Isooctanol, a high-value oxo alcohol, is a crucial feedstock in the manufacture of plasticizers, surfactants, and other specialty chemicals. Its production is closely tied to propylene availability, as isooctanol is generally manufactured via the oxo process, converting propylene into higher molecular weight alcohols. In recent years, production capacity for isooctanol has seen moderate expansion in Asia, particularly China and India, responding to increasing domestic demand for downstream plasticizers such as dioctyl phthalate (DOP) and other phthalates. In 2025, production is expected to stabilize, with incremental expansions in Southeast Asia and the Middle East designed to balance regional consumption growth. Europe’s isooctanol output is forecast to remain largely flat due to stricter environmental controls and limited capacity additions.