Isopropyl Alcohol Price Explained

In mid‑2025, global isopropyl alcohol (IPA) prices show different trends by region. In North America, spot prices rose by about 2% in Q2, reaching around USD 1,311 per metric ton FOB Texas in June. In the Asia-Pacific region, spot prices fell by about 3% in Q2, ending June near USD 971 per metric ton FOB Qingdao.

These price changes result from supply and demand shifts. In North America, supply tightened and demand increased, pushing prices up. In the Asia-Pacific, supply was high and demand was weak, causing prices to fall.

Why are Isopropyl Alcohol Prices Fluctuating?

1. Feedstock and Energy Costs – IPA production depends on feedstocks and energy. Changes in these costs directly impact production expenses.

2. Regional Supply–Demand Imbalances – In North America, limited supply and strong demand pushed prices up. In the Asia-Pacific, high supply and weak demand caused prices to fall.

3. Industrial and Healthcare Demand – IPA is used in cleaning, disinfection, electronics, and pharmaceuticals. Price responds quickly to changes in demand from these sectors.

4. Macroeconomic and Trade Factors – Currency changes, export limits, and policy shifts affect trade and regional prices

Which Variables Impact the Price of Isopropyl Alcohol?

• Feedstock and energy costs
• Regional supply–demand balances
• Industrial and healthcare demand intensity
• Macroeconomic and trade policy environment

Where Does Isopropyl Alcohol Come From?

Isopropyl alcohol (IPA) is mainly produced by hydrating propene, a byproduct of petroleum refining. It can also be made by indirectly hydrating acetone. Major production regions are North America, Europe, and the Asia-Pacific. Production levels depend on access to petrochemical infrastructure and feedstock supply. Country-specific data is usually available in industry reports, but was not found in the current sources.

What are the Uses of Isopropyl Alcohol?

1. Medical and Antiseptic Use – A core ingredient for disinfectants, hand sanitizers, and antiseptics in healthcare and personal care.

2. Solvent – Widely used in cleaning agents, surface wipes, and general-purpose solvents for industrial and household applications.

3. Electronics Cleaning – Employed for precision cleaning of circuit boards, semiconductors, and optical devices due to its fast evaporation and purity.

4. Chemical Intermediate – Serves as a building block for compounds like acetone and others in chemical synthesis.

5. Personal Care Products – Found in cosmetics (e.g., toners), fragrances, and hair-care formulations as a solvent and drying agent.

What is the Future Price of Isopropyl Alcohol?

Isopropyl Alcohol is poised for moderate to strong market growth:

• One forecast places the global market at USD 2.7 billion in 2025, rising to USD 3.4 billion by 2030, with a CAGR of about 4.8%. 
• Other projections project 2024–2025 growth from USD 4.57 billion to USD 4.91 billion, climbing to USD 6.86 billion by 2030 at a CAGR of 6.9%.
• A third estimate anticipates expansion from USD 4.30 billion (2023) to USD 4.57 billion (2024), reaching USD 6.85 billion by 2030 at a CAGR of 6.89%.

2026 – 2030 Forecast

• 2025: USD 2.7 – 4.91 billion
• 2030: USD 3.4 – 6.86 billion

These projections show rising IPA demand in healthcare, personal care, electronics, and cleaning. Prices are likely to remain high in regions with limited supply, such as North America. In regions with more capacity, like Asia-Pacific, price growth may stay low unless supply disruptions or sudden demand increases occur.