Global Market Size, Forecast, and Trend Highlights Over 2025-2037
Methanol Market size was estimated at USD 35.3 billion in 2024 and is expected to surpass USD 61.7 billion by the end of 2037, rising at a CAGR of 4.5% during the forecast period, i.e., 2025-2037. In 2025, the industry size of methanol is estimated at USD 36.6 billion.
The methanol market is growing fast due to high demand for methanol-based fuels for transportation and marine applications. The world is seeing an annual increase in global demand for methanol of 7-9%, and capacity is forecasted to grow from 121 million tons to 201 million tons by 2025. In China, the 8 million methanol-powered vehicles form over 6% of the national fuel pool and emit 27% more 3 than gasoline vehicles. The maritime sector is embracing methanol, as exemplified by the order of dual-fuel vessels by Maersk and CMA CGM.
India is promoting methanol at its fuel stations and the retrofitting of vehicles. NITI Aayog projected 6 million jobs and $724.64 crore government savings from 21% DME blending in LPG. In 2023, global methanol trade totaled $11.3 billion and was down from $14.3 billion in 2022. Top 3 exporters: Trinidad and Tobago ($1.76B), Saudi Arabia ($1.69B); top 3 importers: China ($3.18B), India ($937M). OCI Global intends to double its U.S. green methanol production to 400,001 metric tons per year.

Methanol Sector: Growth Drivers and Challenges
Growth Drivers
- Expansion of methanol-to-olefins (MTO) technology: Methanol's position in the MTO technology market is growing, especially in Asia. Methanol-to-olefins technology is used in China, which contributes 61% of global MTO capacity to make critical petrochemicals such as ethylene and propylene. The changing feedstock utilization supports energy security and reduces traditional naphtha route applications.
- Rising demand in the maritime industry: The marine sector is finally investing in methanol as a cleaner fuel alternative. Marine companies such as Maersk are investing in methanol-powered ships as they phase in more stringent emission regulations. Methanol also has a low emission capacity and can be a suitable option to decarbonize the maritime transport carbon footprint.
Emerging Trade Dynamics and Market Prospects
Various changes are impacting global chemicals trade, including geopolitical instability, supply chains diverging, and demand in some sectors evolving. The Asia Pacific’s $2.8 trillion chemical sales in 2022 prove the region is front and center in chemicals. Trade policies are often the catalyst for changed market conditions for taking a more international or domestic stance, say, export bans and incentives to manufacture locally could shift opportunities or pathways of importation. All these trends imply a move to more regionalization, and that investments in local Chemical manufacturing and service delivery could be an exploratory opportunity. Trade data are listed below:
Methanol Trade Data (2019–2024)
Year |
Country/Region |
Trade Flow |
Partner Country |
Trade Value (USD) |
Quantity (Kg) |
2022 |
USA |
Import |
Trinidad & Tobago |
$417.5M |
1,135,310,001 |
2022 |
USA |
Import |
Canada |
$165.9M |
360,025,001 |
2022 |
USA |
Import |
Venezuela |
$83.6M |
298,969,001 |
2022 |
EU |
Import |
USA |
$629.9M |
1,535,630,001 |
2022 |
EU |
Import |
Trinidad & Tobago |
$557.1M |
1,636,860,001 |
2022 |
EU |
Import |
Russia |
$482.5M |
1,285,190,001 |
2023 |
USA |
Import |
Trinidad & Tobago |
$206.6M |
708,751,001 |
2023 |
USA |
Import |
Canada |
$122.8M |
304,316,001 |
2023 |
USA |
Import |
Venezuela |
$57.7M |
269,482,001 |
2023 |
USA |
Export |
Japan |
$7.8M |
19,493,001 |
2023 |
USA |
Export |
Portugal |
$6.2M |
31,468,101 |
Key Trade Routes Analysis
Trade Route |
2022 Trade Value (USD) |
2022 Quantity (Kg) |
USA → EU |
$629.9M |
1,535,630,001 |
Trinidad & Tobago → USA |
$417.5M |
1,135,310,001 |
Russia → EU |
$482.5M |
1,285,190,001 |
Overall Trend Summary
Year |
Global Chemical Sales (Asia-Pacific) |
2022 |
$2.8 Trillion |
Market Volume and Growth Trends in Methanol
The methanol market has seen ups and downs in the last five years and was dictated by changes to production, demand from downstream industries, and political events. Global methanol production is estimated to be about 57 million tons in 2024, compared to 59 million tons in 2023. The Asia-Pacific region, especially China, will continue to drive the methanol industry, accounting for 61% of the total market share in 2023. In 2024, the average methanol price per ton for imports was $340, and the US had the highest average price to import methanol at $461. Price history data has been mentioned below:
Methanol Price History (2019–2024)
Year |
Global Avg. Price (USD/MT) |
Notable Regional Prices (USD/MT) |
2019 |
301 |
China: 311; India: 296 |
2020 |
281 |
China: 291; India: 276 |
2021 |
341 |
China: 351; India: 331 |
2022 |
361 |
China: 371; India: 351 |
2023 |
334 |
China: 341; India: 321 |
2024 |
356 |
China: 375; India: 308 |
Annual Unit Sales Volumes (2019–2024)
Year |
Global Production (Million Tons) |
India Production (Thousand Tons) |
2019 |
55 |
81 |
2020 |
57 |
76 |
2021 |
58 |
71 |
2022 |
59 |
66 |
2023 |
59 |
63 |
2024 |
57 |
Data Not Available |
Regional Price Trends (2024)
Region |
Q1 2024 Avg. Price (USD/MT) |
Q2 2024 Avg. Price (USD/MT) |
China |
374.4 |
363–358 |
India |
306.76 |
309–316 |
Europe (France) |
338 |
Data Not Available |
North America |
Data Not Available |
Data Not Available |
Future Price Trends and Market Prospects
Metric |
2024 Value |
2034 Projection |
CAGR (2024–2034) |
Market Size (USD Billion) |
34.22 |
52.13 |
4.4% |
Global Production (Million Tons) |
57 |
Data Not Available |
Data Not Available |
Asia-Pacific Market Share (%) |
61 |
Data Not Available |
Data Not Available |
Japan's Methanol-Based Chemical Industry
Japan's methanol-based chemical industry has not been idle over the last five years; it has evolved dynamically due to changing technology, changing needs, and investments in infrastructure. Customers' desire for lighter and sustainable materials has increased shipments in important manufacturing environments such as automotive and electronics. In addition, Japan's flagship chemical companies continue to increase R&D and capital expenditures, responding to shifts toward sustainable technologies, digitalization, and bioplastics, which match world trends. Impressively well, large and reputable performing organizations like Shin-Etsu and Mitsubishi Chemical achieve or exceed their mean benchmarks for growth and profitability. The following sections present a detailed statistical breakdown of these trends.
Composition of Methanol-Based Products Shipped (2018–2023)
Year |
Petrochemicals (%) |
Value (¥ Trillion) |
Polymers (%) |
Value (¥ Trillion) |
Specialty Chemicals (%) |
2018 |
48% |
11.6 |
34% |
8.2 |
21% |
2019 |
47% |
11.8 |
35% |
8.5 |
21% |
2020 |
45% |
10.3 |
36% |
8.2 |
22% |
2021 |
46% |
11.4 |
35% |
8.6 |
22% |
2022 |
46% |
12.1 |
34% |
8.9 |
23% |
2023 |
44% |
11.7 |
35% |
9.3 |
24% |
Value of Methanol Shipments by Manufacturing Industry (2018–2023)
Industry |
2018 (¥ Trillion) |
2023 (¥ Trillion) |
CAGR (%) |
Global CAGR (%) |
Automotive |
2.6 |
3.8 |
8.3 |
7.2 |
Electronics |
2.1 |
3.2 |
9.2 |
8.1 |
Pharmaceuticals |
1.2 |
1.6 |
6.5 |
6.9 |
Construction |
0.8 |
1.3 |
5.8 |
5.6 |
Textiles |
0.7 |
0.8 |
3.2 |
3.6 |
R&D Expenses and Capital Investment Trends (2018–2023)
Company |
R&D Spend 2023 (¥ Billion) |
Capital Investment (¥ Billion) |
Mitsubishi Chemical |
161 |
251 |
Sumitomo Chemical |
121 |
211 |
Toray Industries |
111 |
191 |
Asahi Kasei |
101 |
181 |
Mitsui Chemicals |
96 |
176 |
Top 15 Chemical Companies for Methanol: Financial Performance (2023)
Company |
Sales (¥ Trillion) |
Profit (¥ Trillion) |
YoY Growth (%) |
Profit Margin (%) |
Shin-Etsu Chemical |
3.9 |
1.3 |
13 |
31.7 |
Mitsubishi Chemical |
4.6 |
1.2 |
10 |
24.5 |
Sumitomo Chemical |
3.3 |
0.9 |
8 |
25.1 |
Toray Industries |
2.7 |
0.7 |
8 |
23.2 |
Asahi Kasei |
2.8 |
0.6 |
7 |
17.3 |
DIC Corporation |
1.8 |
0.5 |
11 |
23.6 |
Daicel Corporation |
1.4 |
0.4 |
6 |
23.2 |
Ube Corporation |
1.2 |
0.3 |
5 |
18.3 |
Tokuyama Corporation |
0.8 |
0.3 |
7 |
22.3 |
Kaneka Corporation |
1.1 |
0.3 |
6 |
20.1 |
Showa Denko |
1.3 |
0.3 |
4 |
16.8 |
Nippon Shokubai |
0.9 |
0.2 |
5 |
12.6 |
Tosoh Corporation |
1.2 |
0.4 |
8 |
27.4 |
Mitsui Chemicals |
2.1 |
0.5 |
7 |
20.1 |
Kuraray Co. Ltd. |
1.1 |
0.3 |
5 |
20. |
Challenges
- Limited Infrastructure for Green Methanol: The uptake of green methanol requires infrastructure development. For instance, Maersk's vessel, the Alette Maersk, became the first vessel to complete a historic journey across the Pacific Ocean powered by low-carbon methanol fuel. However, upon arrival at the Port of Los Angeles, the vessel was not able to find any green fuel for its return journey. This was a hint that green fuels remain scarce and have a high price tag, and there remains a further need for investment in infrastructure for the uptake of green methanol.
- High Environmental Compliance Costs: Environmental controls, particularly in developed countries, invite significant costs to methanol manufacturers. In the United States, the costs associated with following stringent environmental safety mandates by law have seriously curtailed the number of small chemical manufacturers who cannot afford the cost of entering the market when it comes to investing in new, cleaner technologies. As an example, the U.S. Environmental Protection Agency (EPA) has implemented new regulations to mandate the emission output of methanol plants, which inherently come with cost impacts to operation.
Methanol Market: Key Insights
Report Attribute | Details |
---|---|
Base Year |
2024 |
Forecast Year |
2025-2037 |
CAGR |
4.5% |
Base Year Market Size (2024) |
USD 35.3 billion |
Forecast Year Market Size (2037) |
USD 61.7 billion |
Regional Scope |
|
Methanol Market Segmentation
Feedstock (Coal, Natural Gas, Biomass & Renewables)
The coal segment is predicted to gain the largest methanol market share of 55.1% during the projected period by 2037 due to its accessibility and economical price, particularly in regions with large coal reserves. The production of methanol from coal via coal-to-methanol resource offers the opportunity to lower the reliance on imported oil and gas. In addition, new production technologies such as Carbon Capture and Storage (CCS) and other methods have allowed for increasingly environmentally stable processes, allowing coal to maintain its position in methanol production.
End use (Automotive, Construction, Electronics, Paints & Coatings, Pharmaceuticals, Agriculture, and Others)
The automotive segment in the methanol market is anticipated to constitute the most significant growth by 2037, with a 37.9% share. The economic growth related to methanol is the result of the increasing use of methanol and methanol-derived products as an alternative fuel in the manufacture of light and heavy vehicles. As a fuel, methanol burns more cleanly than comparable fossil fuels, making it a viable alternative, resulting in decreased greenhouse gas emissions. The methanol derivatives, such as formaldehyde, are utilized in solvent and resin production, which in turn is used for the production of different automotive components in plastics, and improve performance and fuel efficiency.
Our in-depth analysis of the methanol market includes the following segments:
Feedstock |
|
Derivatives |
|
Application |
|
End use |
|

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Methanol Industry - Regional Synopsis
Asia Pacific Market Analysis
By 2037, the Asia Pacific market is expected to hold 38.2% of the market share, methanol market is expected to reach USD 33.39 billion in revenue by 2030, at a CAGR of 9.5% from 2025 to 2030. Continued industrial growth and the impact of global industrialization, and the demand for cleaner energy sources have increased methanol consumption throughout the world, and more industrial activities and investment in methanol energy systems are expected.
China will account for the largest share of the APAC methanol market by 2037. This is due to China's significant methanol-to-olefins (MTO) capacity and consumption, as well as its high consumption rate of methanol as a feedstock catalyst in making formaldehyde and acetic acid for the building and construction and manufacturing markets. Methanol production is also supported by China's ability to use coal as a very cheap feedstock for methanol production. Growth in the methanol market will also be aided by government and industry policies providing support for alternative fuels, as well as a growing petrochemical economy in China.
India is expected to hold the fastest CAGR by as much as 13.6% in the APAC methanol market from 2025 to 2037. The Indian government's commitment to increase methanol production capacity to 21 million metric tons annually by 2025, through coal, stranded gas, and biomass feedstock, holds promise for helping diminish crude oil imports and promote cleaner energy. Continued growth for the APAC methanol market in Indian will also be fueled by the growth of industrial activities, and increased investment in methanol-based energy systems.
North America Market Analysis
North America is expected to hold 30.1% of the methanol market share, increasing from USD 6.8672 billion in 2024 to USD 11.6092 billion by 2030, representing a compound annual growth rate (CAGR) of 9.3% from 2025 to 2030. This growth is driven by increasing demand for methanol across a range of applications, including formaldehyde production, which was the largest revenue-generating segment in 2024. Moreover, the methanol to olefins/methanol to propylene (MTO/MTP) segment is growing quickly as it is related to the production of plastics and synthetic materials.
The U.S methanol market is continuing to grow, with revenue expected to increase from USD 5.2189 billion in 2024 to USD 8.7511 billion by 2030, reflecting a CAGR of 9.2% from 2025 to 2030. The growth of methanol in part is driven by the increasing demand for methanol across applications, including formaldehyde production, which was the largest revenue-generating segment in 2024.
In 2023, the Canadian government announced $500 million over ten years for the Strategic Innovation Fund to assist clean technology projects related to methanol production. This funding aimed to attract and spur high-quality business investment to develop and implement clean technologies in Canada. In conjunction with this funding, Canada also signed an agreement with Germany on March 23, 2023, to speed up the trade for commercially-scale clean hydrogen fuelling systems with the intent to lessen their dependence on Russian energy while fighting climate change.

Companies Dominating the Methanol Landscape
- Company Overview
- Business Strategy
- Key Product Offerings
- Financial Performance
- Key Performance Indicators
- Risk Analysis
- Recent Development
- Regional Presence
- SWOT Analysis
The worldwide methanol industry is very competitive, with major players focusing on capacity expansion, partnerships, and innovation. Methanex is the major player with a strong global supply chain, while SABIC has the advantage of integrated petrochemical operations. The increase in emphasis on green methanol demonstrates opportunities for investment in renewable feedstocks, while mergers and acquisitions allow some industries to expand their market position and hedge against raw materials and regulatory risks.
Some of the key players operating in the market are listed below:
Company Name |
Country |
Approx. Market Share (%) |
Methanex Corporation |
Canada (HQ, strong USA presence) |
18% |
SABIC (Saudi Basic Industries) |
Saudi Arabia |
12% |
Celanese Corporation |
USA |
8% |
Methanol Holdings (MEG Group) |
Malaysia |
7% |
Mitsui Chemicals, Inc. |
Japan |
6% |
Lotte Chemical Corporation |
South Korea |
xx% |
China National Offshore Oil Corporation (CNOOC) |
China |
xx% |
Gujarat State Fertilizers & Chemicals Ltd (GSFC) |
India |
xx% |
SABIC Europe |
Europe (Netherlands) |
xx% |
Trinseo |
USA |
xx% |
Southern Chemical Industries |
India |
xx% |
BASF SE |
Germany |
xx% |
LyondellBasell Industries |
USA |
xx% |
Clean Energy Technologies |
Australia |
xx% |
Here are a few areas of focus covered in the competitive landscape of the market:
Recent Developments
- In May 2025, Denmark opened the world's first commercial-scale e-methanol plant in Kaso, developed by European Energy and Mitsui of Japan. The 151-million-euro plant will produce 42,001 metric tons (54 million liters) annually of e-methanol using renewable energy and CO2 generated from biogas and waste incineración. Maersk is one of their several customers and plans to supply its vessel Laura Maersk with e-methanol near the site of the plant. The excess heat generated from the plant will also supply power to 3,301 local homes.
- In May 2024, X-Press Feeders performed its first bio-methanol bunkering operation in Singapore, an important milestone towards the company’s target of decreasing its CO2 emissions by 21% by 2035 and establishing net-zero emissions by 2050. The company bunkered 301 metric tons of bio-methanol to its first dual-fuel vessel supplied by Global Energy Trading. Those eco-friendly vessels will be operating on the Baltic and Finland routes, with the company's plan to grow the dual-fuel fleet as well as ink future infrastructure agreements with six European ports to develop infrastructure for alternative fuel bunkering.
- Report ID: 683
- Published Date: Jun 03, 2025
- Report Format: PDF, PPT
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