Isopropyl Alcohol (Ipa) Market - Growth, Trends, Covid-19 Impact, and Forecasts (2023 - 2028)

Isopropyl Alcohol (Ipa) Market - Growth, Trends, Covid-19 Impact, and Forecasts (2023 - 2028)

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.

Key Highlights

• 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.

Isopropyl Alcohol (IPA) Market TrendsPharmaceutical 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, 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.

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 (IPA) Market Competitive Analysis

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.

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support

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