Methanol Market Size

Methanol Market Analysis

The Methanol Market size is estimated at 99.03 Million tons in 2024, and is expected to reach 118.81 Million tons by 2029, growing at a CAGR of greater than 3.5% during the forecast period (2024-2029).

The COVID-19 pandemic drastically curtailed industrial activities due to imposed government bans and restrictions in 2020 and the first half of 2021, limiting the growth of the methanol market. The chemical industry was struggling due to scarce raw material supply, limited working hours/labor strength, reduced demand, and constrained financials. However, the chemical and petrochemical industries have been on track for recovery since the retraction of the pandemic in mid-2021. The exponential rise in demand for chemicals across various end-user industries is expected to contribute to the growth of the methanol market.

• Over the medium term, the expanding petrochemical sector in China, the United States, and other Asia-Pacific countries and the rising demand for methanol-based fuels are the major driving factors augmenting the growth of the market studied. Furthermore, the growing utilization of methanol in producing olefins using MTO propels increased offtakes in the chemical industries.
• On the other side, the higher preference for ethanol fuel or bioethanol over methanol and the health hazardous impacts associated with it are anticipated to restrain the growth of the target industry over the forecast period.
• Nevertheless, the use of methanol in new and expanding fuel applications and the growing industrial inclination toward renewable methanol are expected to create lucrative growth opportunities for the market soon.
• The Asia-Pacific emerged as the largest market for methanol. It is expected to witness the highest CAGR during the forecast period. The dominance of the Asia-Pacific region is attributed to the high demand for methanol in China, Japan, and other Southeast Asian countries, expanding chemical and other application sectors.