Isopropyl Alcohol Market is forecast to reach $4.87 billion by 2025, after growing at a CAGR of 4.02% during 2020-2025. The growing demand for consumer products, pharmaceuticals and household cleaning products based on isopropyl alcohol has driven manufacturers to expand production capacity. High volume consumption in solvents combined with capacity growth and new plants will drive growth on the market for isopropyl alcohol during forecast period.
- The isopropyl alcohol industry is the biggest consumer for the chemical industry for Production of solvents, pigments, alcohol inks, detergents and other intermediate products.
- New investment in the chemical industry has been noted in Asia-Pacific, which is expected to increase isopropyl alcohol market over the forecast period.
- The expansion of the capacity and installation of new plants is a key market trend.
Application – Segment Analysis
Intermediate segment held the largest share in the Isopropyl Alcohol Market in 2018 Currently, isopropyl alcohol is mostly used to manufacture industrial compounds including acetone, glycerol, isopropyl acetate and methyl isobutyl ketone (MIBK), as an intermediate in the process.
End-user Industry – Segment Analysis
Chemicals Segment has been the primary market for Isopropyl Alcohol for many years at a CAGR of 3.02%.Growth in shale gas production in the United States has accelerated growth in the country’s chemical industry. The investment in the country’s chemical industry was by companies like Covestro and Lotte Chemicals. For example, in October 2018 Covestro announced USD 1.7 billion in investment at Texas chemical plant. In coming years, this investment in the chemical industry will therefore probably drive the market for isopropyl alcohol.
Geography- Segment Analysis
APAC dominated the Isopropyl Alcohol Market with a share of more than 38%, followed by North America and Europe. Due, to the demand for personal care and cosmetics, driven primarily by the influence of the West, is growing strongly in the Asia-Pacific region. This leads to the increased use of cosmetics by women, increased awareness that it is possible to present due to the increased employment of women and the awareness of hygiene, which has increased the production of such products in the region.
Drivers –Isopropyl Alcohol Market
- Increasing Usage in the automobile Sector
The global automotive market is growing rapidly, thus increasing the need for isopropyl alcohol. In disinfectants, which include hand sanitizers, surface cleanings and clinical instruments, the compound is used in combination either with ethyl alcohol or N-propyl alcohol. The growth in the economy, the growing awareness of hygiene and the growth of the automotive industry in this area is rising the demand for isopropyl alcohol in developing countries. Isopropyl alcohol have no significant side effects and therefore, particularly in North American and European countries, there are no strict rules against their use.
Challenges – Isopropyl Alcohol Market
- Availability of alternate methods
Acetone, it can dissolve other substances, such as plastic usually, it is made of isopropyl alcohol, but it has different properties that make it a solvent and has more advantages like long exposure, acetone fumes are quite toxic. Thus, hamper the growth of Isopropyl Alcohol Market.
In 2018, the market of Isopropyl Alcoholhas been consolidated by the top five players accounting for xx% of the share. Major players in the Isopropyl Alcohol Market are BASF SE, Royal Dutch Shell Plc., Exxon Mobil Corporation, Dow, and Lyondellbasell Industries Holdings B.V., among others.
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