Methanol Market Size To Reach $64.14 Billion By 2030

Methanol Market Growth & Trends

The global methanol market size is anticipated to reach USD 64.14 billion in 2030 and is projected to grow at a CAGR of 9.1% from 2025 to 2030. Exceptional blending capacity and high-octane rating of the product are the key factors driving the consumption of methanol as fuel.

Methanol, also referred to as methyl alcohol or wood alcohol, is a clear and volatile liquid that is flammable and has a scent similar to that of ethanol or drinking alcohol. It is one of the most commonly used industrial chemicals. It serves as a precursor in the production of various other chemicals, such as formaldehyde, acetic acid, Methyl Tert-Butyl Ether (MTBE), Dimethyl Ether (DME), biodiesels, olefins, and more.

Increasing demand for acetic acid, formaldehyde, and DME are the key drivers for the methanol industry’s growth in Asia Pacific. In addition, the product's supply and demand across Asia Pacific are projected to be stable during the forecast period, with the ongoing Russia-Ukraine war.

A few methanol manufacturers are integrated into the value chain as they manufacture and distribute methanol through various sales channels to different end-use industries in different regions of the world. Some manufacturers of methanol involved in its distribution are BASF SE, Methanex Corporation, and Saudi Arabia Basic Industries Corporation (SABIC).

Using methanol-to-olefin (MTO) catalysts has significantly improved olefin production from methanol or coal feedstocks as an alternative approach to the naphtha cracking process. Increased olefin yields have been the primary driver of the global demand for MTO.

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Methanol Market Report Highlights

• Methanol is one of the major components in the production of biodiesel, which is manufactured by chemically reacting vegetable oil or fatty acid with methanol

• Methanol is toxic and poses risks to human health and the environment, if not handled properly.

• The formaldehyde segment dominated the market with a market share of 23.5% in 2024, during the forecast period

• Methanol-to-olefin (MTO) catalysts have significantly improved in producing olefins from methanol or coal feedstocks, offering an alternative to the traditional naphtha cracking process.

• Asia Pacific is the spearhead of methanol market growth, with China being the major producer and consumer of methanol on a global scale, followed by other Asian countries, such as Japan and South Korea.

Methanol Market Segmentation

Grand View Research has segmented the global methanol market report based on application and region:

Methanol Application Outlook (Volume, Million Tons; Revenue, USD Billion; 2018 - 2030)

• Formaldehyde

• Gasoline

• Acetic Acid

• MTBE

• Dimethyl Ether

• MTO/MTP

• Biodiesel

• Other Applications

Methanol Regional Outlook (Volume, Million Tons; Revenue, USD Billion; 2018 - 2030)

• North America

  • U.S.

• Europe

  • Germany

• Asia Pacific

  • China

  • India

  • Japan

• Latin America

• Middle East & Africa

List of Key Players in Methanol Market

• BASF SE

• Mitsui & Co. Ltd.

• Celanese Corporation

• Petroliam Nasional Berhad (PETRONAS)

• SABIC

• Methanex Corporation

• Mitsubishi Gas Chemical Co., Inc.

• QAFAC (Qatar Fuel Additives Company Limited)

• Zagros Petrochemical Company