Methanol Market To Reach $64.14 Billion By 2030 | CAGR: 8.9%

Methanol Market Growth & Trends

The global methanol market size is anticipated to reach USD 64.14 billion by 2030 and is expected to expand at a CAGR of 8.9% during the forecast period, according to a new report by Grand View Research, Inc. 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

• Formaldehyde dominated the market and held the highest revenue market share in 2023. This growth is attributed to the increase in the construction sector in developing economies such as Central and South America and Asia-Pacific. This is expected to lead to a rise in demand for formaldehyde from methanol

• Asia Pacific emerged as the largest market share with a market share of 51.0% in the global methanol market and is anticipated to grow at a high CAGR of 9.2%. This is due to emerging economies like India, China, and others, as well as the increasing demand for acetic acid, formaldehyde, and DME, which are considered the key drivers of the industry across the Asia Pacific.

• In January 2023, Zagros Petrochemical Company and China's Dalian Petrochemical Company agreed to establish Iran's first methanol-to-synthetic ethanol conversion plant with a capacity of 300,000 tons. The first 300,000-ton plant for converting methanol to synthetic ethanol will be operational within 36 months

Methanol Market Segmentation

Grand View Research has segmented the global methanol market 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

• Others

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

• North America

  • U.S.

• Europe

  • Germany

• Asia Pacific

  • China

  • India

  • Japan

• Central & South America

• Middle East & Africa

List of Key Players in Methanol Market

• BASF SE

• Zagros Petrochemical Company

• Mitsui & Co. Ltd.

• Celanese Corporation

• Petroliam Nasional Berhad (PETRONAS)

• SABIC

• Methanex Corporation

• Mitsubishi Gas Chemical Co., Inc.

• QAFAC (Qatar Fuel Additives Company Limited)