Global Market Size, Forecast, and Trend Highlights Over 2025-2037
Isopropyl Alcohol Market size was USD 3.4 billion in 2024 and is estimated to reach USD 6.2 billion by the end of 2037, expanding at a CAGR of 4.9% during the forecast period, i.e., 2025-2037. In 2025, the industry size of isopropyl alcohol is assessed at USD 3.5 billion.
The swiftly increasing industrial activities across the world are driving high demand for isopropyl alcohol (IPA). The expanding applications of IPA in pharmaceuticals, electronics, detergents & surfactants, sanitizers, paints, chemical intermediates, and beauty & personal care are offering lucrative gains to key market players. Current innovations in manufacturing methods and characteristics of isopropyl alcohol are set to offer double-digit percent revenue growth opportunities to manufacturers. Rapid infrastructure development actions in both developed and developing economies are spurring the applications of isopropyl alcohol in paints & coatings and other building materials. The growing demand for paints & coatings in the automotive and electronics sectors is further set to augment the consumption of isopropyl alcohol. For instance, the global paints & coatings market size is estimated to be valued at USD 183.21 billion in 2025.
The analysis by the Observatory of Economic Complexity (OEC) highlights that the world trade of propyl alcohol and isopropyl alcohol stood at USD 1.54 billion in 2023. The export and import trade of propyl alcohol and isopropyl alcohol were mainly concentrated in the U.S. The cleaning and sterilizing properties of propyl alcohol and isopropyl alcohol are backing their sales growth. During the same period, the largest import trade value of propyl alcohol and isopropyl alcohol were in India (USD 106.0 million), Mexico (USD 73.0 million), Spain (USD 46.2 million), Belgium (USD 45.3 million), and Singapore (USD 40.6 million). The export trade dominated by 13 countries represented a market concentration of 3.73, measured using Shannon Entropy.
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Propyl Alcohol and Isopropyl Alcohol |
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Country |
Export Value in USD Million |
Country |
Import Value in USD Million |
|
U.S. |
345 |
U.S. |
128 |
|
China |
189 |
Belgium |
124 |
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South Africa |
142 |
India |
114 |
|
Netherlands |
126 |
China |
90.7 |
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Chinese Taipei |
123 |
Germany |
76.3 |
Source: OEC
Isopropyl Alcohol Sector: Growth Drivers and Challenges
Growth Drivers
- Electronics manufacturing offering higher returns: The robust sales of electronics are representing a lucrative environment for isopropyl alcohol manufacturers. isopropyl alcohol finds vital importance in the electronics sector for cleaning purposes. Continuous technological advancements aimed at developing advanced smartphones, laptops, and wearable solutions require the integration of circuit boards, displays, and other critical components, which need to be cleaned using innovative chemicals such as isopropyl alcohol, contributing to the overall isopropyl alcohol market growth. Expanding at a CAGR of 5.9%, the global electronics chemicals and materials market is projected to be valued at USD 63.7 billion in 2025.
- Versatile applications in medical products: Isopropyl alcohol is finding high importance in the healthcare and pharmaceutical field owing to its sanitizing, sterilizing, and solvent properties. Increasing demand for advanced materials in the compounding and manufacturing of drugs is fueling the sales of isopropyl alcohol solutions. The healthy rise in the adoption of medical wipes, disinfectants, and antibacterial products is strongly promoting the sales of isopropyl alcohol. The disinfectant chemicals market is estimated to register a high 9.2% CAGR between 2025 to 2037. Furthermore, the market size of pharmaceutical solvents is foreseen to be calculated at USD 7.12 billion by 2037.
Challenges
- Compliance with strict regulations: Isopropyl alcohol is considered to be safe when used in a set quantity, however excess exposure to IPA or long-term use leads to several health issues. Also, IPA classified as a flammable substance requires to be handled, stored, and transported carefully. Stringent workplace safety regulations on the storage and handling of isopropyl alcohol increase operational costs and challenge the revenue growth of manufacturers. Thus, compliance with strict regulations is poised to increase capital investment and hinder the profit margins to some extent.
- Fluctuations in raw material prices increase the cost of IPA: Isopropyl alcohol derived from propylene a byproduct of petroleum refining often witnesses fluctuations in raw material prices. Supply chain disruptions owing to high prices of raw materials or market instability increase the cost of the final IPA product. This affects the profitability of key market players and necessitates them to focus on strategic tactics. Collaboration with raw material suppliers and partnerships with other players are estimated to aid industry giants in overcoming these issues.
Isopropyl Alcohol Market: Key Insights
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Base Year |
2024 |
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Forecast Year |
2025-2037 |
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CAGR |
4.9% |
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Base Year Market Size (2024) |
USD 3.4 billion |
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Forecast Year Market Size (2037) |
USD 6.2 billion |
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Regional Scope |
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Isopropyl Alcohol Segmentation
Application (Process & Preparation Solvents, Cleaning & Drying Agents, Coating & Dye Solvents, Intermediates, Others)
The process & preparation solvents segment is poised to capture 33.3% of the global isopropyl alcohol market share by 2037. The positive growth in industrialization across the world is likely to offer higher gains to isopropyl alcohol manufacturers. The isopropyl alcohol’s solvent and degreaser properties are uplifting its importance as a critical ingredient in manufacturing processes across industries such as automotive and textiles. The United Nations Industrial Development Organization (UNIDO) states that in the industrial sector, manufacturing captured 78.5% of the value added in 2022. Furthermore, manufacturing was responsible for about 3 quarters or nearly USD 15.0 trillion of total industry.
End use Industry (Cosmetics & Personal Care, Pharmaceuticals, Electronics, Paints & Coatings, Chemicals, Others)
By 2037, cosmetics & personal care segment is expected to dominate over 32.9% isopropyl alcohol market share. Isopropyl alcohol is widely demanded by cosmetics and personal care manufacturing companies for the formulations of lotions, shampoos, and perfumes. The versatile properties of isopropyl alcohol such as solvent, astringent, antiseptic, and evaporation enhancer are fueling its consumption in toners, makeup removers, deodorants, and more. The beauty and personal care products market is expected to expand from USD 633.7 billion in 2025 to USD 1.53 trillion by 2037. The rising trade of cosmetics and personal care products backed by beauty and wellness trends is expected to augment the consumption of isopropyl alcohol. The global personal care ingredients market is poised to reach USD 30.3 billion by 2037.
Our in-depth analysis of the global isopropyl alcohol market includes the following segments:
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Application |
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End use Industry |
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Customize this ReportIsopropyl Alcohol Industry - Regional Scope
Asia Pacific Market Forecast
Asia Pacific in isopropyl alcohol market is projected to capture over 43.2% revenue share by 2037. Boasting industrial growth in the region is poised to propel the consumption of isopropyl alcohol in the coming years. Supportive government policies and foreign direct investment inflows in the chemical sector are set to drive the sales of isopropyl alcohol during the assessed period. Infrastructure developments in China and India are increasing the demand for isopropyl alcohol in paints and coatings. The J-beauty and K-beauty trends are uplifting the consumption of isopropyl alcohol in the cosmetics and personal care products sector.
The robust industrial activities in China are generating profitable opportunities for isopropyl alcohol producers. The versatile applications of isopropyl alcohol are likely to double the revenues of manufacturers in the coming years. The positive industrial regulations, Made-in-China tactics, and 14th five-year plan are set to augment the isopropyl alcohol sales. In June 2024, the government announced that the total value added in industrial firms above the designated size increased by 5.6% year over year growth.
India’s chemical industry is backing the sales of isopropyl alcohol owing to positive foreign investments and supportive regulations. The increasing demand for advanced chemicals in the pharmaceutical sector is also estimated to increase the trade of isopropyl alcohol and its derivatives. For instance, the India Brand Equity Foundation (IBEF) study discloses that the pharma industry is set to cross USD 450.0 billion by 2047. The booming demand for organic and inorganic chemicals in domestic and international markets is propelling the sales of isopropyl alcohol.
North America Market Statistics
The North America isopropyl alcohol market is projected to increase at a robust pace between 2025 to 2037. The strong existence of pharma companies coupled with high investments in technological innovations for drug formulations and discovery are propelling the sales of isopropyl alcohol. The industrial segment particularly manufacturing is set to fuel the revenue growth of isopropyl alcohol manufacturers in both the U.S. and Canada. The rising public and private investments in infra-development programs are also poised to amplify the consumption of isopropyl alcohol solutions.
The dominance of the chemical manufacturers in the U.S. is set to boost the trade of isopropyl alcohol in the coming years. The beauty and wellness trend is set to drive the use of isopropyl alcohol in medicines, cosmetics, and personal care products. This trend is expected to emerge as a game changer for isopropyl alcohol producers and aid in securing higher profits. The Research Nester’s analysis explains that the U.S. is anticipated to capture nearly 50.0% of the worldwide pharmaceutical sales revenue. High investments in research and development activities to introduce advanced pharmaceuticals are expected to propel isopropyl alcohol consumption in the years ahead.
The swiftly increasing beauty and skincare sector of Canada is likely to double the demand for isopropyl alcohol during the foreseeable period. the high demand for specialized chemicals and materials is fueling isopropyl alcohol consumption. The TFO Canada study states that the country’s beauty and personal market size was valued at USD 7.6 billion in 2023. The increasing government investments in construction and building activities are further driving the applications of isopropyl alcohol in paints and coatings.
Companies Dominating the Isopropyl Alcohol Landscape
- Eastman
- Company Overview
- Business Strategy
- Key Product Offerings
- Financial Performance
- Key Performance Indicators
- Risk Analysis
- Recent Development
- Regional Presence
- SWOT Analysis
- Cepsa
- ExxonMobil Corporation
- LyondellBasell
- Shell Chemicals
- Dow Chemical Company
- LCY Chemical Corp.
- ISU Chemical Co., Ltd.
- Suzhou Jiutai Group
- Manali Petrochemicals Ltd.
- Perrigo Company plc
- KLK OLEO
- LG Chem
- Sasol Limited
The isopropyl alcohol market is characterized by the presence of leading companies and the increasing emergence of start-ups. The new companies are investing heavily in R&D activities to uplift their position in the global landscape. New product launches, technological innovations, strategic collaborations and partnerships, mergers & acquisitions, and regional expansion are some of the top marketing strategies adopted by isopropyl alcohol manufacturers. Both developed and developing economies are offering lucrative opportunities for key market players to expand the production and commercialization of their products. Organic sales are set to double the revenue of isopropyl alcohol manufacturers in the coming years.
Some of the key players include in isopropyl alcohol market:
In the News
- In September 2024, In September 2024, Eastman introduced an innovative electronic-grade solvent. The company’s EastaPure solvents portfolio is expanded by the addition of this high-purity isopropyl alcohol.
- In June 2024, Cepsa announced the construction of its first chemical plant in Spain, which is set to produce the base for hydroalcoholic gels. The plant intends to have a production capacity of 80,000 tons of isopropyl alcohol.
Author Credits: Rajrani Baghel
- Report ID: 7371
- Published Date: Mar 24, 2025
- Report Format: PDF, PPT
