Hexane Market - Forecasts from 2023 to 2028

The hexane market was valued at US$2.006 billion in 2021.

Hexane is a colorless and odorless hydrocarbon chemical compound primarily used as a solvent in various industries due to its low boiling point and excellent solvent properties. Hexane is obtained from the fractional distillation of petroleum or natural gas and is classified as a volatile organic compound (VOC). In addition, it is commonly used as a solvent in the extraction of vegetable oils and the production of various industrial chemicals, such as adhesives, sealants, and rubber, and assists in cleaning and degreasing applications. Neohexane, isohexane, and n-hexane are the most commonly consumed types of hexane in the market. The development of new and innovative technologies, such as natural gas and bio-based feedstocks, and more efficient production processes for manufacturing hexane are driving market growth. Further, the growing demand for vegetable oils, adhesives, sealants, rubber, plastics, and biofuels is expected to stimulate the expansion of the hexane market over the forecast period.

Market Drivers

The rising demand for biofuels

The spreading awareness about sustainable energy due to the increasing focus on renewable energy is driving the demand for bioenergy and biofuels, which is expected to augment the demand for hexane since it is used in the production of biofuels, such as biodiesel and bioethanol. The International Energy Agency stated that international biofuel demand will increase by 6% from 2021 to 2022. Further, biodiesel production around the world aggregated approximately 43,808 million liters in 2020 and increased to 47,420 million liters in 2022. Additionally, the introduction of favorable policies and incentives by many governments around the world, such as the US, to promote the use of biofuels by including mandates, tax incentives, and subsidies to encourage the production and consumption of biofuels is increasing the demand for biofuels which is creating an opportunity for the expansion of the hexane market.

The growing number of restaurants and food outlets.

The growth in consumption of food generated by restaurants and food stalls fueled by the delivery convenience and the development in food quality is expected to create a high demand for hexane to manufacture edible and vegetable oils as these stores and food outlets will increase the demand for edible oils due to their increased cooking activities. The rise in the working population and heavy work shifts is increasing the profits of various restaurants and food stores, further attracting new entrants in the restaurant service sector. For instance, the National Restaurant Association of India projected that India would be receiving 5,000 new restaurant additions in 2023. In addition, the National Restaurant Association of the US estimated that the food service industry in the country will reach US$898 billion by 2022. Further, the emergence of food delivery applications promotes the consumption of food services from different food outlets. For instance, the Restaurant Industry Report by NRA revealed that approximately 54% of adults and 72% of the millennials in the US prefer to buy food from restaurants with takeout and delivery options. Therefore, the substantial growth in the food-service sector driven by the rise in restaurant and food outlets' consumption is a significant factor promoting the development of the hexane market.

The negative impact of hexane on humans and the environment remains a significant challenge.

Hexane can be hazardous to human health if not handled properly. Exposure to hexane can cause both acute and chronic health effects. Short-term exposure to high concentrations of hexane vapor can cause dizziness, headache, and vomiting. In severe cases, exposure to high levels of hexane vapor can lead to loss of consciousness, respiratory failure, and even death. Hexane can react with nitrogen oxides and other compounds in the air to form ground-level ozone, leading to respiratory problems.

Further, long-term exposure to hexane can cause damage to the nervous system, resulting in symptoms such as numbness and weakness in the arms and legs, leading to irreversible peripheral neuropathy. Chronic exposure to hexane can also cause skin irritation and dermatitis. In addition, hexane is classified as a volatile organic compound and is recognized as an air pollutant. Therefore, the hazard associated with hexane is restricting its consumption.

Product Offerings:

• Hexane (SBP 65/70) Solvent by Royal Dutch Shell PLC - Royal Dutch Shell PLC is a UK-based company operating in the gas and oil sector that manufactures hexane solvent as part of its product range of SBP aliphatic hydrocarbon solvents by Shell Chemicals. The hexane solvent manufactured by the company can be used across a wide range of applications that require drying or evaporation performance.
• Exxsol Hexane by Exxon Mobil Corporation - Exxon Mobil Corporation is a US-based oil and gas company that manufactures Exxsol hexane products comprising n-hexane, cyclohexane, and paraffin. It is a polymer-grade hexane product produced under its dearomatized fluid product line to be applied for different extraction activities.

By grade, the food-grade hexane sector is expected to hold a major portion of the hexane market.

Food-grade hexane is a type of hexane that is specifically processed and purified to meet strict standards for use in the food industry. It is used as a solvent to extract edible oils from various seeds and grains, such as soybeans, corn, and canola, to produce cooking oils and margarine. It is also used in the processing of food products, such as decaffeinated coffee, and the production of certain food additives. In addition, the use of food-grade hexane in food processing is regulated and monitored by the FDA to ensure that it meets strict safety standards. Therefore, the expansion of the food and beverage production and service sector is expected to promote the use of food-grade hexane over the forecast period. For instance, Chennai Petroleum Corporation Ltd. reported that its food-grade hexane production of 19,700 tons in 2020 to 22,500 tons in 2021.

Asia Pacific region is anticipated to hold a major share of the hexane market over the forecast period.

The increase in demand for adhesives and sealants across the construction, automotive, and packaging industries fueled by their respective expansions is anticipated to drive the hexane market in the region as hexane is used as a solvent in producing adhesives and sealants. Further, the rising demand for rubber and plastic from these industries to assist in their operations is creating a high demand for hexane as an industrial solvent.

Market Segmentation:

By Grade

• Polymer Grade
• Food Grade
• Others

By Type

• Neohexane
• Isohexane
• N-Hexane

By Application

• Edible oil extractant
• Industrial Solvent
• Cleaning & Degreasing

By Geography

• North America
• USA
• Canada
• Mexico
• South America
• Brazil
• Argentina
• Others
• Europe
• Germany
• France
• United Kingdom
• Spain
• Others
• Middle East and Africa
• Saudi Arabia
• UAE
• Israel
• Others
• Asia Pacific
• China
• Japan
• India
• South Korea
• Indonesia
• Thailand
• Taiwan
• Others