Propanol (Isopropanol & N-Propanol) Market Size, Share, Growth Report 2032

Industry Prospective:

The global propanol (isopropanol & n-propanol) market size was worth around USD 3.1 Billion in 2022 and is predicted to grow to around USD 3.9 Billion by 2030 with a compound annual growth rate (CAGR) of roughly 3.32% between 2023 and 2030. The report analyzes the global propanol (isopropanol & N-propanol) market drivers, restraints/challenges, and the effect they have on the demands during the projection period. In addition, the report explores emerging opportunities in the propanol (isopropanol & N-propanol) industry.

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Propanol (Isopropanol & N-Propanol) Market: Overview

Propanol is also referred to as isopropanol or n-propanol. It is a colorless alcohol and is used extensively as a solvent in various end-user verticals. It has high applications in the pharmaceuticals, resins, and coatings industry due to the various physical and chemical attributes of the chemical. The industry refers to the trading relationship shared between various stakeholders that are involved in the production, storage, and distribution of propanol for further processing or application. Isopropanol, also known as 2-propanol, is used during the production of various personal care, cosmetics, and cleaning products. The role it plays during the manufacturing is of a solvent. It has wide applications in the production of acetone or can be used as a disinfectant. N-propanol or 1-propanol is mostly used in the pharmaceutical sector or to produce ink for painting purposes. It is also used in the cosmetics industry. The fraternity is expected to grow at a slow CAGR during the forecast period.

Key Insights: 

• As per the analysis shared by our research analyst, the global propanol (isopropanol & n-propanol) market is estimated to grow annually at a CAGR of around 3.32% over the forecast period (2023-2030)
• In terms of revenue, the global propanol (isopropanol & n-propanol) market size was valued at around USD 2.1 billion in 2022 and is projected to reach USD 3.9 billion, by 2030.
• The market is projected to grow at a significant rate due to the growing demand in end-user verticals
• Based on type segmentation, isopropanol was predicted to show maximum market share in the year 2022
• Based on application segmentation, the direct solvent was the leading application in 2022
• On the basis of region, Asia-Pacific was the leading revenue generator in 2022

Propanol (Isopropanol & N-Propanol) Market: Growth Drivers

Growing demand in end-user verticals to promote higher growth

The global propanol (isopropanol & n-propanol) market is projected to grow owing to the increasing demand in the end-user verticals. The chemical has high applications in several of the consumer good sub-segments. It is highly versatile as a solvent which is a leading cause of the high demand for colorless alcohol. For instance, it is used in the cosmetic industry, which is one of the fastest-growing markets across the globe. In cosmetic products, isopropanol assists in dissolving other ingredients present in the products thus allowing the production of a smoothly textured lotion or cream that exhibits even consistency, a selling point for many skincare products.

It is mostly used in items that are made with waxes or oils to prevent them from breaking down. Furthermore, it can also be applied in products as a skin conditioning agent since it is known to have a soothing and moisturizing impact. However, it should be noted that the quantity of chemicals in cosmetic products is limited and only to the extent that it does not have any negative consequences.

Propanol (Isopropanol & N-Propanol) Market: Restraints

Growing safety and health concerns restrict the market growth

One of the primary concerns that could severely impact the global propanol market size is the rising problematic take on the safety of the chemical. Both the subtypes of propanol can be harmful in case they are ingested or absorbed through the skin Prolonged exposure to alcohol can also lead to severe health issues. Hence the chemical is highly regulated and the end-products manufactured using propanol have to clear all regulatory guidelines before they can be made available in the commercial market. The rules surrounding the production, storage, and distribution of the chemical and its derivatives are strict causing many players to switch to other alternatives.

Propanol (Isopropanol & N-Propanol) Market: Opportunities

Growing demand for disinfectants to provide multiple growth opportunities

The global propanol industry players can divert more resources toward exploring the underlying potential of the growing demand for disinfectants across the world. One of the critical impacts of Covid-19 was the high requirement for strong and effective cleaning agents that claim to eliminate all types of harmful compounds or compounds from the surrounding like floors, tiles, and door knobs. The demand is especially high in industries that deal with multiple people with the same tools, for instance, hospitals and salons. These units are also highly regulated in terms of cleanliness leading to more demand for safe and efficient disinfectants.

Propanol (Isopropanol & N-Propanol) Market: Challenges

Fluctuating prices of raw materials to challenge market growth

The chemical is a derivative of petroleum, which is highly price sensitive. Even during 2023, the prices of petroleum are skyrocketing due to the impact of the Russia-Ukraine war. Countries across the globe are registering surging prices of petroleum and its associated products. Any slight hike in the price of crude oil can severely impact the final price of propanol due to the fluctuation in the cost of the raw materials. Additionally, the growing popularity of alternatives to propanol can cause a loss of revenue during the forecast period.

Propanol (Isopropanol & N-Propanol) Market: Segmentation

The global propanol (isopropanol & n-propanol) market is segmented based on type, application, and region.

Based on type, the global propanol (isopropanol & n-propanol) industry segments are isopropanol and n-propanol. The industry witnessed the highest growth in the isopropanol segment in 2022. It is also known as isopropyl alcohol (IPA) and is more in demand as compared to its counterpart. The growth drivers for IPA are its attributes like a higher level of availability and versatility. It can be readily found in large quantities making it more affordable and accessible. Furthermore, the compound is highly versatile and can be used across industries. IPA has lower toxicity as compared to n-propanol making it safer for use. On average, propanol concentration in disinfectant can range between 60% and 90% depending on the desired efficiency.

Based on application, the global propanol (isopropanol & n-propanol) market segments are pharmaceutical, chemical intermediate, household & personal care, and direct solvent. The industry witnessed the highest growth in the direct solvent segment since one of the key applications of the compound is acting as a solvent in various end products including cosmetics and household care products. One of the primary reasons is that it exhibits excellent miscibility with other compounds or solvents like water. Furthermore, propanol when derived from renewable sources has several advantages due to lower toxicity. Animal

studies have concluded that 1-propanol is 2 to 4 times more toxic than ethanol

Recent Developments:

• In February 2023, GAIL, a part of the Indian Government's Ministry of Petroleum and Natural Gas, announced the purchase of a 26% stake in the GAIL Bhuwan Ship, LNG Japonica. The company’s board also approved the construction of a 50-kilo tons IPA unit in the Usar district of Maharashtra. The move will help the company diversify its operations in the chemical industry
• In October 2020, Advanced Petrochemical Company, a leading chemical producer in Saudi Arabia, announced its intention to build an additional IPA plant with an annual capacity of 70,000 tonnes per annum. The move will be in partnership with Jubail Industrial City
• In May 2020, Deepak Phenolics Limited (DPL) announced the commencement of IPA production at its manufacturing facility with a capacity of 30000 TPA

Propanol (Isopropanol & N-Propanol) Market Report Scope:

Propanol (Isopropanol & N-Propanol) Market: Regional Analysis

Asia-Pacific to act as a significant contributor

The global propanol (isopropanol & n-propanol) market is expected to witness the highest growth in the Asia-Pacific region owing to the dominance of India and China in the chemical industry. India has recently amped up its production of IPA with multiple investments directed toward the construction of IPA-producing facilities due to the higher regional and global demand for the compound. Furthermore, China leads the global chemical sector due to the presence of key manufacturing players in the region along with the high demand for the product.

Some of the major reasons for regional growth are rising infrastructure, the presence of excellent manufacturing and production sites, favorable government policies, and the general high consumption of the compound across end-user verticals. Growth in Europe may be driven by growing production-related investments along with the high demand in the cosmetics sector. The market in North America is highly regulated but due to the growing emphasis on cleanliness, the requirements for disinfectants are at an all-time high.

Propanol (Isopropanol & N-Propanol) Market: Competitive Analysis

The global propanol (isopropanol & n-propanol) market is:

• Dow Inc.
• BASF
• Exxon Mobil Corporation
• Eastman Chemical Company
• The Dow Chemical Company
• Huntsman Corporation
• Perstorp Holding AB
• Evonik Industries AG
• Sumitomo Chemical Co. Ltd.
• INEOS Group Holdings S.A.
• Shell Chemicals
• LyondellBasell Industries N.V.
• Mitsui Chemicals Inc.
• Solvay S.A.
• The Lubrizol Corporation
• Mitsubishi Chemical Corporation
• Zhejiang Xinhua Chemical Co. Ltd
• Sasol Limited
• Sinopec Corp.

The global propanol (isopropanol & n-propanol) market is segmented as follows:

By Type

• Isopropanol
• N-propanol

By Application

• Pharmaceutical
• Chemical Intermediate
• Household & Personal Care
• Direct Solvent

By Region

• North America
  • The U.S.
  • Canada
• Europe
  • France 
  • The UK
  • Spain
  • Germany
  • Italy
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Southeast Asia
  • Rest of Asia Pacific
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• Middle East & Africa
  • GCC
  • South Africa
  • Rest of Middle East & Africa