Sodium Methylate Market

The global sodium methylate market was valued at USD 354.7 million in 2018 and is projected to reach USD 458.5 million by the end of 2025, at a moderate CAGR of 3.84% during the forecast period. In terms of volume, the market was pegged at 454.3 tons in 2018 and the demand is projected to reach 546.8 tons by the end of 2025. The protuberant factor favoring the growth of the global market is the growing use of sodium methylate in the production of biodiesel for the automotive and many other industries. Sodium methylate is a versatile chemical reagent and a catalyst of choice for most of the biodiesel producers. The major advantage offered by sodium methylate is the virtually water-free character of the catalyst solution. This leads to high yield, low purification cost, and offers consistent biodiesel quality. Moreover, the need for de-carbonizing the emissions from the transportation sector and supporting the Paris climate change objectives and reduction of global warming are factors driving the demand for biofuels. The growth of the automotive industry in Asia-Pacific and Latin America is expected to support the demand for biodiesel and hence the global market growth.

Besides, the widespread use of sodium methylate in the pharmaceutical industry coupled with the healthy growth of the pharmaceutical industry across the globe is expected to be the other key factor fueling the global market growth. However, the volatility in the prices of methanol, which is the key raw material for the product, is likely to restrain the growth of the global sodium methylate market during the forecast period. The price of methanol is closely linked to crude oil & natural gas prices—the major determining factor for raw material pricing—as natural gas is the primary feedstock and energy source in methanol production. The crude oil & natural prices are constantly fluctuating for the last five years, which consequently are affecting the cost of methanol production. Nevertheless, the projected rise in the demand for sodium methylate in the emerging economies of Asia-Pacific and Latin America such as India, China, Thailand, Malaysia, Indonesia, Brazil, and Argentina is projected to create significant growth opportunities for the producers of sodium methylate in the near future.

The global sodium methylate market has been studied across the five regions, namely Asia-Pacific, North America, Europe, Latin America, and the Middle East & Africa. The market in Asia-Pacific dominated the global market with a share of 45.68 % in 2018 and is projected to register the highest CAGR of 4.39% to reach USD 217.3 million by the end of 2025. This is mainly attributed to the healthy growth of the biofuel industry in the region, supportive government regulations for use and production of biofuels, and vast consumer base from the pharmaceutical and chemical industries.