GCC Isopropyl Alcohol Market Research Report: Forecast (2024-2030)

Market Definition

Isopropyl alcohols are colorless, clear, and sour-smelling liquids mainly applied as solvents, disinfectants, and chemical intermediate in various formulations, such as sanitizers, creams, lotions, etc. They find applications in various end-user industries.

Market Insights & Analysis: GCC Isopropyl Alcohol Market (2024-30):

The GCC Isopropyl Alcohol Market is estimated to grow at a CAGR of around 5.2% during the forecast period 2024-2030. The growing use of IPA as a disinfectant and chemical intermediate fuels its demand in the region. IPA finds broad application as an industrial solvent in several end-user industries. Since the industrial sector is growing at a tremendous pace in countries such as Saudi Arabia and the UAE, demand for IPA has consequently risen.

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Besides, the increasing demand for IPA from cosmetic and personal care industries remains one of the biggest driving factors in the GCC Isopropyl Alcohol Market. Changes in consumer behavior, lifestyles, and choices have been raising self-awareness among consumers in the region. Concerns toward personal grooming and hygiene raise demand for skin care, hair care, and beauty products in GCC. This is most evident in countries like the UAE and Saudi Arabia, where urbanization and large expatriate population further helped to boost the market. Also, growth in e-commerce and online retail platforms opened up more cosmetic and personal care market space. With a young, tech-savvy population, GCC has witnessed a boom in online shopping, making beauty and personal care very accessible. This has led global players as well as local personal care companies to boost their production to meet the rising demand. For instance,

• In 2024, Henkel AG launched its beauty-care-production facility in Riyadh, Saudi Arabia producing shampoos, conditioners, and other specialized items.

Cosmetic and beauty care products are in huge demand and their production is significantly increasing in the region, which eventually surged the demand for isopropyl alcohol. IPA acts as an important raw material in the manufacture of beauty care products like creams, lotions, perfumes, etc. With the surging production of those products, the demand also surged, eventually augmenting the market growth.

Apart from this, the growing oil and gas industry in GCC has also been generating demand for IPA in various operations. The GCC is one of the leading players in the world in terms of oil and gas production and has been continuing to see investment in increasing and modernizing its oil and gas infrastructure, including new refinery projects, petrochemical plants, enhanced oil recovery projects, and several other investments needing a large volume of IPA. For instance,

• In 2024, Qatar announced the opening of a Ras Laffan Petrochemical Complex in the country, expected to raise the production to about 14 million tonnes by 2026

IPA is a crucial solvent in the oil and gas industry. It represents an effective cleaning agent in maintenance operations, particularly in cleaning pipelines and equipment, and for storage tanks. Moreover, IPA acts as a good cleaner of contaminants and residues which further surges its adoption in the market. Thus, with the increasing establishment and expansion of new oil and gas plants, the demand for IPA is increasing at a rapid pace, thereby driving the growth of the GCC Isopropyl Alcohol Market.

GCC Isopropyl Alcohol Market Driver:

Escalating Demand for Isopropyl Alcohol from Pharmaceutical Manufacturing in the Region– The pharmaceutical sector in the region has been experiencing significant growth owing to rising demand for medicines for the elderly and other consumers in the region. The GCC countries have a large number of diseases prevalent in their population, which demand pharmaceutical products. Additionally, individual government efforts to boost medicine manufacturing in their countries are leading to an increase in pharmaceutical manufacturing. Programs like Vision 2030 and Pharma Vision by countries are leading to the establishment of various pharmaceutical giants in the GCC. Companies are establishing new units as well as expanding existing ones to boost their pharma manufacturing. For Instance,

• In 2023, the Himalaya Wellness Company LLC formally opened its pharmaceutical factory in Dubai. It is intended to create dosage forms for the medication, tablets, capsules, liquid orals, ointments, etc.

IPA finds huge application in different stages of pharmaceutical production, either as a solvent in the synthesis of active pharmaceutical ingredients, in the formulation of products, or for cleaning and sanitization of manufacturing equipment. Growing pharmaceutical manufacturing thus acts as a driver for the demand and adoption of IPA significantly. This would increase the demand for IPA in the region, thereby driving the growth of the GCC Isopropyl Alcohol Market.

GCC Isopropyl Alcohol Market Opportunity:

Rising Government Initiatives to Strengthen Chemical Manufacturing in GCC – Owing to diversification initiatives and reduction of dependence on the export of oil products being a priority agenda, governments in GCC countries have been increasingly shifting their focus on the growth of the chemicals manufacturing sector. Consequently, growth in the GCC's chemical manufacturing sector is rising due to heightened government interest in the creation of high-value-added industries. The government has been giving subsidies, and incentives to the chemical sector, all of which have resulted in boosting the country's chemical sector. This in turn, has been leading to the establishment of various chemical giants in countries like UAE, Saudi Arabia, etc., thereby leading to an upsurge in chemical manufacturing. For instance,

• In 2024, Saudi Chemical Co. entered into a joint venture with Dyno Nobel to set up a nitrate/nitric acid production facility in Saudi Arabia.

With the growing growth and development in manufacturing in the GCC, demand for IPA is increasing with the use of the product in several applications of the cleaning, extraction, and synthesis steps in the chemical manufacturing processes. Besides this, the rise of dedicated chemical parks along with the increasing attraction to downstream processing activities shall further boost demand for high-purity IPA in the chemical sector. This, thereby, increases the demand for IPA in the forthcoming years, creating opportunities within the GCC Isopropyl Alcohol Market, driven by the growing government focus on the development of the chemical sector.

GCC Isopropyl Alcohol Market Challenge:

High Threat of Substitution from Ethanol and Other Green Solvents to Impede Market Growth– With sustainability becoming a major focus in industries in GCC, the expectation and adoption of green alternatives or solutions is increasing in almost every industry. As a result, Ethanol derived from renewable sources like corn and sugarcane has emerged as one of the solvents of choice within pharmaceuticals, personal care, and industrial settings. Moreover, the increased supply of green solvents in the region transferred the demand away from IPA further from the end users.

Furthermore, government restrictions and facilitations for using green products are forcing industries to replace IPA with its alternatives further impeding the demand and adoption of IPA in the region. The increasing innovations in green chemistry practices and the discovery of new technologies for solvents that are less toxic than traditional solvents like IPA are also surging the adoption of green solvents hampering the growth of IPA in GCC. Green solvents are excessively used by industries that are looking to enhance their sustainability profiles and improve environmental standards, thereby reducing their demand for IPA which is hampering the growth of the GCC Isopropyl Alcohol Market.

GCC Isopropyl Alcohol Market (2024-30): Segmentation Analysis

The GCC Isopropyl Alcohol Market study of MarkNtel Advisors evaluates & highlights the major trends & influencing factors in each segment & includes predictions for the period 2023–2030 at the regional levels. Based on the analysis, the market has been further classified as:

Based on Type:

• 70% IPA
• Above 90% IPA

Out of them both, the above 90% IPA segment holds a considerable market share in the Isopropyl Alcohol market globally driven by rising demand for high-purity IPA in various industrial settings. The industrial and commercial demand is mostly for the 90% IPA concentration owing to its high purity and efficient cleaning properties. The purity and effectiveness of IPA are associated with various critical industrial applications, such as in the production of automobiles where IPA serves as a solvent and a disinfectant, and in the electronic industry for cleaning sensitive equipment and components.

Moreover, the 90% IPA grade performs better in terms of providing faster evaporation rates and a more effective means of removing contaminants which drives its preference in the region. Additionally, above 90% IPA meets strict regulatory requirements and industry standards needing higher levels of purity. For instance, in pharmaceuticals and healthcare, high-purity IPA has to be used to guarantee GMP (Good Manufacturing Practices) and provide safe and effective products. The growing applications of the 90% IPA grade are further supported by the fact that it finds application in almost all industrial applications such as cleaning, sanitizing, and solvent uses, which surges its demand across the sectors and widen its adoption, thereby propelling its growth in the GCC Isopropyl Alcohol Market.

Based on Application:

• Process Solvent
• Cleaning Agent
• Coating Solvent
• Others (Chemical Intermediate, Disinfectants, etc.)

Based on application, the process solvent segment holds a substantial share of the market owing to its increasing consumption as a versatile solvent in industrial processes. IPA is a key solvent in many different chemical manufacturing processes for pharmaceuticals, petrochemicals, and specialty chemicals. The fast-growing petrochemical industry in the GCC utilizes IPA in various extraction and purification stages, thereby surging its adoption. The effectiveness of IPA as a solvent enhances the efficiency and quality of production in the manufacturing process, which surges the demand for IPA as a crucial solvent.

Further, growth in large-scale manufacturing and processing facilities is fueling demand for IPA as a process solvent. IPA is also critical in the production of advanced materials and chemicals, whereby it acts as a key component in maintaining process stability and product consistency. High-volume usages of IPA within these sectors are major factors that drive its dominance and surge its growth as a process solvent in various sectors boosting the market growth.

GCC Isopropyl Alcohol Market (2024-30): Regional Projection

Geographically, the GCC Isopropyl Alcohol Market expands across:

• The UAE
• Saudi Arabia
• Qatar
• Oman
• Bahrain
• Kuwait

Of them all, Saudi Arabia is anticipated to dominate the market with the largest share during the forecast period. Saudi Arabia accounts for a considerable share of the GCC Isopropyl Alcohol Market, driven by the strong chemical manufacturing industry in the country. In line with its initiatives to see lesser dependence on oil, it has invested heavily in the chemical and petrochemical sectors, thereby increasing the demand for IPA. The infrastructure in Saudi Arabia such as major petrochemical complexes in cities like Jubail also plays a big role in generating the demand for IPA. These plants consume a large amount of IPA for cleaning, maintenance, and as a solvent in production processes which creates the demand for IPA. Further, the huge oil and gas industry of Saudi Arabia also enhances the demand for IPA. IPA plays a vital role as cleaning and as a solvent in extraction processes generating consistent demand owing to substantial oil and gas activities in the country.

Further, government efforts towards developing global chemical manufacturers and increasing local production capabilities raise the consumption of IPA in Saudi Arabia. The rising focus on the establishment of new chemical parks and the expansion of industrial activities in Saudi Arabia further strengthen its leading position in the GCC Isopropyl Alcohol Market.

Gain a Competitive Edge with Our GCC Isopropyl Alcohol Market Report

• GCC Isopropyl Alcohol Market Report by MarkNtel Advisors provides a detailed & thorough analysis of market size & share, growth rate, competitive landscape, and key players. This comprehensive analysis helps businesses gain a holistic understanding of the market dynamics & make informed decisions.
• This report also highlights current market trends & future projections, allowing businesses to identify emerging opportunities & potential challenges. By understanding market forecasts, companies can align their strategies & stay ahead of the competition.
• GCC Isopropyl Alcohol Market Report aids in assessing & mitigating risks associated with entering or operating in the market. By understanding market dynamics, regulatory frameworks, and potential challenges, businesses can develop strategies to minimize risks & optimize their operations.

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