"Innovative Market Solutions to Help Businesses Make Informed Decisions"

Methanol Market Size, Share & COVID-19 Impact Analysis, By Feedstock (Natural Gas, Coal, Biomass & Renewables), By Derivative (Formaldehyde, Acetic Acid, MTBE, DME, Gasoline Blending, Biodiesel, MTO/MTP, Solvent, and Others), By Application (Construction, Automotive, Electronics, and Others) and Regional Forecast, 2021-2028

Last Updated: April 01, 2024 | Format: PDF | Report ID: FBI101552



Play Audio Listen to Audio Version

The global methanol market size was USD 27.95 billion in 2020 and is projected to grow from USD 28.74 billion in 2021 to USD 39.18 billion in 2028 at a CAGR of 4.5% during the forecast period 2021-2028. Asia Pacific dominated the global methanol industry with a share of 62.96% in 2020.

The sudden rise in CAGR is attributable to this market’s demand and growth, returning to pre-pandemic levels once the pandemic is over. The global impact of COVID-19 has been unprecedented and staggering, with the product witnessing a negative demand shock across all regions amid the pandemic. Based on our analysis, the global market exhibited a huge decline of 1.9% in 2020 as compared to the average year-on-year growth during 2017-2019. 

Methanol is a colourless, light, volatile, and flammable liquid with a characteristic smell similar to ethyl alcohol (ethanol). Owing to its toxicity, this chemical is usually mixed with ethyl alcohol to produce denatured alcohol, which is used for industrial applications. The rising preference for the product as a feedstock for producing several chemicals ranging from solvents to plastics is expected to drive the market. The shift of end-users towards sustainable fuels will create growth opportunities for the market. The versatile nature of this alcohol has been put to valuable applications to serve the needs of the growing world.

COVID-19 Pandemic to Affect Market Severely Owing to Declining Production

The impact of the COVID-19 pandemic on the methanol industry growth is expected to be more significant due to the slowdown in manufacturing activities. The unforeseen effects of coronavirus have forced major companies to temporarily shut down their manufacturing plants due to a substantial decrease in manufacturing activities. For example, Methanex Corporation, one of the key players in the market, halted its plants located in Chile and Trinidad with production capacities of 800 KT per annum and 850 KT per annum, respectively. A decline in the consumption of biodiesel and other fuels has cut down the demand. The stoppage in manufacturing sectors has minimized the demand for adhesives, paints, and chemicals derived from methanol, thereby contributing to the decline in its production.


Request a Free sample to learn more about this report.

The transition of Fuel Industry to Cleaner Fuels is a Prominent Trend

Globally, heavy fuels, such as gasoline and diesel, are the major contributors to environmental pollution, leading to numerous changes in the climate and global warming. A shift of the fuel industry to methanol and fuels blended with it is expected to slow down the effects of climate change significantly. The use of methyl alcohol as a transportation fuel provides advantages, including high octane fuels which minimize toxic emissions when blended with gasoline and the production from renewable feedstocks. The widespread adoption of vehicles powered by the product would intensely lower the carbon dioxide emissions from the transportation industry. Additionally, the substitution of heavy fuel oils in the marine industry will have a positive effect on the growth of the market.


Rising Demand from Automotive and Construction Industries to Propel Growth

Globally, the rising demand from industries, such as automotive and construction is expected to increase its consumption. Methyl alcohol acts as a precursor to various chemicals and compounds, such as adhesives, plastics, textiles, insulation materials, and others. Plastics play an important role in automobiles by reducing the overall weight of the vehicle, thereby imparting properties similar to metals and improving the fuel efficiency of the vehicle. In the construction industry, the use of plastics ranges from piping to ropes of cranes. Furthermore, the demand for adhesives from the furniture and consumer goods industries will also support the growth of the market. Additionally, the increasing consumption of methanol in fuel blending applications is expected to progress the growth of this market during the forecast period.


Detrimental Effects Due to Exposure to Methanol May Hamper Growth

Methyl alcohol is mainly used as a solvent, alternative fuel source, and pesticide. Other than the commercial production methods, it naturally occurs in foods, fruits, and the human body. Poisoning from the product might occur due to the consumption of alcohols, which are contaminated with it. The inhalation or consumption of it can lead to blindness, accumulation of acid in blood, and death. The other health effects due to exposure include nausea, vomiting, heart and respiratory failure, seizures, and kidney failure. These reasons are expected to act as a hindrance to the growth of the methyl alcohol market.


By Feedstock Analysis

Natural Gas Segment Dominated the Market in 2020 Backed by its Cost-effective Nature

On the basis of feedstock, the market includes natural gas, coal, and biomass & renewables.

The natural gas segment held a dominant share of the market in 2020. The production process involves the conversion of natural gas to syngas by partial oxidation or steam reforming, which is further processed to obtain methanol. The dominance of this segment is due to the comparatively lower cost required for the production with significant output.

The coal segment is expected to grow at a significant CAGR during the forecast period due to the increasing usage of coal to produce methyl alcohol in countries with abundant coal production.

By Derivative Analysis

To know how our report can help streamline your business, Speak to Analyst

MTO/MTP Segment to Grow at Fast Pace Stoked by High Demand from Various Industries

Based on derivatives, the market is segmented into formaldehyde, acetic acid, MTBE, DME, gasoline blending, biodiesel, methanol to olefins (MTO)/methanol to propylene (MTP), solvent, and others. The MTO/MTP segment is anticipated to grow at the highest CAGR during the forecast period. Polyolefins or polyethylene and polypropylene thermoplastic are obtained from methyl alcohol. These thermoplastics are favored in various industries including automotive, construction, and furniture due to their versatility and other beneficial properties. The increasing demand for polyolefins from several end-use industries will drive the market.

The formaldehyde segment is expected to remain the largest in terms of volume in the market during the forecast period. It is a key component in the production of adhesives, molding materials, and pesticides. It is showcasing a high demand from industries, such as construction, automobile, and textile, which is responsible for the overall market growth.

By Application Analysis

Construction Segment to Register Higher Share

In terms of application, the market is segmented into construction, automotive, electronics, and others.

The construction segment is expected to hold the largest methanol market share during the forecast period. This is due to the variety of products manufactured using methanol, such as foams, adhesives, plywood subfloors, and plastics. These products have large applications in the construction industry and their rising demand is expected to increase the consumption.

The automotive segment is expected to register a significant growth by the end of the forecast period owing to the rising use of plastics and methanol blended fuels.


Asia Pacific Methanol Market Size, 2020 (USD Billion)

To get more information on the regional analysis of this market, Request a Free sample

The methanol market in Asia Pacific stood at USD 17.60 billion in 2020. It is the major contributor to the growth of the market owing to the expansion of the automotive and construction industries. Additionally, China being the major manufacturer and consumer of derivatives will have a significant effect on the growth of the market.

The demand from fueling applications, such as the production of green fuels and fuel blending in North America is responsible for growth in this region. Furthermore, the surging petrochemical industry in the region will support the market’s progress.

The rising automotive industry and preference for sustainable products in Europe will lead to the growth of the market in this region.

In Latin America and the Middle East & Africa, the rising construction and industrialization activities will progress the market.


Serving Numerous Markets Has Increased the Presence of Key Players Globally

The global market is fragmented. Key players are investing in research and development activities to serve numerous markets. These companies are implementing expansion and acquisition strategies to increase their presence in the market. Many manufacturers are establishing new plants in developing countries to serve the growing markets and gain upcoming opportunities.


  • Methanex Corporation (Canada)

  • HELM AG (Germany)

  • Southern Chemical Corporation (U.S.)

  • SABIC (Saudi Arabia)

  • Mitsubishi Gas Chemical Company, Inc. (Japan)

  • Zagros Petroleum(Iran)

  • PETRONAS (Malaysia)

  • Mitsui & Co., Ltd. (Japan)

  • Celanese Corporation (U.S.)

  • BASF SE (Germany)

  • Simalin Chemical Industries Pvt. Ltd. (India)

  • Other Players  


  • April 2019 – Celanese Corporation expands the production capacity at its Clear Lake acetyl intermediates manufacturing facility located in Texas, the United States. The production will be increased to 1.7 million tons per annum, a surge of 125% from the original capacity.

  • June 2018 – HELM AG is set to form a joint venture named HELM Proman Methanol AG with Proman AG and Southern Chemical Corporation. The joint venture is expected to increase the presence of these companies in the global market. HELM AG will hold a stake of 57% in the joint venture, while Proman AG will hold 38% and Jan W. Spin, CEO and shareholder of SCC, will hold


An Infographic Representation of Methanol Market

To get information on various segments, share your queries with us

The market research report provides a detailed analysis of the market and focuses on key aspects, such as leading companies, product types, and leading applications of the product. Besides this, it offers insights into the methanol market trends and highlights key industry developments. In addition to the aforementioned factors, the report encompasses several factors that have contributed to the growth of the advanced market over recent years.

Report Scope & Segmentation



Study Period


Base Year


Estimated Year


Forecast Period


Historical Period



  Value (USD Billion) and Volume (Million ton)

By Feedstock

  • Natural Gas

  • Coal

  • Biomass & Renewables

By Derivatives

  • Formaldehyde

  • Acetic Acid

  • MTBE

  • DME

  • Gasoline Blending

  • Biodiesel


  • Solvent

  • Others

By Application

  • Construction

  • Automotive

  • Electronics

  • Others

By Geography

  • North America (U.S. and Canada)

  • Europe (Germany, U.K., France, Italy, Spain, Russia, and Rest of Europe)

  • Asia-Pacific (China, Japan, India, Southeast Asia, and Rest of Asia- Pacific)

  • Latin America (Brazil, Mexico, and Rest of Latin America)

  • The Middle East& Africa (GCC and Rest of Middle East & Africa)

Frequently Asked Questions

Fortune Business Insights says that the market size was USD 27.95 billion in 2020 and is projected to reach USD 39.18 billion by 2028.

In 2020, the market value stood at USD 27.95 billion.

Registering a CAGR of 4.5%, the market will exhibit rapid growth in the forecast period (2021-2028).

The DME segment is expected to lead this market during the forecast period.

The rising demand from the construction and automotive industries is a major factor driving the market.

Asia Pacific held the highest market share in 2020.

Methanex Corporation, HELM AG, and SABIC are the leading players in the market.

A shift towards greener fuels is expected to drive the adoption of the product.

Seeking Comprehensive Intelligence on Different Markets?
Get in Touch with Our Experts

Speak to an Expert
  • 2017-2028
  • 2020
  • 2017-2019
  • 220

Personalize this Research

  • Granular Research on Specified Regions or Segments
  • Companies Profiled based on User Requirement
  • Broader Insights Pertaining to a Specific Segment or Region
  • Breaking Down Competitive Landscape as per Your Requirement
  • Other Specific Requirement on Customization
Request Customization Banner

Client Testimonials

“We are quite happy with the methodology you outlined. We really appreciate the time your team has spent on this project, and the efforts of your team to answer our questions.”

- One of the largest & renowned medical research centers based in the U.S. on a report on the U.S. NIPT Market.

“Thanks a million. The report looks great!”

- Feedback from a consultant on a report on the U.S. Beef Market.

“Thanks for the excellent report and the insights regarding the lactose market.”

- Brazil based company specializing in production of protein ingredients.

“I liked the report; would it be possible to send me the PPT version as I want to use a few slides in an internal presentation that I am preparing.”

- Global Digital Services Agency on a report on the Global Luxury Goods Market.

“This report is really well done and we really appreciate it! Again, I may have questions as we dig in deeper. Thanks again for some really good work.”

- U.S.-based biotechnology company focussing on treatment of chronic pain.

“Kudos to your team. Thank you very much for your support and agility to answer our questions.”

- Europe-based provider of solutions to automate data centre operations.

“We appreciate you and your team taking out time to share the report and data file with us, and we are grateful for the flexibility provided to modify the document as per request. This does help us in our business decision making. We would be pleased to work with you again, and hope to continue our business relationship long into the future.”

- India-based manufacturer of industrial and specialty intermediates with a strong global presence.

“I want to first congratulate you on the great work done on the Medical Platforms project. Thank you so much for all your efforts.”

- One of the largest cosmetics company in the world.

“Thank you very much. I really appreciate the work your team has done. I feel very comfortable recommending your services to some of the other startups that I’m working with, and will likely establish a good long partnership with you.”

- U.S. based startup operating in the cultivated meat market.

“We received the below report on the U.S. market from you. We were very satisfied with the report.”

- Global hearing aids manufacturer.

“I just finished my first pass-through of the report. Great work! Thank you!”

- U.S. based solar racking solutions provider.

“Thanks again for the great work on our last partnership. We are ramping up a new project to understand the imaging and imaging service and distribution market in the U.S.”

- World’s leading advisory firm.

“We feel positive about the results. Based on the presented results, we will do strategic review of this new information and might commission a detailed study on some of the modules included in the report after end of the year. Overall we are very satisfied and please pass on the praise to the team. Thank you for the co-operation!”

- Germany based machine construction company.

“Thank you very much for the very good report. I have another requirement on cutting tools, paper crafts and decorative items.”

- Japanese manufacturing company of stationery products.

“We are happy with the professionalism of your in-house research team as well as the quality of your research reports. Looking forward to work together on similar projects”

- One of the Leading Food Companies in Germany

“We appreciate the teamwork and efficiency for such an exhaustive and comprehensive report. The data offered to us was exactly what we were looking for. Thank you!”

- Intuitive Surgical

“I recommend Fortune Business Insights for their honesty and flexibility. Not only that they were very responsive and dealt with all my questions very quickly but they also responded honestly and flexibly to the detailed requests from us in preparing the research report. We value them as a research company worthy of building long-term relationships.”

- Major Food Company in Japan

“Well done Fortune Business Insights! The report covered all the points and was very detailed. Looking forward to work together in the future”

- Ziering Medical

“It has been a delightful experience working with you guys. Thank you Fortune Business Insights for your efforts and prompt response”

- Major Manufacturer of Precision Machine Parts in India

“I had a great experience working with Fortune Business Insights. The report was very accurate and as per my requirements. Very satisfied with the overall report as it has helped me to build strategies for my business”

- Hewlett-Packard

“This is regarding the recent report I bought from Fortune Business insights. Remarkable job and great efforts by your research team. I would also like to thank the back end team for offering a continuous support and stitching together a report that is so comprehensive and exhaustive”

- Global Management Consulting Firm

“Please pass on our sincere thanks to the whole team at Fortune Business Insights. This is a very good piece of work and will be very helpful to us going forward. We know where we will be getting business intelligence from in the future.”

- UK-based Start-up in the Medical Devices Sector

“Thank you for sending the market report and data. It looks quite comprehensive and the data is exactly what I was looking for. I appreciate the timeliness and responsiveness of you and your team.”

- One of the Largest Companies in the Defence Industry
We use cookies to enhance your experience. By continuing to visit this site you agree to our use of cookies . Privacy.