1,6-Hexanediol Market - Forecast(2023 - 2028)

1,6-Hexanediol Market is forecast to reach $1.51 billion by 2025, after growing at a CAGR of 6.8% during 2020-2025. In recent years the demand for 1,6-hexanediol has improved due to its increased use in the APAC region. Moreover, the increasing use of 1,6-hexanediol in a variety of applications, such as coatings, polyurethanes, acrylates and polyester resins, has further led to this market's growth. As Polyurethanes is the main end-user of 1,6-hexanediol, it is used in the application segments of Polyurethanes and other resins as a chain extender. It transforms polyurethanes into transformed polyurethanes with a considerably high resistance to corrosion. Polyurethanes have various properties such as high mechanical power, low transition temperature of the glass and high heat tolerance. 

The “1,6-Hexanediol Market report – Forecast (2020-2025)”, by IndustryARC, covers an in-depth analysis of the following segments of the 1,6-Hexanediol Market.

By Application: Polyurethanes, Coatings, Acrylates, Adhesives, Polyester Resins, and Others.

By Geography: North America, South America, Europe, APAC, and RoW.

The polyurethanes segment is the largest application segment of the 1,6-Hexanediol Market, by growing at a CAGR of 7.2%. Demand for its sub-applications or derivatives, such as thermoplastic polyurethane elastomers, coatings, and foams, across various regions, is a major factor in polyurethane development. With a growing appetite for polyurethanes, the APAC region is further propelling the development of the global market for 1,6-hexanediol. Furthermore, developing countries in the APAC region have seen an increase in polyurethane demand, such as China, Korea, India and Vietnam. Growing demand for polyurethanes has thus led to the growth of the polyurethane market across numerous industry verticals.

APAC dominated the 1,6-Hexanediol Market share with more than 46.7%, followed by North America and Europe, due to the rising demand for 1,6-hexanediol from Japan, India, China, and South Korea. As a result of the rise in production of polyurethane and coatings due to an increase in construction activities, China is expected to lead the market for 1,6-hexanediol. Leading to massive investments in new infrastructure builds, new housing schemes, and renovation/repainting of residential and commercial buildings in the US, China, India and Brazil, the construction industry is expected to see substantial growth in the next five years. There has been a substantial increase in demand for coatings in the APAC region, and this trend is expected to continue in the near future. As top coating players are absorbing other local and international firms, the coating industry is heading to consolidation.

In emerging APAC nations, including Japan, the global demand for 1,6-Hexanediol is estimated to see steady growth. The growing penetration of new players and the significant presence of Chinese producers in the 1,6-Hexanediol Market serve as key factors influencing the region's overall output rate. Due to the increase in R&D, government regulations, cost advantage, low-cost workers, and better manufacturing facilities, the polyurethane industry is expected to expand in the APAC region, thus driving the consumption rate in the 1,6-Hexanediol Market. Demand for its sub-applications or equivalents, such as thermoplastic polyurethane elastomers, coatings and foams, across various regions, is a major factor responsible for the growth of polyurethanes. Furthermore, due to the growing demand for polyurethanes in APAC, the field is projected to fuel the growth of the global market for 1,6-Hexanediol. Moreover, developing countries in the APAC region have seen an increase in polyurethane production since 2017, such as China, South Korea, India, and Vietnam. The rising demand for polyurethanes across a variety of vertical industries has therefore led to the growth of the polyurethane segment in the region.

However, as it is highly hygroscopic in nature, storage and transportation is a major challenge for 1,6-Hexanediol, and measures need to be taken to minimize its exposure to air or humidity. To optimize its utility, the temperature of the product should be kept between 55°C and C at all times. 1,6-Hexanediol has been found to exhibit low toxicity, and while handling the chemical, proper precautions need to be taken. It causes eye irritation and upon contact with the eyes, diffuses the opacity of the cornea. Vapors or 1,6-Hexanediol dust also cause inflammation of the respiratory tract. In addition, to avoid skin exposure, adequate protective protection is needed to be worn by people handling the drug.

Technology launches, acquisitions and R&D activities are key strategies adopted by players in the 1,6-Hexanediol Market. In 2019, the market of 1,6-Hexanediol has been consolidated by the top five players accounting for xx% of the share. Major players in the 1,6-Hexanediol Market are BASF SE, Fushun Tianfu Chemicals Co., Ltd., Lanxess, Linshui Nanming Chemical Co., Ltd., Perstorp AB, Ube Industries, Ltd., Shandong Yuanli Science and Technology Co., Ltd., Zhengzhou Meiya Chemical Products Co., Ltd., Hefei TNJ Chemical Industry Co., Ltd., and Prasol Chemicals Pvt. Ltd., and among others.