Isopropyl Alcohol Market is valued at USD 3,152 million in 2020 and is expected to grow at a CAGR of 4. 58% during the forecast period. Due to the COVID-19 pandemic, production in various industries, like chemicals, paints and coatings, and others, has decreased.
New York, Oct. 27, 2021 (GLOBE NEWSWIRE) -- Reportlinker.com announces the release of the report "Isopropyl Alcohol (IPA) Market - Growth, Trends, COVID-19 Impact, and Forecasts (2021 - 2026)" - https://www.reportlinker.com/p06177328/?utm_source=GNW
Thus, the consumption of IPA is also reduced. Pharmaceutical, personal care, and cosmetics are the major applications of isopropyl alcohol. The ongoing coronavirus (COVID-19) pandemic has altered the face of the cosmetics industry. As a result of months of consumer lockdowns, international travel bans, and retail business closures, sales, purchases, and usage have fallen across many beauty segments. However, the increase in hand sanitizers created the demand for isopropyl alcohol. Also, DIY home decoration is becoming more popular as people want to change the atmosphere in their homes as they spent more time at home due to the pandemic.
In the medium term, the major factors driving the growth of the market studied are the increasing use of cosmetic and personal care products and the wide usage of IPA as cleaning agents.
On the flip side, the availability of alternative ways for the production of acetone remains one of the major concerns for the studied market.
Asia-Pacific dominated the global market, with huge demand generated from countries such as China, India, and Japan.
Key Market Trends
Pharmaceutical Segment to Dominate the Market Demand
The pharmaceuticals segment is another end user of isopropyl alcohol. Isopropyl alcohol of 70% concentration is used in alcohol swabs and alcohol wipes that are required for cleaning wounds. This is found in hand sanitizers and ear drops. Oral mouthwash solutions also contain isopropyl alcohol in some quantities.
Another application of isopropyl alcohol can be seen in cleaning supplies. Generally, in the pharmaceuticals industry, isopropyl alcohol may be used in small and safe quantities in capsule or tablet manufacturing processes. IPA is used in the formation of pharmaceutical intermediates, through the use ofsolvents.
The pharmaceuticals segment across the globe has been growing. Moreover, the COVID-19 pandemic, which hampered many industries, had the exact opposite effect on the pharmaceuticals segment.
According to IQVIA, an American MNC serving the combined industries of health information technology and clinical research, stated that the revenue of the global pharmaceuticals segment was USD 1265.2 million in 2020.
Several countries, like India, the United States, Germany, and others, increased their expenditure on pharmaceuticals/medicines over the recent years. This has been boosting the global IPA market.
The increased concern about the health and well-being of people, caused by the uncertainties of the COVID-19 pandemic, has worked significantly well for the pharmaceuticals segment of the market, which has been especially reflected in the sales of hand sanitizers, in turn, affecting the demand for isopropyl alcohol.
Asia-Pacific Region to Dominate the Market
The Asia-Pacific region dominated the global market share. The 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 industry. 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 ten years.
The COVID-19 affected the sales of paints, as the construction activities were halted. India’s second-largest paint company, Berger Paints, reported approximately a 6.5% fall in its consolidated net profit to INR 1,032 million (USD 13.76 million) for the fourth quarter ended on March 31. However, the Indian government’s target of investing USD 120.5 billion for developing 27 industrial clusters, which 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 also increasing in countries such as 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 is leading to an increased usage of cosmetic products by teenagers, increased awareness of being presentable, due to a growth in women’s employment, and hygiene awareness, owing to which the production of such products has been increasing in the region.
According to the National Bureau of Statistics of China, China ranks second in the global cosmetic industry, generating revenue of CNY 340.02 billion in 2020, witnessing an increase from 299.22 billion yuan in 2019, and is expected to account for CNY 439.23 billion by the end of 2024. Loreal Paris, Lancome, Pechoin, Estee Lauder, Mary Kay Inc., Shanghai Jahwa United CO. Ltd, Jiangsu Longliqi Co. Ltd, and Olay are some of the leading cosmetic brands in the country.
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 market for pharmaceuticals is emerging rapidly, owing to the growing middle-class and aging population in the country, rising incomes, and increasing urbanization. The pharmaceutical sales of the country are expected to reach up to 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 used in the pharmaceutical industry.?
Hence, all such market trends are likely to drive the demand for isopropyl alcohol over the forecast period.
The global isopropyl alcohol (IPA) market is consolidated in nature, with the top ten companies accounting for over 74% of the global production in 2020. Some of the major players in the market include Royal Dutch Shell PLC, INEOS, Exxon Mobil Corporation, Dow, and Kailing Chemical (Zhangjiagang) Co., Ltd., among others.
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