Isopropyl Alcohol Market By Source Type (Petroleum-based, Renewable-based), By Application (Chemical Industry, Healthcare & Pharmaceuticals, Automotive & Industrial, Others), By Form (Liquid, Gel), By End-User (Chemical Industry, Pharmaceutical Industry, Healthcare Industry, Personal Care & Cosmetics); Global Insights & Forecast (2025 - 2030)

As per Intent Market Research, the Isopropyl Alcohol Market was valued at USD 6.3 Billion in 2024-e and will surpass USD 9.3 Billion by 2030; growing at a CAGR of 6.8% during 2025 - 2030.

The isopropyl alcohol market is an essential segment within the chemical industry, driven by its wide range of applications across various sectors. Isopropyl alcohol, also known as rubbing alcohol, is used extensively as a solvent, disinfectant, and cleaning agent. Its production is primarily derived from either petroleum-based or renewable sources, with increasing attention given to renewable alternatives due to sustainability considerations. The market for isopropyl alcohol continues to expand, propelled by growth in the pharmaceutical, healthcare, automotive, and personal care industries. As demand for hygiene products, industrial solvents, and cleaning agents surges globally, isopropyl alcohol remains a critical chemical ingredient in multiple applications.

Petroleum-based Source Type is Largest Owing to Cost Efficiency and Established Production

The petroleum-based source type is the largest segment in the isopropyl alcohol market, primarily due to its well-established production processes and cost-effectiveness. Derived from the catalytic hydration of propylene, petroleum-based isopropyl alcohol benefits from decades of optimized production methods and widespread availability. The infrastructure and supply chains already in place within the petroleum industry make it easier to maintain large-scale production. Despite the growing demand for renewable-based alternatives, the petroleum-based segment continues to dominate the market, driven by its established, efficient production methods that can support high-volume applications in industries like pharmaceuticals, healthcare, and automotive.

Healthcare & Pharmaceuticals Application is Largest Owing to Growing Demand for Disinfectants

The healthcare and pharmaceuticals application segment is the largest in the isopropyl alcohol market, owing to its widespread use as a disinfectant and sterilizing agent. Isopropyl alcohol is extensively used in hospitals, clinics, and laboratories for cleaning and disinfecting medical equipment and surfaces. Furthermore, it is a key ingredient in hand sanitizers, rubbing alcohol, and antiseptic solutions, all of which have seen a surge in demand, particularly in response to global health crises. The increasing need for hygiene, infection control, and antimicrobial products has solidified isopropyl alcohol's importance in the healthcare and pharmaceutical sectors. As the global healthcare industry continues to grow and invest in hygiene solutions, the demand for isopropyl alcohol in this application segment is expected to remain robust.

Automotive & Industrial Application is Fastest Growing Owing to Rising Demand for Cleaning Solvents

The automotive and industrial application segment is the fastest growing in the isopropyl alcohol market, driven by its increasing use as a cleaning solvent in the automotive industry. Isopropyl alcohol is widely employed in automotive workshops and manufacturing facilities to clean parts, remove grease, and prepare surfaces for painting or assembly. The rising demand for high-quality cleaning solutions in industrial and automotive processes is fueling this growth. Additionally, isopropyl alcohol is used as a solvent in the formulation of paints, coatings, and adhesives, making it crucial for maintaining production quality and efficiency. As the automotive and industrial sectors continue to expand, particularly in emerging markets, the demand for isopropyl alcohol in these applications is expected to grow rapidly.

Liquid Form is Largest Owing to Versatility and Ease of Use

The liquid form of isopropyl alcohol is the largest segment due to its versatility and ease of use across various applications. Liquid isopropyl alcohol is commonly used as a solvent, disinfectant, and cleaning agent in industries like healthcare, automotive, and pharmaceuticals. Its liquid state makes it easy to apply in cleaning products, antiseptics, and industrial solutions, while also facilitating simple mixing with other compounds for custom formulations. Furthermore, the liquid form allows for convenient storage, transportation, and application, especially in large-scale industrial environments. This versatility and practical handling ensure that the liquid form remains the dominant type in the market, favored across numerous end-use sectors.

Chemical Industry End-User is Largest Owing to Broad Range of Applications

The chemical industry is the largest end-user of isopropyl alcohol, driven by its essential role in the production of solvents, resins, and other chemical products. Isopropyl alcohol is widely used as a solvent in the manufacture of chemicals, paints, coatings, and plastics, where it helps dissolve or disperse substances for industrial applications. Its use extends to the production of pharmaceuticals, detergents, and cosmetics, further boosting its demand in the chemical industry. The broad applicability of isopropyl alcohol in various chemical processes, combined with its relatively low cost and effective performance, ensures that the chemical industry remains the largest consumer of this compound.

North America Region is Largest Owing to Strong Healthcare and Industrial Demand

North America is the largest region in the isopropyl alcohol market, driven by its robust demand from the healthcare and pharmaceutical industries, as well as the automotive and industrial sectors. The United States and Canada have a well-established healthcare infrastructure, where isopropyl alcohol is extensively used in hospitals, clinics, and pharmaceutical manufacturing. Additionally, the automotive industry in North America is a significant consumer of isopropyl alcohol for cleaning and industrial applications. The region’s focus on maintaining high standards of hygiene, coupled with the continued expansion of industrial sectors, ensures that North America remains the largest market for isopropyl alcohol.

Leading Companies and Competitive Landscape

The isopropyl alcohol market is competitive, with key players such as ExxonMobil, LyondellBasell, and Royal Dutch Shell leading the market. These companies dominate the sector through their established production capabilities, strong global supply chains, and advanced technologies in chemical manufacturing. As the demand for isopropyl alcohol grows across various industries, particularly healthcare and automotive, leading players are focusing on expanding production capacity, improving product quality, and investing in sustainable production methods. The increasing shift toward renewable-based isopropyl alcohol production also presents new opportunities for innovation. As competition intensifies, both established companies and new entrants are likely to continue driving market growth through strategic partnerships, technological advancements, and investments in emerging markets.

List of Leading Companies:

• ExxonMobil Corporation
• Dow Chemical Company
• Shell Chemicals
• LG Chem
• SABIC (Saudi Basic Industries Corporation)
• INEOS Group Holdings S.A.
• LyondellBasell Industries
• Formosa Plastics Corporation
• Reliance Industries Limited
• Eastman Chemical Company
• Huntsman Corporation
• Mitsubishi Chemical Corporation
• Bharat Petroleum Corporation Limited (BPCL)
• The Linde Group
• Sinopec Limited

Recent Developments:

• Dow Chemical Company announced the expansion of isopropyl alcohol production in North America to meet increasing healthcare and industrial demand in January 2025.
• ExxonMobil Corporation launched a new bio-based isopropyl alcohol product for the healthcare sector in December 2024.
• LG Chem introduced an innovative, eco-friendly isopropyl alcohol solvent for the personal care industry in November 2024.
• Reliance Industries Limited completed the construction of a new isopropyl alcohol manufacturing plant to cater to increasing demand in Asia-Pacific in October 2024.
• SABIC (Saudi Basic Industries Corporation) unveiled a new isopropyl alcohol supply chain model to streamline distribution to pharmaceutical industries in September 2024.

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