Hexane Market - Growth, Trends, COVID-19 Impact, and Forecasts (2023 - 2028)

Hexane Market - Growth, Trends, COVID-19 Impact, and Forecasts (2023 - 2028)

During the time frame of the forecast, the global hexane market is expected to register a CAGR of over 4%.

The COVID-19 pandemic negatively impacted the market in 2020. However, rising sales of edible oils have propelled the demand for hexane after the pandemic.

• Over the short term, the increasing demand for edible oil extraction and growing demand from petrochemical industries are expected to drive the market’s growth during the forecast period.
• The availability of safer alternatives for oil extraction, such as cyclohexane, is expected to spur market growth in the forecast period.
• The emerging application of hexane in the paint and coatings industry as a solvent is expected to offer new growth opportunities during the coming years.
• During the forecast period, Asia-Pacific is expected to have the largest market share and the highest CAGR. The surging consumption of edible oils, especially in China, India, and Japan, is projected to drive regional market growth.

• Hexane is used more and more as a solvent to get edible oils out of peanuts, soybeans, corn, and other seed and vegetable crops.
• Hexane is a better solvent for getting oil out of things than petroleum ether or ethyl acetate.It easily mixes with vegetable oil and washes it out without disturbing fiber, protein, sugar, or undesirable gums.
• Consumers are becoming more aware of how refined oil affects their health, which has led to growth in the edible oil market.
• Additionally, consumers are inclined to pay higher prices for healthy food products due to the increasing food-based health challenges, such as high cholesterol, obesity, etc.
• The growing popularity of edible oils with additional health benefits in many countries is shaping the purchase decisions of edible oils, which are high in omega-3, vitamins, oryzanol, natural antioxidants, and others.
• As per the U.S. Department of Agriculture, global vegetable oil production amounted to around 208.81 million metric tons in 2021–22. It is estimated that about 90 percent of palm oil is used for food consumption, whereas industrial consumption such as cosmetic products or fuel and diesel claims the remaining 10 percent. Soybean oil is the largest consumed oil, amounting to 59.3 million tons globally in 2022.
• In the United States, soybean oil had the highest level of consumption of any edible oil in 2022. In that year, Americans consumed about 11.56 million tons of soybean oil, compared to about 1.7 million tons of palm oil. Soybean oil is often found in fried foods, canned fish, salad dressing, and margarine.

Because of this, it is likely that the edible oil extraction application will be the most popular in the market during the time frame of the forecast.

• The Asia-Pacific region is expected to dominate the hexane market during the forecast period. Hexane is used as a solvent for glues, varnishes, and inks. Moreover, it is used to extract oil and grease contaminants from soil and water for analysis in laboratories.
• The National Bureau of Statistics of China says that in urban China in 2021, the average amount of edible vegetable oil each person used was about 9.6 kilograms.The fast growth of the Chinese economy and the changes it has made to people's living standards have led to a rise in the use of edible vegetable oils.Soybean oil is the most consumed edible oil, followed by rapeseed oil, palm oil, and peanut oil. These 4 major oils account for approximately 90% of the total consumption in China.
• The rapid growth of the food and beverage sector to meet demand from the growing population and the demand for industrial-grade hexane from countries such as India, China, and Indonesia are the major factors boosting the development of the hexane market in the Asia-Pacific region.
• The food and beverage sector in China was estimated to reach USD 230.96 billion by 2024 with a CAGR of about 11%, which is likely to create demand for food-grade hexane over the coming years.
• India is the second largest exporter of textiles and clothing in the world. It has a huge base of raw materials and factories.Despite its size, the Indian textile industry has struggled globally. In recent years, India’s share in global textile exports has declined, while countries like Bangladesh and Vietnam have expanded their market shares.
• Overall, though, the country's textile production looks very good because domestic consumption is growing.
• In FY22, India's exports of textiles, clothing, and handicrafts added up to USD 44.4 billion, which was a 41% increase from the previous year.The Indian textile and apparel industry is expected to register a 10% CAGR to reach USD 190 billion by 2025–2026. India has a 4% share of the global trade in textiles and apparel.
• Because of this, the above factors are likely to have a big effect on the market over the next few years.

The hexane market is partially consolidated, with a few major players dominating a significant portion of the market. Some of the major companies (in no particular order) are Exxon Mobil Corporation, Bharat Petroleum Corporation Limited, Merck KGaA, Royal Dutch Shell PLC, and Sumitomo Chemical Co. Ltd., among others.

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