Methanol Market - Growth, Trends, and Forecast (2021 - 2026)

The Methanol Market is segmented by Derivatives (Formaldehyde, Methanol-to-olefins/Methanol-to-propylene, Methyl Tert-butyl Ether/Tertiary Amyl Methyl Ether, Dimethyl Terephthalate, Acetic Acid, Dimethyl Ether, Methyl Methacrylate, Methylamines, and Other Derivatives), End-user Industry (Direct and Indirect), and Geography (Asia-Pacific, North America, Europe, South America, and Middle-East and Africa).

Market Snapshot

Methanol Market - market summary
Study Period:

2016-2026

Base Year:

2020

Fastest Growing Market:

Asia Pacific

Largest Market:

Asia Pacific

CAGR:

>5 %

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Market Overview

The global methanol market size was estimated at 83.8 million metric ton in 2020, and the market is projected to register a CAGR of over 5% during the forecast period (2021-2026).

The COVID-19 pandemic negatively impacted the global economy. Owing to the several unknown elements pertaining to the outbreak and as the situation is continuing to disclose, it became a challenging factor to evaluate the future. It has exposed several challenges for various industries. As most of the oil-producing countries were locked down to halt the COVID-19 spread, many uncertainties and constraints have hindered the petrochemical markets. Countries such as Saudi Arabia, China, and various other major oil producers were highly impacted. Since the petrochemical industry plays a key role in the manufacture of numerous products, the production of methol is also a part of it. However, due to the shutdown of these industries. The market for methanol was also highly impacted.

  • Over the short term, one of the major factors driving the market studied is the increasing demand for methanol-based fuel. In reducing carbon monoxide, nitrogen oxides, and hydrocarbon emission, methanol tends to be more preferable compared to conventional fuel gasoline. Due to this, methanol is now getting used as an alternative to conventional in major economic countries of North America and Europe.
  • On the flipside, hazardous impacts on health as a result of exposure to methanol are expected to hinder the growth of the market.
  • Formaldehyde dominated the market and is expected to grow at a healthy rate during the forecast period, owing to the increasing applications in the construction, automotive, and personal care industries.
  • Asia-Pacific dominated the market across the world, with the largest consumption from countries such as China and India.

Scope of the Report

Methanol, also known as methyl alcohol, wood spirit, or wood alcohol, is the simplest form of long series of organic compounds called alcohols. Today, methanol is prepared by directly combining carbon monoxide gas and hydrogen in the presence of a catalyst. Conventionally, it was produced by the destructive distillation of wood. The market is segmented on the basis of derivatives, end-user industry, and geography. By derivatives, the market is segmented into formaldehyde, methanol-to-olefins/methanol-to-propylene, methyl tert-butyl ether/tertiary amyl methyl ether, dimethyl terephthalate, acetic acid, dimethyl ether, methyl methacrylate, methylamines, and other derivatives. By end-user industry, the market is segmented into direct and indirect. The report also covers the market size and forecasts for the methanol market in 15 countries across major regions. For each segment, the market sizing and forecasts have been done on the basis of volume (million metric ton).

Derivatives
Formaldehyde
Methanol-to-olefins (MTO)/Methanol-to-Propylene (MTP)
Methyl Tert-butyl Ether (MTBE)/Tertiary Amyl Methyl Ether (TAME)
Dimethyl Terephthalate (DMT)
Acetic Acid
Dimethyl Ether (DME)
Methyl Methacrylate (MMA)
Methylamines
Other Derivatives
End-user Industry
Direct End-user Industry
Automotive
Paints and Coatings
Pharmaceuticals
Agriculture
Indirect End-user Industry
Construction
Packaging
Electrical and Electronics
Other End-user Industries
Geography
Asia-Pacific
China
India
Japan
South Korea
Rest of Asia-Pacific
North America
United States
Canada
Mexico
Rest of North America
Europe
Germany
United Kingdom
Italy
France
Rest of Europe
South America
Brazil
Argentina
Rest of South America
Middle-East and Africa
Saudi Arabia
South Africa
Rest of Middle-East and Africa

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Key Market Trends

Formaldehyde is Dominating the Overall Methanol Market by Derivatives

  • The manufacturing of formaldehyde is the largest application of methanol. Formaldehyde is the simplest aldehyde and the most commercially important one. It is commonly known as ‘methanal’ (CH2O).
  • Formaldehyde includes a wide range of applications in varied sectors. The combination of formaldehyde with different compounds results in varied products, such as urea, phenol, and melamine-formaldehyde resins (UF, PF, and MF resins), polyacetal resins, pentaerythritol, methylenebis(4-phenyl isocyanate) (MDI), 1,4-butanediol (BDO), and hexamethylenetetramine (HMTA).
  • These are used in the manufacture of different products applicable in various industries, such as construction (adhesives, paints and coatings, carpet underlay, wood and ply adhesives, wood panels, etc.), automotive (under bonnet components, antifreeze, fuel system, components, brake pads, etc.), consumer products (paper towels, cosmetics, carpeting, furniture, cabinets, solvents, etc.), and healthcare applications (vaccine manufacturing, hard gel capsule manufacturing, pharmaceutical research, etc.).
  • The Asia-Pacific region accounts for over 60% of the total global consumption of formaldehyde, with China being the leader, by consuming the major proportion of the production. Additionally, the construction industry contributes to over 50% of the total consumption globally.
  • However, the presence of formaldehyde in the air, at levels higher than 0.1 parts per million (ppm), may lead to health issues to humans, such as watery eyes, burning sensations of the eyes, nose, and throat, coughing, wheezing, nausea, skin irritation, etc. Additionally, higher levels of exposure to formaldehyde concentration may lead to serious diseases like cancer.
  • As a result of the aforementioned factors, methanol-based fuel has been driving the methanol market globally, and the market studied is estimated to grow during the forecast period.
  • Even though formaldehyde is used in the manufacturing of pressed-wood products, fiberboard, plywood, glues and adhesives, etc., the production of these products has been highly reduced due to the shutdown of manufacturing facilities during the COVID-19 pandemic, which reduced the consumption on the industrial side.
  • However, the consumption trend can be seen as vice versa in the medical industry, as formaldehyde is used in the manufacturing of disinfectants. Due to this reason, the demand for formaldehyde can be seen on the positive side, which somehow tried to balance the growth line of formaldehyde globally.
Methanol Market - Segmentation

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Asia-Pacific Region to Dominate the Market

  • The Asia-Pacific region dominated the global market share. With the growing petrochemical industry and increasing usage of methanol-based fuel in countries such as China, India, and Japan, the usage of methanol is increasing in the region.
  • China is the leading producer of paints and coatings across the world. The country accounted for more than 20 million metric ton of coatings production, which is close to 30% of the global coatings output. It currently produces more than half of the coatings in Asia-Pacific and is home to more than 10,000 paint companies, among which local producers occupy more than half of the domestic paint market share. The production is expected to contribute to the demand for numerous derivatives, such as formaldehyde, acetic acid, and MMA, and it is expected to boost the demand for methanol.
  • As per the Guizhou government, by the end of 2019, Southwest China's Guizhou province had set a goal of launching 10,000 methanol vehicles, among which 7,000 vehicles were set to run in Guiyang.
  • Furthermore, in India, the government is pushing the usage of methanol as fuel in vehicles and cooking fuel to promote sustainable development with less damage to the environment.
  • Under the Methanol Economy program by NITI Aayog, the production capacity is expected to increase up to 20 metric ton of methanol annually by 2025, using Indian high ash coal, stranded gas, and biomass.
  • Moreover, the outbreak of COVID-19 led to a halt of operations in many sectors of various countries. The automotive, manufacturing, and construction sectors are estimated to witness declines in terms of growth and outputs, owing to the lockdown called by the governments for a brief period. Owing to this, the demand for methanol has been reduced drastically, which, as a result, tends to constrain the growth of the market.
Methanol Market - Regional Trends

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Competitive Landscape

The global methanol market is partially fragmented in nature, with the top eight players accounting for about 40% of the global production capacity. Some of these major players include Methanex Corporation, SABIC, Zagros Petrochemical Co., Yankuang Group, and Proman AG, among others.

Recent Developments

  • In October 2019, Methanex Corporation announced that it had restructured its existing commercial arrangements with Empresa Nacional del Petróleo (“ENAP”) for natural gas supply to underpin approximately 25% of Methanex’s 1.7 million metric ton of annual production capacity in Chile for a six-year period from 2020 through 2025.
  • In September 2019, the state-owned Sarawak Petchem inked a sale and purchase agreement with Petronas Chemicals Marketing Ltd (PCML) to market methanol for 20 years, with an option for further extension.

Table of Contents

  1. 1. INTRODUCTION

    1. 1.1 Study Assumptions

    2. 1.2 Scope of the Study

  2. 2. RESEARCH METHODOLOGY

  3. 3. EXECUTIVE SUMMARY

  4. 4. MARKET DYNAMICS

    1. 4.1 Drivers

      1. 4.1.1 Expanding Petrochemical Sector in United States, China, and Other Asia-Pacific Countries

      2. 4.1.2 Rising Demand for Methanol-based Fuel

      3. 4.1.3 Increasing Utilization of Methanol in the Production of Olefins Using MTO

    2. 4.2 Restraints

      1. 4.2.1 Usage of Ethanol Fuel or Bio Ethanol in Comparison to Methanol

      2. 4.2.2 Hazardous Impacts on Health

      3. 4.2.3 Impact of COVID-19

    3. 4.3 Industry Value Chain Analysis

    4. 4.4 Porter's Five Forces Analysis

      1. 4.4.1 Bargaining Power of Suppliers

      2. 4.4.2 Bargaining Power of Consumers

      3. 4.4.3 Threat of New Entrants

      4. 4.4.4 Threat of Substitute Products and Services

      5. 4.4.5 Degree of Competition

    5. 4.5 Global Capacity by Key Feedstock

      1. 4.5.1 Coal

      2. 4.5.2 Natural Gas

      3. 4.5.3 Other Key Feedstocks

    6. 4.6 Technological Snapshot

    7. 4.7 Trade Analysis

    8. 4.8 Price Trends

  5. 5. MARKET SEGMENTATION

    1. 5.1 Derivatives

      1. 5.1.1 Formaldehyde

      2. 5.1.2 Methanol-to-olefins (MTO)/Methanol-to-Propylene (MTP)

      3. 5.1.3 Methyl Tert-butyl Ether (MTBE)/Tertiary Amyl Methyl Ether (TAME)

      4. 5.1.4 Dimethyl Terephthalate (DMT)

      5. 5.1.5 Acetic Acid

      6. 5.1.6 Dimethyl Ether (DME)

      7. 5.1.7 Methyl Methacrylate (MMA)

      8. 5.1.8 Methylamines

      9. 5.1.9 Other Derivatives

    2. 5.2 End-user Industry

      1. 5.2.1 Direct End-user Industry

        1. 5.2.1.1 Automotive

        2. 5.2.1.2 Paints and Coatings

        3. 5.2.1.3 Pharmaceuticals

        4. 5.2.1.4 Agriculture

      2. 5.2.2 Indirect End-user Industry

        1. 5.2.2.1 Construction

        2. 5.2.2.2 Packaging

        3. 5.2.2.3 Electrical and Electronics

        4. 5.2.2.4 Other End-user Industries

    3. 5.3 Geography

      1. 5.3.1 Asia-Pacific

        1. 5.3.1.1 China

        2. 5.3.1.2 India

        3. 5.3.1.3 Japan

        4. 5.3.1.4 South Korea

        5. 5.3.1.5 Rest of Asia-Pacific

      2. 5.3.2 North America

        1. 5.3.2.1 United States

        2. 5.3.2.2 Canada

        3. 5.3.2.3 Mexico

        4. 5.3.2.4 Rest of North America

      3. 5.3.3 Europe

        1. 5.3.3.1 Germany

        2. 5.3.3.2 United Kingdom

        3. 5.3.3.3 Italy

        4. 5.3.3.4 France

        5. 5.3.3.5 Rest of Europe

      4. 5.3.4 South America

        1. 5.3.4.1 Brazil

        2. 5.3.4.2 Argentina

        3. 5.3.4.3 Rest of South America

      5. 5.3.5 Middle-East and Africa

        1. 5.3.5.1 Saudi Arabia

        2. 5.3.5.2 South Africa

        3. 5.3.5.3 Rest of Middle-East and Africa

  6. 6. COMPETITIVE LANDSCAPE

    1. 6.1 Mergers and Acquisitions, Joint Ventures, Collaborations, and Agreements

    2. 6.2 Market Share Analysis

    3. 6.3 Strategies Adopted by Leading Players

    4. 6.4 Company Profiles

      1. 6.4.1 Atlantic Methanol

      2. 6.4.2 BASF SE

      3. 6.4.3 BP PLC

      4. 6.4.4 Celanese Corporation

      5. 6.4.5 Coogee

      6. 6.4.6 Enerkem

      7. 6.4.7 Eni SpA (Ecofuel SpA)

      8. 6.4.8 Gujarat Narmada Valley Fertilizers & Chemicals Ltd

      9. 6.4.9 Kingboard Holdings Limited

      10. 6.4.10 LyondellBasell Industries Holdings BV

      11. 6.4.11 Methanex Corporation

      12. 6.4.12 Mitsubishi Gas Chemical Company Inc.

      13. 6.4.13 Mitsui & Co. Ltd

      14. 6.4.14 Oberon Fuels

      15. 6.4.15 OCI NV

      16. 6.4.16 Petroliam Nasional Berhad (PETRONAS)

      17. 6.4.17 Proman AG

      18. 6.4.18 SABIC

      19. 6.4.19 Yankuang Group

      20. 6.4.20 Zagros Petrochemical Co.

    5. *List Not Exhaustive
  7. 7. MARKET OPPORTUNITIES AND FUTURE TRENDS

    1. 7.1 Use of Methanol in New and Expanding Fuel Applications

**Subject to Availability

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Frequently Asked Questions

The Methanol Market market is studied from 2016 - 2026.

The Methanol Market is growing at a CAGR of >5% over the next 5 years.

Asia Pacific is growing at the highest CAGR over 2021- 2026.

Asia Pacific holds highest share in 2020.

  • Methanex Corporation
  • SABIC
  • Proman AG
  • Zagros Petrochemical Co.
  • Yankuang Group

Are the major companies operating in Methanol Market.

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