Advanced Materials and Chemicals

Isopropyl Alcohol Market Report Cover

Isopropyl Alcohol Market

Isopropyl Alcohol Market Report Cover

Isopropyl Alcohol Market Size, Share, Growth & Industry Analysis, By Application (Antiseptic & Astringent, Cleaning Agent, Solvent, Chemical Intermediate, Others), By End-Use (Cosmetics & Personal Care, Pharmaceutical, Food & Beverages, Paints & Coatings, Chemical, Others) and Regional Analysis, 2024-2031

Author : Saket A.

Pages : 120

Base Year : 2023

Release : February 2024

Report ID: KR503

Isopropyl Alcohol Market Size

The global Isopropyl Alcohol Market size was valued at USD 2,767.7 million in 2023 and is projected to reach USD 4,254.3 million by 2031, growing at a CAGR of 5.72% from 2023 to 2031. Asia-Pacific market size was valued at USD 956.3 million in 2023. In the scope of work, the report includes products offered by companies such as Exxon Mobil Corporation, Shell International B.V., Dow, LyondellBasell Industries Holdings B.V., Mitsui Chemicals, Inc., LCY GROUP, LG Chem, Tokyo Chemical Industry Co., Ltd., Eastman Chemical Company, Ecolab Inc. and Others. The market is witnessing a robust growth trajectory propelled by several key factors. One of the primary driving factors aiding this expansion is the increasing product demand from the healthcare sector, particularly for its use as a disinfectant and antiseptic agent. In light of ongoing global health concerns, the need for effective sanitization solutions has surged, consequently amplifying the demand for isopropyl alcohol.

Moreover, the expanding electronics industry is contributing significantly to market growth. Isopropyl alcohol serves as a critical solvent in the production of electronic components and cleaning electronic devices, thereby driving its adoption in this sector. The proliferation of smartphones, laptops, and other electronic gadgets is fueling the demand for isopropyl alcohol globally.

Furthermore, the automotive sector is emerging as a key consumer of isopropyl alcohol, primarily due to its application in cleaning and degreasing automotive parts. With the automotive industry witnessing steady growth and the increasing emphasis on vehicle maintenance and cleanliness, the demand for isopropyl alcohol is expected to escalate in the forthcoming years.

Additionally, the rising awareness regarding the benefits of isopropyl alcohol in various industrial applications, including paints & coatings, pharmaceuticals, and personal care products, is bolstering market growth. Manufacturers are increasingly focusing on product innovation and expanding their production capacities to cater to the escalating demand, thus propelling isopropyl alcohol market expansion.

Analyst's Review

The isopropyl alcohol market is expected to witness substantial growth in the coming years due to its versatility and the increasing focus on cleanliness and hygiene. Moreover, the market expansion in emerging regions with untapped potential has been facilitated by strategic initiatives from both established companies and new players.

Market Definition

The isopropyl alcohol (IPA) market encompasses the production, distribution, and consumption of this versatile chemical compound. Isopropyl alcohol, also known as rubbing alcohol, is a key ingredient in various industrial, pharmaceutical, cosmetic, and household applications. Its primary use as a solvent, disinfectant, and cleaning agent underscores its significance in healthcare, electronics manufacturing, and personal care sectors. The market's scope includes manufacturers, suppliers, wholesalers, and end-users from diverse industries worldwide. Factors influencing market dynamics include raw material availability, regulatory standards, technological advancements, and surging product uptake across key end-use sectors.

Isopropyl Alcohol Market Dynamics

The escalating demand from the healthcare sector serves as a primary factor driving the development of the isopropyl alcohol market. With the persistent global health concerns, the need for effective sanitization and disinfection solutions has surged. Isopropyl alcohol is used extensively in hospitals, clinics, and pharmaceutical manufacturing facilities due to its antiseptic properties. For instance, amid the COVID-19 pandemic, the demand for isopropyl alcohol-based sanitizers and disinfectants witnessed a substantial increase, thereby fueling market growth.

Moreover, the expanding electronics industry is another significant factor contributing to market growth. Isopropyl alcohol plays a crucial role in the production of electronic components and cleaning electronic devices due to its excellent solvent properties. As the demand for smartphones, laptops, and other electronic gadgets continues to rise globally, the need for isopropyl alcohol for cleaning purposes is expected to surge, thereby fueling market expansion. Additionally, the development of the cosmetics and personal care industry due to increasing awareness of consumers acts as a major factor for isopropyl alcohol market growth.

While experiencing significant growth, the market faces certain challenges such as the availability of substitute products offered at competitive prices. Alternatives such as ethyl alcohol, hydrogen peroxide, and quaternary ammonium compounds offer similar disinfection and cleaning properties, providing consumers with options beyond isopropyl alcohol. Intense competition among market players and price volatility of raw materials pose challenges to the global market. Price fluctuations in key raw materials such as propylene and natural gas can impact production costs, leading to pricing pressures and squeezed profit margins for manufacturers. Additionally, the presence of numerous regional and local players offering competitive pricing strategies is intensifying price competition.

Segmentation Analysis

The global market is segmented based on application, end-use, and geography.

By Application

Based on application, the market is further categorized into antiseptic & astringent, cleaning agent, solvent, chemical intermediate, and others. The Antiseptic & astringent application segment accounted for the largest market share of 34.63% in 2023 and is anticipated to experience the fastest CAGR of 6.17% over 2024-2031. The rising awareness of hygiene following the pandemic is fueling the demand for hand sanitizers and disinfectants. Similarly, healthcare facilities rely heavily on IPA for sterilization, while personal care products such as wipes and acne treatments leverage its cleansing properties.

Moreover, factors such as an aging population requiring more protection, expanding healthcare access in developing nations, and the emergence of innovative product formats such as spray sanitizers are likely to uphold this segment's dominance in the global market.

By End-User

Based on end-user, the isopropyl alcohol market is divided into cosmetics & personal care, pharmaceutical, food & beverages, paints & coatings, chemical, and others. The pharmaceutical segment dominated the market in 2023, garnering the highest revenue of USD 921.1 million in 2023. This dominance is mainly driven by the widespread use of isopropyl alcohol in pharmaceutical manufacturing processes,. This includes its use as a solvent for active pharmaceutical ingredients and as a disinfectant in cleanroom environments. The pharmaceutical industry's stringent hygiene standards and the increasing demand for sanitization solutions amid global health concerns further propelled the demand for isopropyl alcohol, solidifying its leading position in the market.

However, the segment is slated to record the fastest growth at a rate of 6.77% over 2024-2031 driven by significant uses of the product and the expansion of the cosmetics & personal care industry.

Isopropyl Alcohol Market Regional Analysis

Based on region, the global market is classified into North America, Europe, Asia-Pacific, MEA, and Latin America.

Isopropyl Alcohol Market Size & Share, By Region, 2023-2030

The Asia Pacific Isopropyl Alcohol Market share stood around 34.55% in 2022 in the global market, with a valuation of USD 956.3 million. This dominance can be attributed to several distinctive factors. The rapid industrialization and urbanization in countries such as China, India, and Southeast Asian nations have fueled the demand for isopropyl alcohol across various industries, including electronics, automotive, and pharmaceuticals. Moreover, increasing investments in healthcare infrastructure and rising awareness of hygiene and sanitation standards have bolstered the demand for isopropyl alcohol-based disinfectants and sanitizers in the region.

Furthermore, favorable government initiatives that promote the manufacturing sector and attract foreign investments have stimulated market growth. Additionally, the presence of a large consumer base and growing disposable incomes have augmented the demand for cosmetics, personal care products, and other sectors associated with the market. With Asia-Pacific positioned as a manufacturing hub for several industries and witnessing rapid economic development, the demand for isopropyl alcohol is expected to continue its upward trajectory in the region, solidifying its dominant position in the market. The region is estimated to grow at the fastest CAGR of 6.60% over 2024-2031.

North America accounted for the second-largest share of the market, generating a valuation of USD 786.2 million in 2023. The well-established pharmaceutical and healthcare sectors in countries such as the United States and Canada drive significant demand for isopropyl alcohol for manufacturing medications and disinfectants. Additionally, the market benefits from the strong presence of the automotive and electronics industries, as isopropyl alcohol is extensively used for cleaning and degreasing purposes in these sectors.

Moreover, stringent regulatory standards regarding hygiene and cleanliness in North America is boosting the steady demand for isopropyl alcohol-based sanitization products. The region's growing inclination towards technological advancements and innovation further fuels the adoption of isopropyl alcohol in various industrial applications. With a stable economic environment and a growing focus on maintaining high standards of cleanliness and hygiene, North America is poised to remain a major region in the global isopropyl alcohol market.

Competitive Landscape

The isopropyl alcohol market report will provide valuable insight with an emphasis on the fragmented nature of the industry. prominent players are focusing on several key business strategies such as partnerships, mergers and acquisitions, product innovations, and joint ventures to expand their product portfolio and increase their market shares across different regions. Manufacturers are adopting a range of strategic initiatives, including investments in R&D activities, the establishment of new manufacturing facilities, and supply chain optimization, to strengthen their market standing.

List of Key Companies in Isopropyl Alcohol Market

Key Industry Developments

  • December 2023 (Acquisition) - INEOS announced an agreement with LyondellBasell to purchase its Ethylene Oxide and Derivatives business, which includes the Bayport Underwood site in Texas. This acquisition encompasses the 420 kt Ethylene Oxide plant, the 375 kt Ethylene Glycols plant, and the 165kt Glycol Ethers plant, along with all associated third-party business on the site, for a total of USD 700 million.

The global Isopropyl Alcohol Market is segmented as:

By Application

  • Antiseptic & Astringent
  • Cleaning Agent
  • Solvent
  • Chemical Intermediate
  • Others

By End-Use

  • Cosmetics & Personal Care
  • Pharmaceutical
  • Food & Beverages
  • Paints & Coatings
  • Chemical
  • Others

By Region

  • North America
    • U.S.
    • Canada
    • Mexico
  • Europe
    • France
    • U.K.
    • Spain
    • Germany
    • Italy
    • Russia
    • Rest of Europe
  • Asia-Pacific
    • China
    • Japan
    • India
    • South Korea
    • Rest of Asia-Pacific
  • Middle East & Africa
    • GCC
    • North Africa
    • South Africa
    • Rest of Middle East & Africa
  • Latin America
    • Brazil
    • Argentina
    • Rest of Latin America.
  • Check Icon Additional Company Profiles
  • Check Icon Additional Countries
  • Check Icon Cross Segment Analysis
  • Check Icon Regional Market Dynamics
  • Check Icon Country-Level Trend Analysis
  • Check Icon Competitive Landscape Customization
  • Check Icon Extended Forecast Years
  • Check Icon Historical Data Up to 5 Years
Frequently Asked Questions (FAQ's)
The global market is projected to reach USD 4,254.3 million by 2031, growing at a CAGR of 5.72%% from 2024 to 2031.
The global market was valued at USD 2,767.7 million in 2023.
The major driving factor for the market growth is expanding pharmaceutical industry in developed as well as developing regions.
Top manufacturers of isopropyl alcohol are Exxon Mobil Corporation, Shell International B.V., Dow, LyondellBasell Industries Holdings B.V., Mitsui Chemicals, Inc., LCY GROUP, LG Chem, Tokyo Chemical Industry Co., Ltd., Eastman Chemical Company, Ecolab Inc., and others.
Asia-Pacific is the fastest growing region with the CAGR of 6.60% in the forecasted period (2024-2031) with the market value forecasted to reach at USD 1,570.3 million in 2031.
By application, oil & gas will hold the maximum share in the Isopropyl Alcohol market with the revenue value of USD 117.79 million in 2031.
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