In the first quarter of 2025, the U.S. methanol market experienced a modest overall decline of 1.14%, shaped by evolving supply-demand dynamics and macroeconomic influences.

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Methanol Market Size 2024-2028

The methanol market size is forecast to increase by USD 6.3 billion at a CAGR of 3.32% between 2023 and 2028.

The market is experiencing significant growth due to the increasing demand for formaldehyde and its derivatives in the production of various specialty chemicals. Formaldehyde is extensively used in the manufacturing of resins for applications in the automotive, construction, and furniture industries. In addition, methanol is a key component in the production of biodiesel, providing an alternative fuel source. However, market participants face the challenge of dealing with the volatility in methanol prices, which can significantly impact their profitability. These price fluctuations are primarily due to the supply-demand balance, with production capacity expansions and geopolitical factors influencing the market dynamics.
Companies seeking to capitalize on the growth opportunities in this market must closely monitor price trends and adopt strategic sourcing and pricing strategies to mitigate the impact of price volatility. Additionally, focusing on research and development initiatives to produce methanol through cost-effective and sustainable methods can provide a competitive edge in the market.

What will be the Size of the Methanol Market during the forecast period?

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The market continues to evolve, driven by shifting trends and advancements in production processes, policy frameworks, and technological innovations. Methanol information is vital for investors and industry players seeking to capitalize on emerging opportunities. Methanol production processes are undergoing constant refinement, with new methanol reactors and catalysts enhancing efficiency and sustainability. Methanol policy and regulations are shaping the market landscape, with a focus on reducing carbon footprints and promoting renewable methanol production. Methanol growth is being fueled by expanding applications across various sectors, including biofuel, transportation, and chemical industries. Methanol strategies and development plans are centered around optimizing methanol synthesis, improving methanol storage and transportation, and enhancing methanol safety standards.
Methanol certification and quality assurance are crucial for maintaining market trust and ensuring customer satisfaction. Methanol users and stakeholders are collaborating to explore new methanol applications and methanol derivatives, driving the industry's ongoing evolution. The methanol industry's future is bright, with ample opportunities for growth and innovation in a dynamic and ever-changing market.

How is this Methanol Industry segmented?

The methanol industry research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in 'USD billion' for the period 2024-2028, as well as historical data from 2018-2022 for the following segments.

Derivative Type

  Formaldehyde
  Gasoline
  Acetic acid
  DME
  MTO/MTP and others


End-user

  Automotive
  Construction
  Paints and coatings
  Electronics
  Others


Feedstock

  Natural Gas
  Coal
  Biomass


Application

  Fuel
  Solvent
  Chemical Synthesis


Geography

  North America

    US
    Canada


  Europe

    France
    Germany
    Italy
    UK


  Middle East and Africa

    Egypt
    KSA
    Oman
    UAE


  APAC

    China
    India
    Japan


  South America

    Argentina
    Brazil


  Rest of World (ROW)

By Derivative Type Insights

The formaldehyde segment is estimated to witness significant growth during the forecast period.

Methanol, a versatile chemical compound, is experiencing significant growth in various industries due to its unique properties and wide range of applications. Methanol production is increasing, driven by investment in advanced methanol reactors and the adoption of efficient methanol synthesis processes. Government policies and industry initiatives are promoting methanol as a sustainable alternative to traditional fossil fuels, leading to its development as a biofuel and fuel source. Methanol's use extends beyond its production as a feedstock for formaldehyde. It is a crucial component in the production of methanol derivatives, such as methyl tertiary butyl ether (MTBE) and formaldehyde.

The methanol produced is then purified and distilled to produce high-purity methanol. Methanol's synthesis process is continuously being optimized to increase efficiency and reduce costs. Methanol's use as a feedstock for formaldehyde production is a significant contributor to the market. Formaldehyde is used in the production of resins and adhesives, which find extensive use in various industries. The largest application of formaldehyde is in the production of resins and adhesives used in the wood and furniture industry for manufacturing plywood, particleboard, and other Engineered Wood Pro

Methanol fell to 2,423 CNY/T on June 24, 2025, down 4.61% from the previous day. Over the past month, Methanol's price has risen 8.12%, but it is still 3.93% lower than a year ago, according to trading on a contract for difference (CFD) that tracks the benchmark market for this commodity. This dataset includes a chart with historical data for Methanol.

Get the latest insights on price movement and trend analysis of Methanol in different regions across the world (Asia, Europe, North America, Latin America, and the Middle East & Africa).

In 2023, the amount of methanol (methyl alcohol) imported into Ecuador rose modestly to 17K tons, increasing by 4.2% against the year before.

In 2023, approx. 983K tons of methanol (methyl alcohol) were imported into Indonesia; picking up by 2.5% against 2022 figures.

The global methanol market, currently valued at approximately $50 billion (estimated based on common market sizes and CAGR), is experiencing robust growth, projected to exceed a CAGR of 3.5% from 2025 to 2033. This expansion is driven by several key factors. Firstly, the increasing demand for methanol in the energy sector, particularly for applications like methanol-to-olefin (MTO) processes, methyl tert-butyl ether (MTBE) production, and blending in gasoline, fuels market growth. The burgeoning biodiesel industry further contributes to methanol's rising demand as a feedstock. Secondly, the traditional chemical applications of methanol, including its use in the production of formaldehyde, acetic acid, and other essential chemicals, remain strong and contribute significantly to market volume. Finally, ongoing technological advancements and efficiency improvements in methanol production are driving down costs and enhancing its competitiveness. However, factors such as fluctuating crude oil prices and the potential for stricter environmental regulations pose challenges to the industry's sustained growth trajectory. Regional growth is expected to be diverse. The Asia-Pacific region, particularly China and India, is anticipated to dominate the market due to its robust industrialization, growing energy needs, and significant investments in chemical manufacturing. North America and Europe will also witness considerable growth, fueled by the expanding energy and chemical sectors. However, the Middle East and Africa, while possessing substantial natural gas resources (a key raw material for methanol production), may experience slower growth due to infrastructural constraints and economic factors in certain countries. Competitive dynamics within the market are shaped by both established chemical giants and specialized methanol producers. The market's future hinges on continued technological innovation, sustainable production practices, and a shift towards renewable energy sources for methanol synthesis to address environmental concerns and ensure long-term market stability and growth. Recent developments include: January 2024: Enerkem announced that it will be retiring its Enerkem Alberta Biofuels (EAB) plant in Edmonton. The facility achieved its main objective of completing the commercial scale-up of Enerkem’s industry-leading technology with more than 15,000 hours of operation producing ethanol and methanol., January 2024: Fairway Methanol is a 50-50 joint venture between Mitsui & Co. and Celanese Corporation that began the production of methanol by using carbon dioxide emitted from plants surrounding the venture’s facility., January 2024: BASF SE and Envision Energy announced they would jointly develop technology to convert green hydrogen and CO2 into sustainable methanol. Envision Energy will develop its own process using BASF SE's catalyst technology and will then license it to its customers so that they can build larger, sustainable methanol or e-methanol plants., July 2023: A joint venture between Enerkem and Dimeta announced that it would initiate feasibility studies for the development of two large-scale projects that would convert waste into renewable and recycled carbon dimethyl ether (DME)., November 2022: Petronas moved forward with the construction of a new methanol facility, which is slated to add 1.75 million tons of production capacity to the company's already operational 2.4 million tons of methanol production capacity. The project, which was set to be completed in March 2023, is located in Bintulu Sarawak, Malaysia., February 2022: Linde announced the expansion of its existing agreement with Celanese Corporation to supply carbon dioxide and hydrogen to the Celanese manufacturing facility in Clear Lake, Texas, to produce methanol. This agreement would help the company reduce its carbon footprint during its operation, contributing to the preservation of the environment and helping the company strengthen its business portfolio.. Key drivers for this market are: Expanding Petrochemical Sector in China, United States, and Other Asia-Pacific Countries, Rising Demand for Methanol-based Fuel; Increasing Utilization of Methanol in the Production of Olefins. Potential restraints include: Expanding Petrochemical Sector in China, United States, and Other Asia-Pacific Countries, Rising Demand for Methanol-based Fuel; Increasing Utilization of Methanol in the Production of Olefins. Notable trends are: Energy-related Applications to Dominate the Market.

In November 2023, the average methanol export price amounted to $490 per ton, remaining constant against the previous month.

What is covered in the report about the “United States Methanol Industry”? Read More

What is covered in the report about the “Brazil Methanol Industry”? Read More

What is covered in the report about the “Canada Methanol Industry”? Read More

What is covered in the report about the “Indonesia Methanol Industry”? Read More

What is covered in the report about the “India Methanol Industry”? Read More

Methanol Fuel Supply System Market Outlook

The global methanol fuel supply system market size is projected to grow significantly from USD 4.5 billion in 2023 to USD 7.8 billion by 2032, reflecting a compound annual growth rate (CAGR) of 6.1% during the forecast period. The increasing adoption of methanol as a cleaner alternative fuel, along with technological advancements and environmental regulations, are key growth drivers for this market.

One of the primary growth factors for the methanol fuel supply system market is the rising demand for alternative and renewable fuels. Methanol, derived from natural gas, biomass, and CO2, is seen as a viable substitute for traditional fossil fuels. Its ability to reduce greenhouse gas emissions and produce fewer pollutants has garnered attention across various industries. Additionally, methanol's higher efficiency and lower production cost compared to other renewable fuels bolster its adoption in automotive, marine, and industrial applications.

Government regulations and policies aimed at reducing carbon footprints and promoting sustainable energy sources are major catalysts for the methanol fuel supply system market. Various countries are implementing stringent emission norms and providing subsidies and incentives to encourage the use of methanol as a clean fuel. For instance, the adoption of International Maritime Organization (IMO) regulations to cut sulfur emissions has accelerated the integration of methanol fuel systems in marine vessels. Similarly, automotive manufacturers are increasingly adopting methanol fuel systems to comply with regulatory standards and enhance fuel efficiency.

Technological advancements in methanol production and fuel supply systems are also propelling market growth. Innovations in catalytic processes, fuel injection technologies, and storage solutions are making methanol a more viable and efficient fuel option. These advancements not only improve the performance and reliability of methanol fuel systems but also reduce the overall cost of ownership. Moreover, ongoing research and development efforts in converting CO2 into methanol are expected to open new avenues for market expansion.

Methanol Reformers play a crucial role in the methanol fuel supply system by converting methanol into hydrogen-rich gas, which can be used in fuel cells and other applications. This process not only enhances the efficiency of methanol as a fuel but also broadens its applicability in various energy sectors. The development of advanced methanol reformers is essential for optimizing the conversion process, reducing energy consumption, and minimizing emissions. As industries seek cleaner and more efficient energy solutions, the demand for innovative methanol reformers is expected to rise, driving further advancements in this technology.

Regionally, the methanol fuel supply system market exhibits substantial growth potential in the Asia Pacific region. Countries like China, India, and Japan are investing heavily in methanol production and infrastructure development. The region's abundant natural gas reserves and supportive government policies are key factors driving market growth. Additionally, North America and Europe are witnessing increasing adoption of methanol fuel systems, spurred by stringent environmental regulations and a growing focus on sustainable energy solutions. Latin America and the Middle East & Africa are also emerging markets, with investments in methanol production facilities and infrastructure development.

Component Analysis

The methanol fuel supply system market can be segmented by component, including fuel injectors, fuel pumps, fuel tanks, fuel filters, and others. Fuel injectors play a critical role in the efficient delivery of methanol to the engine. Advanced fuel injection technologies are being developed to enhance the performance and efficiency of methanol engines. These technologies help in achieving precise fuel-air mixtures, which are crucial for optimal combustion and reduced emissions. The demand for high-quality fuel injectors is driven by the need for improved engine performance and compliance with emission regulations.

Fuel pumps are another essential component in methanol fuel supply systems, responsible for the accurate and consistent delivery of methanol to the engine. Advances in fuel pump technologies, such as variable displacement pumps and electric fuel pumps, are enhancing the efficiency and reliability o

In 2023, methanol imports into Vietnam soared to 263K tons, growing by 17% against 2022 figures.

Production of methanol across the globe has been on a continual annual increase during the last few years. In 2022, methanol production is estimated to reach over 111 million metric tons, an increase of nearly four percent in comparison with the previous year. Since 2017, global production of methanol grew by roughly 22.6 million metric tons. As with most commodities, the price of methanol has been continually increasing during the last two years.

Uses of methanol

Methanol, also known as methyl alcohol, is one of the most common petrochemicals globally, accounting for roughly 16 percent of primary petrochemical consumption. The compound is an important building block to produce a large number of everyday products such as plastics, paints, cosmetics, and pharmaceuticals. Common methanol-derived chemicals include acetic acid, olefins, formaldehyde, silicone, and methyl methacrylate. Methanol can also be used as an alternative fuel with significantly lower emissions than conventional fuels.

Methanex: a global methanol leader

Methanex, a Canadian company headquartered in Vancouver, is the largest producer of methanol worldwide. The company’s methanol production amounted to some 6.5 million metric tons in 2021. In that same year, Methanex’s revenue reached 4.41 billion U.S. dollars, up from 2.65 billion dollars recorded a year earlier. Other important methanol producers worldwide include Proman, Sabic, Yankuang, and Zagros.

The global methanol market size reached USD 38.0 Billion in 2024. Looking forward, IMARC Group expects the market to reach USD 56.2 Billion by 2033, exhibiting a growth rate (CAGR) of 4.4% during 2025-2033. The rapidly expanding chemical industry, widespread product employment in manufacturing antibiotics and antifungals, significant growth in the automotive industry, and the implementation of various government initiatives are some of the major factors propelling the market.

IMARC Group provides an analysis of the key trends in each segment of the global methanol market report, along with forecasts at the global and regional levels from 2025-2033. Our report has categorized the market based on the application.

Die Statistik zeigt den durchschnittlichen Preis für Methanol auf dem europäischen Markt in den Jahren von 2012 bis 2025. Im Jahr 2025 betrug der durchschnittliche Preis für Methanol rund *** Euro je Tonne (Stand: *** Mai).

In 2023, the amount of methanol (methyl alcohol) imported into Jordan skyrocketed to 4.6K tons, jumping by 29% on 2022.

The global methanol market contracted to $21.6B in 2024, with a decrease of -7.7% against the previous year. The market value increased at an average annual rate of +2.5% over the period from 2012 to 2024; however, the trend pattern indicated some noticeable fluctuations being recorded throughout the analyzed period. Over the period under review, the global market reached the maximum level at $23.4B in 2023, and then contracted in the following year.