The "Isopropyl Alcohol (IPA) Market - Growth, Trends, COVID-19 Impact, and Forecasts (2021 - 2026)" report has been added to ResearchAndMarkets.com's offering.
The isopropyl alcohol (IPA) market is projected to register a CAGR of over 4% during the forecast period (2021-2026).
Due to COVID-19, the production in various industries, like chemicals, paints and coatings, and others, has decreased. 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
Chemical Segment to Dominate the Market Demand
The chemicals industry is the largest consumer of isopropyl alcohol, as it produces solvents, pigments, alcohol inks, and other intermediates.
The growth of the chemical industry is driven by the surging demand for chemicals from numerous industries, further driving production and investments in the sector.
It is used as a solvent in the manufacturing of cement, primers, paints, varnishes, skin cleaners, perfumes, lotions, shampoos, and deodorants. It is also used as a disinfectant and antiseptic.
Due to the outbreak of COVID-19, the demand for cleaners has increased, thus, increasing the demand for IPA as a solvent in cleaning products. Many companies have increased the sales of cleaning products. Unilever, which makes food, home care, and health and beauty products, reported a 4.4% increase in underlying sales for the third quarter of 2020, compared to expectations of a 1.3% increase as a result of an increase in demand for cleaning products. The spread of COVID-19 and the rise in average time spent at home among consumers helped home care brands, such as Domestos and Comfort, lead the way with a 6.7% increase for the 3rd quarter of 2020.
Furthermore, Asia-Pacific has been witnessing new investments in the chemical industry, which may drive the consumption of isopropyl alcohol during the forecast period. Various companies, such as Exxon Mobil, BASF SE, and LG Chem Ltd, have planned investments in the Asia-Pacific chemical industry.
Moreover, in the United States, growth in shale gas production has driven the growth of the chemical industry. Companies like Covestro and Lotte Chemicals have been investing in the country's chemical industry. For instance, Covestro had planned an investment of USD 1.7 billion in Texas chemical plant in October 2018.
Also, according to the ACC (American Chemistry Council), the United States economy will expand by 3.7% in 2021, while chemical production may increase by 3.9%. The majority of chemical-buying industries may increase production in 2021, though not all will make up for lost ground in 2020.
Besides, the Middle-East and African region has also been witnessing investments in the chemical industry.
Hence, such investments in the chemical industry are likely to drive the demand for isopropyl alcohol in the coming years.
The isopropyl alcohol market is consolidated in nature, with a few players accounting for a significant share of the market demand. Some of the major players in the market include Royal Dutch Shell PLC, LG Chem, Exxon Mobil Corporation, Dow, and LyondellBasell Industries Holdings BV, among others.
Exxon Mobil Corporation
Honeywell International Inc.
LyondellBasell Industries Holdings BV
Mitsui Chemicals India Pvt. Ltd
Royal Dutch Shell PLC
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View source version on businesswire.com: https://www.businesswire.com/news/home/20210514005228/en/
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