The global hexane market size was over USD 1.75 billion in 2015 and is expected to witness considerable growth owing to the widening application scope and increasing demand from the oil & gas extraction industry. It offers exceptional performance owing to the properties such as transparency, low water solubility and easy miscibility with chloroform, alcohol, and ether. Such characteristics are expected to drive global hexane market.
Its increasing use in rubber and petrochemical industries is anticipated to boost the global market over the next eight years. Additionally, properties such as the ability to remove unwanted taste, color preservation, and other undesirable food properties are anticipated to drive its demand in the edible oil industry.
U.S. hexane market revenue by grade, 2014 - 2024 (USD Million)
The primary use of solvents containing hexane is to extract vegetable oil from crops such as soybeans. The oil is extracted for various seed crops including cottonseed, mustard seed, rape seed, peanuts, flax, soybeans, safflower seed, and corn germ, which are then processed into food. The solvents are increasingly being used as cleaning agents in the textile, shoemaking, furniture, and printing industries
It is increasingly being used in the healthcare and pharmaceutical industry for use as a liquid in the manufacturing of tablet molds along with low-temperature thermometer and is anticipated to propel market growth. Furniture industry application includes its use as veneers which are manufactured from adhesives, lacquers, and cleaners.
Hexane, also known as n-hexane, is an organic compound derived from crude oil and natural gas by means of various catalytic and thermal cracking processes. It is both, an anthropogenic as well as naturally occurring chemical. Therefore, volatility in crude oil and natural gas prices have a direct influence on its price.
Global crude oil price dynamics is dependent on diverse factors, which primarily include the supply & demand balance, macroeconomic & geopolitical situations across the globe, currency exchange rates, and the existing condition of financial markets.
Extraction grade dominated the global industry and accounted for over half of the global revenue in 2015. The industry is growing at a significant pace owing to high standard development required by the food and extraction industries.
Polymerization grade has been gaining traction in the industry owing to its purity, accurate composition, longer shelf life and quality as per the international standards. The grade is primarily used in various end-use industries such as waste water treatment chemicals, soaps & detergents, tea-leaf processing, pre-metal treatment chemicals and various other industries.
Edible oil extractant was the dominant application segment accounting for over 35% of the global volume in 2015. Hexane is increasingly being used in the edible oil industry as an oil extractant for seed crops. Growth in this segment can be attributed to the rising awareness among consumers regarding the use of refined oil and the health impact associated with the same.
Industrial solvent is a key application segment and is expected to grow at a CAGR of 3.0% from 2016 to 2024. Properties such as easy miscibility with ether, alcohol, and chloroform; low water solubility and colorless nature make hexane a widely used solvent in industries such as textile, footwear, furniture and printing.
Use of solvents have significantly changed modern living and are an invaluable solution for industries ranging from applications such as manufacturing printing ink, paints and coatings, adhesives, pharmaceuticals and cosmetics, to applications in cleaning and printing products.
Asia Pacific was the largest and the fastest hexane market. Increasing demand from extraction application is expected to foster the market growth over the forecast period. Rapid industrialization coupled with expanding healthcare facilities is expected to fuel the regional industry.
Europe followed Asia Pacific in terms of production in 2015. Moderately growing rubber and adhesive industries are expected to drive the regional demand. Rising demand in footwear and leather, particularly from Italy and Turkey is anticipated to drive regional demand.
The European economy is overcoming the recent economic slowdown, which had started to positively impact production. However, Brexit is expected to slow down economic growth in the short run, further impacting industry dynamics in the region.
The North American market is witnessing moderate growth on account of dwindling industrial production and high penetration leading to a relatively mature economy. Manufacturers are shifting their production facilities in Asia Pacific owing to the availability of land and skilled labor at a comparatively lower cost.
Hexane industry is more towards consolidation than fragmentation with presence the of few industry players. Key players operational in the global hexane industry include Mil-Spec Industries Corp., Environmental Equipment & Supply, GFS Chemicals, Inc., Continental Chemical, City Chemical LLC, AquaPhoenix Scientific and NOAH Technologies Corporation.
Other players operating in the industry include Scientific Solutions, LLC, Hukill Chemical Corp., GreenChem Industries, LLC, Hydrite Chemical Co., Dawn Scientific, Reagents, Capitol Scientific, Clear Chem Solutions, Haviland Enterprises, Inc., and Del Amo Chemical Co.
b. The global hexane market size was estimated at USD 2.08 billion in 2019 and is expected to reach USD 2.16 billion in 2020.
b. The global hexane market is expected to grow at a compound annual growth rate of 3.4% from 2016 to 2024 to reach USD 2.36 billion by 2024.
b. Asia Pacific dominated the hexane market with a share of 40.5% in 2019. This is attributable to rapid industrialization coupled with expanding healthcare facilities.
b. Some key players operating in the hexane market include Mil-Spec Industries Corp., Environmental Equipment & Supply, GFS Chemicals, Inc., Continental Chemical, City Chemical LLC, AquaPhoenix Scientific and NOAH Technologies Corporation.
b. Key factors that are driving the market growth include widening application scope and increasing demand from the oil & gas extraction industry.
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Demand across the organic chemicals sector shall register a slump in growth albeit increasing demand for certain chemicals that find end applications in healthcare and food. Furthermore, China, a major supplier of chemicals to the world, registered a considerable decline in manufacturing in the first quarter of 2020, following the trajectory unfolded by COVID-19's escalation to a pandemic. This has led to an imbalance in supply-demand dynamics, forcing manufacturers and customers alike to renegotiate supply agreements. The report will account for Covid19 as a key market contributor.