Isopropanol Market Size:
The isopropanol market is expected to show steady growth in the forecasted timeframe.
Isopropanol (IPA), usually made from water hydrating propylene, is a common solvent and disinfectant with more than 1 million tonnes produced annually. It has multiple applications for the pharmaceuticals, personal care, electronics, and cleaning sectors. The demand skyrocketed for sanitisers that had approximately 70% IPA. The environmental concerns related to IPA and VOC regulations continue to drive investments in IPA recovery and production from bio-based feedstock. The largest share of the IPA market resides in the Asia Pacific region, driven primarily by electronics in China, India, Japan, and South Korea, but there is also growth in the pharmaceuticals and hygiene sectors.
Isopropanol Market Overview
| Report Metric |
Details |
| Study Period |
2021 to 2031 |
| Historical Data |
2021 to 2024 |
| Base Year |
2025 |
| Forecast Period |
2026 – 2031 |
& Scope:
The isopropanol market is segmented by:
- By Grade: IPA is segmented by grade into Pharmaceutical, Industrial, Cosmetic, Electronic, and others. Pharmaceutical-grade isopropanol is produced under the FDA or USP standards. Pharmaceutical-grade isopropanol is a very important component of the drug formulation processes, in hand sanitisers, and medical swabs. Industrial-grade isopropanol is utilised for routine cleaning purposes such as degreasing parts in the manufacturing environment. Cosmetic-grade isopropanol is utilised in products such as deodorants and disinfectant sprays, while electronic-grade isopropanol is used to clean PCBs and semiconductors and is an ultra-high purity form of isopropanol. There are no specifications between industrial, cosmetic, and pharmaceutical-grade isopropanol according to purity, but the purity specifications do differentiate the markets. The IHS Chemical report outlined some potential applications for recoveries and also indicated high consumer demand for high-purity isopropanol in the higher-end electronics markets.
- By Application: Applications include Solvents, Disinfectants & Antiseptics, Chemical Intermediates, Cleaning Agents, and more. IPA is a key solvent for coatings, adhesives, and plasticisers, while its antiseptic (70% IPA is optimal ), also makes some of IPA’s most useful applications around hand sanitisers and surface disinfectants. IPA can be used as a chemical intermediate for acetone, MIBK, and glycerol. Industrial-grade IPA is still used to clean oil and grease on mechanical parts and as well as in labs. Disinfection is still quite strong since the pandemic, while the other benefits as solvent uses in electronics and pharmaceuticals, help provide stability with IPA.
- By End-Use Industry: Key industries include Pharmaceutical & Healthcare, Chemicals, Personal Care & Cosmetics, Electronics, and others. IPA is used in pharmacy as the solvent for synthesis, for cleaning, and as medical-grade sanitising, and is used in the chemicals sector as a precursor for other solvents. The personal care sector uses IPA in deodorants, disinfectants, and wipes. The electronics sector uses high-purity IPA to clean printed circuit boards and semiconductor wafers. Other industries include automotive cleaning and additives to fuels. With the breadth of potential uses from manufacturing to hygiene, it is expected that IPA will continue to be in high demand.
- Region: Geographically, the market is expanding at varying rates depending on the location. Asia-Pacific has a high demand for IPA due to the size of the electronics and pharmaceutical industries in China, growth in healthcare in India, and the requirements of ultra-pure IPA in Japan and South Korea. Some of these countries are scaling up domestic production and reducing the import of IPA (China), while other countries (India) have rapidly expanded hospitals, infrastructure, and sanitiser use to establish regional dominance.
Top Trends Shaping the Isopropanol Market:
1. Surge in Hand Sanitiser & Disinfectant Demand
- The demand for 70% formulations of IPA is expected to surge as surface disinfectants and hand sanitisers. While demand has normalised, demand for hand sanitisers and surface disinfectants will continue to be used by both the healthcare sector and consumers, as continued awareness has formed new health and hygiene habits.
2. Shift to High Purity & Recycled IPA
- The electronics and advanced manufacturing sectors require ultra-pure IPA, and the recycling systems can lower costs and VOC emissions. There are many investments being made by producers in the purification and recovery of solvents.
Isopropanol Market Growth Drivers vs. Challenges:
Drivers:
- Expanding Pharmaceutical & Healthcare Applications: The pharmaceutical industry utilises IPA for numerous purposes, for example, API synthesis, equipment sanitisation, and cleaning procedures. IPA demand remains high post-pandemic due to increased demand for sanitised healthcare environments and increased production of vaccines, biologics, and generic drugs. As hospital infrastructure continues to develop in Asia and Latin America, the need for assurance of access to high-purity IPA remains critical. Regulatory scrutiny concerning the specification of solvents, often including high-purity IPA, continues to grow. Pharmaceutical manufacturers require IPA with certifications detailing its purity compliant with rules and regulations, placing a greater demand for IPA categorised as 'pharmaceutical grade.'
- Electronics & PCB Cleaning Requirements. IPA serves an important role in semiconductor and PCB manufacturing for the removal of contaminants preceding assembly. Asian-Pacific countries are witnessing a rapid increase in electronics production, and ongoing miniaturisation and cleanroom standards use continue driving up demand for and grade quality of electronic-grade IPA. China and India are expanding their domestic production capacities for solvent-grade IPA needed for the electronics construction process, which minimizes the risk associated with imports. Future sub-nm nodes achieved by fabs continue to elevate cleaning precision and drive up standards of equipment-grade purity across IPA and all solvents.
Challenges:
- Volatile Feedstock & Price Dynamics: IPA production is contingent upon price volatility in propylene and acetone-based feedstock markets. Crude oil fluctuations ultimately affect the market, which creates uncertainty around costs of production and end-user pricing. Volatility creates a challenge for producers, as it directly correlates to profitability.
- Regulatory & Environmental Constraints: IPA is flammable and within VOC limits; with the EPA, REACH, and regional laws constraining production capacity, with related costs of compliance. Producers are forced to invest in solvent recovery systems and green chemistry.
Isopropanol Market Regional Analysis:
- North America: North America is a mature but stable isopropanol market, with continued demand driven by strong sectors including pharmaceuticals, personal care, and industrial cleaning. The U.S. is the predominant isopropanol consumer in the region, owing to its demand for an established healthcare system, a strong commitment to the highest hygiene standards, and a robust chemical production sector domestically.
- North America’s chemical production sector supports isopropanol manufacturing, with companies like Dow Chemical and LyondellBasell investing in sustainable production methods to meet environmental regulations. The region’s focus on industrial cleaning, particularly in manufacturing and hospitality, further boosts isopropanol use due to its antimicrobial properties.
Globally, the Asia-Pacific, led by China and India, is a fast-growing market due to industrial expansion, while Europe emphasizes sustainable chemicals. South America, and Middle East and Africa are emerging markets. Challenges like raw material costs persist, but technological advancements mitigate these issues. The isopropanol market thrives on healthcare demands, hygiene standards, and industrial applications, with North America leading due to its robust infrastructure and consumer needs.
Isopropanol Market Segmentation:
By Grade
- Pharmaceutical Grade
- Industrial Grade
- Cosmetic Grade
- Electronic Grade
- Others
By Application
- Solvents
- Disinfectants & Antiseptics
- Chemical Intermediates
- Cleaning Agents
- Others
By End-Use Industry
- Pharmaceutical & Healthcare
- Chemicals
- Personal Care & Cosmetics
- Electronics
- Others
By Geography
- North America
- Europe
- Asia Pacific
- South America
- Middle East & Africa