1,2-hexanediol market is anticipated to grow at a considerable CAGR of 5.7% during the forecast period (2024-2031). 1,2-hexanediol is a clear, colorless liquid that is widely used as a solvent, plasticizer, and chemical intermediate in a variety of sectors, including cosmetics, pharmaceuticals, paints and coatings, and textiles. It is distinguished by its capacity to increase formulation viscosity and flow qualities, as well as its potent antibacterial activity. The features make 1,2-hexanediol a vital element in a variety of personal care and skin care products, including moisturizers, sunscreens, and hair care products.

Market Dynamics

Rising Demand for Bio-Based Alternatives 

In recent times most specialty chemical industries including the 1,2-hexanediol industry have seen regulatory scrutiny and frameworks due to increasing concerns over the environmental impact of traditional petroleum-based chemicals, requiring manufacturers to focus on developing sustainable alternatives derived from renewable feedstocks. For instance, in 2022, specialty Chemicals Company LANXESS and Matrìca, a joint venture between Versalis (Eni) and Novamont, have partnered to produce sustainable biocide preservatives from renewable raw materials. Starting in January 2022, the Matrìca plant at Porto Torres (Sardinia, Italy) will supply LANXESS with bio-based raw materials from vegetable oils, which LANXESS will use to manufacture a new series of industrial preservatives broadening its prevention range.

Growing Demand for Multi-functional Additives

1,2-Hexanediol is one of the multi-functional ingredients in the cosmetic industry. It is used in skincare, hair care as well as beauty products. It is a great emollient as well as a humectant, that preserves hydration on the skin while also softening it. For instance, in August 2022, BASF started producing fuel performance additives at its Pudong site in Shanghai, China. The new plant addresses the increasing regional demand for fuel performance additives and brings greater supply security and flexibility to customers in Asia. The site is the latest addition to BASF’s global network, strengthening its local manufacturing footprint in Asia. Its multifunctional additive packages, known as KEROPUR® are well established in the market, providing the maximum possible engine cleanliness, improved fuel economy, and lower emissions.

Market Segmentation

Our in-depth analysis of the global 1,2-hexanediol market includes the following segments by type and quality grade:

• Based on type, the market is bifurcated into bio-based and petro-based.

• Based on quality grade, the market is sub-segmented into pharmaceutical grade, cosmetic grade, and industrial/technical grade.

Bio-Based Is Anticipated To Grow As The Largest Segment

1,2 Hexanediol market is in the development of bio-based alternatives, due to the increasing concerns over the environmental impact of traditional petroleum-based chemicals, manufacturers are focusing on developing sustainable alternatives derived from renewable feedstocks. The focus is also on reducing crabon emission caused through manufacturing processes and reach carbon neutrality goals. This trend is likely to drive market growth as consumer preferences shift towards eco-friendly products. For instance, China is aiming to reach a peak in its CO2 emissions before 2030 and carbon neutrality before 2060.

Pharmaceutical Grade Is expected to dominate the Sub-Segment

1,2-hexanediol is a versatile substance that has several applications in numerous sectors. In the pharmaceutical industry. It is used as a solvent, helping to dissolve other substances and improve the effectiveness of medications. As pharmaceutical drugs market is steadily growing, the demand for related ingredients is also growing gradually and is expected to rise with growing medication usage.

Regional Outlook

The global 1,2-hexanediol market is further segmented based on geography including North America (the US, and Canada), Europe (UK, Italy, Spain, Germany, France, and the Rest of Europe), Asia-Pacific (India, China, Japan, South Korea, and Rest of Asia-Pacific), and the Rest of the World (the Middle East & Africa, and Latin America). 

North America Holds Highest Share in Global 1,2-Hexanediol Market

North American region has a substantial share in the global 1,2-hexanediol market attributed to rising demand from end-user industries such as pharmaceuticals, cosmetics, textiles, and coatings, increasing investment in specialty coating chemicals, developing market for multi-functional additives, and government policies to develop bio-based chemical alternatives. Further, private companies are heavily investing in the US cosmetics industry due to rising demand and consumption. 

Global 1,2-Hexanediol Service Market Growth by Region 2024-2031

Asia-Pacific is the Fastest Growing in 1, 2-Hexanediol market  

• Asia-pacific region under ASEAN economic union has heavily invested in sector such as manufacturing, chemicals, and infrastructure development.

• Asia- pacific is one of the biggest food processing, consuming and manufacturing market globally with almost 50.0% of global population residing in the region.

Market Players Outlook

*Note: Major Players Sorted in No Particular Order.

The major companies serving the global 1,2-hexanediol market include Merck KgaA, BASF SE, Lanxess AG, Fushun Tianfu Chemicals Co., Ltd., and Perstorp AB among others. The market players are increasingly focusing on business expansion and product development by applying strategies such as collaborations, mergers, and acquisitions to stay competitive in the market. For instance, in October 2022, PETRONAS Chemicals Group Berhad (PCG) announced the completion of its acquisition of Perstorp Holding AB (Perstorp). PCG signed a securities purchase agreement with Financière Forêt S.à.r.l, a company under PAI Partners, a European private equity firm, to acquire the entire equity interest in Perstorp, a leading sustainability-driven global specialty chemicals company based in Sweden. With the completion of the acquisition, Perstorp is now PCG’s wholly-owned subsidiary.

The Report Covers

• Market value data analysis of 2023 and forecast to 2031.
• Annualized market revenues ($ million) for each market segment.
• Country-wise analysis of major geographical regions.
• Key companies operating in the global 1,2-hexanediol market. Based on the availability of data, information related to new product launches, and relevant news is also available in the report.
• Analysis of business strategies by identifying the key market segments positioned for strong growth in the future.
• Analysis of market-entry and market expansion strategies.
• Competitive strategies by identifying ‘who-stands-where’ in the market.