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The isopropyl alcohol market size is forecast to increase by USD 571.27 million, at a CAGR of 3.54% between 2022 and 2027. The market growth hinges on various factors, notably the widespread use of isopropyl alcohol as a solvent, particularly in high-volume consumption sectors. Strong demand from key markets such as the US and China further propels market expansion. Additionally, the chemical industry's increasing need for isopropyl alcohol contributes significantly to its growth trajectory. These factors collectively underscore the pivotal role played by isopropyl alcohol across diverse industries, driving its demand and market expansion.
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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.
The market is driven by its versatility across various industries like pharmaceuticals, healthcare, and cosmetics. Growing demand for infection protection products and sanitizers fuels market growth, especially in the wake of health concerns. Increased pharmaceutical sales and the rising need for high-purity IPA for capsule and tablet manufacturing processes contribute to market expansion. However, challenges such as fluctuations in raw material prices and environmental regulations pose constraints. Despite these challenges, ongoing innovations in bio-based IPA and its applications in commercial and housing construction activities offer promising opportunities for market players. 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.
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.
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.
Moreover, 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.
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.
However, 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.
The market forecasting report includes the adoption lifecycle of the market research and growth, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the market research report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth and forecasting strategies.
Customer Landscape
Companies 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 companies, including:
Qualitative and quantitative analysis of Companies 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 Companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize Companies 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 1.21 billion 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 market 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 Companies and the abundant availability of affordable labor and raw materials.
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 Isopropyl Alcohol (IPA) market is a dynamic sector with extensive applications across various industries. From pharmaceuticals to electronics, IPA serves as a vital solvent and cleaning agent. It finds usage in capsule and tablet manufacturing processes, as well as in cosmetic and personal care products. Bio-based IPA presents an eco-friendly alternative, catering to the rising demand for sustainable solutions. In the healthcare sector, IPA is utilized in medical supplies and sanitizer production, contributing to infection control. The construction industry utilizes IPA in commercial and housing projects, while the electronics and semiconductor markets rely on its cleaning properties. With ongoing innovations and increasing expenditure on pharmaceuticals/medicines, the IPA industry is poised for growth, despite facing challenges such as fluctuating raw material prices and stringent regulations in the pharmaceutical segment. Further, the market is integral to various sectors including pharmaceuticals, electronics, and construction. It serves as a key ingredient in cleaning agents, ear drops, and oral mouthwash solutions. With applications in capsule or tablet manufacturing processes and semiconductor production, IPA plays a crucial role in innovation and industrial processes. The demand for bio-based IPA is rising due to environmental concerns and innovation in alternative solvents.
Additionally, IPA is extensively used in commercial and housing construction activities as well as in healthcare settings for sanitation purposes. Its versatility extends to the cosmetics and paints industries, making it a vital component in numerous products and applications. The market is pivotal in various industries such as pharmaceuticals, electronics, and construction. IPA serves as a critical component in cleaning supplies, pharmaceutical intermediates, and coatings industries. It plays a significant role in capsule and tablet manufacturing processes, semiconductor production, and as a cleaning and drying agent. The demand for IPA in commercial and housing construction activities is driven by its use as a solvent and cleaning agent. Additionally, IPA finds extensive applications in healthcare market settings for sterilization and as alcohol swabs. The industry is witnessing innovation with the introduction of bio-based isopropyl alcohol and specialty polymers, catering to environmental concerns and evolving industrial market needs. With its versatility and indispensable role across multiple sectors, the industrial isopropyl alcohol market continues to thrive and adapt to changing demands.
Additionally, IPA is indispensable in commercial and housing construction activities, contributing to its demand in the commercial construction and housing construction activity sectors. With its versatile applications and vital role in multiple industries, the market remains essential for industrial clusters and the semiconductor market, highlighting its significance in various sectors of the economy, including airports and alternative ways. The Isopropyl Alcohol (IPA) Industry Overview in various industries such as pharmaceuticals, electronics, and manufacturing processes of capsules or tablets. It serves as a vital solvent in the pharmaceutical industry and as a process and preparation solvent in various manufacturing processes. With its intermediate properties, IPA contributes significantly to the electronics industry, where it is utilized in cleaning and preparation processes. Additionally, IPA plays a crucial role in the paints and coatings industries, where it is utilized as a solvent. With promising prospects in the medium term, IPA's applications in cosmetic and pharmaceutical products continue to drive its demand. The industrial isopropyl alcohol market's dynamics are heavily influenced by the healthcare market's needs and the diverse range of applications across different sectors.
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 Companies, Market Positioning of Companies, 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 growth 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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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Application
7 Market Segmentation by End-user
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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