Methanol Industry Report by Regional Category Spend, Price Analysis, Key Demand, and Price Indicators, and Best Buying Practices

The global Methanol market reached a value of about USD 39.63 billion in 2021. The industry is projected to grow at a CAGR of around 4.3% in the forecast period of 2022-2027 to reach a value of about USD 51.13 billion by 2027.

The global Methanol industry report gives a comprehensive analysis of the industry, including key segments, trends, drivers, restraints, the competitive landscape, and other essential market aspects. The rising demand for methanol-based fuel is projected to be one of the primary drivers of the methanol industry. Furthermore, the need for methanol to synthesise dimethyl ether and Methyl tert-butyl ether (MTBE), which are used as gasoline substitutes, is further propelling the industry. In the industry report, the key demand indicator is the highest category spender by region—Asia.

Industry Definition and Segmentation

Methanol is a chemical known as methyl alcohol and other names. It is the simplest alcohol. It's a flammable, light, volatile, colourless liquid with a pronounced alcoholic odour comparable to ethanol (potable alcohol). It's an organic solvent that's widely utilised. Many types of bacteria create methanol spontaneously, and it can be found in tiny levels in the environment. The Methanol industry report comprises segments by application (Formaldehyde, MTO, Fuel Applications, MTBE, Acetic Acid, MMA, Methylamines), and region (North America, Europe, Asia Pacific, the Middle East, and Africa, and South America).

North America, Europe, Asia Pacific, Middle East & Africa, and South America Regions are Driving the Procurement of Methanol

The Asia-Pacific region holds a significant share in the market due to the extensive use of methanol as the petrochemical sector expands and methanol-based fuels become more prevalent in China, India, and Japan. Furthermore, growing energy and non-renewable energy costs in the global and Chinese markets have maintained the methanol economic advantage. China's abundant coal resources as a feedstock have propelled the country to become the world's largest producer and consumer of methanol.

The methanol market is being driven by the increase in petrochemical demand in APAC. The primary driver of the methanol industry is the usage of petrochemicals in end-use sectors such as automotive and construction. The need for methanol to synthesise dimethyl ether and Methyl tert-butyl ether (MTBE), which are used as gasoline substitutes, is augmenting the market growth. DME is utilised in passenger vehicles as a fuel (diesel) and as an aerosol propellant, and it is also mixed into Liquefied Natural Gas (LNG). Methanol is favoured over gasoline because it emits less carbon monoxide, nitrogen oxides, and hydrocarbons.

However, the harmful effects of methanol exposure are likely to act as a market restraint.

Best Procurement Practices

The global Methanol industry report by Procurement Resource gives an in-depth analysis of the best buying practices followed by major global Methanol regions, such as engagement models, contract terms, and buyer and supplier negotiation levers.

Category Management Studies

Methanol is made when carbon monoxide and hydrogen combine over a catalyst. A combination of copper and zinc oxides supported on alumina is now the most extensively used catalyst. The reaction is characterised by excellent selectivity (>99.8%) at 5–10 MPa (50–100 atm) and 250 °C (482 °F). Three moles of hydrogen are generated for each mole of carbon monoxide in the production of synthesis gas from methane. In contrast, the synthesis utilises only two moles of hydrogen gas for every mole of carbon monoxide. Injecting carbon dioxide into the methanol synthesis reactor, where it, too, combines to generate methanol, is one technique to cope with surplus hydrogen. The process begins with converting CO into CO2, which is subsequently hydrogenated, with the H2O byproduct being recycled by the water-gas shift reaction. As a result, the total response is the same as the one described above. A direct supply of hydrogen and CO2 can be utilised similarly to methanol production from synthesis gas. The key benefit of this method is that it can employ collected CO2 and hydrogen from electrolysis, which eliminates the need for fossil fuels. Enzymes such as methane monooxygenases are involved in the catalytic conversion of methane to methanol. These enzymes are mixed-function oxygenases, which means they oxygenate while also producing water and NAD+: Enzymes reliant on Fe and Cu have been identified. Efforts have been made to replicate this responsiveness, but they have mainly failed. Because methanol is more accessible to oxidise than the fuel methane, the reactions aren't always selective. Shilov systems and Fe- and Cu-containing zeolites are examples. These systems don't exactly copy the processes used by metalloenzymes, but they do get some ideas from them. Active sites can differ significantly from those seen in enzymes.

Other Applications of the Product, Further Driving the Procurement of Methanol

Methanol is a common ingredient in the production of formaldehyde. Formaldehyde is the most basic and economically important aldehyde. It has a broad range of applications in various industries. As a result, it is driving the industry's expansion. Its extensive application in various industries is propelling the methanol industry. It is used as an industrial solvent in manufacturing inks, resins, adhesives, and dyes. It's also utilised to make vital medicinal chemicals and products, including cholesterol medicines, streptomycin, vitamins, and hormones.

The regional markets for the industry can be divided into Europe, North America, South America, Europe, the Middle East and Africa, and the Asia Pacific.

Key Industry Players Mentioned in the Methanol Industry Report

• Methanex Corporation
• Ar Razi Saudi Methanol Company
• Methanol (Holdings) Trinidad Ltd. (MHTL)
• Zagros Petrochemical Company
• Shenhua Ningxia Coal Group Corporation Limited

Market Landscape

The worldwide methanol market is partially fragmented, with the top eight manufacturers controlling around 40% of global production capacity. The main focus of market participants is on forming long-term contracts (partnerships) with raw material suppliers. The majority of manufacturers, being international corporations, have made significant investments in research and development to create sustainable production processes. These corporations are also establishing methanol production facilities in emerging nations to take advantage of future potential.

Key Initiatives by Companies

• Methanex Corporation announced intentions in October 2019 to modify its existing commercial arrangements for natural gas supply with Empresa Nacional del Petróleo (ENAP) to support roughly 25% of Methanex's 1.7 million tonnes annual production capacity in Chile for the next six years (from 2020 through 2025).
• Fairway Methanol LLC, formed through a 50-50 partnership between Mitsui & Co., Ltd., and Celanese Corporation, intended to expand its facilities in March 2021 to enhance methanol production by acquiring and effectively using CO2 released by nearby plants as a source.