Isopropanol Market Intelligence

Isopropanol Market Description

The global market for isopropanol (IPA) is estimated to grow at a CAGR of 2.6 percent till 2021, and the current installed capacity is sufficient to meet the global IPA demands until 2022. North America and China have the largest installed capacity, with China being the fastest growing region due to demand from downstream construction and automobile industries. In addition to this, the demand from North America and Europe is expected to grow from healthcare and medical application, along with the de-icing segment in the coming years. The demand for isopropanol production is further expected to increase in the pharmaceutical and cosmetics segments, particularly in developing regions, such as China, India, LATAM, etc.

The IPA demand will also show a steady increase from the paints & coating industry, and growth in demand is also anticipated from the automobile industry in APAC. The report provides a global market outlook for the regions of North America, Europe, APAC, China, and Latin America. It also discusses the various industry trends, and provides an extensive cost structure analysis, along with the price forecast. The report explores isopropanol manufacturers and supplier trends and performs SWOT analysis for the global suppliers, and also presents an overview of industry best practices, along with pricing models, sourcing models, and contract lengths.

Beroe gathers intelligence through primary sources that include industry experts, researchers, and consultants, as well as current suppliers, producers and distributors. Secondary sources can include business journals, newsletters, magazines, market research data, company sources, and industry associations. Following data collation, analysis, and strategic review, the Final Research Report is published on Beroe LiVE.

Report Coverage

Supply–Demand Trends and Outlook
Trade Dynamics
Cost Structure Analysis
Key Global supplier profiles

Isopropanol Market Trend, Analysis & Forecast

Category Intelligence on Isopropanol covers the following

Information relating to market, supply, cost, and pricing analysis
Hard to find data on cost and TCO models, supplier details, and performance benchmarks
Macroeconomic and regional trends impacting cost, supply, and other market dynamics
Category-specific negotiation and sourcing advice

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Executive Summary

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Market Analysis

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Supply Analysis

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Cost & Pricing Analysis

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Best Practices

1. Executive Summary

1.1 Isopropanol - Category Updates
1.2 Market Snapshot
1.3 Supply Market Outlook
1.4 Demand Market Outlook
1.5 Industry Best Practices

2. Market Analysis

2.1 Global Market Outlook
– Current Market Size
– Demand–Supply Trends and Forecast
– Key End-use Industries
– Trade Dynamics
2.2 Regional Market Outlook (North America, Europe, APAC, China and Latin America )
– Current Market Size
– Demand–Supply Trends and Forecast
– Trade Dynamics

3. Industry Analysis

3.1 Industry Outlook North America, Europe, APAC, China and Latin America )
– Drivers and Constraints for the Industry
– Mergers & Acquisitions
– Innovations
– Porter’s Five Forces Analysis

4. Cost and Pricing Analysis

4.1 Cost & Price Analysis (North America, Europe, and APAC)
– Cost Structure Analysis
– Price Forecast

5. Supplier Analysis

5.1 Key Global and Regional Suppliers
5.2 Key Supplier’s Capability Analysis
– Capacity
– Product Portfolio
– Expansions
5.3 Geographical Footprint
5.4 Detailed Profiling of the Top Five Global Suppliers
– SWOT Analysis for the Top Five Global Suppliers

6. Industry Best Practices

6.1 IPA Industry Best Practices
- Contract Models Adopted in the Industry
6.2 Pricing Models
6.3 Sourcing Model and Length of Contracts
6.4 Advantages and Disadvantages of Contract vs. Spot

Global Market Outlook on Isopropanol

The global demand of IPA is estimated at 2.60 MMT in 2018, expected to grow at a CAGR of 2.6 percent until 2022
North America followed by China have the largest installed capacity. China is the fastest growing region with demand from downstream construction and automobile industries

isopropanol-market-size

Demand Market Outlook

Increasing demand for IPA in the pharmaceutical and cosmetics segments, especially in developing regions, like China, India, LATAM, etc., is expected to drive the demand. This increase is due to the rising investment in medical advancements, supported by infrastructural growth, and the increasing auto sales is expected to drive the demand for IPA in the coming years

Industry Best Practices

In the US and Europe, propylene (or/and) acetone contract prices are used as a base to arrive at IPA prices. Around 70–75 percent of the total price change in propylene is usually passed on to IPA prices

Contract Models Back to TOC

Key contract models followed in the industry:

–Index-based pricing

–Fixed price with renegotiation option

–Volume-based pricing (mostly followed)

–Per-order contract (spot purchases)

–Cost plus pricing

–Mixed pricing

Contract Length

Typical length of the contract varies between construction and CPG industry
The length of the contract is between 1 and 3 years for the paints & coatings industry, as the industry is well supplied and it is easy to switch suppliers, whereas pharma and CPG industries require specific grade of IPA for which the suppliers have their negotiation power and the length of the contract is 2–3 years

Pricing Index

In the US and Europe, propylene (or/and) acetone contract prices are used as a base to arrive at IPA prices
A 70–75 percent of the total price change in propylene is usually passed on to IPA prices

Global Market Size - IPA

The global market size for IPA is expected to grow at a CAGR of 4 percent Y-o-Y from 2017 to 2021, mainly driven by the demand from the paints & coatings segment
The market size of IPA witnessed a dip in 2016 alongside the slow growth compared to 2014, owing to the dip in feedstock propylene prices. However, the market is expected to stabilize since the beginning of 2017

Global Capacity–Demand Analysis

The current installed capacity will be sufficient to meet the global demand of IPA until 2022
IPA demand will be mainly driven by automobile and paints & coatings industries, especially in developing countries in Asia, followed by the US

Global Demand by Application

Steadily improving demand from the paints & coatings industry and anticipated improvement in demand from automobile industry in APAC will be the key demand drivers of IPA until 2022

IPA Downstream Demand Outlook

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 & 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

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