According to ChemAnalyst report, “Global Iso Propyl Alcohol Market - Plant Capacity, Production, Operating Efficiency, Process, Demand & Supply, Grade, End Use, Application, Sales Channel, Region, Competition, Trade, Customer & Price Intelligence Market Analysis, 2015-2030”, the global Iso Propyl Alcohol market is expected to grow at a healthy CAGR of 6.87% during the forecast period. Rising demand for solvents across end use industries such as paints and coatings and pharmaceuticals backed by surge in demand for disinfectants, which include hand sanitizers, surface cleaners and other hygiene products would bolster the demand for Iso Propyl Alcohol during the forecast period.
Browse the Complete Report: Iso Propyl Alcohol (IPA) Supply chain
The outbreak of COVID-19 has been a tipping point in the global IPA market, making it one of the most demanded chemicals during the period of unprecedented crisis. This happened after WHO declared the use of alcohol-based hand sanitizers, essential for inactivating potentially harmful coronavirus whose transmission rate is still creating a havoc in several economies. Centre for Disease Control (CDC) has recommended the use of alcohol-based sanitizers containing 60% ethanol or 70% isopropanol in homes, offices, hospitals, and other public places. Since the declaration, alcohol -based hand sanitizers have become the most sought-after product in the global markets forcing several chemical manufacturers to enter Iso Propanol and hand sanitizer production in their fight against Covid-19.
International prices of Iso Propyl Alcohol (IPA) have skyrocketed in the first quarter of 2020 triggered by overwhelming demand for manufacturing hand sanitizers. U.S.IPA which was showing a nominal price rise in February, soared rapidly with number of coronavirus cases in U.S. surpassing the world’s other economies. In March, recorded IPA spot prices were in the range of $1,367-1,874/tonne while export and spot prices are even higher. Other regions like Europe and Asia have witnessed more than 100 per cent spike in IPA prices in the first quarter in response to the soaring demand. IPA prices are anticipated to climb higher in the coming weeks as new companies are planning venture into sanitizer manufacturing, causing a further upward pressure on the global IPA demand.
The Dow Chemical Company, Exxon Mobil Corporation, LyondellBasell Industries Holdings B.V., LG Chem Ltd., Royal Dutch Shell Plc., Clariant AG, Honeywell International Inc., JXTG Nippon Oil & Energy Corporation, Mitsui Chemicals Inc., United States Petroleum & Chemical Corporation, INEOS Enterprises, Deepak Fertilizers and Petrochemicals Corporation Limited etc., are some of the leading players operating in the Global Iso Propyl Alcohol market. To combat the unabated IPA demand, major players increased their production capacities to grapple with the rising demand. Exxon Mobil ramped up its IPA production capacities in final quarter of FY20. Moreover, INEOS, one of leading chemical manufacturers in the global market has been running its IPA plants at full capacities with establishments of new sanitizer plants in France and Germany
Regionally, the Iso Propyl Alcohol market has been segmented into various regions including Asia-Pacific, North America, South America, Europe, and Middle East & Africa. According to ChemAnalyst report, “Global Iso Propyl Alcohol Market - Plant Capacity, Production, Operating Efficiency, Process, Demand & Supply, Grade, End Use, Application, Sales Channel, Region, Competition, Trade, Customer & Price Intelligence Market Analysis, 2015-2030”, APAC is the global manufacturing hub for IPA, with expanding pharmaceutical sector and petrochemical hubs. China and India are contributing in huge volumes to cater to rising global IPA demand. North America and Europe are also likely to drive the market appreciably well concerned by lasting effects of Coronavirus. New capacity additions as well as expansion are expected to consolidate considerable revenues to the global IPA market, thus contributing well towards uplifting the economies of the major IPA producing countries.
“IPA production can happen through three routes, viz., indirect hydration of Propylene, direct hydration of Propylene and catalytic hydrogenation of Acetone. APAC countries like China and India are opportunistic of the current situation and are currently running both their acetone and propylene to IPA plants at their full capacities. However, major players in U.S. believe that when the markets are restored and the pandemic passes, acetone route would be preferred over longer runs. Moreover, increasing awareness among people for maintaining personal hygiene and preventive measures towards Covid-19 will dominantly drive the global IPA demand in the forecast period. At the same time, the manufacturers would have to be thorough with raw material and supply chain analysis to enjoy better margins. Company’s long-term strategies to strengthen both upstream and downstream sectors would hugely impact the global IPA demand pushing it to unprecedented levels during the forecast period” said Mr. Karan Chechi, Research Director with TechSci Research, a research based global management consulting firm promoting ChemAnalyst
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