Inorganic Chemical Manufacturing in Canada - Market Research Report (2013-2028)
New York, United States
Last Updated: October 2023
NAICS 32518CARevenue
$4.8bn
Past 5-Year Growth
Profit
$XXX.Xm
Employees
4,193
Businesses
92
Wages
$XXX.Xm
Inorganic Chemical Manufacturing in Canada industry analysis
Inorganic chemical manufacturers produce chemicals crucial to many manufacturing and construction industries. Demand for these products is linked to the overall performance of these sectors, which have fluctuated alongside pandemic disruptions and recent dips in consumer confidence. While the diversity of downstream markets has shielded inorganic chemical producers from more severe declines, COVID-19 curbed demand from most industries, shrinking sales of key products like alkalis and catalysts. Over the past five years, revenue has dipped at a CAGR of 3.0% to reach an estimated $4.8 billion in 2023, when revenue is projected to shrink by an additional 1.7%, and profit will reach 19.7%.Over the past five years, COVID-19 proved to be the primary disruptor of inorganic chemical trade, overshadowing the typical impact of currency fluctuations on exports and imports. Canadian exports of inorganic chemicals shrunk as domestic plants reduced operations and global demand for critical products dipped. Imports remained resilient, satisfying domestic demand amid supply chain disruptions. An upsurge in environmental initiatives has fueled sales of chemical catalysts, which are crucial to reducing emissions from internal combustion engines and are in high demand as manufacturers strive to meet strict emission regulations. The success of these catalysts in auto exhaust systems piqued interest from other industries, providing opportunities for chemical manufacturers to expand their market reach.Over the next five years, inorganic chemists will capitalize on a recovering economy to bolster sales and return to pre-pandemic conditions. A boost in consumer spending will stimulate manufacturing output and drive demand from crucial industries like pharmaceuticals and household goods. Pulp and paper producers, key consumers of sodium hydroxide, will continue shrinking amid ongoing digital transformations and conscious efforts to reduce paper usage. Globally, a persistent decline in export-based revenue will be partially offset by greater demand for catalysts thanks to rising environmental consciousness in developing nations. Over the next five years, revenue will expand at a CAGR of 0.6%, reaching an estimated $5.0 billion in 2028.
Trends and Insights
- COVID-19 hindered sales of inorganic chemicals amid supply chain issues and reduced industrial activity across the globe. While a diverse consumer base typically supports Canada’s chemical producers during economic downturns, reduced activity across all industries ultimately curbed revenue.
- Amid swelling environmental concerns, demand for emission control catalysts has ballooned. These catalysts are efficient at reducing harmful emissions from cars, power plants and factories, inflating their demand as manufacturers seek to meet sustainability measures.
- Ontario's manufacturing infrastructure and geographical location make it a prime location for inorganic chemical manufacturers. Proximity to key domestic and international markets, including the United States, considerably reduces transportation costs and increases accessibility for inorganic chemists.
- Canada’s inorganic chemical manufacturers face a moderate level of internal competition, largely centered around price, reputation and innovation. The global commodity market largely determines the prices, and other variables such as raw material costs, scale of production, and regulations also play substantial roles in influencing the competition in this industry.
Industry Overview
Market size and recent performance (2013-2028)
Industry revenue has declined at a CAGR of 3.0 % over the past five years, to reach an estimated $4.8bn in 2023.
Trends and Insights
COVID-19 rattles manufacturing and industrial markets
- Inorganic chemical manufacturers are somewhat shielded from economic disruptions as their wide range of products finds usage in various manufacturing industries, insulating it from the fluctuations of a single market.
- Additional trends and insights available with purchase
Source: IBISWorld
Industry outlook (2024-2029)
Market size is projected to grow over the next five years.
Trends and Insights
Inorganic chemists will ride the wave of a recovering economy
- Inorganic chemical manufacturing will swell alongside a recovering economy over the next five years.
Biggest companies in the Inorganic Chemical Manufacturing in Canada
| Company | Market Share (%)
2023 | Revenue ($m)
2023 | Profit ($m)
2023 | Profit Margin (%)
2023 |
|---|---|---|---|---|
Chemtrade Logistics Income Fund | 478.4 | 66.6 | 13.9 | |
Olin Corporation | 398.6 | 38.8 | 9.7 |
To view the market share and analysis for all 2 top companies in this industry, view purchase options.
Products & Services Segmentation
Source: IBISWorld
Industry revenue is measured across several distinct product and services lines, including Alkalis, Other inorganic chemicals and Chemical catalysts. Alkalis is the largest segment of the Inorganic Chemical Manufacturing in Canada.
Trends and Insights
Alkalis are a multipurpose powerhouse with dwindling popularity
- Potassium, sodium and other alkali products, also known as “alkalis,” have a multitude of uses, including the manufacturing of biodiesel and soaps, cooking, cleaning and medicinal purposes.
- More insights available in the full report
Widen you competitive advantage with related industries
Competitors
- Organic Chemical Manufacturing in Canada
Complementors
- Mineral & Phosphate Mining in Canada
- Petrochemical Manufacturing in Canada
- Fertilizer Manufacturing in Canada
- Soap & Cleaning Compound Manufacturing in Canada
- Chemical Product Manufacturing in Canada
International industries
- Dye & Pigment Manufacturing in the US
- Inorganic Chemical Manufacturing in the US
- Basic Inorganic Chemical Manufacturing in Australia
- Dye & Pigment Manufacturing in the UK
- Inorganic Basic Chemical Manufacturing in the UK
Table of Contents
About this industry
Industry definition
This industry manufactures a variety of basic inorganic chemicals, most of which are mineral based, as opposed to carbon-based organic chemicals. Inorganic chemicals are used as inputs in several manufacturing and industrial processes. Key identifiable industry segments include chloralkali and carbon black products. The industry does not manufacture industrial bleaches (IBISWorld report 32561CA) or chlorine preparations for swimming pools (IBISWorld report 32599CA).
What's included in this industry?
AlkalisChlorineCatalystsInorganic acidsCarbon blackTitanium dioxideAmmonium chlorideCalcium carbideHydrogen peroxideChlorideCompanies
Chemtrade Logistics Income FundOlin CorporationPurchase this report to view all 2 major companies in this industry.
Related Terms
CARBON BLACKALKALISSODA ASHIndustry Code
NAICS 32518 - Inorganic Chemical Manufacturing in Canada
Performance
Get an indication of the industry's health through historical, current and forward-looking trends in the performance indicators that make or break businesses.
Analyst insights
COVID-19 hindered sales of inorganic chemicals amid supply chain issues and reduced industrial activity across the globe. While a diverse consumer base typically supports Can...
In this chapter (4)
- Current Performance
- Outlook
- Volatility
- Life Cycle
Key metrics
- Annual Revenue, Recent Growth, Forecast, Revenue Volatility
- Number of Employees, Recent Growth, Forecast, Employees per Business, Revenue per Employee
- Number of Businesses, Recent Growth, Forecast, Employees per Business, Revenue per Business
- Total Profit, Profit Margin, Profit per Business
Charts
- Revenue, including historical (2013-2022) and forecast (2023-2028)
- Employees, including historical (2013-2022) and forecast (2023-2028)
- Businesses, including historical (2013-2022) and forecast (2023-2028)
- Profit, including historical (2013-2023)
- Industry Volatility vs. Revenue Growth
- Industry Life Cycle
Detailed analysis
- Trends in supply, demand and current events that are driving current industry performance
- Expected trends, economic factors and ongoing events that drive the industry's outlook
- Key success factors for businesses to overcome volatility
- How contribution to GDP, industry saturation, innovation, consolidation, and technology and systems influence the industry's life cycle phase.
Products and Markets
Learn about an industry's products and services, markets and trends in international trade.
Analyst insight
Amid swelling environmental concerns, demand for emission control catalysts has ballooned. These catalysts are efficient at reducing harmful emissions from cars, power plants...
In this chapter
- Products & Services
- Major Markets
- International Trade
Key metrics
- Largest market segment and value in 2023
- Product innovation level
- Total imports, level and trend
- Total exports, level and trend
- Trade Balance
Charts
- Products & services segmentation in 2023
- Major market segmentation in 2023
- International trade, including imports by country and exports by country
Detailed analysis
- Trends impacting the recent performance of the industry's various segments
- Innovations in the industry's product or service offering, specialization or delivery method
- Key factors that successful businesses consider in their offerings
- Buying segments and key trends influencing demand for industry products and services
- Recent trends in import and export volumes, country of origin or destination, and expected future trends
Geographic Breakdown
Discover where business activity is most concentrated in an industry and the factors driving these trends to find opportunities and conduct regional benchmarking.
Analyst insights
Ontario's manufacturing infrastructure and geographical location make it a prime location for inorganic chemical manufacturers. Proximity to key domestic and international ma...
In this chapter (1)
- Business Locations
Charts
- Share of revenue, establishment, wages and employment in each province
- Share of population compared to establishments in each region in 2023
Tables
- Number and share of establishments in each province in 2023
- Number and share of revenue each province accounts for in 2023
- Number and share of wages each province accounts for in 2023
- Number and share of employees in each province in 2023
Detailed analysis
- Geographic spread of the industry across North America, and trends associated with changes in the business landscape
- Key success factors for businesses to use location to their advantage
Competitive Forces
Get data and insights on what's driving competition in an industry and the challenges industry operators and new entrants may face, with analysis built around Porter's Five Forces framework.
Analyst insights
Canada’s inorganic chemical manufacturers face a moderate level of internal competition, largely centered around price, reputation and innovation. The global commodity market...
In this chapter (4)
- Concentration
- Barriers to Entry
- Substitutes
- Buyer & Supplier Analysis
Key metrics
- Industry concentration level
- Industry competition level and trend
- Barriers to entry level and trend
- Substitutes level and trend
- Buyer power level and trend
- Supplier power level and trend
Charts
- Market share concentration among the top 4 suppliers from 2018-2023
- Supply chain including upstream supplying industries and downstream buying industries, flow chart
Detailed analysis
- Factors impacting the industry’s level of concentration, such as business distribution, new entrants, or merger and acquisition activity.
- Key success factors for businesses to manage the competitive environment of the industry.
- Challenges that potential industry entrants face such as legal, start-up costs, differentiation, labor/capital intensity and capital expenses.
- Key success factors for potential entrants to overcome barriers to entry.
- Competitive threats from potential substitutes for the industry’s own products and services.
- Key success factors for how successful businesses can compete with substitutes.
- Advantages that buyers have to keep favorable purchasing conditions.
- Advantages that suppliers have to maintain favorable selling conditions.
- Key success factors for how businesses can navigate buyer and supplier power.
Companies
Learn about the performance of the top companies in the industry.
Analyst insights
Major inorganic chemical manufacturers are divesting operations to remain afloat. In 2021, leading chemical producer Chemtrade Logistics sold two of its business segments to ...
In this chapter
- Market Share Concentration
- Companies
- Company Spotlights
Charts
- Industry market share by company in 2019 through 2023
- Major companies in the industry, including market share, revenue, profit and profit margin in 2023
- Overview of Chemtrade Logistics Income Fund's performance by revenue, market share and profit margin from 2017 through 2023
- Overview of Olin Corporation's performance by revenue, market share and profit margin from 2017 through 2023
Detailed analysis
- Description and key data for Chemtrade Logistics Income Fund, and factors influencing its performance in the industry
- Description and key data for Olin Corporation, and factors influencing its performance in the industry
External Environment
Understand the demographic, economic and regulatory factors that shape how businesses in an industry perform.
Analyst insights
The Canadian government offers limited protection to domestic inorganic chemical manufacturers as import tariffs are low. In response to COVID-19, the government did provide ...
In this chapter
- External Drivers
- Regulation & Policy
- Assistance
Key metrics
- Regulation & policy level and trend
- Assistance level and trend
Charts
- Regulation & Policy historical data and forecast (2013-2028)
- Assistance historical data and forecast (2013-2028)
Detailed analysis
- Demographic and macroeconomic factors influencing the industry, including Regulation & Policy and Assistance
- Major types of regulations, regulatory bodies, industry standards or specific regulations impacting requirements for industry operators
- Key governmental and non-governmental groups or policies that may provide some relief for industry operators.
Financial Benchmarks
View average costs for industry operators and compare financial data against an industry's financial benchmarks over time.
Analyst insights
Profit among inorganic chemical manufacturers heavily relies on the scale of operations and diversity of the product mix. Larger companies with a wider product portfolio tend...
In this chapter
- Cost Structure
- Financial Ratios
- Key Ratios
Key metrics
- Profit margin, and how it compares to the sector-wide margin
- Average wages, and how it compares to the sector-wide average wage
- Largest cost component as a percentage of revenue
- Industry average ratios for days' receivables, industry coverage and debt-to-net-worth ratio
Charts
- Average industry operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2023
- Average sector operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2023
- Investment vs. share of economy
Data tables
- Liquidity Ratios (2016-2021)
- Coverage Ratios (2016-2021)
- Leverage Ratios (2016-2021)
- Operating Ratios (2016-2021)
- Assets (2016-2021)
- Liabilities (2016-2021)
- Cash Flow & Debt Service Ratios (2013-2028)
- Revenue per Employee (2013-2028)
- Revenue per Enterprise (2013-2028)
- Employees per Establishment (2013-2028)
- Employees per Enterprise (2013-2028)
- Average Wage (2013-2028)
- Wages/Revenue (2013-2028)
- Establishments per Enterprise (2013-2028)
- IVA/Revenue (2013-2028)
- Imports/Demand (2013-2028)
- Exports/Revenue (2013-2028)
Detailed analysis
- Trends in the cost component for industry operators and their impact on industry costs and profitability
Key Statistics
Industry Data
Data Tables
Including values and annual change:
- Revenue (2013-2028)
- IVA (2013-2028)
- Establishments (2013-2028)
- Enterprises (2013-2028)
- Employment (2013-2028)
- Exports (2013-2028)
- Imports (2013-2028)
- Wages (2013-2028)
Methodology
How are IBISWorld reports created?
IBISWorld has been a leading provider of trusted industry research for over 50 years to the most successful companies worldwide. With offices in Australia, the United States, the United Kingdom, Germany and China, we are proud to have local teams of analysts that conduct research, data analysis and forecasting to produce data-driven industry reports.
Our analysts start with official, verified and publicly available sources of data to build the most accurate picture of each industry. Analysts then leverage their expertise and knowledge of the local markets to synthesize trends into digestible content for IBISWorld readers. Finally, each report is reviewed by one of IBISWorld’s editors, who provide quality assurance to ensure accuracy and readability.
IBISWorld relies on human-verified data and human-written analysis to compile each standard industry report. We do not use generative AI tools to write insights, although members can choose to leverage AI-based tools within the platform to generate additional analysis formats.
What data sources do IBISWorld analysts use?
Each industry report incorporates data and research from government databases, industry-specific sources, industry contacts, and our own proprietary database of statistics and analysis to provide balanced, independent and accurate insights.
Key data sources in Canada include:
- Statistics Canada
- Industry Canada
- Canadian Business Patterns
Analysts also use industry specific sources to complement catch-all sources, although their perspective may focus on a particular organization or representative body, rather than a clear overview of all industry operations. However, when balanced against other perspectives, industry-specific sources provide insights into industry trends.
These sources include:
- Industry and trade associations
- Industry federations or regulators
- Major industry players annual or quarterly filings
Finally, IBISWorld’s global data scientists maintain a proprietary database of macroeconomic and demand drivers, which our analysts use to help inform industry data and trends. They also maintain a database of statistics and analysis on thousands of industries, which has been built over our more than 50-year history and offers comprehensive insights into long-term trends.
How does IBISWorld forecast its data?
IBISWorld’s analysts and data scientists use the sources above to create forecasts for our proprietary datasets and industry statistics. Depending on the dataset, they may use regression analysis, multivariate analysis, time-series analysis or exponential smoothing techniques to project future data for the industry or driver. Additionally, analysts will leverage their local knowledge of industry operating and regulatory conditions to impart their best judgment on the forecast model.
IBISWorld prides itself on being a trusted, independent source of data, with over 50 years of experience building and maintaining rich datasets and forecasting tools. We are proud to be the keystone source of industry information for thousands of companies across the world.
Learn more about our methodology and data sourcing on the Help Center.
Frequently Asked Questions
Unlock comprehensive answers and precise data upon purchase. View purchase options.
What is the market size of the Inorganic Chemical Manufacturing industry in Canada in 2024?
The market size of the Inorganic Chemical Manufacturing industry in Canada is $4.8bn in 2024.
How many businesses are there in the Inorganic Chemical Manufacturing in Canada industry in 2023?
There are 92 businesses in the Inorganic Chemical Manufacturing industry in Canada, which has declined at a CAGR of 0.2 % between 2018 and 2023.
Has the Inorganic Chemical Manufacturing industry in Canada grown or declined over the past 5 years?
The market size of the Inorganic Chemical Manufacturing industry in Canada has been declining at a CAGR of 3.0 % between 2018 and 2023.
What is the forecast growth of the Inorganic Chemical Manufacturing industry in Canada over the next 5 years?
Over the next five years, the Inorganic Chemical Manufacturing industry in Canada is expected to grow.
What are the biggest companies in the Inorganic Chemical Manufacturing market in Canada?
The biggest companies operating in the Inorganic Chemical Manufacturing market in Canada are Chemtrade Logistics Income Fund and Olin Corporation
What does the Inorganic Chemical Manufacturing in Canada include?
Alkalis and Chlorine are part of the Inorganic Chemical Manufacturing industry.
Which companies have the highest market share in the Inorganic Chemical Manufacturing in Canada?
The company holding the most market share in Canada is Chemtrade Logistics Income Fund.
How competitive is the Inorganic Chemical Manufacturing industry in Canada?
The level of competition is moderate and increasing in the Inorganic Chemical Manufacturing industry in Canada.
