Isopropyl Alcohol (IPA) Market - Growth, Trends, COVID-19 Impact, and Forecast (2022 - 2027)

The Isopropyl Alcohol (IPA) Market is Segmented by Application (Process and Preparation Solvent, Cleaning and Drying Agent, Coating and Dye Solvent, Intermediate, and Other Applications), End-user Industry (Cosmetic and Personal Care, Pharmaceutical, Electronics, Paints and Coatings, Chemical, and Other End-user Industries), and Geography (Asia-Pacific, North America, Europe, South America, and Middle-East and Africa). The report offers market size and forecast for isopropyl alcohol in terms of volume (kiloton) for the above segments.

Market Snapshot

isopropyl alcohol market size
Study Period: 2017-2027
Base Year: 2021
Fastest Growing Market: Asia Pacific
Largest Market: Asia Pacific
CAGR: >4.5 %
isopropyl alcohol companies

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Market Overview

The isopropyl alcohol market was valued at USD 2944 million in 2021, and it is expected to register a CAGR of more than 4.5% during the forecast period (2022-2027).

Due to the COVID-19 pandemic, production in various industries like chemicals and paints and coatings decreased. However, this decrease was compensated with the growth in the production of sanitizers.

  • In the medium term, the increasing use of cosmetic and personal care products and the wide usage of IPA as cleaning agents are likely to drive the market’s growth.
  • On the flip side, the availability of alternative ways to produce acetone remains one of the major concerns for the market.
  • Asia-Pacific dominated the market worldwide, with huge demand generated from China, India, and Japan.

Scope of the Report

Isopropyl alcohol (IPA) is an isomer of propyl alcohol with antibacterial properties. It is a clear, colorless liquid that is a major component of rubbing alcohol and regular household items, such as cleaners, disinfectants, and hand sanitizers. It can also be found in pharmaceuticals. The isopropyl alcohol market is segmented by application, end-user industry, and geography. The report also covers the market size and forecast for the isopropyl alcohol market in 15 countries across major regions. For each segment, the market sizing and forecasts have been done based on volume (kiloton).

Application
Process and Preparation Solvent
Cleaning and Drying Agent
Coating and Dye Solvent
Intermediate
Other Applications
End-user Industry
Cosmetics and Personal Care
Pharmaceutical
Electronics
Paints and Coatings
Chemicals
Other End-user Industries
Geography
Asia-Pacific
China
India
Japan
South Korea
Rest of Asia-Pacific
North America
United States
Canada
Mexico
Europe
Germany
United Kingdom
France
Italy
Rest of Europe
South America
Brazil
Argentina
Rest of South America
Middle-East and Africa
Saudi Arabia
South Africa
Rest of Middle-East and Africa

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Key Market Trends

Pharmaceutical Segment to Dominate the Market

  • The pharmaceutical segment is an end-user of isopropyl alcohol. Isopropyl alcohol of 70% concentration is used in alcohol swabs and wipes required for cleaning wounds. It is also found in hand sanitizers and ear drops. Oral mouthwash solutions also contain isopropyl alcohol in some quantity.
  • Isopropyl alcohol is also used in cleaning supplies. Generally, in the pharmaceutical industry, isopropyl alcohol can be used in small and safe quantities in capsule or tablet manufacturing processes. IPA is used in the formation of pharmaceutical intermediates using solvents.
  • The pharmaceuticals segment worldwide has been growing. The COVID-19 pandemic, which hampered many industries, had the exact opposite effect on the pharmaceutical segment.
  • Several countries, like India, the United States, and Germany, increased their expenditure on pharmaceuticals/medicines over the recent years, thus boosting the IPA market.
  • The increasing health concerns caused by the uncertainties of the COVID-19 pandemic have had a significantly positive impact on the pharmaceuticals segment of the market studied, which was especially reflected in the sales of hand sanitizers. This factor further boosted the demand for isopropyl alcohol.
  • Thus, based on the above-mentioned factors, the pharmaceutical segment is expected to dominate the market.
isopropyl alcohol market share

Asia-Pacific to Dominate the Market

  • The Asia-Pacific region dominated the overall market. Factors, such as the robust growth of the construction sector, investment in the chemical industry, increasing demand for cosmetic products, and increasing pharmaceutical products in the region, are expected to drive the growth of the isopropyl alcohol market.
  • Paints and coatings are majorly used in the construction and automotive industries. The Chinese government rolled out massive construction plans, including making provision for the movement of 250 million people to its new megacities, over the next 10 years.
  • The Indian government’s target of investing USD 120.5 billion to develop 27 industrial clusters is expected to boost commercial construction in the country. The government also planned to construct 100 new airports by 2032.
  • In addition, residential and commercial construction activities are increasing in the Philippines, Vietnam, and Indonesia.
  • Isopropyl alcohol is majorly employed in the personal care industry. The Asia-Pacific region is also registering strong growth in the demand for personal care and cosmetic products, majorly driven by the influence of western culture.
  • This factor is leading to an increased usage of cosmetic products by teenagers, increased desire to look presentable due to a growth in women's employment, and hygiene awareness. Thus, the production of such products has been increasing in the region.
  • The pharmaceutical industries in India, China, South Korea, and ASEAN countries are further witnessing huge investments from foreign countries to exploit the market opportunities.
  • China is the second-largest market for pharmaceuticals globally. The pharmaceutical sales of the country are expected to reach USD 175 billion by 2022.
  • The country has a large and diverse domestic drug industry, comprising around 5,000 manufacturers, of which many are small- or medium-sized companies. This factor is expected to boost the growth of IPA in the pharmaceutical industry.​
  • Hence, such market trends are likely to help Asia-Pacific dominate the overall market.
isopropyl alcohol market analysis

Competitive Landscape

The isopropyl alcohol (IPA) market is consolidated, with the top 10 companies accounting for over 74% of the global production. Some of the major players in the market (in no particular order) include Royal Dutch Shell PLC, INEOS, ExxonMobil Corporation, Dow, and Kailing Chemical (Zhangjiagang) Co. Ltd.

Recent Developments

  • Recent developments pertaining to the major players in the market are covered in the complete study.

Table of Contents

  1. 1. INTRODUCTION

    1. 1.1 Study Assumptions

    2. 1.2 Scope of the Study

  2. 2. RESEARCH METHODOLOGY

  3. 3. EXECUTIVE SUMMARY

  4. 4. MARKET DYNAMICS

    1. 4.1 Drivers

      1. 4.1.1 Growing Personal Care Industry

      2. 4.1.2 Wide Usage of IPA as Cleaning Agents

      3. 4.1.3 Growing Demand for IPA from the Pharmaceutical Industry for Sanitizer Production

    2. 4.2 Restraints

      1. 4.2.1 Alternative Ways Available for Production of Acetone

      2. 4.2.2 Other Restraints

    3. 4.3 Industry Value Chain Analysis

    4. 4.4 Porter's Five Forces Analysis

      1. 4.4.1 Bargaining Power of Suppliers

      2. 4.4.2 Bargaining Power of Consumers

      3. 4.4.3 Threat of New Entrants

      4. 4.4.4 Threat of Substitute Products and Services

      5. 4.4.5 Degree of Competition

    5. 4.5 Feedstock Analysis

    6. 4.6 Technological Snapshot

    7. 4.7 Trade Analysis

    8. 4.8 Price Trends

  5. 5. MARKET SEGMENTATION

    1. 5.1 Application

      1. 5.1.1 Process and Preparation Solvent

      2. 5.1.2 Cleaning and Drying Agent

      3. 5.1.3 Coating and Dye Solvent

      4. 5.1.4 Intermediate

      5. 5.1.5 Other Applications

    2. 5.2 End-user Industry

      1. 5.2.1 Cosmetics and Personal Care

      2. 5.2.2 Pharmaceutical

      3. 5.2.3 Electronics

      4. 5.2.4 Paints and Coatings

      5. 5.2.5 Chemicals

      6. 5.2.6 Other End-user Industries

    3. 5.3 Geography

      1. 5.3.1 Asia-Pacific

        1. 5.3.1.1 China

        2. 5.3.1.2 India

        3. 5.3.1.3 Japan

        4. 5.3.1.4 South Korea

        5. 5.3.1.5 Rest of Asia-Pacific

      2. 5.3.2 North America

        1. 5.3.2.1 United States

        2. 5.3.2.2 Canada

        3. 5.3.2.3 Mexico

      3. 5.3.3 Europe

        1. 5.3.3.1 Germany

        2. 5.3.3.2 United Kingdom

        3. 5.3.3.3 France

        4. 5.3.3.4 Italy

        5. 5.3.3.5 Rest of Europe

      4. 5.3.4 South America

        1. 5.3.4.1 Brazil

        2. 5.3.4.2 Argentina

        3. 5.3.4.3 Rest of South America

      5. 5.3.5 Middle-East and Africa

        1. 5.3.5.1 Saudi Arabia

        2. 5.3.5.2 South Africa

        3. 5.3.5.3 Rest of Middle-East and Africa

  6. 6. COMPETITIVE LANDSCAPE

    1. 6.1 Mergers and Acquisitions, Joint Ventures, Collaborations, and Agreements

    2. 6.2 Market Share Analysis

    3. 6.3 Strategies Adopted by Leading Players

    4. 6.4 Company Profiles

      1. 6.4.1 Dow

      2. 6.4.2 ExxonMobil Corporation

      3. 6.4.3 Kailing Chemical (Zhangjiagang) Co. Ltd

      4. 6.4.4 Ineos

      5. 6.4.5 LG Chem

      6. 6.4.6 Royal Dutch Shell PLC

      7. 6.4.7 Zhejiang Xinhua Chemical Co. Ltd

      8. 6.4.8 China National Petroleum Corporation

      9. 6.4.9 LCY GROUP

      10. 6.4.10 Yancheng Super Chemical Technology Co. Ltd

      11. 6.4.11 Mitsui Chemicals Inc.

      12. 6.4.12 ENEOS Corporation

    5. *List Not Exhaustive
  7. 7. MARKET OPPORTUNITIES AND FUTURE TRENDS

    1. 7.1 Innovation in Bio-based Isopropyl Alcohol

**Subject to Availability

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Frequently Asked Questions

The Isopropyl Alcohol (IPA) Market market is studied from 2017 - 2027.

The Isopropyl Alcohol (IPA) Market is growing at a CAGR of >4.5% over the next 5 years.

Asia Pacific is growing at the highest CAGR over 2021- 2026.

Asia Pacific holds highest share in 2021.

Dow, INEOS, Royal Dutch Shell PLC, ExxonMobil Corporation, Kailing Chemical (Zhangjiagang) Co. Ltd are the major companies operating in Isopropyl Alcohol (IPA) Market.

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