Methanol Market Size & Share Analysis - Growth Trends & Forecasts (2025 - 2030)

The Methanol Market Report Segments the Industry by Feedstock (Natural Gas, Coal, and More), Derivative/Application (Traditional Chemical and Energy Related), End-Use Industry (Automotive and Transportation, Chemical, and More), Grade (Chemical Grade, Fuel Grade, and More), and Geography (Asia-Pacific, North America, Europe, South America, and Middle East and Africa). The Market Forecasts are Provided in Terms of Volume (tons).

Methanol Market Size and Share

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Methanol Market Analysis by Mordor Intelligence

The methanol market stood at 115.90 million tons in 2025 and is forecast to reach 138.79 million tons by 2030, advancing at a 3.67% CAGR. The headline figures hide sharp regional contrasts: Atlantic basin prices firmed after unplanned outages, while Asian spot prices softened, widening arbitrage windows for traders. China’s expanding methanol-to-olefins (MTO) capacity, North American “mega-mega” plants, and surging marine-fuel demand anchor the growth narrative. Renewable methanol projects offer sizeable upside, yet certification lags and infrastructure gaps restrict near-term supply build-out. Feedstock volatility and uneven policy support add complexity, but sustained investment in low-carbon production and shipping conversions underpin a steady medium-term trajectory for the methanol market. 

Key Report Takeaways

  • By feedstock, natural gas held 65% of methanol market share in 2024; renewable feedstocks are projected to post the fastest growth at an estimated 5.12% CAGR through 2030, supported by more than 210 announced projects.
  • By derivative/application, energy uses captured 54% share of the methanol market size in 2024, and is projected to expand at 4.24% CAGR to 2030 on the back of aggressive dual-fuel vessel orders.
  • By end-use industry, the chemical sector dominated with 66% of methanol market share in 2024; the automotive and transportation sector is forecast to record the highest 4.15% CAGR through 2030 as shipping lines decarbonize.
  • By grade, chemical-grade methanol commanded 75% share of the methanol market size in 2024; fuel-grade methanol is projected to grow at 4.04% CAGR through 2030, supported by IMO emission targets.
  • By geography, Asia-Pacific led with 78% share of the methanol market size in 2024, and is forecast to deliver the fastest 3.86% CAGR to 2030, leveraging low-cost shale gas and export-oriented capacity additions.

Segment Analysis

By Feedstock: Natural Gas Dominance Faces Renewable Challenge

Natural gas accounted for 65% of total feedstock in 2024. Robust shale production in the Haynesville and Permian regions underpins cost-competitive output, ensuring reliable supply for the methanol market size. Renewable pathways—biomethanol and e-methanol—together represent 210 announced projects with potential capacity of 35.7 million t by 2030, signalling an incipient shift in the methanol industry. 

Natural gas is projected to remain the anchor feedstock through 2030, but its share gradually contracts as certified green alternatives secure premiums from shipping and chemical customers. The methanol market benefits from this dual-track growth: conventional players capitalize on feedstock advantage, while early adopters of renewable technologies command higher margins and brand differentiation.

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Note: Segment shares of all individual segments available upon report purchase

By Derivative/Application: Energy Applications Reshape Demand Landscape

Energy-related uses—including MTO, gasoline blending and marine fuel—captured 54% of consumption in 2024, underscoring their influence on methanol market dynamics. The methanol-to-olefins boom in China alone absorbed an incremental 4 million t in 2024, reinforcing the region’s pull on global trade.

Although currently modest in tonnage, marine fuel demand holds a significant share. Dual-fuel tonnage on order implies an additional 7 million t of annual bunker demand by 2030, indicating that the methanol market size for marine applications could rival existing energy uses. The versatility of methanol across fuels and chemicals thus smooths cyclical swings, enhancing the sector’s resilience.

By End-use Industry: Chemical Sector Maintains Strategic Importance

The chemical sector consumed 66% of global methanol in 2024, led by formaldehyde, acetic acid, and olefin derivatives. Despite the surge in energy applications, established downstream value chains secure the sector’s primacy. BASF’s partnership with Acies Bio to feed renewable methanol into fermentation platforms illustrates the sector’s pivot toward sustainable inputs.

Growing circularity requirements and specialty chemicals demand keep the chemical sector integral to the methanol market. Even as energy uses rise, the breadth of chemical derivatives ensures baseline demand, supporting capacity utilization and underpinning investment.

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Note: Segment shares of all individual segments available upon report purchase

By Grade: Chemical Grade Maintains Market Leadership

Chemical-grade methanol commanded 75% share in 2024. Strength stems from established specifications for downstream synthesis. Fuel-grade methanol, buoyed by shipping uptake and biofuel mandates, is set to expand faster. The methanol market share of premium low-carbon grades remains small but grows rapidly as certifications improve. Fairway Methanol’s ISCC CFC accreditation in April 2024 exemplifies early success, boosting buyer confidence.

Methanol Market:Market Share By Grade
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Note: Segment shares of all individual segments available upon report purchase

Geography Analysis

Asia-Pacific held a commanding 78% of global methanol consumption in 2024, equal to almost 90,400 kilotons. China’s coal-to-olefins build-out, Indonesia’s biodiesel B40 rollout and Southeast Asia’s planned capacity additions cement regional leadership. The methanol market size in Asia-Pacific is forecast to grow at 3.86% CAGR to 2030 as new demand nodes from shipping and renewable fuels augment petrochemical requirements. Regional pricing remains closely tied to Chinese import parity, making the area the bellwether for global sentiment.

North America’s role in the methanol market is undergoing transformation. Abundant shale gas underwrites a wave of export-oriented projects, typified by Lake Charles Methanol’s USD 3.2 billion complex in Louisiana. US output, once mainly for domestic formaldehyde, is now squarely aimed at Asian MTO buyers, realigning trade corridors and providing arbitrage optionality. 

Europe and the Middle East illustrate divergent strategies. Europe channels investment into e-methanol to meet “Fit for 55” goals, with projects such as Forestal del Atlántico’s Spanish plant targeting shipping bunkers. Conversely, the Middle East doubles down on conventional natural-gas-based facilities, leveraging feedstock advantage to supply Asia. Together, these regions shape an increasingly bifurcated methanol market: one side chasing low-carbon premiums, the other maximizing cost leadership.

Methanol Market CAGR (%), Growth Rate by Region
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Competitive Landscape

The global methanol market is moderately fragmented, with the top five suppliers accounting for an estimated 43% combined output. Methanex’s USD 2.05 billion acquisition of OCI Global’s methanol assets in September 2024 materially strengthened its portfolio and introduced ammonia integration synergies. The deal accentuates scale as a competitive lever, prompting rivals to reassess partnership opportunities.

Strategic differentiation is pivoting toward sustainability. BASF and Envision Energy’s collaboration on e-methanol production using green hydrogen underscores the premium attached to certified low-carbon molecules. Methanex’s Pre-FEED carbon-capture study with Entropy at Medicine Hat targets a 400 tCO₂ daily reduction, further highlighting emissions as a yardstick for competitive positioning.

Regional players are likewise active. COSCO SHIPPING completed China’s first large-scale methanol bunkering operation in January 2024, moving beyond cargo to service provision. This diversification broadens revenue streams and embeds producers deeper into the downstream value chain. Overall, competition is intensifying around feedstock security, carbon credentials and downstream integration rather than pure capacity.

Methanol Industry Leaders

  1. Methanex Corporation

  2. OCI

  3. Proman

  4. SABIC

  5. Ningxia Baofeng Energy Group

  6. *Disclaimer: Major Players sorted in no particular order
Methanol Market
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Recent Industry Developments

  • November 2024: BASF has partnered with Acies Bio to utilize renewable-methanol-based fermentation technology for producing ingredients used in personal-care products, aligning sustainability with the value of specialty chemicals. This collaboration is expected to drive innovation in the methanol market.
  • September 2024: Methanex has finalized a USD 2.05 billion agreement to acquire methanol assets from OCI Global, solidifying its position as the world's leading methanol marketer. This acquisition is expected to enhance Methanex's market influence and drive further consolidation within the global methanol market.

Table of Contents for Methanol Industry Report

1. Introduction

  • 1.1 Study Assumptions and Market Definition
  • 1.2 Scope of the Study

2. Research Methodology

3. Executive Summary

4. Market Landscape

  • 4.1 Market Overview
  • 4.2 Market Drivers
    • 4.2.1 Expanding Petrochemical Capacity in China, US, and Emerging Asia
    • 4.2.2 Marine Sector Transition to Low-Carbon Fuels – Adoption of Green Methanol by Global Carriers
    • 4.2.3 Government Mandates on Blended Fuels in ASEAN and LATAM Promoting Methanol Gasoline and DME
    • 4.2.4 Increasing Utilization of Methanol in the Production of Olefins
    • 4.2.5 On-Purpose Propylene Deficit Strengthening Demand for Methanol-Based Routes in the Middle East
  • 4.3 Market Restraints
    • 4.3.1 Feedstock Price Volatility
    • 4.3.2 Slow Certification Frameworks for Green Methanol Limiting Off-take Agreements
    • 4.3.3 Hazardous Impacts on Health
  • 4.4 Value Chain Analysis
  • 4.5 Technological Outlook
  • 4.6 Porter’s Five Forces
    • 4.6.1 Bargaining Power of Suppliers
    • 4.6.2 Bargaining Power of Buyers
    • 4.6.3 Threat of New Entrants
    • 4.6.4 Threat of Substitute Products and Services
    • 4.6.5 Degree of Competition
  • 4.7 Production Capacity Analysis by Key Feedstock
  • 4.8 Trade Flow Analysis
  • 4.9 Pricing Trends and Forecasts

5. Market Size and Growth Forecasts (Volume and Value)

  • 5.1 By Feedstock
    • 5.1.1 Natural Gas
    • 5.1.2 Coal
    • 5.1.3 Renewable Feedstock (Biomass, Municipal Solid Waste)
    • 5.1.4 Others (CO2, Green Hydrogen, Petroleum Residues and Naphtha)
  • 5.2 By Derivative/Application
    • 5.2.1 Traditional Chemical
    • 5.2.1.1 Formaldehyde
    • 5.2.1.2 Acetic Acid
    • 5.2.1.3 Solvent
    • 5.2.1.4 Methylamine
    • 5.2.1.5 Other Traditional Chemicals
    • 5.2.2 Energy Related
    • 5.2.2.1 Methanol-to-olefin (MTO)
    • 5.2.2.2 Methyl Tert-butyl Ether (MTBE)
    • 5.2.2.3 Gasoline Blending
    • 5.2.2.4 Dimethyl Ether (DME)
    • 5.2.2.5 Biodiesel
  • 5.3 By End-use Industry
    • 5.3.1 Automotive and Transportation
    • 5.3.2 Chemical
    • 5.3.3 Marine Fuel
    • 5.3.4 Others (Electronics and Appliances, power generation)
  • 5.4 By Grade
    • 5.4.1 Chemical Grade
    • 5.4.2 Fuel Grade
    • 5.4.3 Others (Ultra-Clean/Battery Grade and Renewable (Bio-/E-Methanol))
  • 5.5 By Geography
    • 5.5.1 Asia-Pacific
    • 5.5.1.1 China
    • 5.5.1.2 India
    • 5.5.1.3 Japan
    • 5.5.1.4 South Korea
    • 5.5.1.5 Vietnam
    • 5.5.1.6 Thailand
    • 5.5.1.7 Indonesia
    • 5.5.1.8 Malaysia
    • 5.5.1.9 Australia
    • 5.5.1.10 New Zealand
    • 5.5.1.11 Rest of Asia-Pacific
    • 5.5.2 North America
    • 5.5.2.1 United States
    • 5.5.2.2 Canada
    • 5.5.2.3 Mexico
    • 5.5.3 Europe
    • 5.5.3.1 Germany
    • 5.5.3.2 United Kingdom
    • 5.5.3.3 Italy
    • 5.5.3.4 France
    • 5.5.3.5 Turkey
    • 5.5.3.6 Russia
    • 5.5.3.7 Nordics
    • 5.5.3.8 Spain
    • 5.5.3.9 Rest of Europe
    • 5.5.4 South America
    • 5.5.4.1 Brazil
    • 5.5.4.2 Argentina
    • 5.5.4.3 Colombia
    • 5.5.4.4 Rest of South America
    • 5.5.5 Middle East and Africa
    • 5.5.5.1 Saudi Arabia
    • 5.5.5.2 Qatar
    • 5.5.5.3 United Arab Emirates
    • 5.5.5.4 Iran
    • 5.5.5.5 South Africa
    • 5.5.5.6 Nigeria
    • 5.5.5.7 Egypt
    • 5.5.5.8 Rest of Middle East and Africa

6. Competitive Landscape

  • 6.1 Market Concentration
  • 6.2 Strategic Moves
  • 6.3 Market Share Analysis
  • 6.4 Company Profiles (includes Global level Overview, Market level overview, Core Segments, Financials as available, Strategic Information, Market Rank/Share for key companies, Products and Services, and Recent Developments)
    • 6.4.1 Atlantic Methanol
    • 6.4.2 BASF SE
    • 6.4.3 Carbon Recycling International (CRI)
    • 6.4.4 Celanese Corporation
    • 6.4.5 China National Chemical Corporation (ChemChina)
    • 6.4.6 Coogee
    • 6.4.7 Enerkem
    • 6.4.8 Eni S.p.A.
    • 6.4.9 Gujarat State Fertilizers & Chemicals Limited (GSFC)
    • 6.4.10 INEOS
    • 6.4.11 Kaveh Methanol Company
    • 6.4.12 Kingboard Holdings Limited
    • 6.4.13 LyondellBasell Industries Holdings B.V.
    • 6.4.14 Methanex Corporation
    • 6.4.15 MITSUBISHI GAS CHEMICAL COMPANY, INC
    • 6.4.16 Natgasoline
    • 6.4.17 Ningxia Baofeng Energy Group
    • 6.4.18 OCI
    • 6.4.19 Petroliam Nasional Berhad (PETRONAS)
    • 6.4.20 Proman
    • 6.4.21 SABIC
    • 6.4.22 Yankuang Energy
    • 6.4.23 ZPC Integrated Refining & Petrochemical (Zhejiang)

7. Market Opportunities and Future Outlook

  • 7.1 Growing Trends Toward Renewable Methanol
  • 7.2 White-space and Unmet-Need Assessment
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Global Methanol Market Report Scope

Methanol is a clear liquid chemical used in numerous products, including plastics, paints, cosmetics, and fuels. It is also an energy resource used in the marine, automotive, and electricity sectors. It is an emerging renewable energy resource with environmental and economic advantages that make it an effective alternative fuel for powering vehicles and ships, cooking food, and heating homes.

The methanol market is segmented by application (traditional chemical (formaldehyde, acetic acid, solvent, methylamine, other traditional chemicals (methyl tertiary butyl ether (MTBE))), energy related (methanol-to-olefin (MTO), methyl tert-butyl ether (MTBE), gasoline blending, dimethyl ether (DME), biodiesel), and geography (Asia-Pacific, North America, Europe, South America, and Middle East and Africa). The report offers the market size in value terms in USD for all the abovementioned segments.

By Feedstock Natural Gas
Coal
Renewable Feedstock (Biomass, Municipal Solid Waste)
Others (CO2, Green Hydrogen, Petroleum Residues and Naphtha)
By Derivative/Application Traditional Chemical Formaldehyde
Acetic Acid
Solvent
Methylamine
Other Traditional Chemicals
Energy Related Methanol-to-olefin (MTO)
Methyl Tert-butyl Ether (MTBE)
Gasoline Blending
Dimethyl Ether (DME)
Biodiesel
By End-use Industry Automotive and Transportation
Chemical
Marine Fuel
Others (Electronics and Appliances, power generation)
By Grade Chemical Grade
Fuel Grade
Others (Ultra-Clean/Battery Grade and Renewable (Bio-/E-Methanol))
By Geography Asia-Pacific China
India
Japan
South Korea
Vietnam
Thailand
Indonesia
Malaysia
Australia
New Zealand
Rest of Asia-Pacific
North America United States
Canada
Mexico
Europe Germany
United Kingdom
Italy
France
Turkey
Russia
Nordics
Spain
Rest of Europe
South America Brazil
Argentina
Colombia
Rest of South America
Middle East and Africa Saudi Arabia
Qatar
United Arab Emirates
Iran
South Africa
Nigeria
Egypt
Rest of Middle East and Africa
By Feedstock
Natural Gas
Coal
Renewable Feedstock (Biomass, Municipal Solid Waste)
Others (CO2, Green Hydrogen, Petroleum Residues and Naphtha)
By Derivative/Application
Traditional Chemical Formaldehyde
Acetic Acid
Solvent
Methylamine
Other Traditional Chemicals
Energy Related Methanol-to-olefin (MTO)
Methyl Tert-butyl Ether (MTBE)
Gasoline Blending
Dimethyl Ether (DME)
Biodiesel
By End-use Industry
Automotive and Transportation
Chemical
Marine Fuel
Others (Electronics and Appliances, power generation)
By Grade
Chemical Grade
Fuel Grade
Others (Ultra-Clean/Battery Grade and Renewable (Bio-/E-Methanol))
By Geography
Asia-Pacific China
India
Japan
South Korea
Vietnam
Thailand
Indonesia
Malaysia
Australia
New Zealand
Rest of Asia-Pacific
North America United States
Canada
Mexico
Europe Germany
United Kingdom
Italy
France
Turkey
Russia
Nordics
Spain
Rest of Europe
South America Brazil
Argentina
Colombia
Rest of South America
Middle East and Africa Saudi Arabia
Qatar
United Arab Emirates
Iran
South Africa
Nigeria
Egypt
Rest of Middle East and Africa
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Key Questions Answered in the Report

What is the current size of the methanol market?

The methanol market reached 115.90 million tons in 2025 and is forecast to grow to 138.79 million tons by 2030, implying a 3.67% CAGR.

Which region dominates global methanol consumption?

Asia-Pacific leads with 78% of global demand in 2024, driven mainly by China’s methanol-to-olefins expansion and Indonesian biodiesel mandates.

Why is methanol gaining popularity as a marine fuel?

Methanol can reduce lifecycle greenhouse-gas emissions by up to 95% when produced from renewable sources, aligning with IMO 2024 emissions-intensity guidelines and prompting rapid uptake in dual-fuel vessel orders.

What role does natural gas play in methanol production?

Natural gas supplied 65% of methanol feedstock in 2024, ensuring low-cost production in regions with abundant shale resources such as North America.

Page last updated on: June 26, 2025