Market Overview

The isopropyl alcohol market is expected to record a CAGR of over 3%, during the forecast period. The major factors driving the growth of the market studied are the increasing use of cosmetic and personal care products and the wide usage of IPA as cleaning agents. On the flip side, the availability of alternative ways for the production of acetone remains one of the major concerns for the studied market.

  • The chemical’s end-user industry dominated the market. It is likely to grow during the forecast period, owing to the rising demand for chemicals from various end-user industries.
  • The innovation of bio-based IPA is likely to provide opportunities for the studied market, during the forecast period.
  • Asia-Pacific dominated the global market, with huge demand generated from countries, such as China, India, and Japan.



Key Market Trends

Chemicals Segment to Dominate the Market Demand

  • The chemicals industry is the largest consumer of isopropyl alcohol, as it produces solvents, pigments, alcohol inks, and other intermediates.
  • The growth of the chemical industry is driven by the surging demand for chemicals from numerous industries, further driving production and investments in the sector.
  • Asia-Pacific has been witnessing new investments in the chemical industry, which may drive the consumption of isopropyl alcohol during the forecast period.
  • Various companies, such as Exxon Mobil, BASF SE, and LG Chem Ltd, have planned investments in the Asia-Pacific chemical industry.
  • Moreover, in the United States, growth in shale gas production has driven the growth of the chemical industry. Companies, like Covestro and Lotte Chemicals, have been investing in the country’s chemical industry. For instance, Covestro had planned an investment of USD 1.7 billion in Texas chemical plant, in October 2018.
  • Besides, the Middle East & African region has also been witnessing investments in the chemical industry.
  • Hence, such investments in the chemical industry are likely to drive the demand for isopropyl alcohol, in the coming years.



Asia-Pacific Region to Dominate the Market

  • The Asia-Pacific region dominated the global market share. The 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.
  • 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, for developing 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 also increasing in countries, such as the Philippines, Vietnam, and Indonesia.
  • Besides, countries, such as India, Indonesia, Malaysia, and Thailand, have been witnessing an increase in investment and production in the automotive industry.
  • Hence, with such trends in the construction and automotive industry, the paints and coatings industry has been witnessing strong demand in the region.
  • 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 is leading to an increased usage of cosmetic products by teenagers, increased awareness of being presentable, due to a growth in women’s employment, and hygiene awareness, owing to which, the production of such products has been increasing in the region.
  • The pharmaceutical industries in India, South Korea, and ASEAN countries are further witnessing huge investments from foreign countries, in order to exploit the market opportunities.
  • Hence, all such market trends are likely to drive the demand for isopropyl alcohol, over the forecast period.



Competitive Landscape

The isopropyl alcohol market is consolidated in nature, with few players accounting for a significant share of the market demand. Some of the major players in the market include BASF SE, Royal Dutch Shell Plc, Exxon Mobil Corporation, Dow, and LyondellBasell Industries Holdings BV, among others.

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