The market for hexane is expected to witness a CAGR of around 3.8%, globally, during the forecast period.
- Hexane is produced by the refining of crude oil. Its demand from the petrochemical industries is driving the market.
- Safer alternatives for oil extraction are likely to hinder the market's growth.
Key Market Trends
Edible Oil Extraction to Dominate the Market
- Hexane is increasingly being used as a solvent to extract edible oils from seed and vegetable crops, e.g., peanuts, soybeans, corn, etc.
- Hexane has a greater ability to extract oil, compared to other solvents, like petroleum ether and ethyl acetate. It easily mixes with vegetable oil and washes it out without disturbing fiber, protein, sugar, and undesired gums.
- Growth in the edible oil segment can be attributed to the rising awareness among consumers about the use of refined oil and the impact it has on health.
- According to the United States Department of Agriculture, the consumption of edible oils like soybean oil, in 2019, in the United States, was 10,659 metric ton and canola oil was 2,465 metric ton. Moreover, according to the Department for Promotion of Industry & Internal Trade, in India, the investment value in the vegetable oil sector, in 2019, was around INR 18 billion.
- Additionally, the consumers are inclined to pay higher prices for healthy food products, owing to the increasing food-based health challenges, such as high cholesterol, obesity, etc.
- The growing popularity of edible oils with added 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. Thus, exhibiting the likely demand for edible oils in the forthcoming years.
Asia-Pacific to Dominate the Market
- Asia-Pacific is expected to dominate the hexane market during the forecast period. Hexane is used as a solvent for glues, varnishes, and inks, it is also used to extract oil and grease contaminants from soil and water, for analysis in laboratories.
- The rapid growth of the food and beverage sector, to meet the demand from the growing population, and the demand for industrial-grade hexane from countries, such as India, China, and Indonesia, are the major components boosting the development of the hexane market in the Asia-Pacific region.
- Owing to the rapid urbanization in the region, the demand for various applications of hexane, such as a cleaning agent in the textile, furniture, and printing industries, is expected to grow during the forecast period.
- Additionally, the demand for hexane is expected to witness tremendous growth in the region, owing to the increasing food processing industries in countries, such as China, India, and Thailand.
- Thus, from the above-mentioned points, the demand for hexane in the Asia-Pacific region is expected to increase during the forecast period.
The hexane market is partially consolidated in nature, with a few major players dominating a significant portion of the market. Some of the major companies 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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