Global Methanol Market – Industry Trends and Forecast to 2031

Global Methanol Market, By Type (Natural Gas, Coal, and Others), Derivatives (Formaldehyde, Acetic Acid, MTBE, MMA, Gasoline Blending, Biodiesel, DME, TAME, DMT, MTO/MTP, and Others), Sub-Derivatives (Gasoline additives, Olefins, UF/PF resins, VAM, Polyacetals, MDI, PTA, Acetate Esters, Acetic anhydride, Fuels, and Others), End-User Industry (Construction, Automotive, Electrical and Electronics, Pharmaceuticals, Packaging, Paints and Coatings, Agriculture, and Others) - Industry Trends and Forecast to 2031.

Methanol Market Analysis and Size

In the methanol market, technological advancements are driving significant benefits. From cleaner energy sources to efficient chemical production, methanol's versatility is expanding. With ongoing innovation, its applications in fuel cells, transportation, and chemical synthesis promise sustainable solutions, offering economic and environmental advantages. Methanol's evolution underscores its pivotal role in shaping a greener future.

Data Bridge Market Research analyses that the global methanol market size was valued at USD 31.96 billion in 2023, is projected to reach USD 46.51 billion by 2031, with a CAGR of 4.8% during the forecast period 2024 to 2031. In addition to the insights on market scenarios such as market value, growth rate, segmentation, geographical coverage, and major players, the market reports curated by the Data Bridge Market Research also include in-depth expert analysis, geographically represented company-wise production and capacity, network layouts of distributors and partners, detailed and updated price trend analysis and deficit analysis of supply chain and demand.

Report Scope and Market Segmentation

Market Definition

Methanol, or wood alcohol, is a colorless liquid with a faint sweet smell, utilized widely as a solvent, antifreeze, fuel, and in chemical synthesis. However, ingestion of methanol is highly toxic, leading to severe health consequences including blindness or fatality. It is produced industrially from natural gas or biomass conversion processes, contributing to various industrial production of methanol and application.

Methanol Market Dynamics

Drivers

• Increasing Demand for Petrochemicals

Methanol is a crucial feedstock for diverse petrochemical products such as formaldehyde, acetic acid, and olefins. These compounds find extensive applications across automotive, construction, and electronics industries. For instance, formaldehyde is used in manufacturing plastics and resins, while acetic acid is a key component in producing paints and coatings. This growing demand for petrochemicals fuels the expansion of the methanol market.

• Expansion of Methanol-to-Olefins (MTO) and Methanol-to-Propylene (MTP) Plants

The expansion of Methanol-to-Olefins (MTO) and Methanol-to-Propylene (MTP) plants is driven by their capability to convert methanol into olefins and propylene directly, vital for plastics and fibers. This growth is prominent in regions rich in natural gas reserves, boosting methanol demand as a feedstock for these essential chemical building blocks.

Opportunities

• Shift towards Renewable Energy

Methanol is gaining prominence as an energy carrier and renewable fuel due to its biomass, municipal waste, and carbon dioxide production. For instance, carbon recycling international (CRI) converts carbon dioxide emissions from industrial sources into methanol in Iceland. With a global push to lessen dependence on fossil fuels, methanol's versatility and renewable sourcing make it an increasingly sought-after cleaner alternative in energy solutions.

• Growing Demand in the Automotive Sector

Methanol rising usage in automotive fuel, particularly in regions such as China, reflects its appeal as a fuel additive or direct fuel. With benefits such as emission reduction and enhanced engine performance, it aligns with the automotive sector's pursuit of alternative fuels, thus driving the growth of the market.

 Restraints/Challenges

• High Cost of Methanol

Methanol prices are highly volatile, influenced by shifting feedstock costs, energy price fluctuations, and global economic conditions. This instability complicates investment planning and budgeting for producers and consumers, introducing uncertainty and risk into the market landscape.

• Health and Safety Risks

Methanol presents significant health risks, being toxic upon exposure. Ensuring worker safety and public health during handling and transportation is paramount, necessitating stringent regulatory compliance and additional costs. Mishandling or improper use can lead to severe consequences, emphasizing the critical importance of safety protocols and precautions.

This market report provides details of new recent developments, trade regulations, import-export analysis, production analysis, value chain optimization, market share, impact of domestic and localized market players, analyses opportunities in terms of emerging revenue pockets, changes in market regulations, strategic market growth analysis, market size, category market growths, application niches and dominance, product approvals, product launches, geographic expansions, technological innovations in the market. To gain more info on the market contact Data Bridge Market Research for an Analyst Brief, our team will help you take an informed market decision to achieve market growth.

Impact and Current Market Scenario of Raw Material Shortage and Shipping Delays

Data Bridge Market Research offers a high-level analysis of the market and delivers information by keeping in account the impact and current market environment of raw material shortage and shipping delays. This translates into assessing strategic possibilities, creating effective action plans, and assisting businesses in making important decisions. Apart from the standard report, we also offer in-depth analysis of the procurement level from forecasted shipping delays, distributor mapping by region, commodity analysis, production analysis, price mapping trends, sourcing, category performance analysis, supply chain risk management solutions, advanced benchmarking, and other services for procurement and strategic support.

Expected Impact of Economic Slowdown on the Pricing and Availability of Products

When economic activity slows, industries begin to suffer. The forecasted effects of the economic downturn on the pricing and accessibility of the products are taken into account in the market insight reports and intelligence services provided by DBMR. With this, our clients can typically keep one step ahead of their competitors, project their sales and revenue, and estimate their profit and loss expenditures.

Recent Development

• In November 2022, Petronas commenced constructing a new methanol facility in Bintulu Sarawak, Malaysia, adding 1.75 million tons to its existing 2.4 million tons capacity. Completion by March 2023 is anticipated, fortifying Petronas's position in the methanol market
• In February 2022, Linde expanded its agreement with Celanese Corporation, supplying carbon dioxide and hydrogen for methanol production in Clear Lake, Texas. This move aims to diminish carbon emissions, aligning with environmental sustainability while enhancing Linde's business offerings
• In March 2021, Fairway Methanol LLC, a joint venture between Mitsui & Co., Ltd, expanded methanol production by utilizing CO2 emissions from nearby plants. This strategic expansion, aiming for a production increase of 130,000 tons yearly, underscores Mitsui's commitment to sustainability
• In July 2021, Methanex Corporation and Mitsui O.S.K. Lines (MOL) finalized an agreement where MOL acquired a 40% stake in Methanex's Waterfront Shipping subsidiary for USD145 million. This strategic partnership enhances Methanex's global supply chain capabilities, strengthening its position in the market

Methanol Market Scope

The market is segmented on the basis of type, derivatives, sub-derivate, and end-user industry. The growth amongst these segments will help you analyse meagre growth segments in the industries and provide the users with a valuable market overview and market insights to help them make strategic decisions for identifying core market applications.

Type

• Natural Gas
• Coal
• Others

Derivatives

• Formaldehyde
• Acetic Acid
• MTBE
• MMA
• Gasoline Blending
• Biodiesel
• DME
• TAME
• DMT
• MTO/MTP
• Others

Sub-Derivatives

• Gasoline additives
• Olefins
• UF/PF resins
• VAM
• Polyacetals
• MDI
• PTA
• Acetate Esters
• Acetic anhydride
• Fuels
• Others

End-User Industry

• Construction
• Automotive
• Electrical and Electronics
• Pharmaceuticals
• Packaging
• Paints and Coatings
• Agriculture
• Others

Methanol Market Regional Analysis/Insights

The market is analysed and market size insights and trends are provided by type, derivatives, sub-derivate, and end-user industry as referenced above.

The countries covered in the market report are U.S., Canada, Mexico, Germany, France, U.K., Netherlands, Switzerland, Belgium, Russia, Italy, Spain, Turkey, Rest of Europe, China, Japan, India, South Korea, Singapore, Malaysia, Australia, Thailand, Indonesia, Philippines, Rest of Asia-Pacific, Saudi Arabia, U.A.E., South Africa, Egypt, Israel, Rest of Middle East and Africa, Brazil, Argentina and Rest of South America.

North America is expected to dominate the methanol market in terms of market share and revenue during the forecast period. This dominance is fueled by key methanol manufacturers within the region, ensuring continued growth and market leadership.

Asia-Pacific is estimated to show lucrative growth in the methanol market, driven by consumer preference shifting towards sustainable fuels. This trend fosters innovation and investment in methanol production, bolstering the region's position as a key player in the global energy transition.

The country section of the report also provides individual market impacting factors and changes in regulation in the market domestically that impacts the current and future trends of the market. Data points like down-stream and upstream value chain analysis, technical trends and porter's five forces analysis, case studies are some of the pointers used to forecast the market scenario for individual countries. Also, the presence and availability of global brands and their challenges faced due to large or scarce competition from local and domestic brands, impact of domestic tariffs and trade routes are considered while providing forecast analysis of the country data.   

Competitive Landscape and Methanol Market Share Analysis

The market competitive landscape provides details by competitor. Details included are company overview, company financials, revenue generated, market potential, investment in research and development, new market initiatives, global presence, production sites and facilities, production capacities, company strengths and weaknesses, product launch, product width and breadth, application dominance. The above data points provided are only related to the companies' focus related to the market.

Some of the major players operating in the market are:

• Methanex Corporation (Canada)
•  Proman Infrastructure Services Pvt. Ltd. (Switzerland)
•  SABIC (Saudi Arabia)
• Yankuang Energy Group Company Limited (China)
•  ZPCIR (Iran)
•  Celanese Corporation (Texas)
•  BASF SE (Germany)
•  Petroliam Nasional Berhad (PETRONAS) (Malaysia)
• Mitsubishi Gas Chemical Company Inc. (Japan)
•  Mitsui & Co., Ltd. (Japan),
•  LyondellBasell Industries B.V. (U.S.)
• OCI (Netherlands)
•  Metafrax Group (Russia)
• Sipchem Company (Saudi Arabia)