Methanol Market Research Report and Outlook by 2028

The methanol market is anticipated to grow significantly, reaching an estimated US$ 41,974.76 million by 2028, up from US$ 28,114.27 million in 2021, reflecting a compound annual growth rate (CAGR) of 5.9% during the period from 2021 to 2028.

Methanol, also known as methyl alcohol, is the simplest form of alcohol in the alcohol family. It is synthesized through the direct reaction of carbon monoxide and hydrogen in the presence of a catalyst. This versatile compound is utilized in the production of a wide array of products, including adhesives, paints, coatings, wood panels, fuel systems, brake pads, cosmetics, furniture, and cabinets. Additionally, methanol is used in the manufacturing of carpet underlay, paper towels, and carpeting.

The global methanol market is segmented based on its derivatives, which include formaldehyde, acetic acid, methanol-to-olefins (MTO) / methanol-to-propylene (MTP), methyl tertiary-butyl ether (MTBE), methyl methacrylate (MMA), biodiesel (for gasoline blending), dimethyl ether (DME), and others. Among these, formaldehyde is projected to experience the highest CAGR throughout the forecast period. This toxic, colorless gas is generated by the oxidation of methanol and has extensive applications in laboratories as an antiseptic, disinfectant, and chemical reagent. The pharmaceutical sector heavily relies on formaldehyde for the production of vaccines, anti-infective medications, and hard-gel capsules. Furthermore, it serves as a preservative in cosmetics, pharmaceuticals, and food products.

The methanol market is also analyzed geographically, with key regions including North America, Europe, Asia Pacific, South and Central America, and the Middle East & Africa. In 2020, the Asia Pacific region dominated the market share, primarily due to the surge in petrochemical production within the area. China stands out as the largest consumer of methanol globally, with a notable increase in its application in fuel products. The compound is crucial for large-scale petrochemical production, and the rising demand for petrochemicals is propelling the growth of the methanol market in this region. Additionally, the utilization of petrochemicals in sectors such as construction and automotive is a significant driver of market expansion.

The COVID-19 pandemic has had a detrimental effect on the growth of the methanol market, leading to disruptions in construction activities, delays in the expansion or establishment of plants and factories, and operational challenges due to the abrupt closure of national and international borders affecting travel and trade. Industries such as construction, electronics, packaging, paints, and coatings have been particularly hard hit. However, the increasing demand for methanol-based products in the pharmaceutical industry is expected to foster market growth in the coming years.

The assessment of the methanol market size has been achieved through a combination of primary and secondary research methodologies. The research process commenced with comprehensive secondary research, utilizing both internal and external sources to gather qualitative and quantitative data pertinent to the market. In addition, numerous primary interviews were conducted with industry experts, including vice presidents, 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 findings and obtain deeper analytical insights.