methanol Market

The methanol market is projected to reach US$ 41,974.76 million by 2028 from US$ 28,114.27 million in 2021; it is expected to grow at a CAGR of 5.9% from 2021 to 2028.

Methyl alcohol, commonly referred to as methanol, is the most basic alcohol in a series of alcohols. It is produced by the direct reaction of carbon monoxide gas and hydrogen in the existence of a catalyst. Methanol finds application in manufacturing various products like adhesives, paints, coatings, wood panels, fuel systems, brake pads, cosmetics, furniture, and cabinets, among others. It also produces carpet underlay, paper towels, and carpeting.

The global methanol market is categorized based on its derivatives, including formaldehyde, acetic acid, methanol-to-olefins (MTO) / methanol-to-propylene (MTP), methyl tertiary-butyl ether (MTBE), methyl methacrylate (MMA), biodiesel (gasoline blending), dimethyl ether (DME), and others. Among these segments, formaldehyde is expected to exhibit the most elevated Compound Annual Growth Rate (CAGR) during the forecast period. Formaldehyde is a poisonous, colorless gas produced by oxidizing methanol. It has broad applications in laboratories as an antiseptic, disinfectant, and chemical reagent. The pharmaceutical industry extensively uses formaldehyde to produce vaccines, anti-infective drugs, and hard-gel capsules. Formaldehyde is also used as a preservative in cosmetics, medicines, and food.

The methanol market is geographically segmented into North America, Europe, Asia Pacific, South and Central America, and the Middle East & Africa. In 2020, the Asia Pacific region held the largest market share due to increased petrochemical production in the area. China leads in global methanol consumption, with a significant increase in its use in fuel products. The compound is extensively used for large-scale petrochemical production, and the growing demand for petrochemicals is boosting the methanol market in this region. Additionally, the use of petrochemicals in industries like construction and automotive is the main factor driving the methanol market growth.

The COVID-19 pandemic has adversely impacted the methanol market growth due to disruptions in construction activities, halted expansion or construction of plants and factories, and operational inefficiencies caused by the sudden shutdown of national and international borders for travel and trade. Industries like construction, electronics, packaging, paints, and coatings have suffered the most. Nevertheless, the rising demand for methanol-based products in the pharmaceutical industry is expected to drive market growth in the future.

Methanex Corporation; Oci N.V.; BASF SE; Sabic; Mitsubishi Gas Chemical Company, Inc.; Helm AG; Celanese Corporation; Zagros Petrochemical Company; Mitsui And Co., Ltd.; And Lyondellbasell Industries Holdings B.V. are among the well-established players operating in the global methanol market.

The size of the methanol market has been determined by conducting both primary and secondary research. The research process began by conducting extensive secondary research using both internal and external sources to collect qualitative and quantitative information related to the market. Furthermore, several primary interviews were conducted with industry experts, including VPs, business development managers, market intelligence managers, national sales managers, and external consultants such as research analysts, valuation experts, and key opinion leaders, to validate the data and gain more analytical insights.