Methanol Market Research Report -Forecast to 2027

Methanol Market Information: by Feedstock (Natural Gas, Oil, and Coal), Derivative (Formaldehyde, Acetic Acid, Dimethyl Ether and Others) End-Use Industry (Transportation, Building and Construction and Others) - Forecast till 2027

ID: MRFR/CnM/1232-HCR | February 2021 | Region: Global | 141 pages

Methanol Market Overview


It is noted that the methanol market was valued at USD 28.5 billion in 2019 and is expected to project at a CAGR of 4.6% by 2027. The lightweight and flammable liquid, methanol is produced from natural gas, coal, or from some other renewable sources like biomass and livestock. This liquid is widely used as fuel in the transportation industry. This is because it has good binding properties and has a high octane rate. The automotive segment is expected to show high growth but by the end of the forecast period rise in the use of plastics and methanol blended products was marked. This versatile alcohol has been used for various applications.


COVID 19 Analysis


COVID made a bad and negative impact on the methanol market business. The production of methanol was decreased which hampered the supply chain. The COVID situation is continuing to disclose and has become a challenging factor. To reduce the spread of COVID many petrochemical industries stopped their manufacturing. As the petrochemical industry also manufactures methanol, so halting up of these industries stopped the production of methanol.           


For the welfare of the public, the government imposed a country-wide lockdown and shutdown. He took all the necessary initiatives to aware the nation. He imposed strict rules and regulations on those violating law.


Market Dynamics



  • Drivers- the demand for petrochemicals in the Asia Pacific region is increasing the methanol market growth. The use of chemicals in the automotive and construction industries plays a major role in driving the methanol market size. In the petrochemical industry, the production of methanol by the organic industry drives the market and is a forerunner to various chemical products. It is free from contamination and causes less damage to using it.



  • Opportunities- methanol being used as a fuel is showing methanol market growthand thus providing an advantage over other fuels. This organic liquid is free of sulfur, produces less emission, and costs less compared to marine distillate f, which annually, and increases its demand in the market. It attracts the public and is an economically viable alternative fuel that increases its opportunities in the market. The price to convert the fuel vessel to work on methanol is low. Using methanol in various other projects and commercial activities increases its opportunities for expansion of methanol market size.



  • Challenges- the use of carbon-based sources for the production of methanol is a very expensive process. Identification of raw materials for the safety of the economy and the uninterrupted supply for a large period. A large amount of capital investment for the pre-phase of the project and the plant’s construction is the most challenging factor. The expenses needs for its installation and its maintenance are also high which is the challenging factor. Environmental issues associated with the damage of the plant hampers the growth of the market.



  • Cumulative growth- use of methanol for the production of dimethyl ether and methyl tert-butyl ether is used as the alternatives for the manufacturing of gasoline steers up the growth of the industry. A rise in demand for bio-based p[roducts propels up the market growth. 



  • Restraints- rise in restriction of government and environment, is the major restraining factor for methanol market. Dangerous impact on health, if exposed to methanol hampers the methanol market value. Due to the outbreak of COVID, the industrial sectors have witnessed declines which have hindered the methanol market size and methanol market value. Instability in the methanol prices hampers up the growth. 


Segment Overview



  • Bt type- Globally, it is noted that the market is bifurcated into formaldehyde, acetic acid, dimethyl ether, gasoline, solvents, methanol to olefins, and many more. It is noted that the formaldehyde segments covers a large section of the market in 2019, as formaldehyde was majorly used in large amounts by end-users industries namely automotive, construction, health and personal care, and cosmetics industries. Globally the market is split into feedstock, derivative, end-user, and region. Based on feedstock the market is divided into coal, natural resources, etc. 



  • By technology- by the use of innovative technology, the government has taken initiatives to make methanol available at a low cost. Using the technology for bio-refining and using methanol as marine fuel projects up the size. With the help of technology and new innovative methanol market trend and methanol market outlook, new plants were set up which helped in gaining the upcoming opportunities.


Regional Analysis


The Asia Pacific is noted to be the dominant region covering the largest methanol market share in 2019 and is expecting to continue this till 2025. Methanol market growth in this region shows its expansion in automotive industries in various regions of India and China. Nowadays, the government has decided to suggest the public use coal-based methanol heavy vehicles as it is cost-effective and advantageous. The government has also given the notice to use coal blocks in oil marketing companies in the regions of Jharkhand, Madhya Pradesh, Telengana, and Odisha. North America accounts to be the other largest prominent market for using methanol in water treatment facilities and denitrification processes. It so uses it to reduce the amount of the hazardous effluents so discharged. For the last 200 years, Methanol Institute in United State has used methanol for the denitrification process.


European markets also show their market expansion due to their demand in healthcare sectors. The regions of Latin America namely Brazil and Mexico are expected to grow due to their growth in the cosmetics and personal care industry. Methanol markets in regions of the Middle East and Africa during its assessment period show considerable growth in the automotive, packaging, and building, and construction industry.


Recent Developments



  • Methanex Corporation in October 2019, discovered the restructuring of its commercial arrangement along with Empresa Nacional del Petroleo (ENDP), for the supply of natural gas to produce 25% of Methanex’s 17 million metric tons in the region of Chile for a period during the methanol market forecast periodof 2020 to 2025.

  • Sarawak Petchem in September 2019, made an agreement with Petronas Chemicals Marketing Ltd(PCML), for manufacturing methanol for 20 years and also for further extension.

  • As per the NITI Aayog Program, the production of methanol has expected to rise to 20 metric tons in the forecast period.


Competitive Landscape


The competitors in the market merge with other key players and make partnerships. They undergo some kind of research development and take some initiatives for the market. They involve in such researches that increase the potential and strength of the market. They focus on the adhesive resin market and launch new and innovative products. Some of the major key players present globally are Celanese Corporation located in the United States, BASF SE located in Germany, Methanex Corporation in Cannada, SABIC in Saudi Arabia, Petroleum National Berhard in PETRONAS, Mishubishi Gas Chemical Company Inc. in Japan, Valero Marketing and Supply Company in the United States, Mitsui, and Co. Ltd in Japan, Zagros Petrochemical Company i9n Iran, Sipchem in Saudi Arabia, Simalin Chemical Industries ltd in India, and solvents in the United Kingdom.


Report Overview


The report provides information about the qualitative and quantitative analysis during the assessment period. It also predicts the methanol market growth during the review period. The study of the industry covers the methanol market analysis in the regions of North America, the Middle East, Latin America, and Africa. The report provides comprehensive study and insights about drivers, opportunities, challenges, and the factors hindering the market growth. It gives collective representation about the market size and market growth. From methanol market analysis you can get information regarding the positions of suppliers and buyers. It describes the scenario of the market and gives a good evaluation of the competitors playing a major role in the market. The report summarises the recent developments, export and import business, transformation in market regulations, innovation of technology in the market, categorical application niches, and optimizable analysis of the market. The report also provides about the methanol market trends having a positive impact on the future.



Report Scope:
Report Attribute/Metric Details
  Market Size   2027: Significant Value
  CAGR   2020-2027: Substantial CAGR
  Base Year   2019
  Forecast Period   2020-2027
  Historical Data   2018
  Forecast Units   Value (USD Million)
  Report Coverage   Revenue Forecast, Competitive Landscape, Growth Factors, and Trends
  Segments Covered   Feedstock, Derivative, End-Use
  Geographies Covered   North America, Europe, Asia-Pacific, and Rest of the World (RoW)
  Key Vendors   Celanese Corporation (US), BASF SE (Germany), Methanex Corporation (Canada), SABIC (Saudi Arabia), Petroliam Nasional Berhad (PETRONAS), Mitsubishi Gas Chemical Company Inc. (Japan), Valero Marketing and Supply Company (US), Mitsui & Co. Ltd (Japan), Zagros Petrochemical Company (Iran), Sipchem (Saudi Arabia), Simalin Chemical Industries Limited (India), and Solventis (UK)
  Key Market Opportunities

  • Rising residential and commercial construction activities coupled with improving standards of living
  • Rising per capita income
  •   Key Market Drivers

  • Improved engine performance and enhanced fuel efficiency
  • Increasing demand for lightweight vehicles to reduce carbon emissions
  • Increasing use in the water treatment, plastics, and healthcare industries


  • Frequently Asked Questions (FAQ) :


    The market shows a steady growth which owes to the increase in its application and shows methanol market growth in the Asia Pacific and European regions.

    This simple aldehyde has a variety of applications. Its combination with various other products leads to the production of urea, phenol, and HMTA. Asia Pacific region along with China covers the major methanol market share related to its production. It is also used for producing disinfectants. For the above points, formaldehyde balances the growth line of the environment thus giving a positive effect.

    The Asia Pacific regions include several China, India, and Japan. China produced more than 20 million tons of coatings, thus having several paint companies. It has also launched a large number of methanol vehicles. The government also wants to make methanol the cooking fuel which will cause less damage to the environment.