Methanol Market: Current Analysis and Forecast (2025-2033)

Methanol Market Size & Forecast

The methanol market was valued at approximately USD 73.8 billion in 2024 and is expected to grow at a substantial CAGR of around 10.3% during the forecast period (2025-2033), owing to the growing Methanol pipeline.

Methanol Market Analysis

Methanol is a key product in the chemical industry. It is mainly used for producing other chemicals such as formaldehyde, acetic acid, MTBE, MMA, and DMT, among others. Therefore, the demand for methanol depends on the production of chemicals. For instance, a product like formaldehyde is an important raw material in the production of a wide range of products like particleboard, plywood, and fiberboard; glues and adhesives; permanent-press fabrics; paper products, coatings; and certain insulation materials. Further, it is used in the production of food, paints & coatings, and disinfectants. Since the demand for building products is increasing on account of rising construction activities in the developing economies, coupled with the growing market for food, paint & coatings, and pharmaceuticals, owing to increasing urbanization and growing population, this is propelling the demand for formaldehyde. Moreover, several companies are manufacturing products that can run on methanol fuel. For instance, Thermax Ltd. has developed a 5 KW methanol-based reformer on a Direct Methanol Fuel Cell (DMFC). This module is being tested to replace DG sets in mobile towers. The above factors will fuel the methanol market.

Methanol Market Trends

This section discusses the key market trends influencing the various segments of the Methanol market as identified by our research experts.

Rapid Expansion of Methanol-to-Olefins (MTO) Technology

MTO technology is one of the most prominent trends influencing the condition of the methanol market in China. Thus, with the country gradually turning towards more domestic production of crude oil, MTO can offer practical conversion of coal-based methanol into crucial petrochemicals such as ethylene and propylene. This is in line with China’s strategic goals of achieving industrialization and diversifying its sources of energy. With the backing of government support and the advance of technology, MTO is playing a major role in increasing the demand for methanol in the domestic market and changing the global supply chain.

Methanol Industry Segmentation

This section provides an analysis of the key trends in each segment of the global Methanol report, along with forecasts at the global, regional, and country levels for 2025-2033.

The Formaldehyde Market Holds the Largest Share of the Methanol Market.

Based on derivatives, the market is categorized into formaldehyde, acetic acid, MTBE, MMA, DMT, methanethiol, methylamines, methyl chloride, gasoline blending & combustion, biodiesel, DME, fuel cells, methanol-to-olefins, and others. Among these, the formaldehyde market has a considerable share of the methanol industry. Formaldehyde is an important raw material in the production of a wide range of products like particleboard, plywood, and fiberboard; glues and adhesives; permanent-press fabrics; paper product coatings; and certain insulation materials. Further, it is used in the production of food, paints & coatings, and disinfectants. Therefore, with rising construction activities in the region, demand for the products would also increase, thus increasing the consumption of formaldehyde.

The Chemical & Polymer Market is Expected to Witness a Higher CAGR than the Methanol Market.

Based on industry, the market is categorized into chemical & polymer, transport, and others. Among these, chemicals & polymers have a considerable share in the methanol market due to the production of many chemical-related methanol derivatives. Derivatives like formaldehyde, MTBE, and acetic acid are among the largest consumers of methanol, which is produced in the chemical industry. Further, increasing construction activities due to rising urbanization and growing population, along with improving consumer disposable power, which resulted in home decoration activities, are propelling the demand for building materials. Thus, increasing the consumption of methanol derivatives like formaldehyde, as a result, improves the market share of chemicals & polymers.

Asia-Pacific has a significant share of the market in 2024.

Asia-Pacific accounted for a significant share of the market and is expected to showcase substantial growth during the forecast period. This can be ascribed to the large and growing base of the chemical industry. Also, the region is the largest producer of chemicals across the globe. Further, the region has an abundance of coal and natural gas, which can be converted into methanol through gasification and reforming. The production of methanol from natural gas reforming is a mature technology. This has helped the region to capture a prominent position in the market.

China Dominates the Asia-Pacific Methanol Market

Methanol industry in China is significant, and it is China is the largest producer of methanol and consumer in the world, thus making their role in the global market significant. The country’s methanol industry is highly linked with coal-based production, while other areas depend more on natural gas. Methanol is widely used in China’s economy and industries in sectors including formaldehyde production, olefins, fuels, and more recently as a fuel for transport. This has been attributed to government support accorded to methanol vehicles, along with recent technological developments in MTO conversions. However, the Chinese methanol market seems quite healthy owing to industrial consumption and a quest for new energy sources.

Methanol Industry Competitive Landscape  

The Methanol market is competitive, with several global and international players. The key players are adopting different growth strategies to enhance their market presence, such as partnerships, agreements, collaborations, new product launches, geographical expansions, and mergers and acquisitions.

Top Methanol Companies

Some of the major players operating in the market are Methanex Corporation, BASF SE, Mitsubishi Gas Chemical Company, Mitsui & Co. Ltd., Metafrax Chemicals, Petronas, Yanzhou Coal Mining Company Ltd. (Yankuang Group), Shanghai Huayi (Group) Company, Ningxia Baofeng Energy Group Co. Ltd., and Celanese Corporation.

Recent Developments in the Methanol Market

• In April 2023, Methanex Corporation signed an agreement with Suez Methanol Derivatives (SMD) for a new methanol pipeline. With this agreement, Methanex Corporation will supply methanol from its Egypt plant to a nearby SMD company’s project in Damietta.

• In March 2023, Zagros Petrochemical Company (ZPC) and Dalian Petrochemical Company signed an agreement to construct a methanol-to-synthetic ethanol conversion plant.

• In March 2021, Celanese Corporation announced that it would expand its capacity, and it’s Clear Lake, Texas integrated chemical manufacturing facility would begin utilizing recycled carbon dioxide (CO2) as an alternative feedstock in the production of methanol.

Methanol Market Report Coverage

Reasons to Buy the Methanol Market Report:

• The study includes market sizing and forecasting analysis validated by authenticated key industry experts.

• The report presents a quick review of overall industry performance at a glance.

• The report covers an in-depth analysis of prominent industry peers with a primary focus on key business financials, product portfolios, expansion strategies, and recent developments.

• Detailed examination of drivers, restraints, key trends, and opportunities prevailing in the industry.

• The study comprehensively covers the market across different segments.

• Deep dive regional-level analysis of the industry.

Customization Options:

The global Methanol market can be customized further as per the requirements or any other market segment. Besides this, UnivDatos understands that you may have your own business needs; hence, feel free to contact us to get a report that completely suits your requirements.