Isopropyl Alcohol Market

Isopropyl Alcohol Market Size

The global isopropyl alcohol market was valued at USD 7.3 billion in 2025. The market is expected to grow from USD 7.8 billion in 2026 to USD 13.7 billion in 2035, at a CAGR of 6.4% according to latest report published by Global Market Insights Inc.

• The increase in demand for isopropyl alcohol can be attributed to an increase in hygiene and sanitation practices across the globe, increased pharmaceutical manufacturing, and increased use of technology in cleaning electronic devices made from high-grade materials.
  
• Isopropyl alcohol is a popular disinfectant product along with being a common solvent used in the production of active pharmaceutical ingredients (APIS). The demand for isopropyl alcohol increased significantly during the COVID-19 pandemic due to mass increases in the manufacturing and distribution of hand sanitizers and other disinfectant products produced with isopropyl alcohol, and after the pandemic, the demand for isopropyl alcohol has continued to increase due to the increased awareness of hygiene and infection-control measures taken during COVID-19.
  
• At the same time, the emergence of high purity (99.9%+) isopropyl alcohol will enhance the sophistication of the electronics sector via high purity isopropyl alcohol in both Japan, South Korea, Taiwan and China which are rapidly expanding their semiconductor and electronics industries and thus will significantly increase demand for electronic grade IPA; this demand growth is expected to continue to be over 6.8% CAGR between now and 2024. Furthermore, because of the important role that isopropyl alcohol plays in cleaning PCBs, LCD Panels, and other precision instruments, it will have a growing strategic role in the high technology supply chain.
  
• Recent technological improvements include the transition to Bio-based isopropyl alcohol because of the demands placed on producers of IPA by environmental regulations as well as advances in the use of green solvent systems. Investments into the sustainable chemical manufacturing platforms may drive the evolution of the way IPA is produced and distributed along the supply chain and enable manufacturers to differentiate their products in the specialty and high purity market segments.
  
• Mergers and expansions of production capability among a few companies within Asia and North America will also continue to impact how companies distribute isopropyl alcohol. Companies such as LyondellBasell, Dow, LCY Chemical Corporation, are aligning capacity with downstream demand within pharmaceutical and electronic markets and thereby are supporting a seamless integration of the various components within the value chain and providing a competitive operating structure.
  
  

Isopropyl Alcohol Market Trends

• The increased demand for high-purity (≥99.9%) electronic-grade isopropyl alcohol is rapidly changing the global IPA market. This is mainly due to the increased demands for semiconductor, precision optics, and electronic manufacturing. The increasing growth of advanced manufacturing operations in Southeast Asia (including South Korea, Taiwan, and Japan) is creating a need for ultra-clean solvents for cleaning wafers, printed circuit board (PCBs), and liquid crystal displays (LCDs).
  
• Stricter requirements related to purity, toxicity, and volatility are being imposed by governments around the world on Isopropyl Alcohol (IPA) for end-use applications within the pharmaceutical, cosmetic and food industry sectors. For example, European Union (EU) member states have introduced new documentation and traceability requirements under REACH regulations for biocides or excipients that use IPA.
  
• In addition, both FDA and WHO are in the process of updating their specifications for quality and acceptable residual solvent levels of hand sanitizers and injectable products to reflect post-COVID-19 realities. Therefore, many manufacturers are actively investing in improved infrastructure and manufacturing compliance, increasing their costs, which act as an impediment to entry for low-cost providers of IPA.
  
• Following the disruption of IPA supply chains due to COVID-19 and rising tensions between countries, there are growing pressures to establish domestic and/or regional manufacturing of IPA. For instance, in India, a major source for low-cost IPA, the government has rolled out policies that provide incentives for companies, such as DFPCL, to develop local production for IPA and are allowing a more than 70,000 tons increase in IPA production in 2024. Therefore, this has created capital investment and bilateral trade opportunities for IPA suppliers.
  

Isopropyl Alcohol Market Analysis

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Based on grade, the isopropyl alcohol marketmarket is segmented into industrial grade, pharmaceutical grade, cosmetic grade, food grade, and electronic grade. Industrial grade dominated the market with an approximate market share of 46.9% in 2025 and is expected to grow with a CAGR of 6.4% by 2035.

• Its large share can be mainly attributed to its utilization as an intermediate solvent, cleaning agent, and chemical intermediate in many industrial processes. It has a very broad compatibility with chemicals found in various industrial sectors such as oils, resins, alkaloids, and most importantly cellulose.
  
• Cost-effectiveness and versatility of industrial-grade IPA are also two reasons why its market share remains high. Most importantly, industrial-grade IPA does not have to be produced at ultra-high purity levels; hence, the energy required to manufacture is significantly lower than other methods, allowing for cost-effective production of industrial-grade IPA. Industrial-grade IPA’s price point provides for the ability to utilize large quantities of this chemical across automotive, paint and coatings, printing, and metal cleaning applications.
  
• It is also very easy to create new chemical formulations based on existing industrial-grade IPA. Distributors of chemicals and Original Equipment Manufacturers (OEMs) can use industrial-grade IPA to create customized solvent systems for their clients. Most recently, EPA regulations requiring manufacturers to produce low-VOC’s have resulted in increased demand for low-VOC industrial-grade IPA blends, especially in North America and Western Europe.
  

Based on application, the isopropyl alcohol marketmarket is segmented into solvent, cleaning agent, chemical intermediate, flavouring agent, disinfectant, and others. Solvent dominated the market with an approximate market share of 32% in 2025 and is expected to grow with a CAGR of 6.3% by 2035.

• The compositional variance between synthetic and natural isopropyl alcohols is significant. The latter contains higher concentrations of aldehydes, which impart distinct aromatic properties and a more complex aroma than their synthetic counterparts, whereas the former contain primarily carbon atoms and have very low levels of aldehyde content. When formulating personal care products, brands will often formulate using natural isopropyl alcohol to produce lighter and more easily absorbed products.
  
• In addition to being used as solvents, isopropyl alcohols have many other valuable properties that make them ideal for use in chemical formulations. As an example, isopropyl alcohol is widely used as a carrier solvent during the manufacturing process of cosmetics, perfumes, skin care products, and household cleaners.
  
• Isopropyl alcohol has also been used in reformulating formulations for inks, sealants, adhesives, etc., as well as for cleaning and degreasing. Automotive and industrial markets continue to make heavy use of isopropyl alcohol due to its compatibility with metals and plastics. In automotive and industrial markets, isopropyl alcohols are being used in the manufacture of antifreeze and fuel additives and are thus responsible for ongoing demand from automotive maintenance products.
  

Learn more about the key segments shaping this market

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Based on end use industry, the isopropyl alcohol market is segmented into food & beverages, healthcare & pharmaceutical, cosmetic & personal care, paints & coatings, chemicals, electronics, automotive, others. Healthcare & pharmaceutical held the largest market share of 34.1% in 2025 and is expected to grow at a CAGR of 6.5% during 2026-2035.

• Healthcare & pharmaceutical segment leads the market volume due to its essential function as safety/antiseptic agent and as a pharmaceutical-grade solvent. The practicality of using IPA for disinfecting, antiseptic activity and producing pharmaceutical-grade solvents is what gives this segment of IPA such a large share of the overall IPA market.
  
• IPA also serves as an active ingredient in hand sanitizers, rubbing alcohols, and disinfectants for surfaces which all had a tremendous increase in demand during 2020 due to COVID-19. After people's panic buys settled down, however, hospitals, laboratories, and clinics continue to place high demands on IPA because of elevated hygiene and infection-control standards.
  
• In addition, IPA serves pharmaceutical manufacturers for various applications including cleanroom sterilization, active pharmaceutical ingredient (API) formulation, and solvent use for coating tablets; its low toxicity and residue levels make it attractive to the pharmaceutical industry. The rapid growth of generic drug production, particularly in India and China, continues to create consistent demand for IPA within the pharmaceutical industry.
  
• Due to the stringent regulatory requirements placed on pharmaceutical companies by the FDA, WHO, and EMA, many pharmaceutical manufacturers are required to use high-purity, GMP-compliant/traceable IPA in the production of their products, thereby effectively separating suppliers by their commitment to quality and traceability.
  

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The North America isopropyl alcohol marketisopropyl alcohol industry is growing rapidly on the global level with a market share of 24.3% in 2025.

• Currently in North America, the demand for isopropyl alcohol is increasing rapidly among many users; there is a high demand for the product among users in the healthcare market, manufacturers and vendors of cleaning solvents, as well as those who manufacture chemicals.
  

U.S. dominates the North America isopropyl alcohol market, showcasing strong growth potential.

• The U.S. currently leads the way in terms of the production of both pharmaceutical products and cleaning solvents. In many instances, as Original Equipment Manufacturers (OEMs) continue to move their chipmaking production back to North America, there has been a significant increase in the number of requests for higher-purity IPA grades from cleanroom and semiconductor applications.
  

Europe isopropyl alcohol market leads the industry with revenue of USD 1.5 billion in 2025 and is anticipated to show lucrative growth over the forecast period.

• Europe remains stable; however, it is facing ever-increasing pressure to adopt more sustainable methods of manufacturing and using IPA products. Europe is now facing a few legal requirements, such as the REACH Regulation and the Green Deal, that are pushing consumers away from traditional uses of IPA in cosmetics, cleaning, and coating formulations. Many of the countries in western Europe have already begun to develop biobased IPA products.
  

The Asia Pacific isopropyl alcohol market is anticipated to grow at a CAGR of 6.7% during the analysis timeframe.

• The IPA (Isopropyl Alcohol) market is growing the fastest in the Asia Pacific region. The region makes up more than 45% of the total global demand for IPA, with China and India being the two largest markets. China is the largest market for electronics and manufacturing of IPA, while India is focusing on pharmaceutical usage of IPA. In India, the growing number of suppliers producing IPA domestically, such as Deepak Fertilisers (DFPCL), is creating less reliance on imports and greater inward investment into India by building large-scale IPA plant operations.
  

Latin America isopropyl alcohol marketisopropyl alcohol accounted for 6.3% market share in 2025 and is anticipated to show highest growth over the forecast period.

• Latin America is experiencing moderate growth in IPA due to the growing demand for IPA-based products, such as in industrial cleaning and automotive maintenance, as well as the healthcare sector. The government's initiative to increase access to healthcare in Latin America has helped stimulate growth in the IPA market through increased use of IPA-based products. The paint and coatings market in Latin America also utilizes IPA as a solvent in many of the coatings' formulations, which continues to fuel the market for IPA.
  

Middle East & Africa isopropyl alcohol market accounted for 2.6% market share in 2025 and is anticipated to show lucrative growth over the forecast period.

• The Middle East and Africa (MEA) remain the smallest regions in IPA consumption; however, MEA will have significant growth opportunities as it moves further towards industrialization and improved access to healthcare. The Gulf States of the UAE and Saudi Arabia are making significant investments in pharmaceutical manufacturing as part of their Vision 2030 strategies, which will create pockets of pharmaceutical grade IPA demand.
  

Isopropyl Alcohol Market Share

Global IPA market is moderate consolidated as top five companies, Dow, Exxonmobil, INEOS, Lcy Chemicals, and Lyondell Basell hold around 50% of overall market share. The larger players produce more product and have extensive vertical integration; they also have established global supply chains.

Dow and Lyondell have leading market shares within many industrial areas such as the pharma and electronics markets. Because they are more integrated into logistics using petrochemicals, these two players have a cost advantage, especially during fluctuating raw material prices. This also allows Dow and Lyondell to have a stronger strategic advantage compared to smaller regional companies.

Pricing, product purity, and production reliability are key competitive factors in the IPA markets. As a result, IPA companies are competing through mergers, strategic joint ventures, and increasing production capacities to increase their regional position within the industry. Recently, INEOS has expanded its production capabilities in Europe to respond to the increased demand for pharmaceuticals.

• Dow: Dow is one of the leading global manufacturers of isopropyl alcohol (IPA) and leverages its integrated operations of producing propylene feedstock and refining capabilities to be a leader in the IPA market. Dow focuses on a high-volume production capacity while providing consistent high-quality and reliability. The diverse markets that Dow serves include pharmaceuticals, industrial cleaning products and coatings, with an increasing emphasis on low-VOC and high-purity IPA products.
  
• LyondellBasell: LyondellBasell is a leading manufacturer of IPA with a strong presence in both North America and Europe, thanks to their strategically located production sites. The safety of its employees and customers, supply reliability, and sustainability are key values that LyondellBasell aims to support through custom solvent formulations for its customers. As a result, LyondellBasell is increasingly focusing on the development of bio-based and circular solutions that are in alignment with current sustainable manufacturing initiatives.
  
• ExxonMobil: ExxonMobil is one of the largest producers of IPA and has the advantage of using its large, well-established refining network to achieve cost advantages and supply chain efficiencies in its IPA product line. ExxonMobil produces multiple grades of IPA including pharmaceutical-grade and has developed several B2B partnerships within both the healthcare and electronics industries. ExxonMobil uses a marketing strategy that includes long-term contract commitments and logistical efficiency.
  
• LCY: The company plays an important part in High-purity Isopropyl Alcohol (IPA) production for electronic equipment manufacturing and has been expanding to fulfill increasing demands for the semiconductors and precision manufacturing industries. The company also continues to develop partnerships with different regional distributors in North America and Asia to enhance the quality of their product offerings throughout the world.
  
• INEOS: INEOS is one of the largest suppliers of IPA in Europe and North America with a strong emphasis on providing higher quality and meeting regulatory requirements of the various market segments for which it supplies, it has increased its production capacity to provide higher quality IPA products from multiple facilities in both Europe and North America. Additionally, INEOS has made significant investments in establishing stronger REACH aligned offerings to meet the pharmaceutical and personal care sector with reliable, environmentally compliant products.
  

Isopropyl Alcohol Market Companies

Major players operating in the isopropyl alcohol market industry include:

• Deepak Fertilisers and Petrochemicals Corporation Ltd. (DFPCL)
• Dow
• ExxonMobil
• INEOS
• ISU Chemical
• Jiangsu Denoir Specialty Chemicals
• Kukdo Chemical
• LCY
• LG Chem
• LyondellBasell
• Mitsubishi Chemical Group
• Mitsui Chemicals
• PetroChina
• SABIC
• Sasol
• Shandong Dadi Supu Chemical Co., Ltd.
• Shell Chemicals
• SK Geo Centric
• Solvay
• Tokuyama Corporation
  

Isopropyl Alcohol Industry News

• In November 2025, American Company LyondellBasell, the world’s largest polymer producer, announced that they have expanded their facility in Texas and have increased their production of IPA by twenty-five percent, allowing them to meet North America’s and Latin America’s growing demand for IPA.
  
• In September 2025, Deepak Fertilisers and Petrochemicals Corporation Ltd (DFPCL) in India upgraded its Taloja plant, thereby allowing DFPCL to sell high-grade pharma-certified IPA and export products.
  
• In September 2025, INEOS has begun producing bio-based (non-petroleum derived) IPA at their Cologne, Germany facility in preparation for distribution throughout the EU. Their product is designed to be a more environmentally friendly alternative to fossil fuel derived by IPA.
  
• In February 2025, ExxonMobil has already entered into a multi-year agreement to supply USP-grade IPA to a significant healthcare distributor in the United States, which will be utilized in the manufacturing of pharmaceuticals and antiseptics.
  
• In November 2024, Dow also formulated and marketed a new ethanol/IPA solvent combination designed to meet the requirements of the new, more stringent clean air standards as outlined by the EPA.
  

This isopropyl alcohol market research report includes in-depth coverage of the industry, with estimates & forecasts in terms of revenue (USD Billion) and volume (Kilo Tons) from 2026 to 2035, for the following segments:

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Market, by Grade

• Industrial Grade
• Pharmaceutical Grade
• Cosmetic Grade
• Food Grade
• Electronic Grade

Market, Market, by Application

• Solvent
  • Industrial Solvent
  • Extraction Solvent
  • Process Solvent in Manufacturing
  • Coating & Ink Solvent 
• Cleaning Agent
  • Surface Cleaners
  • Electronic Component Cleaners
  • Glass & Hard Surface Cleaners
  • Metal Cleaning & Degreasing
• Chemical Intermediate
  • Acetone Manufacturing
  • Production of Isopropyl Acetate
  • Resin & Polymer Intermediate
  • Other Organic Synthesis
• Flavouring Agent
  • Food Flavor Extraction
  • Solvent in Natural Flavors
• Disinfectant
  • Hand Sanitizers
  • Surface Disinfectants
  • Medical Disinfectants
  • Household Disinfectants
• Others
  • Paint Thinner
  • Fuel Additive
  • Anti-freeze Component
  • Laboratory Reagent

Market, by End Use Industry

• Food & Beverages
• Healthcare & Pharmaceutical
• Cosmetic & Personal Care
• Paints & Coatings
• Chemicals
• Electronics
• Automotive
• Others

The above information is provided for the following regions and countries:

• North America
  • U.S.
  • Canada 
• Europe
  • Germany
  • UK
  • France
  • Spain
  • Italy
  • Rest of Europe 
• Asia Pacific
  • China
  • India
  • Japan
  • Australia
  • South Korea
  • Rest of Asia Pacific 
• Latin America
  • Brazil
  • Mexico
  • Argentina
  • Rest of Latin America 
• Middle East and Africa
  • Saudi Arabia
  • South Africa
  • UAE
  • Rest of Middle East and Africa