Isopropyl alcohol (isopropyl, isopropanol, or 2-propanol) is a colorless and flammable chemical compound and has a strong odor. It forms an azeotrope with water and is viscous at decreasing temperatures. Isopropyl alcohol is an isomer of propyl alcohol and has anti-bacterial properties. It has degreasing and disinfectant properties and popularly used as an cleaner and antiseptic. Isopropyl alcohol is used extensively in the pharmaceutical and cosmetic industry for the manufacturing of hand sanitizers, oral mouthwashes, disinfectant pads, eardrops, and antiseptics, among others. It is also recognized as one of the key solvent across the end-use industries owing to excellent solvency properties.
The significant factors contributing to the isopropyl alcohol market growth are the increased used of cosmetics and personal care products, and applications as cleaning agent. Isopropyl alcohol finds application in solvents, intermediates, medical, laboratories, and automotive industries. Various market players are investing heavily in the research and development of new products that incorporate isopropyl alcohol in the manufacturing process which is expected to create an upsurge in the market growth during the forecast period.
The global cosmetic industry is registering considerable market growth in the last few years and is expected to record steady growth during the forecast period. The growth can be attributed to increased consumer awareness owing to globalization and internet penetration, and the marketing strategies adopted by various players.
According to the data released by L'Oreal's Annual Report, the global sales of cosmetics accounted for around USD 243 billion in 2018 with an increase of around 5.5% from 4.7% in 2017. The various factors that contributed to the growth of the cosmetic industry include increased spending due to growing purchasing power, expansion of various social networks, urbanization, growth of the upper-middle class, among others. Asia-Pacific holds the largest market share of around 39% followed by North America holding around 25% market share.
Skincare products dominate the market in the cosmetics segment. The rising awareness about air pollution is also contributing to demand for skincare products thus augmenting the isopropyl alcohol market growth. According to the World Health Organization, nine out of ten people in the world breathe air that comprises high levels of toxic pollutants. Air pollution has a serious impact on the skin when it is exposed to ultraviolet radiation, oxides, volatile organic compounds (VOCs), ozone (O3), particulate matter (PM), polycyclic aromatic hydrocarbons (PAHs), and cigarette smoke, among others. Increasing per capita disposable income and improved living standards are also expected to drive the demand for for cosmetic and personal care products, which leads to increased demand for isopropyl alcohol as a solvent in manufacturing process.
According to theWorld Air Quality Report 2019, the top five countries in the world with the highest levels of particulate matter (2.5) are Bangladesh, Pakistan, Mongolia, Afghanistan, and India. Isopropyl alcohol is used in various cosmetics and personal care products as a preservative,formulation to make various products, and also to help other products to penetrate the skin.
The pharmaceutical segment recorded the largest share of 34% in terms of revenue in 2019. With the advent of technologies like big data, artificial intelligence, and the internet of things (IoT), the pharmaceutical industry is observing an upsurge in growth and is expected to record steady growth during the forecast period. Furthermore, innovative and personalized treatments are also gaining traction in the medical industry.
According to the data of the Observatory of Economic Complexity (OEC), the total sales of specialized pharmaceutical products valued around USD 12.2 billion in 2017 and is anticipated to record high growth during the forecast period. The growth can be attributed to increasing investments by governments and private players to develop new medicines and medical treatments to treat various diseases, such as COVID-19 and other neglected tropical diseases, or rare diseases.
According to the European Federation of Pharmaceutical Industries and Associations (EPIFA), the pharmaceutical sector in Europe gained an investment of around USD 38.5 Billion in 2018 in research and development activities in the pharmaceutical industry alone. Isopropyl alcohol is used extensively in the manufacturing of various medicines and treatments in the pharmaceutical industry. The recent coronavirus pandemic also created an upsurge in the market growth due to the sudden increase in the demand for hand sanitizers and other sanitation products. The growth in the pharmaceutical industry is thus expected to drive the isopropyl alcohol market during the forecast period.
Asia-Pacific is one of the biggest regions in terms of geography and population. It is expected to dominated the market during the forecast period. The dominance can be due to favorable government policies allowing foreign players to invest in the manufacturing sector especially in the foods and beverages sector. Availability of cheap labor force, naturally available raw materials, and special economic zones (SEZ) in countries like China and India are attracting top players from the food industry across the world to invest in the region. Increasing disposal income, large demographic dividend, increased globalization, and internet penetration is contributing to boost in the demand for food and beverage products.
Isopropyl alcohol finds application in the processed food industry and is used in the preparation of food flavorings, colorants, preservatives, fats, oils, fragrances, sweeteners, and probiotics among other food and beverages. The regional food industry is anticipated to witness high growth during the forecast period owing to the higher consumption of baked products and chocolates that use sweeteners and oils and colors in the baking process.
The presence of several emerging economies such as China, India, Malaysia, and Indonesia, among others will further boost the isopropyl alcohol. Market growth. Moreover, rapid urbanization, and growing population, and the increasing presence of supermarkets and hypermarkets are anticipated to drive the food industry in the region. According to the IBEF data, India is one of the top hubs for the food industry owing to the rapidly growing population, disposable incomes, and urbanization. Between April 2000 and December 2016, around USD 46.5 billion were invested in the food processing sector in India. The growth in the food and beverages industry is expected to drive the regional isopropyl alcohol market growth.
Central and South America and the Caribbean
The Middle East and Africa