Propanol Market By Type (Isopropanol (Isopropyl Alcohol), N-Propanol), By Source (Petrochemical Sources, Biobased Sources), and By Application (Pharmaceuticals, Cosmetics and Personal Care, Industrial Solvents, Paints and Coatings, Household Products, and Food and Beverages), Global Market Size, Segmental analysis, Regional Overview, Company share analysis, Leading Company Profiles And Market Forecast, 2025 – 2035

Industry Outlook

The Propanol market accounted for USD 4.3 Billion in 2024 and is expected to reach USD 7.28 Billion by 2035, growing at a CAGR of around 4.9% between 2025 and 2035.  Propanol is a colorless, flammable alcohol with the chemical formula C₃H₈O, existing mainly in two forms Isopropanol (Isopropyl alcohol) and n-propanol. Isopropanol is commonly used as a solvent, disinfectant, and antiseptic in pharmaceuticals and cosmetic products whereas n-propanol is used as a solvent in paints, coatings, and other chemical applications. These two forms are preferred for their low hazard and versatility for their use in areas such as healthcare and cosmetics to manufacturing.

Report Scope:

Market Dynamics

Increasing demand for pharmaceuticals due to health awareness and hygiene practices

The demand for products that are related to pharmaceuticals has increased due to improvements in touch with health concerns and hygiene practices, thus affecting the propanol market. The world’s population is more aware of health and disease prevention, hence the need for better medications, sanitizers, and disinfectants. Isopropanol or propanol alcohol is essential in the formulation of most drugs and equally important in disinfectants such as hand sanitizers. The rise of COVID-19 also contributed to boosting the consumption and production rates of all such products. Further, the surge in chronic diseases and an aging population increase the consumption of medical drugs, which in their production use propanol for solvents and sterilization. This shall continue to cause an increased demand for propanol, especially in the healthcare and hygiene industries.

Growth in personal care products where propanol is used as a solvent and preservative

The application of Personal Care Products is expanding, due to which the demand for propanol is increasing as it is used as a solvent and preservative. With the rising popularity of personal care products such as skincare, hair care, and other hygiene products, those manufacturers are exploiting propanol, particularly isopropanol, as a substance to dissolve some of the ingredients, improve the texture of the final products, and improve their shelf life. Propanol is used in many products, including lotions, perfumes, deodorants, and cosmetics, and as an excipient in drug formulations.  Hence the use of propanol also because of its antimicrobial properties, which check microbial growth, thus enhancing the preservation of the products. The benefits of using personal care products, together with the increasing demand for these products, will foster the growth of the propanol market.

Competition from alternative solvents and chemicals limits market growth

The threat of substitutes in the form of other solvents and chemicals remains a major threat to the propanol market. Ethanol, acetone, and butanol are some of the common solvents with comparable performance with other solvents in diverse uses such as cleaning, paint, and other coatings, and synthesis, with the additional benefit of being cheaper. In the newer applications, eco-friendly renewable, seen as less toxic to the environment than the classic petrochemicals based on solvents such as propanol. Focus on green chemistry and the development of new biobased solvents takes this competition to another level. Other requirements that exert pressure on industries are the need to minimize emissions and impact on the environment, which also drive industries to avoid traditional solvents. This increased propensity towards cheaper, environmentally friendly products constrains the demand for propanol effectively, making the market highly competitive and a very difficult space to gain or maintain market share for manufacturers of propanol.

Sustainable production methods through biobased sources

Renewable resources in the area of production also offer the propanol market the opportunity for sustainable production methods as industries turn away from chemical-based production. Biobased propanol is made using renewable feedstock such as biomass, the residue from agriculture processes or plant substances, and not from petrochemicals. This not only helps in decreasing the use of fossil fuels but therefore contributes to the reduction in carbon footprint, which is a component that is almost universal in modern and progressive societies. Very much like consumers and industries are now also emphasizing the conservation of the environment, the demand for environmentally friendly chemicals and solvents is also on the rise. Consumers are also demanding eco-friendly products, and governments are encouraging and forcing organizations to go for sustainable solutions, hence suitable market conditions for biobased propanol. This change to sustainable production creates new opportunities for the development of new markets, differentiation, and future growth for companies that place their bets on biobased propanol.

Technological advancements enhancing production efficiency and applications

Technological advancements are one of the biggest breeding grounds that the Propanol Market is experiencing since the increase in the production line and new areas of usage. Technological advancements can make catalytic technologies used to produce propanol serve enhanced manufacturing processes, thus making them cheaper and less energy-intensive in the process. Further, increased development in bioprocessing and the use of renewable feedstock are making the synthesis of biobased propanol more sustainable. These technological improvements also make available higher-purity propanol for specific uses in the pharmaceutical, electronics, paints, and high-performance coatings industries, among others. The diversification of applications related to the utilization of cleaner, more efficient technologies in industries enhances the uses of propanol and results in higher demand. As a result, the enhancement of productivity and the potential of the application contribute positively to long-term growth trends industry competitiveness for companies within the propanol market.

Industry Experts Opinion

“As the largest producer, we have the capacity not only to reliably supply the European market with n-propanol in biocide quality during the crisis but can also further increase the already large supply volumes for our industrial customers,”
     -   Dr. Jens Klabunde, Technical Business Development Manager at Oxea.

Segment Analysis

Based on the type, of the Propanol Market, isopropanol (isopropyl alcohol) leads the market because isopropyl alcohol has become a popular disinfecting solvent fluid in the global market and an effective cleaning material that is used in a variety of industries. It rose to popularity during the COVID-19 pandemic because of the increasing need for sanitizers and disinfectants all over the world. The multipurpose nature of isopropanol used in pharma, cosmetics, and Californian products makes it even more dominant for SolvChem. Nevertheless, N-propanol is relatively costly and thus does not find wide application, and its major applications are in some specific industries to produce coatings, chemicals, inks,etc.

Based on the Application, pharmaceutical is a leading consumer of propanol and isopropanol for the sterilization and disinfection processes as well as utilization as a solvent in the formulation processes. Cosmetics and personal care is another major category since propanol is applied in the preparation of skin, hair, and personal care products. Another significant application area for industrial solvents, paints, and coatings has considerable market shares in the industry. The propanol is used for dissolving and thinning agents within the manufacturing processes. Cleaning agents such as detergents and surfactants and food and beverages (for packaging purposes and use as additives) constitute other small but expanding uses.

Regional Analysis

In North America, there is a surge in the Propanol Market due to the chemical manufacturing of major players such as Dow Chemical, ExxonMobil Company, and the Eastman Chemical Company. These companies have developed a large-scale manufacturing capacity as well as sophisticated research and development facilities that allow them to manufacture plentiful, high-quality propanol inexpensively. It has a good industrial base that supports the region’s demand for propanol used in pharmaceuticals, personal care products, coatings, and industrial cleaning products. Also, the trend of growing sustainability in the region along with stepping up the demands for biobased chemicals is further strengthening North America’s position in the market.

The Asia Pacific is a rapidly growing region in the Propanol Market due to its relatively faster growth rate in terms of industrialization, urbanization, and the expansion of the consumer market in countries like China, India, and Southeast Asia. Trends are observed from the pharmaceutical, personal care, and sales manufacturing sectors as propanol is used as a solvent, preservative, and disinfectant. Also, higher levels of environmental standards and the transition to environment-friendly, bio-derived chemicals are forcing industries in the region to turn to better solutions, such as propanol. In addition, increased production capabilities in local manufacturers and supportive governmental policies in the chemical industries are also propelling market growth and making Asia-Pacific a prominent market for future growth.

Competitive Landscape

The Propanol market is highly competitive having major participants such as BASF, Dow Chemical, ExxonMobil, Sasol, etc., who have a strong production facility, an efficient distribution channel, and experience in using advanced technology within the industry. These companies prevail due to their capacity to cater to the huge industrial requirements accompanied by increased research and development investment for improving product quality and developing eco-friendly raw materials such as biobased propanol. Out of these two, Dow Chemical and BASF have been exemplary in their development of new chemical processes as well as having made efforts toward meeting the environmental conservation agenda through the development of green solvents. Both ExxonMobil and Sasol have experience with integrated vertical production models that allow them to obtain their products efficiently and manage their supply chains effectively. These key players are aggressively diversifying geographically, notably into emerging markets, and thus can sustain competitive advantages and new growth points in the pharmaceuticals, personal care, and coatings industries, etc.

Propanol Market, Company Shares Analysis, 2024

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Recent Developments:

• In Jun 2024, After continuous price hikes, U.S. isopropyl alcohol (IPA) prices are finally stabilizing due to improved supply chains, reduced demand, and lower raw material costs. This price relief benefits industries reliant on IPA, including pharmaceuticals, healthcare, and industrial manufacturing.
• In May 2023, Dow and New Energy Blue announced a long-term supply agreement in North America. As part of this agreement, New Energy Blue will utilize renewable agricultural residues to produce bio-based ethylene. Dow, in turn, plans to purchase this bio-based ethylene, thereby reducing carbon emissions associated with plastic production. The company intends to incorporate this eco-friendly alternative into recyclable applications across various industries, including transportation, footwear, and packaging.

Report Coverage:

By Type

• Isopropanol (Isopropyl Alcohol)
• N-Propanol

By Source

• Petrochemical Sources
• Biobased Sources

By Application

• Pharmaceuticals
• Cosmetics and Personal Care
• Industrial Solvent
• Paints and Coatings
• Household Products
• Food and Beverages

By Region

North America

• U.S.
• Canada

Europe

• U.K.
• France
• Germany
• Italy
• Spain
• Rest of Europe

Asia Pacific

• China
• Japan
• India
• Australia
• South Korea
• Singapore
• Rest of Asia Pacific

Latin America

• Brazil
• Argentina
• Mexico
• Rest of Latin America

Middle East & Africa

• GCC Countries
• South Africa
• Rest of the Middle East & Africa

List of Companies:

• BASF SE
• The Dow Chemical Company (Dow Inc.)
• ExxonMobil Corporation
• Sasol Limited
• Royal Dutch Shell Plc (Shell Chemicals)
• Eastman Chemical Company
• Mitsui Chemicals, Inc.
• LG Chemicals Limited
• Zhejiang Xinhua Chemical Co. Ltd.
• Oxea GmbH
• ISU Chemical Co. Ltd.
• LCY Chemical Corp.
• Deepak Fertilizers and Petroleum Corporation Limited
• CNPC Northeast Refining & Chemical Engineering Company Limited (PetroChina Co. Ltd.)
• Tokuyama Corporation
• LyondellBasell
• Solvay
• KH Chemicals
• Dairen Chemical Corporation

Frequently Asked Questions (FAQs)