Report Overview

Asia Pacific Methanol Market – Industry Trends & Forecast Report, 2031

Asia Pacific Methanol Market size was estimated at USD 20.26 billion in 2024. During the forecast period between 2025 and 2031, Asia Pacific Methanol Market size is projected to grow at a CAGR of 6.2% reaching a value of USD 30.87 billion by 2031. Prominent drivers of the market include rising demand for methanol in chemical manufacturing and clean fuel applications, supported by regional efforts to reduce carbon emissions. Government initiatives in countries like China and India are accelerating investments in methanol production and infrastructure, further strengthening market expansion. The increasing use of methanol as a feedstock in the petrochemical sector and as a low-emission marine fuel is also driving growth, especially as the shipping industry seeks sustainable alternatives to meet stricter environmental regulations. Moreover, growing collaboration between public and private sectors is enhancing the methanol value chain through expanded production capacities and distribution networks across the region. The push for sustainability is encouraging innovation in renewable methanol production, which significantly reduces greenhouse gas emissions. Combined with supportive clean energy policies and technological advancements, these factors are expected to fuel robust growth in the Asia Pacific methanol market over the forecast period.

Methanol – Overview

Methanol, also known as methyl alcohol or wood alcohol, is a colorless, volatile, and flammable liquid with the chemical formula CH₃OH. It is the simplest form of alcohol and is primarily produced from natural gas or coal through catalytic processes. Methanol is used as a feedstock in the production of formaldehyde, acetic acid, and various chemicals. It also serves as an alternative fuel and fuel additive due to its clean-burning properties. Widely utilized in the automotive, construction, and pharmaceutical industries, methanol is gaining importance in renewable energy initiatives as a sustainable and low-emission fuel source.

Asia Pacific Methanol Market

Growth Drivers

Clean Fuel Initiatives

The rising emphasis on sustainable and clean energy solutions is a key factor propelling the methanol industry. Methanol is gaining traction as an alternative fuel due to its lower carbon emissions compared to conventional fossil fuels. With global energy demand projected to grow by 30% by 2040—particularly across emerging economies in the Asia Pacific—countries like China and India are implementing strategic initiatives to minimize environmental impact. For example, China's National Energy Administration is promoting the adoption of clean energy, including methanol, as part of its broader sustainability targets. These efforts are expected to significantly boost methanol consumption, supporting market growth in the region.

Challenges

High Volatility in Raw Material Prices

Volatility in raw material prices is a key factor restraining the growth of the Asia Pacific methanol market. Methanol is primarily produced from natural gas and coal, the prices of which are sensitive to global supply-demand dynamics, geopolitical tensions, and regulatory changes. Fluctuations in feedstock costs directly impact production expenses and profit margins, making long-term planning difficult for manufacturers. This unpredictability can deter investment in methanol projects and affect pricing stability across downstream industries. As a result, raw material price volatility poses a significant challenge to the consistent and sustainable expansion of the methanol market in the APAC region.

Impact of Escalating Geopolitical Tensions on Asia Pacific Methanol Market

Escalating geopolitical tensions could significantly impact the growth of Asia Pacific Methanol Market, by disrupting supply chains and increasing raw material costs. Many methanol production processes rely on natural gas and coal, both of which are subject to international trade fluctuations and political conflicts. Tensions in key energy-producing regions can lead to price hikes and supply shortages, affecting production stability. Additionally, uncertainty in global markets may deter investments in methanol infrastructure and innovation. As a result, geopolitical tensions can create instability, hinder market growth, and affect the region's ability to meet the rising demand for methanol in various industries.

Asia Pacific Methanol Market

Segmental Coverage

Asia Pacific Methanol Market – By Feedstock

Based on feedstock, Asia Pacific Methanol Market is divided into Natural Gas, Coal, Biomass, CO₂, and other feedstocks segments. The natural gas segment holds the highest share in Asia Pacific Methanol Market by feedstock. It is due to its efficiency and environmental benefits, resulting in lower emissions during methanol production. This makes it the preferred choice in countries such as China and Japan, where strict environmental regulations are driving the transition to cleaner energy alternatives. The use of natural gas supports the shift towards sustainable energy practices, aligning with the growing focus on reducing carbon footprints in these regions.

Asia Pacific Methanol Market – By Derivative

By derivative, Asia Pacific Methanol Market is segmented into Formaldehyde, Acetic Acid, Methyl Tert-Butyl Ether (MTBE), Methanol-to-Olefins (MTO), Dimethyl Ether (DME), Biodiesel, Solvents, and other derivatives. The formaldehyde segment holds the highest share in Asia Pacific Methanol Market by derivative. Formaldehyde is a key component in the methanol market, primarily utilized in the manufacturing of resins and plastics, which are critical materials for the construction and automotive industries. Its widespread use in these sectors underscores its importance in driving demand within the market.

Asia Pacific Methanol Market – By End User Industry

On the basis of end user industry, Asia Pacific Methanol Market is segmented into Petrochemical Industry, Transportation, Energy & Power, Construction & Infrastructure, Healthcare & Pharmaceuticals, and other end user industries segments.

Asia Pacific Methanol Market – By Country

The in-depth research report on the Asia Pacific Methanol Market covers the market in the region’s major countries including China, India, Japan, South Korea, Australia & New Zealand, Indonesia, Malaysia, Singapore, Vietnam, and Rest of APAC. China holds the highest share in Asia Pacific Methanol Market and is expected to maintain its dominance during the forecast period. By 2030, China is projected to lead the region in methanol capacity expansions. As a major industrial hub, China significantly contributes to methanol consumption, particularly with its expanding chemical sector, where methanol is a key feedstock. India follows closely, with a growing focus on cleaner fuel alternatives in its energy transition, further emphasizing the role of methanol. China's dominance is driven by its clean fuel demand and advancing urbanization and industrialization, which increases methanol use in sectors like construction, packaging, and automotive. Additionally, methanol demand in Indonesia and Malaysia is rising, particularly for solvents, manufacturing, and key chemicals like formaldehyde, acetic acid, and MTBE.

Competitive Landscape

Major players operating in Asia Pacific Methanol Market include PetroChina, BASF, Qatar Petroleum, SABIC, LyondellBasell Industries, OCI N.V., China National Chemical Corporation, Haldor Topsoe, Yuanhe Chemical, Jiangsu Sailboat Petrochemical, China National Petroleum Corporation, Methanex Corporation, China Coal Energy Company, Cyanamid, and Kuwait National Petroleum Company. To further enhance their market share, these companies employ various strategies, including mergers and acquisitions, partnerships, joint ventures, license agreements, and new product launches.

Recent Developments

• In February 2025 - China unveiled a high-performance methanol-diesel dual-fuel ship engine developed by subsidiaries of the China State Shipbuilding Corporation (CSSC). With a maximum output of 64,500 kilowatts, the engine runs on 95% methanol, cutting carbon emissions by over 7.5% compared to conventional diesel engines. It features advanced digital control, dual-fuel injection, and 5G-enabled real-time monitoring, offering high efficiency, low emissions, and reduced maintenance. The engine will be installed on a 16,000-TEU container ship, marking a major milestone in sustainable maritime technology and China's green shipping initiatives.

• In November 2024 - Clariant announced that it would support China’s first commercial biomass-to-green methanol project, set to begin operations in the first half of 2025. The plant will utilize Clariant’s high-performance MegaMax catalyst, known for its superior activity, stability, and efficiency in green methanol production. Powered by agricultural waste and wind energy, the project aims to produce 250,000 tons of green methanol annually by 2027. Clariant will also offer technical support through its ACT team and CLARITY digital platform, enhancing operational reliability and performance. The initiative marks a significant step in China’s transition to sustainable chemical and fuel production.

• In September 2024 - India inaugurated its first CO₂-to-methanol pilot plant in Pune, a joint initiative by the Department of Science and Technology (DST), IIT Delhi, and Thermax. With a capacity of 1.4 tons per day and a cost of INR 31 crore, the project supports Carbon Capture and Utilization (CCU) technologies. It aims to decarbonize coal-based sectors, align with Atmanirbhar Bharat, and promote indigenous innovation.

Scope of the Report

By Feedstock

• Natural Gas

• Coal

• Biomass

• CO2

• Others

By Derivative

• Formaldehyde

• Acetic Acid

• Methyl Tert-Butyl Ether (MTBE)

• Methanol-to-Olefins (MTO)

• Dimethyl Ether (DME)

• Biodiesel

• Solvents

• Others

By End User Industry

• Petrochemical Industry

• Transportation

• Energy & Power

• Construction & Infrastructure

• Healthcare & Pharmaceuticals

• Others

By Country

• China

• India

• Japan

• South Korea

• Australia & New Zealand

• Indonesia

• Malaysia

• Singapore

• Vietnam

• Rest of APAC

1. Research Framework
   1. Research Objective
   2. Product Overview
   3. Market Segmentation
2. Executive Summary
3. Asia Pacific Methanol Market Insights
   1. Industry Value Chain Analysis
   2. DROC Analysis
      1. Growth Drivers
         1. Surge in Methanol-to-Olefins
         2. Clean Fuel Initiatives
         3. Rising Demand from End-Use Industries
      2. Restraints
         1. Volatility in Raw Material Prices
         2. Environmental Concerns
      3.  Opportunities
         1. Green Methanol Development
         2. Expanding Petrochemical Sector
      4. Challenges
         1. Competition from Alternative Fuels
         2. Infrastructure Limitations
   3. Technological Advancements/Recent Developments
   4. Regulatory Framework
   5. Porter’s Five Forces Analysis
      1. Bargaining Power of Suppliers
      2. Bargaining Power of Buyers
      3. Threat of New Entrants
      4. Threat of Substitutes
      5. Intensity of Rivalry
4. Asia Pacific Methanol Market: Marketing Strategies
5. Asia Pacific Methanol Market: Pricing Analysis
6. Asia Pacific Methanol Market Overview
   1. Market Size & Forecast, 2019–2031
      1. By Value (USD Billion)
   2. Market Share & Forecast
      1. By Feedstock
         1. Natural Gas
         2. Coal
         3. Biomass
         4. CO2
         5. Others
      2. By Derivative
         1. Formaldehyde
         2. Acetic Acid
         3. Methyl Tert-Butyl Ether (MTBE)
         4. Methanol-to-Olefins (MTO)
         5. Dimethyl Ether (DME)
         6. Biodiesel
         7. Solvents
         8. Others
      3. By End User Industry
         1. Petrochemical Industry
         2. Transportation
         3. Energy & Power
         4. Construction & Infrastructure
         5. Healthcare & Pharmaceuticals
         6. Others
      4. By Country
         1. China
         2. India
         3. Japan
         4. South Korea
         5. Australia & New Zealand
         6. Indonesia
         7. Malaysia
         8. Singapore
         9. Vietnam
         10. Rest of Asia Pacific
7. China Methanol Market
   1. Market Size & Forecast, 2019–2031
      1. By Value (USD Billion)
   2. Market Share & Forecast
      1. By Feedstock
      2. By Derivative
      3. By End User Industry
8. India Methanol Market
   1. Market Size & Forecast, 2019–2031
      1. By Value (USD Billion)
   2. Market Share & Forecast
      1. By Feedstock
      2. By Derivative
      3. By End User Industry
9. Japan Methanol Market
   1. Market Size & Forecast, 2019–2031
      1. By Value (USD Billion)
   2. Market Share & Forecast
      1. By Feedstock
      2. By Derivative
      3. By End User Industry
10. South Korea Methanol Market
    1. Market Size & Forecast, 2019–2031
       1. By Value (USD Billion)
    2. Market Share & Forecast
       1. By Feedstock
       2. By Derivative
       3. By End User Industry
11. Australia & New Zealand Methanol Market
    1. Market Size & Forecast, 2019–2031
       1. By Value (USD Billion)
    2. Market Share & Forecast
       1. By Feedstock
       2. By Derivative
       3. By End User Industry
12. Indonesia Methanol Market
    1. Market Size & Forecast, 2019–2031
       1. By Value (USD Billion)
    2. Market Share & Forecast
       1. By Feedstock
       2. By Derivative
       3. By End User Industry
13. Malaysia Methanol Market
    1. Market Size & Forecast, 2019–2031
       1. By Value (USD Billion)
    2. Market Share & Forecast
       1. By Feedstock
       2. By Derivative
       3. By End User Industry
14. Singapore Methanol Market
    1. Market Size & Forecast, 2019–2031
       1. By Value (USD Billion)
    2. Market Share & Forecast
       1. By Feedstock
       2. By Derivative
       3. By End User Industry
15. Vietnam Methanol Market
    1. Market Size & Forecast, 2019–2031
       1. By Value (USD Billion)
    2. Market Share & Forecast
       1. By Feedstock
       2. By Derivative
       3. By End User Industry
16. Rest of Asia Pacific Methanol Market
    1. Market Size & Forecast, 2019–2031
       1. By Value (USD Billion)
    2. Market Share & Forecast
       1. By Feedstock
       2. By Derivative
       3. By End User Industry
17. Competitive Landscape
    1. List of Key Players and Their Offerings
    2. Asia Pacific Methanol Company Market Share Analysis, 2024
    3. Competitive Benchmarking, By Operating Parameters
    4. Key Strategic Developments (Mergers, Acquisitions, Partnerships, etc.)
18. Impact of Geopolitical Tensions on Asia Pacific Methanol Market
19. Company Profiles (Company Overview, Financial Matrix, Competitive Landscape, Key Personnel, Key Competitors, Contact Address, Strategic Outlook, and SWOT Analysis)
    1. PetroChina
    2. BASF
    3. Qatar Petroleum
    4. SABIC
    5. LyondellBasell Industries
    6. OCI N.V.
    7. China National Chemical Corporation
    8. Haldor Topsoe
    9. Yuanhe Chemical
    10. Jiangsu Sailboat Petrochemical
    11. China National Petroleum Corporation
    12. Methanex Corporation
    13. China Coal Energy Company
    14. Cyanamid
    15. Kuwait National Petroleum Company
    16.  Other Prominent Players
20. Key Strategic Recommendations
21. Research Methodology
    1.   Qualitative Research
       1.  Primary & Secondary Research
    2.   Quantitative Research
    3.   Market Breakdown & Data Triangulation
       1.  Secondary Research
       2.  Primary Research
    4.   Breakdown of Primary Research Respondents, By Region
    5.   Assumptions & Limitations

*Financial information of non-listed companies can be provided as per availability.

**The segmentation and the companies are subject to modifications based on in-depth secondary research for the final deliverable

List of Figures

Figure 1       Asia Pacific Methanol Segmentation

Figure 2       Asia Pacific Methanol Market Value Chain Analysis

Figure 3       Company Market Share Analysis, 2024

Figure 4       Asia Pacific Methanol Market Size, By Value (USD Billion), 2019–2031

Figure 5       Asia Pacific Methanol Market Share, By Feedstock, By Value, 2019–2031

Figure 6       Asia Pacific Methanol Market Share, By Derivative, By Value, 2019–2031

Figure 8       Asia Pacific Methanol Market Share, By End User Industry, By Value, 2019–2031

Figure 9       Asia Pacific Methanol Market Share, By Country, By Value, 2019–2031

Figure 10     China Methanol Market Size, By Value (USD Billion), 2019–2031

Figure 11     China Methanol Market Share, By Feedstock, By Value, 2019–2031

Figure 12     China Methanol Market Share, By Derivative, By Value, 2019–2031

Figure 14     China Methanol Market Share, By End User Industry, By Value, 2019–2031

Figure 15     India Methanol Market Size, By Value (USD Billion), 2019–2031

Figure 16     India Methanol Market Share, By Feedstock, By Value, 2019–2031

Figure 17     India Methanol Market Share, By Derivative, By Value, 2019–2031

Figure 19     India Methanol Market Share, By End User Industry, By Value, 2019–2031

Figure 20     Japan Methanol Market Size, By Value (USD Billion), 2019–2031

Figure 21     Japan Methanol Market Share, By Feedstock, By Value, 2019–2031

Figure 22     Japan Methanol Market Share, By Derivative, By Value, 2019–2031

Figure 24     Japan Methanol Market Share, By End User Industry, By Value, 2019–2031

Figure 25     South Korea Methanol Market Size, By Value (USD Billion), 2019–2031

Figure 26     South Korea Methanol Market Share, By Feedstock, By Value, 2019–2031

Figure 27     South Korea Methanol Market Share, By Derivative, By Value, 2019–2031

Figure 29     South Korea Methanol Market Share, By End User Industry, By Value, 2019–2031

Figure 30     Australia & New Zealand Methanol Market Size, By Value (USD Billion), 2019–2031

Figure 31     Australia & New Zealand Methanol Market Share, By Feedstock, By Value, 2019–2031

Figure 32     Australia & New Zealand Methanol Market Share, By Derivative, By Value, 2019–2031

Figure 34     Australia & New Zealand Methanol Market Share, By End User Industry, By Value, 2019–2031

Figure 35     Indonesia Methanol Market Size, By Value (USD Billion), 2019–2031

Figure 36     Indonesia Methanol Market Share, By Feedstock, By Value, 2019–2031

Figure 37     Indonesia Methanol Market Share, By Derivative, By Value, 2019–2031

Figure 39     Indonesia Methanol Market Share, By End User Industry, By Value, 2019–2031

Figure 40     Malaysia Methanol Market Size, By Value (USD Billion), 2019–2031

Figure 41     Malaysia Methanol Market Share, By Feedstock, By Value, 2019–2031

Figure 42     Malaysia Methanol Market Share, By Derivative, By Value, 2019–2031

Figure 44     Malaysia Methanol Market Share, By End User Industry, By Value, 2019–2031

Figure 45     Singapore Methanol Market Size, By Value (USD Billion), 2019–2031

Figure 46     Singapore Methanol Market Share, By Feedstock, By Value, 2019–2031

Figure 47     Singapore Methanol Market Share, By Derivative, By Value, 2019–2031

Figure 49     Singapore Methanol Market Share, By End User Industry, By Value, 2019–2031

Figure 50     Vietnam Methanol Market Size, By Value (USD Billion), 2019–2031

Figure 51     Vietnam Methanol Market Share, By Feedstock, By Value, 2019–2031

Figure 52     Vietnam Methanol Market Share, By Derivative, By Value, 2019–2031

Figure 54     Vietnam Methanol Market Share, By End User Industry, By Value, 2019–2031

Figure 55     Rest of Asia Pacific Methanol Market Size, By Value (USD Billion), 2019–2031

Figure 56     Rest of Asia Pacific Methanol Market Share, By Feedstock, By Value, 2019–2031

Figure 57     Rest of Asia Pacific Methanol Market Share, By Derivative, By Value, 2019–2031

Figure 59     Rest of Asia Pacific Methanol Market Share, By End User Industry, By Value, 2019–2031

List of Tables

Table 1        Asia Pacific Methanol Market Size, By Value (USD Billion), 2019–2031

Table 2        Asia Pacific Methanol Market Size, By Feedstock, By Value, 2019–2031

Table 3        Asia Pacific Methanol Market Size, By Derivative, By Value, 2019–2031

Table 5        Asia Pacific Methanol Market Size, By End User Industry, By Value, 2019–2031

Table 6        Asia Pacific Methanol Market Size, By Country, By Value, 2019–2031

Table 7        China Methanol Market Size, By Value (USD Billion), 2019–2031

Table 8        China Methanol Market Size, By Feedstock, By Value, 2019–2031

Table 9        China Methanol Market Size, By Derivative, By Value, 2019–2031

Table 11      China Methanol Market Size, By End User Industry, By Value, 2019–2031

Table 12      India Methanol Market Size, By Value (USD Billion), 2019–2031

Table 13      India Methanol Market Size, By Feedstock, By Value, 2019–2031

Table 14      India Methanol Market Size, By Derivative, By Value, 2019–2031

Table 16      India Methanol Market Size, By End User Industry, By Value, 2019–2031

Table 17      Japan Methanol Market Size, By Value (USD Billion), 2019–2031

Table 18      Japan Methanol Market Size, By Feedstock, By Value, 2019–2031

Table 19      Japan Methanol Market Size, By Derivative, By Value, 2019–2031

Table 21      Japan Methanol Market Size, By End User Industry, By Value, 2019–2031

Table 22      South Korea Methanol Market Size, By Value (USD Billion), 2019–2031

Table 23      South Korea Methanol Market Size, By Feedstock, By Value, 2019–2031

Table 24      South Korea Methanol Market Size, By Derivative, By Value, 2019–2031

Table 26      South Korea Methanol Market Size, By End User Industry, By Value, 2019–2031

Table 27      Australia & New Zealand Methanol Market Size, By Value (USD Billion), 2019–2031

Table 28      Australia & New Zealand Methanol Market Size, By Feedstock, By Value, 2019–2031

Table 29      Australia & New Zealand Methanol Market Size, By Derivative, By Value, 2019–2031

Table 31      Australia & New Zealand Methanol Market Size, By End User Industry, By Value, 2019–2031

Table 32      Indonesia Methanol Market Size, By Value (USD Billion), 2019–2031

Table 33      Indonesia Methanol Market Size, By Feedstock, By Value, 2019–2031

Table 34      Indonesia Methanol Market Size, By Derivative, By Value, 2019–2031

Table 36      Indonesia Methanol Market Size, By End User Industry, By Value, 2019–2031

Table 37      Malaysia Methanol Market Size, By Value (USD Billion), 2019–2031

Table 38      Malaysia Methanol Market Size, By Feedstock, By Value, 2019–2031

Table 39      Malaysia Methanol Market Size, By Derivative, By Value, 2019–2031

Table 41      Malaysia Methanol Market Size, By End User Industry, By Value, 2019–2031

Table 42      Singapore Methanol Market Size, By Value (USD Billion), 2019–2031

Table 43      Singapore Methanol Market Size, By Feedstock, By Value, 2019–2031

Table 44      Singapore Methanol Market Size, By Derivative, By Value, 2019–2031

Table 46      Singapore Methanol Market Size, By End User Industry, By Value, 2019–2031

Table 47      Vietnam Methanol Market Size, By Value (USD Billion), 2019–2031

Table 48      Vietnam Methanol Market Size, By Feedstock, By Value, 2019–2031

Table 49      Vietnam Methanol Market Size, By Derivative, By Value, 2019–2031

Table 51      Vietnam Methanol Market Size, By End User Industry, By Value, 2019–2031

Table 52      Rest of Asia Pacific Methanol Market Size, By Value (USD Billion), 2019–2031

Table 53      Rest of Asia Pacific Methanol Market Size, By Feedstock, By Value, 2019–2031

Table 54      Rest of Asia Pacific Methanol Market Size, By Derivative, By Value, 2019–2031

Table 56      Rest of Asia Pacific Methanol Market Size, By End User Industry, By Value, 2019–2031

Table 57      PetroChina Company Overview

Table 58      PetroChina Financial Overview

Table 59      BASF Company Overview

Table 60      BASF Financial Overview

Table 61      Qatar Petroleum Company Overview

Table 62      Qatar Petroleum Financial Overview

Table 63      SABIC Company Overview

Table 64      SABIC Financial Overview

Table 65      LyondellBasell Industries Company Overview

Table 66      LyondellBasell Industries Financial Overview

Table 67      OCI N.V. Company Overview

Table 68      OCI N.V. Financial Overview

Table 69      China National Chemical Corporation Company Overview

Table 70      China National Chemical Corporation Financial Overview

Table 71      Haldor Topsoe Company Overview

Table 72      Haldor Topsoe Financial Overview

Table 73      Yuanhe Chemical Company Overview

Table 74      Yuanhe Chemical Financial Overview

Table 75      Jiangsu Sailboat Petrochemical Company Overview

Table 76      Jiangsu Sailboat Petrochemical Financial Overview

Table 77      China National Petroleum Corporation Company Overview

Table 78      China National Petroleum Corporation Financial Overview

Table 79      Methanex Corporation Company Overview

Table 80      Methanex Corporation Financial Overview

Table 81      China Coal Energy Company: Company Overview

Table 82      China Coal Energy Company Financial Overview

Table 83      Cyanamid Company Overview

Table 84      Cyanamid Financial Overview

Table 85      Kuwait National Petroleum Company: Company Overview

Table 86      Kuwait National Petroleum Company Financial Overview