Isopropyl Alcohol Market Analysis and Global Forecast 2023-2033

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Isopropyl Alcohol Market Overview

The Isopropyl Alcohol Market size accounted for USD 2.74 Billion in 2023 and is estimated to account for 3.05 Billion in 2024. The Market is expected to reach USD 5.98 Billion by 2034 growing at a compound annual growth rate (CAGR) of 4.80% from 2024 to 2034. Isopropyl Alcohol (IPA) is a colorless, volatile, and flammable chemical compound widely used as a solvent and cleaning agent in various industries. It is also known as isopropanol or 2-propanol and is commonly found in disinfectants, hand sanitizers, pharmaceuticals, cosmetics, and industrial applications. IPA is crucial in pharmaceutical manufacturing as a solvent and intermediate, driving market growth alongside the expanding pharmaceutical sector.

The isopropyl alcohol market is experiencing steady growth driven by its versatile applications across multiple sectors. IPA’s use in cosmetics and personal care products as a solvent and antiseptic contributes to market expansion.

Global Isopropyl Alcohol Market Synopsis

Isopropyl Alcohol Market Dynamics

The major factors that have impacted the growth of Isopropyl Alcohol Market are as follows:

Drivers:

Ø  Rising Demand for Disinfectants & Sanitizers

IPA is a key ingredient in hand sanitizers, surface disinfectants, and antiseptics, making it essential in healthcare and personal hygiene. Post-pandemic awareness has sustained high demand for IPA-based cleaning products in homes, hospitals, and industries and high demand from institutional and household cleaning industries. IPA is widely used in the pharmaceutical sector as a solvent, antiseptic, and disinfectant. Growing investments in healthcare infrastructure and hospital facilities boost IPA demand.

Restraint:

• Fluctuating Raw Material Prices and Safety Concerns

IPA is primarily produced from propylene, which is derived from crude oil and natural gas. Volatility in crude oil prices directly impacts production costs, making IPA prices unstable. Supply chain disruptions can lead to raw material shortages, affecting market supply. IPA is highly flammable and requires strict storage and handling measures and exposure to high concentrations can cause health hazards, including respiratory issues, skin irritation, and dizziness.

Opportunity:

⮚     Rising Adoption of Bio-Based & Sustainable IPA

The demand for eco-friendly solvents is increasing due to environmental regulations on VOC emissions. Bio-based IPA, produced from renewable sources like corn, biomass, and sugarcane, is gaining traction. Companies investing in green chemistry can capitalize on sustainability trends and reduce dependency on crude oil-based IPA. IPA is a crucial solvent for paints, coatings, lubricants, and adhesives in the automotive & industrial sector. The growth of electric vehicles (EVs) and automotive coatings is expanding IPA applications and industrial cleaning solutions using IPA are seeing increased adoption in factories, machinery maintenance, and manufacturing plants.

Isopropyl Alcohol Market Segment Overview

By Production Method

Based on Production Method, the market is segmented based on Indirect Hydration and Direct Hydration. The direct hydration method also allows for greater control over the quality of the end product, as well as more efficient production processes. These factors have contributed to the increasing adoption of direct hydration by isopropyl alcohol manufacturers, particularly in regions such as Asia Pacific, where demand for the chemical is high.

By Application

Based on Application, the market segment has been divided into Solvents, Cleaning Agent, Intermediate, Disinfectants and others. The solvents segment dominant the market. This is because isopropyl alcohol is commonly used as a solvent in a wide range of industries, including pharmaceuticals, chemicals, and electronics.

By End Use

Based on End Use, the market segment has been divided into the Indirect Cosmetics & Personal Care, Pharmaceuticals, Paints & Coatings, Chemicals and others. The Pharmaceuticals segment dominated the market. This is because isopropyl alcohol is widely used as an intermediate in the production of various drugs and pharmaceutical products. It is also used as a solvent and cleaning agent in the pharmaceutical industry. These all factors for Isopropyl Alcohol positively impact the market growth.

Global Isopropyl Alcohol Market Regional Analysis

Based on region, the global Isopropyl Alcohol Market has been divided into North America, Europe, Asia-Pacific, the Middle East & Africa, and Latin America. North America is projected to dominate the use of the Isopropyl Alcohol Market followed by the Asia-Pacific and Europe regions.

North America Global Isopropyl Alcohol Market

North America holds a dominant position in the Isopropyl Alcohol Market. North America holds a significant share in the IPA market due to its well-established healthcare sector and high demand for disinfectants, especially after the COVID-19 pandemic. The U.S. is the largest consumer, driven by pharmaceutical, personal care, and industrial applications. Strong pharmaceutical and chemical industries contribute to market growth and established chemical manufacturing sector.

Asia-Pacific Global Isopropyl Alcohol Market

The Asia-Pacific region has indeed emerged as the fastest-growing market for the Isopropyl Alcohol Market industry. Asia-Pacific is the fastest-growing and largest regional market due to rapid industrialization, increasing healthcare investments, and rising demand for electronics cleaning applications. China, India, Japan, and South Korea are major IPA consumers and increased awareness of hygiene and sanitation has further boosted IPA consumption.

Competitive Landscape

The global Isopropyl Alcohol Market is highly competitive, with numerous players offering a wide range of software solutions. The competitive landscape is characterized by the presence of established companies, as well as emerging startups and niche players. To increase their market position and attract a wide consumer base, the businesses are employing various strategies, such as product launches, and strategic alliances.

Prominent Players:

• Exxon Mobil Corporation
• Royal Dutch Shell Plc
• The Dow Chemical Company
• China Petroleum & Chemical Corporation
• Mitsubishi Chemical Corporation
• Mankind Pharma
• BASF
• Jiangsu Denoir Technology Co. Ltd
• Avantor Inc
• INEOS Enterprises

Key Development

• In March 2023, BASF announced that it would be increasing its production of isopropyl alcohol by 20% in response to the growing demand for the product.
• April 2023, Eastman Chemical Company announced that it would be investing $100 million in a new isopropyl alcohol production facility in the United States.

Scope of the Report

Global Isopropyl Alcohol Market, by Production Method

• Indirect Hydration
• Direct Hydration

Global Isopropyl Alcohol Market, by Application

• Solvents
• Cleaning Agent
• Intermediate
• Disinfectants
• Other

Global Isopropyl Alcohol Market, by End Use

• Cosmetics & Personal Care
• Pharmaceuticals
• Paints & Coatings
• Chemicals
• Other

Global Isopropyl Alcohol Market, by Region

• North America
  • US
  • Canada
  • Mexico
• Europe
  • UK
  • Germany
  • France
  • Italy
  • Spain
  • Benelux
  • Nordic
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • South Korea
  • Indonesia
  • Austalia
  • Malaysia
  • India
  • Rest of Asia Pacific
• South America
  • Brazil
  • Argentina
  • Rest of SouthAmerica
• Middle East &Africa
  • Saudi Arabia
  • UAE
  • Egypt
  • SouthAfrica
  • Rest of Middle East & Africa

 

Parameters	Indicators
Market Size	2033: USD 5.98 Billion
CAGR (2023-2033)	4.80%
Base year	2022
Forecast Period	2023-2033
Historical Data	2021 (2017 to 2020 On Demand)
Report Coverage	Revenue Forecast, Competitive Landscape, Growth Factors, and Trends
Key Segmentations	Production Method, Application, End Use
Geographies Covered	North America, Europe, Asia-Pacific, South America, Middle East, Africa
Key Vendors	Exxon Mobil Corporation, Royal Dutch Shell Plc, The Dow Chemical Company, China Petroleum & Chemical Corporation, Mitsubishi Chemical Corporation, Mankind Pharma, BASF, Jiangsu Denoir Technology Co. Ltd, Avantor Inc and INEOS Enterprises.
Key Market Opportunities	·       Rising Adoption of Bio-Based & Sustainable IPA ·       Increasing Demand in the Automotive & Industrial Sector
Key Market Drivers	·       Rising Demand for Disinfectants & Sanitizers ·       Growth in the Pharmaceutical & Healthcare Industry

 

REPORT CONTENT BRIEF:

• High-level analysis of the current and future Isopropyl Alcohol Market trends and opportunities
• Detailed analysis of current market drivers, restraining factors, and opportunities in the future
• Isopropyl Alcohol Market historical market size for the year 2021, and forecast from 2023 to 2033
• Isopropyl Alcohol Market share analysis at each product level
• Competitor analysis with detailed insight into its product segment, Government & Defense strength, and strategies adopted.
• Identifies key strategies adopted including product launches and developments, mergers and acquisitions, joint ventures, collaborations, and partnerships as well as funding taken and investment done, among others.
• To identify and understand the various factors involved in the global Isopropyl Alcohol Market affected by the pandemic
• To provide a detailed insight into the major companies operating in the market. The profiling will include the Government & Defense health of the company’s past 2-3 years with segmental and regional revenue breakup, product offering, recent developments, SWOT analysis, and key strategies.

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