The global isopropyl alcohol (IPA) market is undergoing significant changes due to various factors, including pricing trends, demand fluctuations, and recent developments by major industry players.

As of February 2024, the prices of isopropyl alcohol in the Asia Pacific region are expected to rise rapidly until the end of March 2024, largely due to supply chain challenges posed by the Chinese Lunar New Year celebrations. These celebrations have historically affected production, movement, and availability of IPA in the region, leading to temporary factory shutdowns, labor shortages, and transportation delays. However, prices in European and North American regions are expected to decrease in the second half of February 2024, contrasting the price surge in the Asia Pacific​​.

The isopropyl alcohol market was valued at US$ 3.62 billion in 2022 and is projected to reach US$ 6.3 billion by 2032, growing at a CAGR of 4.57%. This growth is attributed to its varied applications across industries such as antiseptics & astringents, cleaning agents, solvents, and chemical intermediates, and significant end-use industries including cosmetics & personal care, pharmaceuticals, food & beverages, agrochemicals, paints & coatings, and chemicals​​.

In contrast, in the United States, isopropyl alcohol prices have seen a seven-month low due to stagnant demand. This decline is a stark contrast from the price hikes earlier in the year driven by consumer demand for hand sanitizing products amid the COVID-19 pandemic​​.

Global demand for isopropyl alcohol has risen, with China being a major exporter. The market has been influenced by upstream crude prices, geopolitical tensions, and increased demand from end-use industries. Despite challenges, such as trade disruptions and raw material cost increases, demand in industries like cosmetics, pharmaceuticals, and automotive has kept prices strong​​.

Significant developments have also been made by key players in the isopropyl alcohol market. For instance, Exxon Mobil announced the expansion of its healthcare solutions portfolio in September 2022, which includes IPA for various medical and pharmaceutical applications. Similarly, Tokuyama Corporation, in partnership with SK Geo Centric Co., Ltd., announced a venture to produce high-purity IPA in Korea, targeting the expanding semiconductor market​​.

These dynamics highlight the complexity of the global isopropyl alcohol market, which is influenced by regional supply chain issues, varying demand across industries, and strategic moves by leading companies to cater to specific market needs.