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This ingredient gets a bad rep because it is irritating and drying due to its astringent property. Astringents draw out natural oils in tissue to constrict pores and dry out your skin.

However, alcohol denat. is not all that bad.

Due to its low molecular weight, alcohol denat. tends to evaporate quickly. One study on pig skin found half of applied alcohol evaporated in 10 seconds and less than 3% stayed on skin.

This also helps other ingredients become better absorbed upon application.

Studies are conflicted about whether this ingredient causes skin dehydration. One study from 2005 found adding emollients to propanol-based sanitizer decreased skin dryness and irritation. Another study found irritation only occurs if your skin is already damaged.

Small amounts of alcohol are generally tolerated by oily skin or people who live in humid environments.

The rule of thumb is this ingredient will probably not affect your skin much if it is near the end of an ingredients list.

One thing to note:
People with ALDH2 (aldehyde dehydrogenase 2) deficiency may experience skin irritation from continued alcohol use. About 8% of the world's population have this deficiency.

The Cosmetic Ingredient Review Expert Panel has determined denatured alcohols to be safe for use in concentrations between 0.05% and 12% (depending on which denaturant is used).

Also...

This ingredient has antimicrobial and solvent properties.

The antimicrobial property helps preserve products and increase their shelf life. As a solvent, it helps dissolve other ingredients.

Look for formulas that contain glycerin, hyaluronic acid, or panthenol if you want to offset any drying effect.

This ingredient will trip away your skin's natural oils/lipids that help it lock in moisture. This can worsen dryness, trigger eczema flare-ups, and aggravate rosacea.

Be sure to patch test any product with this ingredient if you have dry or sensitive skin, eczema, or rosacea.

Once on your skin, the enzyme alpha-glucosidase snips off the glucose and gradually releases active ascorbic acid right where it's needed. Basically, it behaves like a slow-release pro-vitamin C with less of a stinging that high-strength ascorbic acid can cause.

The research supports the classic vitamin C benefits as well. In lab and human studies, AA-2G slowed down the skin's production of melanin (the pigment behind dark spots) and helped shield skin cells against sun damage better than ascorbyl phosphate.

These studies also showed AA-2G released vitamin C over a longer period.

A frequently cited manufacturer trial found that a 2% AA-2G face cream significantly improved wrinkle depth and skin roughness after 45 days.

And in 2009, a clinical trial showed it meaningfully lightened dark patches on the gums compared to a placebo.

There's also collagen-synthesis support (since vitamin C is a required cofactor for that) and an antioxidant effect too.

Typical usage is usually between 0.5-5% and most studies/products land around 2%.

AA-2G performs best when formulated at a mildly acidic pH (~5-7) which is much gentler than the pH that pure vitamin C demands (~2.5-3.5).

Just one thing worth knowing: the in-skin conversation rate is only about 55-60% by weight. So a 5% AA-2G product delivers roughly 2.75-3% of actual active vitamin C. On top of that, skin absorption is relatively low because the ingredient is water-soluble.

Because it is not a free-fatty acid, this ingredient is fungal acne safe (there's nothing for Malassezia to feed on).