Isopropanol Latin America Market Intelligence

*This report was last updated in Q4 2018. Please click on request customization if you are looking for an updated version of this report

Report Coverage

  • Trade Dynamics – Latin America
  • Porter's Five Forces Analysis – Latin America
  • Global Capacity Share by Suppliers
  • Regional Capacity Share
  • Exhaustive Supplier List

Production Size


3.0 Percent

Production Size Latin America (LATAM)

65.0 Thousand MT

Table of contents

  1. Global Market Analysis
  1. Global Capacity - Demand Analysis
  1. Demand by Application
  1. Industry Drivers and Constraints
  1. Latin America - Market Analysis
  1. Supply Demand Trends and Outlook
  1. Trade Dynamics
  1. Supplier Analysis
  1. Supply Demand Trends and Outlook
  1. Trade Dynamics

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Regional Market Outlook on Isopropanol in Latin America

  • The current installed capacity will be sufficient to meet the global demand of IPA until 2022.  The average operating rate of the suppliers is anticipated to be 80–85 percent, which could be increased up to 90–92 percent
  • IPA demand will be mainly driven by automobile and paints & coatings industries, especially in developing countries in Asia, followed by the US

Capacity–Demand Analysis (2014–2021F)

  • Paints & Coatings Industry to Drive Demand: Growing demand from paints & coatings segment in the APAC region will continue to be the key demand driver for IPA
  • Sufficient Capacity until 2022:  The current installed capacity will be sufficient to meet the global demand until 2021. The average operating rate of the suppliers is anticipated to be 80–85 percent, which could be increased up to 90–92 percent
  • Capacity Additions: Capacity additions are likely to happen in 2017–18 by Super Chemical Corp., in Thailand, owing to improving demand from the cosmetics and personal care industry
  • Influence of Seasonality Demand
    • Other downstream industries of IPA, like de-icing agent, is more demanding in Europe during winter
    • The pharmaceutical industry drives the demand for IPA in North America
    • During summer, IPA demand arises from automobile and paint & coating applications

Global Demand by Application

Steadily improving demand from the paints and coatings industry and anticipated improvement in demand from automobile industry in APAC will be the key demand drivers of IPA until 2021. 

Growing Demand from the Paints & Coatings Market

  • Anticipated improvement in demand from paints & coatings in APAC drives the demand for IPA in the future
  • Seasonal demand from the construction and de-icing industry in North America and the EU, respectively, are expected to drive the demand for IPA in these regions

Increasing Demand from the Cosmetic Segment

  • The grade required for cosmetic and pharmaceutical segment is expensive as compared to technical grade required in the paints and coatings segment
  • If there is a shortage in supply of technical grade IPA, generally during summer, buyers tend to go for pharma grade IPA, and dilute it. However, this turns out to be expensive

Industry Drivers and Constraints

  • Apart from large dependency on feedstock prices and availability, a plant shutdown or force majeure at any of the producer's plants' is likely to cause a major shortage of IPA in the market, thereby causing a surge in IPA domestic price
  • Moreover, Latin America being highly dependent on the US for IPA imports, is likely to face an increase in price if there is any sort of supply discrepancy of the material coming from the US owing to shutdowns or any other disasters


  • Rising Demand for Paints & Coatings in APAC: A steady increase in demand from the paints and coatings segment, owing to increased investments in construction, supported by healthier economy, is expected to drive the demand for IPA in the future
  • Environmental Concerns: The upcoming regulatory announcements by the European and US governments for prohibiting the consumption of hazardous pigments in automobiles, in order to reduce exposure to human would act as a challenge, if IPA limits of exposure are reduced


  • Improving Demand from the Automobile Industry: A steady improvement in demand from the automobile industry in the US, Europe, and APAC, witnessing the highest auto sales in 2015 over the past five years, is driving the demand for IPA
  • Volatile Feedstock Prices: Feedstock propylene prices are highly volatile, driven by crude prices, which fluctuate M-o-M. Feedstock price pressure hampers the profit margins of IPA producers, as they are highly dependent on propylene prices

Isopropanol Latin America Market Overview 

  • According to Isopropanol market research in Latin America, Isopropanol is a very small downstream market for feedstock propylene suppliers. 
  • In addition, price volatility in crude prices has a direct impact on the prices of propylene thereby giving a lower power to the suppliers.
  • Only two players exist in the Latin American market and a large dependency is on imports. This causes a high intensity of rivalry as these two players have low control over the prices and have to compete with the prices on a global level
  • IPA buyers have higher bargaining power owing to the high intensity of rivalry, cheap availability of imports from other regions
  • Substitutes, like hydrogen peroxide and other alcohol-free chemicals, are increasing at a stable rate in pharmaceutical applications
  • Economical substitutes for IPA in cosmetic and food applications is in the developing stage and is expected to impact IPA market share in the coming years
  • Setting up an IPA plant is highly capital intensive
  • Feedstock availability: With the presence of seasoned IPA producers in the region, it is very difficult for a new non-integrated producer to match costs.
  • Latin America only has two players to cater to the domestic market with a total combined capacity of 65,000 MTPA, with a large dependency on imports
  • Brazil is one of the major producers of cosmetic and personal care products

Why You Should Buy This Report

  • Information about Latin America Isopropanol market research, size, capacity demand intelligence in Latin America, market outlook, import, export, trade dynamics market research Latin America, etc.
  • Porter’s five force analysis of the Latin America market.
  • Industry events, price analysis, global capacity share, supplier profiles and SWOT analysis of major players like Carboclor, Rhodia Brasil Ltda, etc.
  • Best industry practices, sourcing models, etc.


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