Methanol Market Outlook - Supply and Demand Analysis 2024-2032

Methanol Market

Methanol is a versatile clear liquid that is used for producing various downstream chemicals, which are further used in the production of a wide range of everyday items, such as plastics, paints, cosmetics, and fuels. It is water-soluble and easily biodegradable, which enhances its appeal as an alternative fuel. Due to its environmental benefits and cost-effectiveness, methanol is increasingly being adopted as a fuel for vehicles and ships, as well as for cooking and heating purposes in homes. It has also become a valuable energy source utilised in the utility, marine, and automotive industries, and it is gaining prominence as a renewable energy resource.

Global Supply/Demand Outlook

The global methanol market stood at a volume of around 95,630 KT in 2023. The market is estimated to grow at a CAGR of 3.60% between 2024 and 2032 to reach a volume of about 131,860 KT by 2032.

The production of formaldehyde represents the leading application of methanol, accounting for around 27% market share. It is followed by MTO and acetic acid, respectively, as other leading applications of methanol.

Methanol is a key component in the production of formaldehyde, which is widely used in manufacturing various building materials, thus boosting its demand in the construction sector. The methanol market benefits from the growth of sectors like automotive and construction, where methanol finds a wide range of applications due to its versatility and efficiency. In the automotive sector, methanol serves as a fuel and is used to produce MTBE, a gasoline additive, and biodiesel. Its efficiency is comparable to other fuels when used in vehicle and aircraft engines, making it an attractive alternative.

Since methanol can also be made from renewable sources, such as agricultural waste, renewable electricity, Municipal Solid Waste (MSW), and captured CO2, its use is expected to increase in the coming years with growing environmental concerns and its significance in enabling governments to achieve their decarbonization goals.

The global capacity of methanol was about 150,710 KT in the year 2023. It is estimated to reach 176,850 KT by 2032. The plant capacity utilization of methanol stood at 64% in 2023.

Regional Market Analysis

In terms of consumption, the Asia Pacific is expected to be one of the leading markets for methanol, with an estimated 73.2% market share. China has been a pioneer in incorporating methanol and methanol blends into its automotive industry, setting a precedent for other countries.

Key Market Players

The top five players in the methanol market are Methanex, Mitsubishi Gas Company, Yankuang Yulin Methanol Power Station, SABIC, and Petronas. These companies together occupy nearly 21% of the global methanol capacity.

Methanex Corporation is the leading producer and supplier of methanol, globally. The major international markets for the company include North America, Asia Pacific, Europe, and South America. The company’s total annual operating capacity, including its jointly owned plants, is currently ~9,300 kilo tonnes. Its production facilities are strategically located in the US, New Zealand, Trinidad and Tobago, Chile, Egypt, and Canada.

Other significant manufacturers of methanol are Zhongtian Hechuang Energy, Shenhua Baotou Coal Chemical Co. Ltd., Rongxin Chemicals, Zagros Petrochemical, Kaveh Methanol, TurkmenGaz, Bushehr Petrochem Company, and Datang International power Generation Co. Ltd.

Key Questions Answered in the Report:

• What are the high-growth opportunities and markets for methanol by application and region?
• What are the different production routes of methanol by region?
• Which segments and regions are projected to grow at a faster pace and why in the methanol market?
• What is the nameplate capacity of methanol by region from 2018 to 2032?
• How does the plant capacity utilisation of methanol vary by region between 2018 and 2032?
• Who are the major players in the methanol market by capacity and region?
• What major plant shutdowns and expansions have occurred in the methanol market in the last year and the last quarter?
• What major plant shutdowns and expansions are planned in the methanol market over the next year and quarters?
• How did export and import dynamics of methanol vary by region in terms of value between 2018 and 2023?
• How did export and import dynamics of methanol vary by region in terms of volume between 2018 and 2023?
• What impacts have shutdowns, force majeure events, and plant closures had on demand and pricing of methanol?
• What are the environmental considerations and regulatory impacts affecting the methanol market?
• What technological innovations are having an impact on the production and application of methanol?
• What are the key trends and innovations in the methanol market?
• What are the challenges and opportunities faced by methanol manufacturers?
• What are the potential risks and barriers to entry for new players in the methanol market?
• What strategic investments and expansions have major players made in the methanol market?
• How are geopolitical factors and international trade policies affecting the global methanol market?
• What are the price trends for methanol, and how are they expected to change?
• How does the supply chain of methanol operate, and what are its key components?