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The isopropyl alcohol market is estimated to decline at a CAGR of 3.54% between 2022 and 2027. The size of the market is forecast to increase by USD 571.27 million. The growth of the market depends on several factors, including the high volume consumption of isopropyl alcohol in solvents, high demand from the US and China, and growing demand for isopropyl alcohol in the chemical industry.
This report extensively covers market segmentation by application (solvents, chemical intermediates, pharmaceuticals, and others), end-user (cosmetics and personal care, cleaning agent, food and beverages, and others), and geography (APAC, North America, Europe, South America, and Middle East and Africa). It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.
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The reports categorize the global isopropyl alcohol market as a part of the global specialty chemicals market. The parent global chemicals market covers companies engaged in the manufacturing of various types of products under organic and inorganic chemicals. Our research report has extensively covered external factors influencing the parent market growth during the forecast period.
The high volume consumption in solvents is notably driving the market growth, although factors such as volatility in crude oil prices may impede the market growth. Our researchers analyzed the data with 2022 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
Key Isopropyl Alcohol Market Driver
The high volume consumption of isopropyl alcohol in solvents is notably driving market growth. Owing to its excellent solvency properties, isopropyl alcohol is among the most widely used solvents. Isopropyl alcohol can be directly used in applications, including surface coatings, inks, pesticides, and herbicides formulations, resin production, disinfectants, and cleaning products. Among these applications, the coatings and ink industries are the major end-users of isopropyl alcohol in the market.
In addition, due to its low toxicity, less density, and low boiling point, it can be used to dilute essential oils. It is used for paint stripping in surface coatings and as an alcohol solvent in the manufacturing of paints and coatings. It is also used in hand sanitizers. The growing consumption of isopropyl alcohol in solvents is expected to impact the market positively during the forecast period.
Significant Isopropyl Alcohol Market Trend
Capacity expansions and new plants are the primary trends in the market. The market has been witnessing expansions in production capacities in the past few years. The growing demand for isopropyl alcohol-based consumer products, pharmaceuticals, and household cleaning products has compelled the producers to expand their production capacities.
The markets in China and India have developed at a rapid pace with the continuously increasing production capacities by producers. With the increasing demand and limited production capacity, end-use industries rely on imports. Therefore, more new production facilities and capacity expansion of the existing production facilities can be expected during the forecast period. Both the supply and consumption of isopropyl alcohol will continue to grow globally in the next decade.
Major Isopropyl Alcohol Market Challenge
The market is facing a challenge due to fluctuations in crude oil prices. Propylene, a petroleum derivative, is the major raw material for isopropyl alcohol production. Propylene, being a key chemical building block for various industrial products, is directly produced from oil or its derivatives, such as naphtha or liquefied petroleum gas. The decline in oil prices in recent years has compelled the players operating in the oil and gas industry to implement cost-cutting measures such as workforce layoffs. Thus, fluctuations in crude oil prices will hamper production capacity and raise the production cost of propylene, challenging market growth.
Despite the increase in Brent and WTI crude oil prices, the Energy Information Administration (EIA) is expecting a downward trend in the coming months. The supply and demand of isopropyl alcohol raw materials are directly affected by the volatility in crude oil prices due to the changing exchange rates, import/export levels, and cutting down production capacity. Thus, the prices of isopropyl alcohol vary in tandem with the prices of natural gas and crude oil. This may hamper the market during the forecast period.
Key Isopropyl Alcohol Market Customer Landscape
The report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Global Isopropyl Alcohol Market Customer Landscape
Vendors are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
Deepak Fertilisers and Petrochemicals Corp. Ltd. - The company offers isopropyl alcohol used in pharmaceuticals, agrochemicals, drugs and dye intermediates, and refining of precious metals. The chemical segment focuses on offering ammonia, methanol, dilute nitric acid, concentrated nitric acid, CO2, technical ammonium nitrate, isopropyl alcohol, propane, bulk, and specialty chemical.
The report also includes detailed analyses of the competitive landscape of the market and information about 15 market vendors, including:
Qualitative and quantitative analysis of vendors has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize vendors as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize vendors as dominant, leading, strong, tentative, and weak.
The market share growth of the solvents segment will be significant during the forecast period. Solvent applications of isopropyl alcohol include inks and processing solvents of natural products such as fats, gums, vegetables, animal oils, and waxes. It is used as a solvent in the manufacturing of cleaning and disinfectant solutions for various household and commercial uses. Isopropyl alcohol is the most commonly and widely used disinfectant in hospitals and households. Such wide application across industries will influence market growth.
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The solvents segment was valued at USD 1,215.78 million in 2017 and continued to grow until 2021. Hospitals use alcohol wipes and sanitizers made of isopropyl alcohol. Isopropyl alcohol is highly effective in eliminating pathogenic microbes, including bacteria, fungi, and viruses. Isopropyl alcohol has excellent solubility in water and is used for cleaning gauges in the aerospace industry. It can also be used as a flavor in food and soft drinks. Isopropyl alcohol is a major flavor component in lemon essence. The rapidly growing pharmaceutical, food and beverages, cosmetics and personal care, and chemicals industries will facilitate the growth of the market.
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APAC is estimated to contribute 51% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.
The growing petrochemical industry in APAC, particularly in China and India, is attracting new players and established manufacturers to expand or establish their manufacturing facilities in the region. China is the fastest-growing country with rising demand from the downstream construction and automobile industries. China is also the largest producer of isopropyl alcohol due to the presence of numerous local and regional vendors and the abundant availability of affordable labor and raw materials.
The outbreak of COVID-19 in the region hampered the growth of the regional isopropyl alcohol market. However, isopropyl alcohol manufacturing activities have been resumed thereby driving the production and subsequent sales of isopropyl alcohol in the region during the rest of the forecast period.
The report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027. The market has been segmented by Application (Solvents, Chemical intermediates, Pharmaceuticals, and Others), End-user (Cosmetics and personal care, Cleaning agent, Food and beverages, and Others), and Geography (APAC, North America, Europe, South America, and Middle East and Africa).
Isopropyl Alcohol Market Scope |
|
Report Coverage |
Details |
Page number |
178 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Decelerate at a CAGR of 3.54% |
Market growth 2023-2027 |
USD 571.27 million |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
3.75 |
Regional analysis |
APAC, North America, Europe, South America, and Middle East and Africa |
Performing market contribution |
APAC at 51% |
Key countries |
US, China, Japan, India, and Germany |
Competitive landscape |
Leading Vendors, Market Positioning of Vendors, Competitive Strategies, and Industry Risks |
Key companies profiled |
Deepak Fertilisers and Petrochemicals Corp. Ltd., ENEOS Holdings Inc, Exxon Mobil Corp., GJ Chemical, Greenfield Global Inc., Honeywell International Inc., INEOS Group Holdings SA, LCY Chemical Corp., LG Chem, LyondellBasell Industries NV, Mitsui Chemicals Inc., Penta s.r.o, Sasol Ltd., SEQENS GROUP, Shell plc, Soft Jamb Co., Spectrum Laboratory Products, Tokuyama Corp., Tokyo Chemical Industry Co. Ltd., and Vizag Chemical International |
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for the forecast period. |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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