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Methanol Market - Growth, Trends, COVID-19 Impact, and Forecast (2022 - 2027)

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  • 180 Pages
  • August 2022
  • Region: Global
  • Mordor Intelligence
  • ID: 4514928
The methanol market is projected to register a CAGR of over 4.87% during the forecast period 2022-2027.

The COVID-19 pandemic negatively impacted the global economy, making it difficult to forecast the market's future due to the uncertainties surrounding the pandemic. The outbreak exposed several challenges for various industries. As most oil-producing countries were under lockdowns due to the pandemic, many uncertainties hindered the petrochemical market while Saudi Arabia, China, and other major oil producers were highly impacted. The petrochemical industry plays a key role in manufacturing several products, including methanol. However, due to the shutdown of these industries, the methanol market was highly impacted.
  • Over the short term, one of the major factors driving the methanol market is likely to be the increasing demand for methanol-based fuel. Methanol is preferred over conventional gasoline fuel for reducing carbon monoxide, nitrogen oxides, and hydrocarbon emissions. Therefore, methanol is used as an alternative to conventional fuel in North America and Europe.
  • However, hazardous impacts on health due to exposure to methanol are expected to hinder the market's growth.
  • Formaldehyde dominated the market and it is expected to grow at a healthy rate during the forecast period owing to the increasing applications in the construction, automotive, and personal care sectors.
  • Asia-Pacific dominated the market worldwide with the largest consumption in China and India.

Key Market Trends

Formaldehyde Dominating the Overall Methanol Market with Derivatives

  • Methanol is largely used in the manufacturing of formaldehyde. Formaldehyde is the simplest aldehyde and the most commercially important one. It is commonly known as methanal (CH2O).
  • Formaldehyde includes a wide range of applications in varied sectors. The combination of formaldehyde with different compounds results in different products, such as urea, phenol, and melamine-formaldehyde resins (UF, PF, and MF resins), polyacetal resins, pentaerythritol, methylene bis (4-phenyl isocyanate) (MDI), 1,4-butanediol (BDO), and hexamethylenetetramine (HMTA).
  • These products are further used in the manufacturing of different products applicable in various sectors, such as construction (adhesives, paints and coatings, carpet underlay, wood and ply adhesives, wood panels, etc.), automotive (under bonnet components, antifreeze, fuel system, components, brake pads, etc.), consumer products (paper towels, cosmetics, carpeting, furniture, cabinets, solvents, etc.), and healthcare applications (vaccine manufacturing, hard gel capsule manufacturing, pharmaceutical research, etc.).
  • The Asia-Pacific region accounts for over 60% of the total global consumption of formaldehyde, with China being the leader by consuming the major proportion of the production. The construction sector contributes to over 50% of the total consumption globally.
  • However, the presence of formaldehyde in the air, at levels higher than 0.1 parts per million (ppm), may lead to health issues for humans, such as watery eyes, burning sensations of the eyes, nose, and throat, coughing, wheezing, nausea, skin irritation, etc. Higher levels of exposure to formaldehyde concentration may lead to serious diseases like cancer.
  • Due to such factors, methanol-based fuel has been driving the methanol market globally, and the market is estimated to grow further during the forecast period.
  • Even though formaldehyde is used in manufacturing pressed-wood products, fiberboard, plywood, glues, and adhesives, the production of these products declined due to the shutdown of manufacturing facilities during the COVID-19 pandemic, further reducing consumption on the industrial side.
  • However, the consumption trend is growing in the medical sector as formaldehyde is being used to manufacture disinfectants. Thus, the demand for formaldehyde is higher and is expected to witness balanced growth globally.

Asia-Pacific to Dominate the Market

  • Asia-Pacific dominated the global market share. Methanol usage is increasing in the region due to the growing petrochemical industry and increasing usage of methanol-based fuel in China, India, and Japan.
  • China is the leading producer of paints and coatings worldwide. The country accounted for more than 20 million ton of coatings production, which is close to 30% of the global coatings output. It currently produces more than half of the coatings in Asia-Pacific and is home to more than 10,000 paint companies, among which local producers occupy more than half of the domestic paint market share. The production is expected to contribute to the demand for numerous derivatives, such as formaldehyde, acetic acid, and MMA, and boost the demand for methanol.
  • The Indian government is pushing methanol usage as a fuel in vehicles and cooking to promote sustainable development with less environmental damage.
  • Under the Methanol Economy program by NITI Aayog, methanol production capacity is expected to increase by up to 20 ton annually by 2025, using Indian high ash coal, stranded gas, and biomass.
  • The outbreak of COVID-19 halted operations in many sectors of various countries. The automotive, manufacturing, and construction sectors are estimated to witness declines in growth and output, owing to the lockdowns imposed by governments for a brief period.
  • Thus, the demand for methanol declined drastically, which may constrain the market's growth.

Competitive Landscape

The methanol market is fragmented, with the top eight players accounting for about 40% of the global production capacity. Some of these major players include Methanex Corporation, SABIC, Zagros Petrochemical Co., Yankuang Group, and Proman AG.

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Table of Contents

1.1 Study Assumptions
1.2 Scope of the Study
4.1 Drivers
4.1.1 Expanding Petrochemical Sector in the US, China, and Other Asia-Pacific Countries
4.1.2 Increasing Utilization of Methanol in the Production of Olefins Using MTO
4.2 Restraints
4.2.1 Usage of Ethanol Fuel or Bioethanol in Comparison to Methanol
4.2.2 Impact of COVID-19 Outbreak
4.3 Industry Value Chain Analysis
4.4 Porter's Five Forces Analysis
4.4.1 Bargaining Power of Suppliers
4.4.2 Bargaining Power of Consumers
4.4.3 Threat of New Entrants
4.4.4 Threat of Substitute Products and Services
4.4.5 Degree of Competition
4.5 Global Capacity by Key Feedstock
4.5.1 Coal
4.5.2 Natural Gas
4.5.3 Other Key Feedstock
4.6 Technological Snapshot
4.7 Trade Analysis
4.8 Price Trends
5.1 Derivatives
5.1.1 Formaldehyde
5.1.2 Methanol-to-olefins (MTO)/Methanol-to-Propylene (MTP)
5.1.3 Methyl Tert-butyl Ether (MTBE)/Tertiary Amyl Methyl Ether (TAME)
5.1.4 Dimethyl Terephthalate (DMT)
5.1.5 Acetic Acid
5.1.6 Dimethyl Ether (DME)
5.1.7 Methylamines
5.1.8 Other Derivatives
5.2 End-user Industry
5.2.1 Direct End-user Industry Automotive Paints and Coatings Pharmaceuticals Agriculture
5.2.2 Indirect End-user Industry Construction Packaging Electrical and Electronics Other End-user Industries
5.3 Geography
5.3.1 Asia-Pacific China India Japan South Korea Rest of Asia-Pacific
5.3.2 North America US Canada Mexico
5.3.3 Europe Germany UK Italy France Rest of Europe
5.3.4 South America Brazil Argentina Rest of South America
5.3.5 Middle-East and Africa Saudi Arabia South Africa Rest of Middle-East and Africa
6.1 Mergers and Acquisitions, Joint Ventures, Collaborations, and Agreements
6.2 Market Share(%)**/Ranking Analysis
6.3 Strategies Adopted by Leading Players
6.4 Company Profiles
6.4.1 Atlantic Methanol
6.4.2 BASF SE
6.4.3 BP PLC
6.4.4 Celanese Corporation
6.4.5 Coogee
6.4.6 Enerkem
6.4.7 Eni SpA (Ecofuel SpA)
6.4.8 Gujarat Narmada Valley Fertilizers & Chemicals Ltd
6.4.9 Kingboard Holdings Limited
6.4.10 LyondellBasell Industries Holdings BV
6.4.11 Methanex Corporation
6.4.12 Mitsubishi Gas Chemical Company Inc.
6.4.13 Mitsui & Co. Ltd
6.4.14 Oberon Fuels
6.4.15 OCI NV
6.4.16 Petroliam Nasional Berhad (PETRONAS)
6.4.17 Proman AG
6.4.18 SABIC
6.4.19 Yankuang Group
6.4.20 Zagros Petrochemical Co.
7.1 Use of Methanol in New and Expanding Fuel Applications

Companies Mentioned

A selection of companies mentioned in this report includes:

  • Atlantic Methanol
  • BP PLC
  • Celanese Corporation
  • Coogee
  • Enerkem
  • Eni SpA (Ecofuel SpA)
  • Gujarat Narmada Valley Fertilizers & Chemicals Ltd
  • Kingboard Holdings Limited
  • LyondellBasell Industries Holdings BV
  • Methanex Corporation
  • Mitsubishi Gas Chemical Company Inc.
  • Mitsui & Co. Ltd
  • Oberon Fuels
  • OCI NV
  • Petroliam Nasional Berhad (PETRONAS)
  • Proman AG
  • Yankuang Group
  • Zagros Petrochemical Co.