Isopropyl Alcohol Market Size was valued at USD 3.50 Billion in 2023. The isopropyl alcohol industry is projected to grow from USD 3.78 Billion in 2024 to USD 6.58 Billion by 2032, exhibiting a compound annual growth rate (CAGR) of 7.16% during the forecast period (2024 - 2032). Increasing disposable incomes, population growth, rapid urbanization, economic growth, and changes in the lifestyle of consumers are the key market drivers enhancing market growth.
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
An increase in chemical production drives the isopropyl alcohol market. Isopropyl alcohol (IPA) is a key ingredient in the production of a variety of chemicals, such as acetone, glycerol, and isopropyl acetate, and is used as a solvent in the production of many other chemicals. The demand for isopropyl alcohol is largely influenced by the demand for the end-use products that it is used in, such as cleaning agents, personal care products, and pharmaceuticals, as well as in the production of chemicals. Therefore, an increase in chemical production can lead to increased demand for isopropyl alcohol. The growth of the chemical industry is driven by various factors such as economic growth, population growth, and increasing demand for various products, including plastics, resins, fertilizers, and pesticides. As the production of chemicals increases, the demand for solvents like isopropyl alcohol also increases, as it is an important component in many of these processes.
Overall, an increase in chemical production can be a factor that drives the isopropyl alcohol market, but it is important to consider the many other factors that can influence demand and supply in this industry. Therefore, such factors related to Isopropyl Alcohol have enhanced the Isopropyl Alcohol market CAGR across the globe in recent years.
The Isopropyl Alcohol Market segmentation, based on the production method, includes 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.
The Isopropyl Alcohol Market segmentation, based on application, includes Solvents, Cleaning Agent, Intermediate, Disinfectants and others. The solvents segment held the majority share in 2022 of the Isopropyl Alcohol Market revenue. This is because isopropyl alcohol is commonly used as a solvent in a wide range of industries, including pharmaceuticals, chemicals, and electronics. In the pharmaceutical industry, for example, isopropyl alcohol is used as a solvent in the production of drugs and other pharmaceutical products. It is also used as a solvent in the manufacture of coatings, paints, and inks in the chemical industry, and in the electronics industry, it is used as a cleaning agent for electronic components.
Based on end-use, the Isopropyl Alcohol Market segmentation includes Cosmetics & Personal Care, Pharmaceuticals, Paints & Coatings, Chemicals and others. The Pharmaceuticals segment dominated the market in 2022 and is projected to be the faster-growing segment during the forecast period, 2023-2030. 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.
Figure 2: Isopropyl Alcohol Market, by Production Method, 2022 & 2032 (USD Billion)
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
By region, the study provides market insights into North America, Europe, Asia-Pacific, and the Rest of the World. The Asia-Pacific region currently dominates the Isopropyl Alcohol Market. The region has a significant share of the market, with high demand from various industries, including pharmaceuticals, cosmetics and personal care, paints and coatings, and chemicals. The growth of the Asia-Pacific isopropyl alcohol market can be attributed to several factors, such as increasing demand for isopropyl alcohol in various industries, rapid industrialization, and growth in the pharmaceutical and chemical industries in countries such as China, India, and Japan. In addition, the Asia-Pacific region has a large population with increasing disposable income, which is leading to growth in demand for consumer goods, including cosmetics and personal care products. This is driving the demand for isopropyl alcohol in the region, as it is widely used as a solvent and disinfectant in the production of these products.
Further, the major countries studied in the market report are The U.S., Canada, Germany, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil
Figure 3: ISOPROPYL ALCOHOL MARKET SHARE BY REGION 2022 (%)
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
Europe’s Isopropyl Alcohol market accounts for the third-largest market share. Europe is home to several prominent pharmaceutical companies, and the region has a well-established pharmaceutical industry that is driving the growth of the isopropyl alcohol market. Isopropyl alcohol is a key ingredient in the production of various pharmaceutical products, including medicines, antibiotics, and vitamins. The cosmetics and personal care industry in Europe is also a significant consumer of isopropyl alcohol. Isopropyl alcohol is commonly used as a solvent and disinfectant in the production of cosmetics and personal care products, such as perfumes, lotions, and Isopropyl Alcohol.
North America, Isopropyl Alcohol market, is expected to grow at the fastest CAGR from 2023 to 2032. The market growth in North America can be attributed to several factors, such as the increasing demand from various end-use industries, including pharmaceuticals, cosmetics and personal care, and chemical manufacturing. The United States is a significant consumer of isopropyl alcohol, and the country's large pharmaceutical and chemical industries are driving the demand for isopropyl alcohol in the region. Isopropyl alcohol is used as a solvent and intermediate in the production of various chemicals, including solvents, coatings, and resins. It is also used as a disinfectant in pharmaceutical production facilities. Moreover, the U.S. Isopropyl Alcohol market held the largest market share, and the Canada Isopropyl Alcohol market was the fastest-growing market in the North American region.
Major market players are spending a lot of money on R&D to increase their product lines, which will help the Isopropyl Alcohol market grow even more. Market participants are also taking a range of strategic initiatives to grow their worldwide footprint, with key market developments such as new product launches, contractual agreements, mergers and acquisitions, increased investments, and collaboration with other organizations. Competitors in the Isopropyl Alcohol industry must offer cost-effective items to expand and survive in an increasingly competitive and rising market environment.
The major market players are investing a lot of money in R&D to expand their product lines, which will spur further market growth for Isopropyl Alcohol. With significant market development like new product releases, contractual agreements, mergers and acquisitions, increased investments, and collaboration with other organizations, market participants are also undertaking various strategic activities to expand their global presence. To grow and thrive in a market climate that is becoming more competitive and growing, competitors in the Isopropyl Alcohol industry must offer affordable products.
Manufacturing locally to cut operating costs is one of the main business tactics manufacturers use in the global Isopropyl Alcohol industry to benefit customers and expand the market sector. Major Isopropyl Alcohol market players, including 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 and Carboclor SA, and others, are attempting to increase market demand by funding R&D initiatives.
Exxon Mobil Corporation is one of the world's largest publicly traded international oil and gas companies. Exxon Mobil is engaged in a wide range of business activities, including the exploration, production, transportation, and sale of crude oil, natural gas, and petroleum products. The company's operations are organized into several business segments, including Upstream, Downstream, and Chemical. The Upstream segment is responsible for the exploration, development, and production of crude oil and natural gas. The Downstream segment is involved in the refining and marketing of petroleum products, such as gasoline, diesel, and aviation fuel. The Chemical segment is engaged in the manufacture and sale of petrochemicals, including olefins, polyolefins, aromatics, and various specialty products.
Royal Dutch Shell, commonly referred to as Shell, is a multinational oil and gas company. Shell is involved in all aspects of the oil and gas industry, including exploration, production, refining, and marketing. The company's operations are organized into four main business segments: Upstream, Integrated Gas, Chemicals, and Downstream. The Upstream segment is responsible for the exploration and production of crude oil and natural gas. The Integrated Gas segment is involved in the liquefied natural gas (LNG) and gas-to-liquids (GTL) businesses, as well as in the production and sale of gas and power. The Chemicals segment is responsible for the manufacture and sale of petrochemicals. The Downstream segment is involved in the refining and marketing of petroleum products, such as gasoline, diesel, and jet fuel, as well as in the production and marketing of lubricants and bitumen
April 2021: Mankind Pharma announced the introduction of a toilet seat disinfectant spray under the Safekind brand name.
September 2021: BASF unveils a line of catalysts that will help develop isopropyl alcohol more efficiently, with the latter being a major ingredient in hand sanitizers, which are experiencing massive demand during the novel coronavirus pandemic.
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.
| Report Attribute/Metric | Details |
| Market Size 2023 | USD 3.50 Billion |
| Market Size 2024 | USD 3.78 Billion |
| Market Size 2032 | USD 6.58 Billion |
| Compound Annual Growth Rate (CAGR) | 7.16% (2024-2032) |
| Base Year | 2023 |
| Market Forecast Period | 2024-2032 |
| Historical Data | 2018 & 2020 |
| Market Forecast Units | Value (USD Million) |
| Report Coverage | Revenue Forecast, Market Competitive Landscape, Growth Factors, and Trends |
| Segments Covered | Production Method, Application, End-Use, and Region |
| Geographies Covered | North America, Europe, Asia Pacific, and Rest of the World |
| Countries Covered | The U.S, Canada, Germany, France, UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil |
| Key Companies Profiled | 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 and Carboclor SA |
| Key Market Opportunities | ·        The advanced technologies in production empower the industry with higher yield rates and the production of high-purity grades |
| Key Market Dynamics | ·        Increasing disposable incomes, population growth, rapid urbanization, economic growth, and changes in the lifestyle of the consumers |
Isopropyl Alcohol Market Highlights:
Frequently Asked Questions (FAQ) :
The Isopropyl Alcohol Market size was valued at USD 3.50 Billion in 2023.
The global market is projected to grow at a CAGR of 7.16% during the forecast period, 2024-2030.
Asia Pacific had the largest share in the Isopropyl Alcohol Market.
The key players in the market are 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 and Carboclor SA.
The direct hydration category dominated the market in 2023.
Pharmaceuticals had the largest share in the global market for Isopropyl Alcohol.
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