Methanol Market

The global methanol market was valued at US$44.4 Bn in 2021 and is predicted to be valued at US$72.9 Bn by the end of 2029, wherein natural gas-based methanol is likely to held more than 40% of the total market value.

Rising demand for fossil fuel alternatives such as methanol blending, biodiesel, and DME (blending with LPG) has been the key influencing factors behind the methanol growth worldwide.

In 2021, with 76% value share, Asia Pacific held the highest market share and will continue to dominate the methanol demand by 2029. Huge investment in housing activities, robust growth in automotive sector and increasing energy related products such as MTBE, DME, and biodiesel in China, India, and Southeast Asia will boost the demand for methanol in the region.

Methanol continues its exceptional growth in China. New MTO units over the coming years in China, as well as Russia will have a huge impact on methanol demand as these units consumes large volumes to produce olefins.

The global methanol market is highly fragmented with market players divided into marginal (China-based coal producers) and cost competitive (Middle East, and the U.S.) producers. In 2021, with more than 13% share, Methanex was the market leader.