Impact Analysis of Covid-19
The complete version of the Report will include the impact of the COVID-19, and anticipated change on the future outlook of the industry, by taking into the account the political, economic, social, and technological parameters.
n-Hexane Market 2017 – 2027
n-Hexane is primarily used to extract vegetable oil from crops and seeds and it is widely used with the other solvent. It is basically produced from crude oil and possess excellent properties of solubility with alcohol and is transparent in nature. They are used in the production of adhesives and sealants which have a wide range of industrial application. Moreover, they are also used as an industrial and degreasing agent. n-hexane is also used as a solvent across other industries such as rubber, leather, printing, cosmetics, ink, etc. Food, pharmaceuticals, textile, and resin production are some of the other application areas of n-hexane. Moreover, it is also used across dilution, extraction, and in liquid chromatography application.
The global n-Hexane market is projected to reach around US$ 2,189.6 million by the end of 2027, in terms of revenue, growing at CAGR of 5.8% during the forecast period (2019-2027).
High demand for n-Hexane from the food industry is expected to foster market growth over the forecast period. n-Hexane widely used as the edible oil extraction agent, as it offers high yield from a variety of seeds. This is expected to create strong demand for n-Hexane from the food industry. Hence, rising demand for oil is projected to foster the market growth of n-Hexane over the forecast timeframe.
The growing demand for n-Hexane from the pharmaceutical industry is projected to accelerate market growth. The growth can also be attributed to the growing pharmaceutical industry. According to the Global Use of Medicines report from the IQVIA Institute for Human Data Science. The global market for pharmaceuticals reached US$1.2 trillion in 2018, up to US$100 billion from 2017. Therefore, growing the pharmaceutical industry is expected to propel the market growth.
On the basis of the region, Asia Pacific dominated the global n-Hexane market in 2018, accounting for 44.2% share in terms of value, followed by Europe and North America.
Figure 1. Global n-Hexane Market, Revenue Share (%), By Region, 2018
Growing demand for eco-friendly products and strict regulations over the use of n-Hexane due to its adverse impact on health is expected to hinder the market growth. The rising negative impact of VOC (Volatile Organic Compounds) from n-Hexane based products is further expected to restrict the use of n-Hexane in turn hampering the market growth.
The fluctuating price of crude oil price and economic slowdown may have an adverse impact on the profitability of n-Hexane producers and this is expected to restrict market growth. Moreover, geopolitical circumstances across Middle East countries and volatile exchange rates are some of the other factors hampering the market growth of n-Hexane.
The growing usage of n-Hexane across the pharmaceutical industry is projected to offer an immense potential opportunity to the market in the near future. Across the furniture industry, it is used to produce lacquers, adhesives, and cleaners which have furniture application. Growth in the furniture industry is also contributing to the market growth. According to the British Furniture Confederation, UK furniture, bed and furnishings manufacturing is a substantial industry. Its 8,707 companies contribute £12.2 billion to the country’s GDP (3.1% up on previous years), £9.01 billion of this is from UK furniture manufacturing, which equates to 1.6% of manufacturing output.
The growing production of oil & gas especially across the Asia Pacific region is expected to augment the market growth over the forecast period. Oil imports rose sharply to US$ 87.37 billion in 2017-18 from US$ 70.72 billion in 2016-17. Its domestic crude oil production in July 2019 was 2,769 thousand tons (TMT). Moreover, the production of petroleum products by fractionators increased to 4,931.22 tmt in 2019 from 4,808.00 tmt in 2018 and reached 2369 TMT in 2020.
Figure 2. Global n-Hexane Market– Opportunity Analysis
Rising demand for polymerization grade of n-Hexane across various end-use industries such as soaps & detergents, wastewater treatment chemicals, and tea-leaf processing is gaining traction in the market. Its polymerization grade is also used across pre-metal treatment chemicals and hence growing investment in the chemical industry will favor the market growth over the forecast period.
Growing demand for n-Hexane as an industrial solvent across the cosmetic &personal care industry is expected to propel the market growth over the forecast period. They are also used in the production of footwear industry due to its excellent solubility with alcohol, ether, and chloroform, and colorless nature. This is projected to fuel market growth.
Figure 3. Global n-Hexane Market, Revenue Share (%), By Grade, in 2018
On the basis of grade in 2018, oil extraction segment has accounted the largest market share of 57.2% in terms of value, followed by industrial and pharmaceutical.
- Food and Drug Administration has specified maximum residue limit for food items: For spice oleoresins, the residue limit is 25ppm.
- Residue limit for fish protein isolate is 5ppm.
- Hops extract, the residue limit is 2.2% by weight.
Figure 4. Global n-Hexane Market– Value Chain Analysis
Key players operating in the global n-hexane market are ExxonMobil Corporation, Royal Dutch Shell PLC, Indian Oil Corp. Ltd., Chevron, Phillips Chemical Company LLC, Bharat Petroleum Corp. Ltd., Rompetrol Rafinare S.A., Hindustan Petroleum Corporation Limited, Dongying Liangxin petrochemical company, Liaoning Yufeng Chemical Co., Ltd., DHC Solvent Chemie GmbH, and Sak Chaisidhi Company Limited