Market Size and Overview:

In 2023, the Global Bio-Based 1,6 Hexanediol Market was valued at $0.87 billion, and is projected to reach a market size of $1.49 billion by 2030. Over the forecast period of 2024-2030, market is projected to grow at a CAGR of 8%.

Industry Overview

1,6-Hexanediol, a colorless solid soluble in water, stands as an economical chemical with versatile industrial applications. Its utilization spans across the production of industrial polyurethane and polyester, both benefiting from its enhancing effects on elasticity and hardness. Recognized for its minimal toxicity and flammability, this compound finds favor in various sectors.

The burgeoning utilization of 1,6-hexanediol in polyurethanes within emerging economies, coupled with increased research and development initiatives by major stakeholders, propels the growth of its market. Furthermore, advancements in technology and the advent of bio-based raw materials are poised to fortify manufacturers' positions during the forecast period. Nonetheless, challenges loom over the global market due to concerns regarding storage, transportation, and the availability of substitutes, likely impeding growth in the forthcoming years.

Advancements in technology and the emergence of bio-based materials are anticipated to unlock new avenues for market expansion for 1,6-Hexanediol. Notably, the dominance within the polyurethane and coatings sectors, attributed to its extensive use in the paints and coatings industries, is expected to persist globally, with Europe leading in market share and growth rates.

Market Drivers

The surge in demand for acrylates and polymer resins fuels market expansion.

The escalating demand for polyester resins in various construction applications, including home constructions, concrete forming pans, building panels, and roofing, alongside its widespread use in manufacturing kayaks, powerboats, sailboats, and automotive components, underscores the pivotal role of 1,6-hexanediol in driving international market demand.

The 1,6-Hexanediol market thrives on the escalating demand for acrylates and plasticizers.

The dominance of manufacturing sectors in propelling the demand for acrylates and plasticizers underscores their role as primary drivers of the 1,6-Hexanediol market. Forecasts indicate a sustained increase in demand for 1,6-hexanediol across various applications, particularly within the automotive and consumer goods sectors, exerting a moderate yet influential impact on global sales.

Market Restraints

Challenges pertaining to storage and transportation pose obstacles to market growth.

Highly hygroscopic in nature, the storage and transportation of 1,6-hexanediol present formidable challenges, rendering the process increasingly hazardous and complex. Additionally, the availability of alternatives poses a threat to the 1,6-hexanediol market's stability, highlighting the need for strategic adaptation and innovation within the industry.

Segmentation Analysis

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

1. Polyurethane
2. Coatings
3. Acrylates
4. Adhesives
5. Polyester Resins
6. Plasticizers
7. Other Resins (alkyd and epoxy)

The polyurethanes sector emerges as the largest application market for 1,6-hexanediol, both in terms of volume and value. The growth of this segment is propelled by the demand for various sub-applications or derivatives of polyurethanes such as thermoplastic polyurethane elastomers, coatings, and foams across diverse geographical regions. Notably, the expanding consumption of polyurethanes in the Asia-Pacific (APAC) region significantly contributes to the global growth of the 1,6-hexanediol market. Nations like China, Korea, India, and Vietnam are witnessing a surge in polyurethane manufacturing, thereby fostering demand across multiple industrial verticals.

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

1. North America
2. Europe
3. Asia-Pacific
4. Latin America
5. The Middle East and Africa

Europe is anticipated to sustain its rapid growth rate, primarily driven by consistent demand from adhesive producers, softening agents, lacquers, acrylics, and various consumer goods manufacturers. The utilization of 1,6-hexanediol in the production of acrylates is particularly noteworthy in the European market. Countries like Germany and Italy are prominent importers, driven by the rising demand for polyurethane in automotive applications. Furthermore, substantial investments in infrastructure development, housing projects, and renovation activities in the construction sector are poised to fuel significant growth in the region.

The presence of established entities such as BASF SE, Perstorp AB, among others, amplifies demand for 1,6-hexanediol in Europe. These industry players are strategically investing in cost-effective products based on 1,6-hexanediol to expand their market presence, further bolstering demand in the region.

In the APAC region, particularly in Japan, steady growth is forecasted in the global market for 1,6-hexanediol. The entry of new players, with China being a prominent participant, significantly influences the region's production rates. Enhanced government regulations, cost advantages, skilled labor pools, and improved production facilities are anticipated to propel the expansion of the polyurethane sector in APAC, consequently driving the demand for 1,6-hexanediol.

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.

Recent Developments in the Global Bio-Based 1,6 Hexanediol Market:

• Initial Public Offering: In 2022, Prasol Chemicals received approval from the Securities and Exchange Board of India (SEBI) for an initial public offering worth Rs 800 Crores.
• Merger & Acquisition: PETRONAS Chemicals Group Berhad announced its acquisition of Perstorp Group in 2022, a leading specialty chemicals firm with a sustainability focus.
• 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:

 The team continuously monitors and updates reports on the political and economic unrest triggered by Russia's invasion of Ukraine. Anticipated significantly negative effects are expected globally, especially in Eastern Europe, the European Union, Eastern and Central Asia, and the United States. This conflict disrupts trade relations and adversely affects lives and livelihoods. Continued conflict and unrest in Eastern Europe are projected to have long-term negative implications on the global economy, particularly impacting Russia. The research assesses the influence of supply and demand dynamics, price options, vendor strategic adoption, and market recommendations for 1,6-Hexanediol in response to the latest conflict updates and global reactions.