Hexane Market

Growing demand from the edible oils market is driving the market growth

The market CAGR for hexane is being driven by the growing demand for the product for vegetable oil. Hexane has a tremendous ability to remove oil when approximated to other solvents, including petroleum ether and ethyl acetate. Therefore, it is mainly utilized to extract edible oils from vegetables and seeds, including mustard seed, soybean, cottonseed, rape seed, flax, groundnut, safflower seed, corn germ, and palm. It allows extracting the maximum possible quantity of oil while also eliminating undesirable odors from oil. The liquid hexane is recyclable and can be reused behind oil extraction.

Particularly, food-grade hexane is used in oil extraction due to its efficiency and security. It has a lower boiling point, and the solvent maintains its liquid state in cool temperatures. Hexane removes oil from fruits and seeds without concerning their nutritional value. Thus, steady demand from the edible oils market will drive the hexane market revenue.

Additionally, Hexane is largely used to extract edible oils from vegetables and seeds such as mustard seed, cottonseed, rape seed, flax, groundnut, soybean, safflower seed, corn germ, and palm. It assists in extracting the maximum possible quantity of oil and removes unwanted odor and taste from oil. It is recyclable, and it can be reused after oil extraction. Due to its efficiency and safety, food-grade hexane is employed in oil extraction. It has a low boiling point and retains its liquid state in cold climates. It extracts oil from vegetables and seeds without disturbing their nutrient content.

According to the OECD-FAO Agricultural Outlook 2019-2028, vegetable oil consumption is rising at a rate of 3.1% p.a., reaching up to 15 kilograms per capita by 2028.

Furthermore, Edible oils are dietary fats that play an important role in the body by meeting nutritional demands, promoting growth, and ensuring the appropriate functioning of the brain, nervous, and endocrine systems. Hexane has been continually employed for edible oil extraction owing to its continuous oil recovery, narrow boiling point (63–69 °C), and strong solubilizing capability. Therefore, the increase in edible oil production propels the hexane market's growth.

As a solvent, hexane is used in paints and coatings to dissolve pigments, additives, and binders. Solvents control paint viscosity and enhance film quality. Solvents dissolve or disperse different components, such as binders, additives, pigments, and extenders, to formulate paints and coatings. They also help speed up the curing and drying process, and therefore, the demand for solvents is increasing in the paints & coatings industry. Paints and coatings are integral to the building & construction industry. Thus, increasing residential construction activities augment the paints & coatings industry globally.

Rising demand for printing inks, paints, and coatings is expected to drive the demand for hexane over the forecast period.

Hexane prices are influenced by supply-demand dynamics, crude oil prices, and industrial applications, with market trends analyzed in detail.

July 2023- The Texas Commission has charged a chemical manufacturing plant in Orange on Environmental Quality for the release of hexane. Lion Elastomers Orange, situated at 5713 Farm-to-Market Road 1006, was fined USD18, 625 for failing to avoid unofficial emissions, according to the TCEQ. The TCEQ states that the plant released 33,046 pounds of volatile organic compounds as fugitive emissions during an incident on August 24, 2021, that lasted one hour and 15 minutes.

The emissions incident appeared when a valve directing to tank DF-138 was left open, enabling a fragment of the hexane stream to flow into the tank, which initiated its overflow and spill into the containment area, as per the TCEQ. As the emissions event was not caused by an unexpected, unavoidable halt of equipment or process beyond the control of the owner or operator, the TCEQ states this could've been dodged by better design and better operational and maintenance practices.

Their plan for enhancing Chevron Phillips Chemical's Alpha olefins business was revealed by Chevron Phillips Chemical in May 2021 where they would put up a second world scale unit solely dedicated to producing 1-hexene. The new plant is expected to have a capacity of approximately 266 kilotons per annum (KTA) and commissioning is envisaged to commence during the calendar year ending in 2023. The facility will be located at Old Ocean Texas abutting on Chevron Phillips Chemical’s existing Sweeny location.

The Global Hexane Market Industry benefits from regulatory frameworks that support the use of hexane as a solvent in various applications. Governments worldwide are recognizing the importance of hexane in industrial processes, particularly in food and chemical production. This regulatory support facilitates the safe and efficient use of hexane, encouraging industries to adopt it as a preferred solvent. As regulations evolve to promote sustainability and safety, the hexane market is likely to experience growth, driven by increased adoption across multiple sectors. This supportive environment enhances the overall market dynamics and fosters innovation in hexane applications.

The Global Hexane Market Industry experiences a robust demand surge primarily due to its extensive application in the chemical sector. Hexane serves as a crucial solvent in the extraction of edible oils and the production of various chemicals. In 2024, the market is projected to reach 1.38 USD Billion, reflecting the growing reliance on hexane for efficient extraction processes. As industries increasingly prioritize cost-effective and efficient methods, hexane's role becomes more pronounced. This trend is expected to continue, with the market anticipated to grow at a CAGR of 2.86% from 2025 to 2035, potentially reaching 1.88 USD Billion by 2035.

The Global Hexane Market Industry is poised for growth, particularly in emerging markets where economic development is accelerating. As countries industrialize, the demand for solvents, including hexane, is expected to rise significantly. The expansion of manufacturing sectors in these regions creates new opportunities for hexane utilization in various applications, from food processing to chemical production. This trend is indicative of a broader shift towards increased industrial activity, which is likely to bolster the hexane market. As these economies continue to grow, the demand for hexane is anticipated to follow suit, contributing to the overall market expansion.

The Global Hexane Market Industry is witnessing a notable expansion in pharmaceutical applications, where hexane is employed as a solvent in drug formulation and extraction processes. The increasing focus on research and development in the pharmaceutical sector drives the demand for high-purity solvents like hexane. As pharmaceutical companies strive to enhance product efficacy and safety, hexane's role becomes increasingly vital. This trend is expected to contribute to the overall growth of the hexane market, as the pharmaceutical industry continues to evolve and innovate, thereby creating new opportunities for hexane utilization.

The Global Hexane Market Industry is significantly influenced by advancements in oil extraction techniques. Hexane is widely utilized in the extraction of vegetable oils, which is a critical process in food production. The increasing global population and rising health consciousness drive the demand for vegetable oils, thereby enhancing hexane's market presence. As extraction technologies evolve, the efficiency and yield of oil extraction processes improve, further solidifying hexane's position in the industry. This trend not only supports the growth of the hexane market but also aligns with the broader objectives of sustainable and efficient resource utilization.

By Region, the study delivers market insights into North America, Europe, Asia-Pacific, and the Rest of the World. The North America hexane market area will dominate this market over the forecast period. Governments and various companies around the region are looking for ways to minimize carbon dioxide emissions, and their reliance on oil-based goods and the green solvent is one way to do so. Rising environmental issues, and support from manufacturers of paints and coatings, cosmetics, and other products, have given green solvents a boost to the market in this region.

Further, the US hexane market held the largest market share, and the Canada hexane market was the fastest-growing market in the North America region.

Further, the major countries studied in the market report are The U.S., Canada, German, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.

Figure 2: HEXANE MARKET SHARE BY REGION 2022 (%) Source: Secondary Research, Primary Research, Market Research Future Database, and Analyst Review

Europe hexane market accounts for the second-largest market share due to the rapid growth of the food and beverage sector to meet demand from the rising population and the demand for industrial-grade hexane in the region. Further, the German hexane market held the largest market share, and the UK hexane market was the fastest-growing market in the Europe region.

The Asia-Pacific hexane Market is expected to grow at the fastest CAGR from 2023 to 2032. This is due to the rise in demand for industrial solvents for manufacturing industrial cleaning chemicals and degreasing agents in developing economies, driving the market demand for hexane in this region. Moreover, the China hexane market held the largest market share, and the India hexane market was the fastest-growing market in the Asia-Pacific region.

Leading market players are investing heavily in research and development to expand their product lines, which will help the hexane market grow even more. Market participants are also undertaking several strategic activities to expand their footprint, with important market developments including new product launches, contractual agreements, mergers and acquisitions, higher investments, and collaboration with other organizations. To expand and survive in a more competitive and rising market climate, the hexane industry must offer cost-effective items.

Manufacturing locally to minimize operational costs is one of the key business tactics manufacturers use in the hexane industry to benefit clients and increase the market sector. Major players in the hexane market, including Phillips 66 Company, Exxon Mobil Corporation, India Petroleum Corporation Limited, Merck KGaA, Bharat Petroleum Corporation Limited, Shell group of companies, Sumitomo Chemical Co., Ltd., and others, are attempting to increase market demand by investing in research and development operations.

Phillips 66 is an integrated energy organization. It processes, stores, transports, and markets natural gas and petroleum products. Its major products include gasoline, diesel, hexane, aviation fuel, and lubricants. It fractionates, transports, and markets natural gas liquids (NGLs). The firm processes crude oil and other feedstock at its refineries and markets in the US and Europe. In addition, Phillips 66 simulates petrochemicals and plastics. It also simulates and markets specialty lubricants under the Phillips 66, Kendall, and Red Line brands. In March 2022, Phillips 66 announced the completion of the merger between Phillips 66 Partners and Phillips 66.

The merger resulted in Phillips 66 acquiring all limited partnership interests in PSXP not already owned by Phillips 66 and its affiliates.

Sumitomo Chemical Co Ltd is a chemical company that offers a diverse range of chemical products in the energy and functional materials, petrochemicals, health and crop science products, IT-related chemicals and materials, and pharmaceuticals. The company's portfolio includes inorganic and organic industrial chemicals, alumina products, polymer alloys, hexane, optical materials, thermoplastic elastomers, dyestuffs, polymer additives, agricultural insecticides, and petrochemical products. Its products find applications in rubber, paper, pharmaceuticals, wastewater treatment, automobiles, home electric appliances, paints, and building materials.

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.

CPCL has been granted permission from its own board of directors during August 2021 for setting up a JV together with Indian Oil Corporation and other seed equity investors. This JV’s objective is to develop a refinery project which shall have a capacity range of about nine million metric tons per annum (MMTPA) situated within Cauvery Basin Refinery Nagapattinam District Tamil Nadu India. In JV terms, Indian Oil and CPCL hold equal shares of twenty five percent each translating into fifty percent combined ownership. The remaining half stake in the JV will be maintained by other seed investors.

It was only such items as LPG, hexane, ATF (superior kerosene), MS (motor spirit), HSD (high speed diesel), paraffin wax, lube base stocks, Fuel oil and Petroleum coke that constituted CPCL’s product portfolio.