for producing various food products. The efficiency of hexane in extracting maximum oil with minimal quality degradation makes it indispensable in this sector.

    The Pharmaceuticals segment also significantly utilizes hexane, primarily as a solvent in the formulation and purification of drugs. Its ability to dissolve various substances efficiently is crucial for manufacturing high-purity pharmaceutical products, marking its essential role in this industry.

    In the Textile industry, hexane is used as a cleaning solvent, particularly in the degreasing of synthetic fibers before they are processed into fabrics. Its effectiveness in removing oils and impurities helps ensure the quality and durability of the textile products.

    The Automotive sector employs hexane in applications such as parts cleaning and degreasing during manufacturing processes. The solvent properties of hexane facilitate the thorough cleaning of automotive components, which is vital for maintaining high manufacturing standards.

    In the Oil and Gas industry, hexane is used for its extraction capabilities, particularly in oil recovery processes. Its properties help in the efficient extraction of oil from complex mixtures, making it a valuable tool in this highly demanding sector.

    Hexane Market Share

    Key Market Segments

    By Grade

    • Food Grade
    • Industrial Grade
    • Pharmaceutical Grade

    By Application

    • Edible Oil Extraction
    • Industrial Solvent
    • Adhesives Formulation
    • Leather Treatment
    • Others

    By End-Use

    • Food and Beverages
    • Pharmaceuticals
    • Textile
    • Automotive
    • Oil and Gas
    • Others

    Driving Factors

    Increasing Demand from the Edible Oil Industry

    The global hexane market has experienced robust growth driven significantly by its application in the edible oil industry. Hexane is primarily used as a solvent for extracting oils from seeds, making it an essential component in the production of vegetable oils. The efficiency and effectiveness of hexane in extracting high-quality oils without degrading the product make it the preferred choice among manufacturers.

    The Asia-Pacific region dominates the hexane market, largely due to significant demand from countries like China and India, where there is a growing middle-class population with increasing disposable incomes. This demographic shift is contributing to higher consumption of refined edible oils, which in turn drives the demand for hexane. The region accounted for a substantial share of over 50% of the global hexane market, underscoring its pivotal role in the industry.

    Further supporting the demand for hexane is the rising health consciousness among consumers worldwide. There is a noticeable shift towards healthier cooking options, which includes the use of oils extracted in a manner that maintains their nutritional value. Hexane’s ability to extract oil effectively without leaving harmful residues is a critical factor that supports its continued use in this industry.

    Moreover, the expansion of the food processing industry, particularly in emerging economies, is another significant factor contributing to the growth of the hexane market. As these economies continue to industrialize, the scale of food production increases, thereby elevating the demand for hexane as an extraction solvent.

    In addition to edible oil extraction, hexane is also used in various other applications including as a cleaning solvent in the textile and furniture industries and as a special-use solvent in laboratories. However, its role in the edible oil industry remains the most significant driver of its market growth.

    The market is also influenced by environmental and health concerns related to the use of hexane. While hexane is effective, there are concerns about its volatility and potential health impacts, which could restrain its use and drive the search for safer alternatives. Nonetheless, the current technological and industrial setups still favor the use of hexane due to its cost-effectiveness and efficiency in oil extraction processes.

    Restraining Factors

    Availability of Safer Alternatives

    One of the major restraining factors for the growth of the hexane market is the increasing availability and adoption of safer alternatives. This shift is driven by growing environmental and health concerns associated with the use of hexane, particularly its role as a solvent in various industrial processes.

    Hexane is widely used in industries for extracting oils from seeds and as a solvent in adhesive and leather production. However, hexane emissions can contribute to air pollution and pose significant health risks, such as nervous system damage from prolonged exposure. These health and environmental risks have prompted both regulatory bodies and industries to look for less harmful substitutes.

    The development and adoption of greener alternatives are gaining traction, with advancements in technology enabling the creation of bio-based solvents that are less toxic and have a lower environmental impact. These alternatives are increasingly preferred in industries that traditionally relied on hexane, particularly where regulatory frameworks push for reduced volatile organic compound (VOC) emissions.

    Market analysis indicates that while hexane continues to see use, especially in emerging markets with less stringent environmental regulations, its growth is tempered in regions with strict environmental oversight. For instance, in North America and Europe, the push for greener, safer chemicals continues to challenge the dominance of hexane, as industries adapt to regulatory pressures and shifting consumer preferences towards sustainable products.

    This trend towards safer alternatives is reshaping the competitive landscape, compelling major players in the hexane market to innovate and diversify their product offerings to include environmentally friendly solutions. Companies are investing in research and development to create solvents that can match the efficacy of hexane without its associated risks, aiming to maintain market share in a rapidly evolving industry landscape.

    Growth Opportunities

    Expanding Application in Pharmaceutical and Drug Delivery Industries: A Significant Growth Opportunity for Hexane

    Hexane’s properties, such as low water solubility and high dissolution capability, make it an ideal solvent in the formulation of various pharmaceutical products. It is used to extract active pharmaceutical ingredients (APIs) and in the purification processes of bulk drugs, which are critical steps in drug manufacturing. The demand for effective solvents in the production of high-purity pharmaceutical products is driving the growth of the hexane market within this niche application area.

    Additionally, the global pharmaceutical industry is witnessing rapid growth, with an increasing emphasis on the development of novel drug delivery systems. Hexane’s role in these applications is expanding, as it can effectively solubilize various compounds required in innovative pharmaceutical formulations. The ongoing advancements in drug delivery technologies, combined with rising healthcare investments and R&D activities by pharmaceutical companies, further amplify the demand for hexane.

    This trend is supported by the growing health awareness among consumers and the consequent demand for more sophisticated and safe pharmaceutical solutions. As the global population ages and the need for chronic disease management increases, the pharmaceutical industry’s demand for hexane is expected to remain robust, contributing significantly to its market growth.

    Trending Factors

    Expanding Use in the Pharmaceutical Sector: A Prominent Trend in the Hexane Market

    One of the latest and most impactful trends in the hexane market is its expanding application in the pharmaceutical sector. As the industry demands more specialized solvents for drug formulation and production, hexane is increasingly being recognized for its effectiveness and suitability in these processes. This trend is highlighted by the growing demand for pharmaceutical and drug delivery applications, which is expected to significantly boost hexane consumption in the coming years.

    The global hexane market, valued at approximately USD 2.33 billion in 2023, is projected to grow at a compound annual growth rate (CAGR) of 3.6%, reaching nearly USD 3.20 billion by 2032. This growth is partly driven by hexane’s expanding role in pharmaceutical applications, where its properties like transparency, low water solubility, and non-polarity make it ideal for extracting and purifying active pharmaceutical ingredients (APIs)​​.

    Moreover, the Asia Pacific region is seeing an accelerated demand for refined oil for cooking, which also uses hexane in the extraction process. This demand contributes to the region’s dominance in the global n-hexane market, further supporting the overall market growth. In 2022, the Asia Pacific held more than 50% of the global n-hexane market share, underscoring the significant industrial applications of hexane in this region.

    Additionally, the increase in regulatory support for safer solvent alternatives in pharmaceuticals is leading to innovations and adaptations in the hexane market. Companies are investing in developing hexane products that align with environmental and health safety standards while maintaining efficiency and effectiveness in industrial and pharmaceutical applications.

    Regional Analysis

    The global hexane market shows significant regional variations driven by industrial applications and economic activities. North America is a key player, with substantial demand from the food extraction and pharmaceutical industries. The United States and Canada are leading contributors, with advanced industrial capabilities and a strong focus on research and development. In 2023, North America accounted for approximately 25% of the global hexane market, driven by high consumption in food processing and solvent applications.

    Europe follows closely, with significant use in the pharmaceutical and chemical manufacturing sectors. Countries like Germany, France, and the United Kingdom are at the forefront, leveraging stringent environmental regulations to innovate and produce high-purity hexane. The European hexane market represented around 20% of the global share in 2023, supported by a robust industrial base and regulatory compliance.

    Asia Pacific (APAC) dominates the hexane market, commanding a 42.6% share, valued at USD 1.0 billion in 2023. Rapid industrialization and urbanization in China, India, and Southeast Asia drive the demand. The region’s extensive use of hexane in food extraction, particularly in edible oil processing, and its growing pharmaceutical and chemical industries, significantly contribute to its leading position. APAC’s market is further bolstered by rising disposable incomes and expanding middle-class populations, fueling demand across various applications.

    Middle East & Africa is experiencing steady growth, primarily due to expanding industrial activities and infrastructure development. Key markets include Saudi Arabia, the UAE, and South Africa, where investments in the petrochemical sector enhance hexane production and application. This region accounted for around 8% of the global market in 2023.

    Latin America shows moderate growth, with Brazil and Mexico leading the market. The region’s demand is driven by the food extraction and agricultural sectors. In 2023, Latin America represented about 5% of the global hexane market, with ongoing developments in the agro-processing industry playing a pivotal role.

    Hexane Market Regional Analysis

    Key Regions and Countries

    • North America
      • The US
      • Canada
      • Mexico
    • Western Europe
      • Germany
      • France
      • The UK
      • Spain
      • Italy
      • Portugal
      • Ireland
      • Austria
      • Switzerland
      • Benelux
      • Nordic
      • Rest of Western Europe
    • Eastern Europe
      • Russia
      • Poland
      • The Czech Republic
      • Greece
      • Rest of Eastern Europe
    • APAC
      • China
      • Japan
      • South Korea
      • India
      • Australia & New Zealand
      • Indonesia
      • Malaysia
      • Philippines
      • Singapore
      • Thailand
      • Vietnam
      • Rest of APAC
    • Latin America
      • Brazil
      • Colombia
      • Chile
      • Argentina
      • Costa Rica
      • Rest of Latin America
    • Middle East & Africa
      • Algeria
      • Egypt
      • Israel
      • Kuwait
      • Nigeria
      • Saudi Arabia
      • South Africa
      • Turkey
      • United Arab Emirates
      • Rest of MEA

    Key Players Analysis

    The hexane market is characterized by the presence of several key players who are instrumental in driving market dynamics through strategic initiatives, production advancements, and extensive distribution networks. China Petroleum & Chemical Corporation (Sinopec) and Shell plc are among the leading companies, leveraging their extensive production capacities and global reach to meet the growing demand for hexane.

    Sinopec, with its significant production infrastructure, focuses on high-purity hexane for the food extraction and pharmaceutical industries, ensuring compliance with stringent environmental regulations. Similarly, Shell plc emphasizes sustainable production methods and technological innovations to maintain its competitive edge in the market.

    Exxon Mobil Corporation and TotalEnergies are also prominent players, known for their robust R&D activities and strategic investments in expanding production capacities. Exxon Mobil’s advanced refining technologies and global distribution capabilities position it as a key supplier in the hexane market.

    TotalEnergies, with its commitment to sustainability, focuses on producing environmentally friendly hexane variants. Other notable companies include Phillips 66 Company, Indian Oil Corporation Ltd, and Petróleo Brasileiro S.A. (Petrobras), each contributing significantly through their specialized product offerings and extensive market networks.

    In addition, companies like Rompetrol-Rafinare, Junyuan Petroleum Group, Bharat Petroleum Corporation Limited (BPCL), Hindustan Petroleum Corporation Limited (HPCL), and Thai Oil Group play crucial roles in regional markets, particularly in Asia and South America. These companies focus on optimizing their production processes and expanding their market presence through strategic partnerships and acquisitions.

    Honeywell International Inc., Sumitomo Chemical, and Merck KGaA are also significant contributors, particularly in the specialty chemicals segment, where they leverage their expertise to produce high-quality hexane for diverse industrial applications. The collective efforts of these key players underscore the dynamic nature of the hexane market, driven by innovation, sustainability, and strategic growth initiatives.

    Market Key Players

    • China Petroleum & Chemical Corporation
    • Shell plc
    • Exxon Mobil Corporation
    • Rompetrol-Rafinare
    • Junyuan Petroleum Group
    • TotalEnergies
    • Phillips 66 Company
    • Indian Oil Corporation Ltd
    • Petróleo Brasileiro S.A.
    • Bharat Petroleum Corporation Limited
    • Hindustan Petroleum Corporation Limited
    • Honeywell International Inc.
    • Sumitomo Chemical
    • Merck KGaA
    • Thai Oil Group

    Recent Developments

    • In September 2023: Expanded export activities, with a 15% rise in hexane shipments to Southeast Asia.
    • In November 2023: Expanded its export activities, with a 10% rise in hexane shipments to Europe and Asia-Pacific regions.

    Report Scope

    Report Features Description
    Market Value (2023) US$ 2.5 Bn
    Forecast Revenue (2033) US$ 3.7 Bn
    CAGR (2024-2033) 3.9%
    Base Year for Estimation 2023
    Historic Period 2020-2022
    Forecast Period 2024-2033
    Report Coverage Revenue Forecast, Market Dynamics, COVID-19 Impact, Competitive Landscape, Recent Developments
    Segments Covered By Grade(Food Grade, Industrial Grade, Pharmaceutical Grade), By Application(Edible Oil Extraction, Industrial Solvent, Adhesives Formulation, Leather Treatment, Others), By End-Use(Food and Beverages, Pharmaceuticals, Textile, Automotive, Oil and Gas, Others)
    Regional Analysis North America – The US & Canada; Europe – Germany, France, The UK, Spain, Italy, Russia & CIS, Rest of Europe; APAC– China, Japan, South Korea, India, ASEAN & Rest of APAC; Latin America– Brazil, Mexico & Rest of Latin America; Middle East & Africa– GCC, South Africa, & Rest of MEA
    Competitive Landscape China Petroleum & Chemical Corporation, Shell plc, Exxon Mobil Corporation, Rompetrol-Rafinare, Junyuan Petroleum Group, TotalEnergies, Phillips 66 Company, Indian Oil Corporation Ltd, Petróleo Brasileiro S.A., Bharat Petroleum Corporation Limited, Hindustan Petroleum Corporation Limited, Honeywell International Inc., Sumitomo Chemical, Merck KGaA, Thai Oil Group
    Customization Scope Customization for segments, region/country-level will be provided. Moreover, additional customization can be done based on the requirements.
    Purchase Options We have three licenses to opt for: Single User License, Multi-User License (Up to 5 Users), Corporate Use License (Unlimited User and Printable PDF)

     

    Frequently Asked Questions (FAQ)

    What is the size of Hexane Market?

    Hexane Market size is expected to be worth around USD 3.7 billion by 2033, from USD 2.5 billion in 2023

    What CAGR is projected for the Hexane Market?

    The Hexane Market is expected to grow at 3.9% CAGR (2024-2033).

    Who are some key players in the Hexane Market?

    China Petroleum & Chemical Corporation, Shell plc, Exxon Mobil Corporation, Rompetrol-Rafinare, Junyuan Petroleum Group, TotalEnergies, Phillips 66 Company, Indian Oil Corporation Ltd, Petróleo Brasileiro S.A., Bharat Petroleum Corporation Limited, Hindustan Petroleum Corporation Limited, Honeywell International Inc., Sumitomo Chemical, Merck KGaA, Thai Oil Group

    Hexane Market
    Hexane Market
    Published date: July 2024
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    • China Petroleum & Chemical Corporation
    • Shell plc
    • Exxon Mobil Corporation Company Profile
    • Rompetrol-Rafinare
    • Junyuan Petroleum Group
    • Total SE Company Profile
    • Phillips 66 Company
    • Indian Oil Corporation Ltd
    • Petróleo Brasileiro S.A.
    • Bharat Petroleum Corporation Limited
    • Hindustan Petroleum Corporation Limited
    • Honeywell International Inc.
    • Sumitomo Chemical
    • Merck KGaA Company Profile
    • Thai Oil Group
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