Material Insights · Understanding the Material World

Isopropanol: Overview

From paint thinners to hand sanitiser and chip fabs

What this tab covers What the chemical is, how big its market is, what it is used for (with shares, volumes, why it wins and what could replace it), and its chain from raw material to end user. Ends with three things to remember.

Isopropanol (IPA, (CH3)2CHOH) is a colourless solvent made by hydrating propylene, directly or via sulphuric acid, or by hydrogenating surplus acetone from phenol plants. It is a mid-sized commodity of roughly 3 Mt a year (indicative), sold into pharmaceuticals, hand sanitisers, coatings, inks, cleaning and electronics. A 70% solution is the standard skin and surface disinfectant, which is why IPA prices spiked in 2020. Semiconductor-grade IPA is a high-purity niche growing with chip fabs. India has two producers and has used anti-dumping duties against Chinese supply.

Volume about 3 Mt a year (2025, indicative) Market value about $3-4 billion a year (indicative: about 3 Mt x $870-1,390/t, Q3 2025 regional prices) Growth about 3-4% a year; electronic grade faster (indicative) IMARC Dec 2025 (prices); volume and growth indicative (industry estimates)

Key uses

UseShareAnnual volumeWhy this commodityAlternatives
Industrial solvent (coatings, inks, resins, extraction)40%about 1.2 Mtbasis IPA dissolves many resins and oils, evaporates quickly and is less toxic than methanol, at a lower price than ethanol in most markets without fuel-ethanol subsidies. indicative (basis: industry splits) ethanol
acetone
ethyl acetate
n-propanol
Pharmaceuticals, disinfectants and personal care25%about 0.75 Mtbasis Used as a reaction and crystallisation solvent in API manufacture and as the active in 60-80% alcohol disinfectants. India's pharma sector is a major user. indicative ethanol
chlorhexidine and quaternary ammonium disinfectants
Chemical intermediate (isopropylamines, isopropyl acetate, ketones)15%about 0.45 Mtbasis IPA is the cheapest isopropyl source for herbicide amines (glyphosate IPA salt) and esters. indicative direct propylene routes
Electronics cleaning and drying10%about 0.3 Mtbasis Ultra-pure IPA displaces water and dries wafers without spots; each new fab needs high-purity supply. indicative deionised water with other drying methods
Other: textile processing, de-icing, fuel additives10%about 0.3 Mtbasis Used in textile processing and printing in India (fibre2fashion 2024) and as a carburettor de-icer. indicative; fibre2fashion Aug 2024 ethanol
glycols
Shares are indicative industry splits; volumes use about 3 Mt estimated 2025 output.

From raw material to user

  1. Propylene or acetone About 0.75 t propylene per t IPA by hydration, or about 0.98 t acetone plus hydrogen by hydrogenation (indicative).
  2. Hydration or hydrogenation Direct hydration over acidic resin or zeolite at 130-160°C, indirect hydration via isopropyl sulphate, or acetone hydrogenation over copper or nickel catalysts (indicative).
  3. Purification Azeotropic distillation removes water (IPA-water azeotrope is 87.4% IPA); electronic grade adds further purification to ppb metal levels.
  4. Packing and distribution Shipped in tankers, ISO tanks, drums and IBCs to formulators.
  5. End use Mostly emitted as VOC after use as solvent or disinfectant.

Made from (commodity table)

Oil Crude oil

Three things to know

  • IPA prices in Q3 2025 ranged from about $872/t in China to about $1,393/t in the US (IMARC).
  • India's DGTR recommended anti-dumping duties of $82-217/t on Chinese IPA in August 2024, and opened a new case against the EU, Korea, Taiwan and the US in September 2026.
  • Almost all IPA ends up as VOC emissions or in wastewater, so its end-of-life carbon is released quickly (indicative).

Read the tabs

Production routeProductionFeedstocksCyclesTradingMovementRegulationCharacteristicsEmissions