Global Bio-Based 1,6-Hexanediol Market Size (2023 - 2030)

In 2022, the Global Bio-Based 1,6 Hexanediol Market was valued at $0.81 billion, and is projected to reach a market size of $1.5 billion by 2030. Over the forecast period of 2023-2030, market is projected to grow at a CAGR of 8%.

Industry Overview

The chemical compound 1,6-hexanediol is a solid that dissolves in water and is colourless. It is a cheap chemical that may be purchased for use in a variety of industrial applications. It is used in the production of industrial polyurethane and polyester. Moreover, it is typically regarded as safe due to its low toxicity and low flammability. Polyesters' elasticity and hardness are both enhanced by it.

The increase in the usage of 1,6-hexanediol in polyurethanes across emerging nations and an increase in research and development from major players are the main factors driving the growth of the 1,6-hexanediol market. Additionally, throughout the course of the projection period, manufacturers are anticipated to benefit from the growth in technology and the development of bio-based raw materials. However, the worldwide 1,6-hexanediol market is anticipated to have slow growth in the next years due to the storage and transportation of 1,6-hexanediol and the accessibility of several substitutes.

Technology progress and the creation of bio-based raw materials are predicted to open up new market potential for 1,6-Hexanediol. Due to its extensive use in the paints and coatings industries, the polyurethane and coatings sectors are anticipated to dominate the worldwide 1,6-hexanediol market throughout the projected period. Due to demand from nations like Germany and the United Kingdom, the Europe region has the largest market and is predicted to develop at the highest rate throughout the projection period.

Market Drivers

Application in making Acrylates and Polymer Resins will drive the market growth

Due to its extensive usage in home constructions, concrete forming pans, building panels, and roofing in the building and construction industry, polyester resin demand has greatly expanded. Additionally, polyester resins, which are frequently used in the production of kayaks, powerboats, sailboats, and a variety of vehicle parts, continue to be a key driver of 1,6-hexanediol demand on the international market.

The 1,6 Hexanediol market is primarily driven by the rising demand for acrylates, and plasticizers

The increase in demand for acrylates and plasticizers among manufacturing sectors, which is dominating the 1,6 Hexanediol market throughout the projected period, is the main factor driving the 1,6 Hexanediol market. Globally, there has been an increase in demand for 1,6 hexanediol for a number of applications, and this demand is anticipated to continue growing from 2023 - 2030. The automotive sector and consumer products have a moderate impact on the 1,6-hexanediol market, which in turn serves to boost sales of the chemical throughout the world.

Market Restraints

Concerns over storage and transportation will challenge the market growth

However, due to their high hygroscopicity, storage and transportation provide the main challenges for the 1, 6-hexanediol industry as it is become extremely difficult and hazardous to transport such substances. The 1,6 hexanediol market will be threatened by the simple availability of alternatives.

BIO-BASED 1,6-HEXANEDIOL MARKET REPORT COVERAGE:

Segmentation Analysis

Global Bio-Based 1,6 Hexanediol Market- By Application:

• Polyurethane
• Coatings
• Acrylates
• Adhesives
• Polyester Resins
• Plasticizers
• Others resins (alkyd and epoxy)

In terms of volume and value, the polyurethanes industry is the largest application market for 1,6-hexanediol. The need for polyurethanes' sub-applications or derivatives, such as thermoplastic polyurethane elastomers, coatings, and foams, across several geographies, is a key driver of the material's growth. The worldwide 1,6-hexanediol market is growing as a result of the APAC region's expanding polyurethane consumption. In addition, growing nations in the APAC area, including as China, Korea, India, and Vietnam have observed a surge in the polyurethane manufacturing. Thus, rising demand for polyurethanes across a variety of industrial verticals has aided in the segment's expansion.

Global Bio-Based 1,6 Hexanediol Market- By Region:

• North America
• Europe
• Asia-Pacific
• Latin America
• The Middle East and Africa

Due to consistent demand from producers of adhesives, softening agents, lacquers, acrylics, and various other consumer goods, which are fuelling the expansion of the 1,6-hexanediol market, Europe is estimated to continue to be the region with the quickest rate of growth. In Europe, the usage of chemicals in the production of acrylates will stand out in particular. Due to the rising demand for PU in automotive applications, Germany and Italy are among the region's major importers. On account of considerable expenditures in new infrastructure developments, housing projects, and the refurbishment and painting of residential and commercial structures, the construction sector is estimated to see significant growth over the next years.

Additionally, the presence of well-known businesses like BASF SE, Perstorp AB, and others drives up demand for the product in the area. By introducing goods that are inexpensively based on 1,6-hexanediol, these industry players are investing hard to increase their presence in the developing market. The demand for 1,6-hexaxnediol in the region is projected to increase as a result of all the aforementioned causes.

The growing countries of APAC, particularly Japan, are predicted to have stable expansion in the worldwide market for 1,6-hexanediol. The 1,6-Hexanediol market is seeing an increase in new entrants, and China is a major participant there, which is having a major influence on the region's total production rate. Due to increased government restrictions, cost advantages, a skilled labour force, and improved production facilities, the polyurethane sector is anticipated to expand in the APAC area, which will increase demand for 1,6-Hexanediol. The need for polyurethanes' sub-applications or derivatives, such as thermoplastic polyurethane elastomers, coatings, and foams, across several geographies, is a significant driver of the material's growth.

Global Bio-Based 1,6 Hexanediol Market - By Companies

1. BASF SE
2. Prasol Chemicals Pvt. Ltd.
3. LANXESS
4. Perstorp
5. UBE INDUSTRIES, LTD.

NOTABLE HAPPENINGS IN THE GLOBAL BIO-BASED 1,6 HEXANEDIOL MARKET IN THE RECENT PAST:

• Initial Public Offering: - In 2022, Prasol Chemical have received an approval from Securities and Exchange Board of India (SEBI) for an initial public offering of Rs 800 Crores.
• Merger & Acquisition: - In 2022, PETRONAS Chemicals Group Berhad will acquire Perstorp Group, a top speciality chemicals firm with a focus on sustainability.
• Merger & Acquisition: - In 2021, The Board of Directors of Ube Industries, Ltd. decided to conduct a merger by absorbing its wholly-owned subsidiary, Meiwa Plastic Industries, Ltd., effective April 1, 2022.

Impact of Covid-19 on the industry

Reports on the political and economic unrest brought on by Russia's invasion of Ukraine are regularly monitored and updated by our team. Significantly negative effects are anticipated internationally, particularly in Eastern Europe, the European Union, Eastern and Central Asia, and the United States. This argument has significantly disrupted trade relations and negatively impacted people's lives and livelihoods. The continued conflict and unrest in Eastern Europe are projected to have a negative influence on the global economy, with particularly severe long-term implications on Russia. This research analyses the influence of supply and demand, price options, vendor strategic adoption, and market recommendations for 1,6-Hexanediol in light of the most recent conflict updates and their worldwide responses.