China Methanol Market Size, Share, By Additives (Polyethylene, Solvents, Gasoline, MTO/MTP, Ethylene Oxide, And Others), By Feedstock (Natural Gas, Coal, Bio-Based, And Others), And China Methanol Market Insights, Industry Trend, Forecasts to 2035.

China Methanol Market Insights Forecasts to 2035

• China Methanol Market Size 2024: 18.37 Million Tons
• China Methanol Market Size 2035:  26.25 Million Tons
• China Methanol Market CAGR 2024: 3.3%
• China Methanol Market Segments: Additives and Feedstock

The China methanol market includes all phases from production to import, distribution and consumption of methanol. It is an alcohol with many functional uses as a chemical feedstock and fuel. Methanol has wide-ranging applications within China, such as being used for the production of formaldehyde and acetic acid, plastics and adhesives, biodiesel trans-esterification, marine fuel and possibly as part of a cleaner energy solution.

The methanol in China is backed by government support, including the methanol vehicle adoption and broader integration of methanol into its energy mix, a coordinated long-term effort led by multiple ministries that has encouraged research, pilot programs, and industrial deployment of M100 methanol-fuelled vehicles and the development of supporting refuelling infrastructure, reflecting a strategic push to diversify fuels and reduce dependence on traditional petroleum.

As technology advances, Chinese methanol providers are now increasing efficiency and decreasing environmental impact in methanol production by method innovation in feedstock use including coal, natural gas, and new renewable sources, as well as MTO technology advancements that create more methanol derivative value, will also drive interest in bio-methanol and integrated green hydrogen produced using methods that reduce carbon footprints and help facilitate cleaner energy transition.

Market Dynamics of the China Methanol Market:

The China methanol market is driven by high traditional industrial demand and emerging energy transition priorities, widely used as a feedstock for downstream chemical industries, supported by the growth of China’s broader chemicals sector, massive use in biodiesel production, China’s long-standing biofuel policies, increasing interest in cleaner fuels, well-established agricultural base, and increased capacity for bio-based feedstocks and renewable energy generation in China.

The China methanol market is restrained by the volatility in feedstock costs, high production economics and price stability, competition from China’s dominant bioethanol industry, limited methanol’s penetration as a fuel alternative, global supply chain uncertainties and currency fluctuations, and slow adoption in the absence of strong policy incentives.

The future of China methanol market is bright and promising, with versatile opportunities emerging from the increasing availability of methanol as an alternative fuel for marine transport, expanding production of methanol from MTOs and specialty chemicals, as well as the increasing levels of green and biobased methanol will provide opportunities for major change and value capture across industries to support China’s overarching goals for environmental and renewable energy.

Market Segmentation

The China Methanol Market share is classified into additives and feedstock.

By Additives:

The China methanol market is divided by additives into polyethylene, solvents, gasoline, MTO/MTP, ethylene oxide, and others. Among these, the MTO/MTP segment accounted for the largest revenue market share in 2024 and is expected to grow at a significant CAGR during the forecast period. Increasing demand for high value olefins, expanding petrochemical sector, offering an alternative to traditional naphtha cracking, and versatile applications with highest growth rate all contribute to the MTO/MTP segment's largest share and higher spending on methanol when compared to other additives.

By Feedstock:

The China methanol market is divided by feedstock into natural gas, coal, bio-based, and others. Among these, the natural gas segment dominated the share in 2024 and is anticipated to grow at a remarkable CAGR during the forecast period. The natural gas segment dominates because of cost effectiveness, high output efficiency, provides foundation for domestic production, emits less carbon aligning with cleaner production goals, and well established infrastructure for methanol production in China.   

Competitive Analysis:

The report offers the appropriate analysis of the key organisations/companies involved within the China methanol market, along with a comparative evaluation primarily based on their product offering, business overviews, geographic presence, enterprise strategies, segment market share, and SWOT analysis. The report also provides an elaborative analysis focusing on the current news and developments of the companies, which includes product development, innovations, joint ventures, partnerships, mergers & acquisitions, strategic alliances, and others. This allows for the evaluation of the overall competition within the market.

Top Key Companies in China Methanol Market:

• PetroChina
• Yankuang Energy Group
• Shenhua Group
• Sinopec
• Ningxia Baofeng Energy Group
• Shanghai Huayi Company
• China National Offshore Oil Corporation
• Inner Mongolia Yihua Group Company
• Tianjin Bohai Chemical Industry Co., Ltd.
• Shaanxi Coal and Chemical Industry
• Henan Xinilianxin Chemicals Group
• Hubei Sanning Chemical Co., Ltd.
• Others

Recent Developments in China Methanol Market:

In July 2025, Shanghai completed the first delivery of green methanol from its Taonan project in Jilin Province. This is a large-scale, full-cycle commercial wing power-biomass integrated project, with a 50,000-ton capacity first phase, expanding to 250,000 tons by 2027.

Key Target Audience

• Market Players
• Investors
• End-users
• Government Authorities 
• Consulting and Research Firm
• Venture capitalists
• Value-Added Resellers (VARs)

Market Segment

This study forecasts revenue at the China, regional, and country levels from 2020 to 2035. Spherical Insights has segmented the China methanol market based on the below-mentioned segments:

China Methanol Market, By Additives

• Polyethylene
• Solvents
• Gasoline
• MTO/MTP
• Ethylene Oxide
• Others

China Methanol Market, By Feedstock

• Natural Gas
• Coal
• Bio-Based
• Others