$7.2bn
$XXX.Xm
3,497
121
$XXX.Xm
Organic chemical manufacturers in Canada are primarily engaged in the production of organic chemicals, including methanol and fatty acids. Many industrial and consumer products, including dyes, detergents and paints, use organic chemicals as inputs. Performance is closely tied to consumer spending and the performance of the manufacturing sector. Manufacturers have benefited from steady economic growth over many recent years, which has stimulated demand from a variety of downstream manufacturing industries. Despite that, revenue has been highly volatile in response to significant fluctuations in the prices of upstream raw materials, including crude oil and natural gas. Revenue has fallen at a CAGR of 1.1% to $7.2 billion over the five years to 2023, including an expected growth of 0.1% in 2023 alone amid countervailing economic conditions. Operating profit, measured as earnings before interest and taxes, is expected to fall to 7.6% of revenue in 2023 because of commodity price volatility.Organic chemical manufacturers are also reliant on global trade, the majority of which occurs between Canada and the United States. Currency volatility has boosted imports much more quickly than the growth of exports, which has been a contributor to revenue decline, as Canadian goods are more expensive in the international marketplace.Domestic demand is expected to gradually expand in the coming years as projected increases in Canadian manufacturing, employment and consumer spending will likely drive demand from key downstream markets, resulting in steady profit. Modest growth in the United States and emerging economies is expected to translate into greater demand for exports, though growth is forecast to be slower than in the previous five years. Meanwhile, normalizing domestic crude oil prices will likely ease price concerns. IBISWorld forecasts that revenue will increase at a CAGR of 0.9% to $7.5 billion over the five years to 2028.
Industry revenue has declined at a CAGR of 1.1 % over the past five years, to reach an estimated $7.2bn in 2023.
Market size is projected to grow over the next five years.
Company | Market Share (%)
2023 | Revenue ($m)
2023 | Profit ($m)
2023 | Profit Margin (%)
2023 |
---|---|---|---|---|
Dow | 1,662.1 | 103.5 | 6.2 | |
Greenfield | 497.3 | 38.0 | 7.6 | |
Methanex | 414.7 | 19.4 | 4.7 |
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Industry revenue is measured across several distinct product and services lines, including Ethyl alcohol, Cyclic crudes, intermediate products, gum and wood and Fatty acids. Ethyl alcohol is the largest segment of the Organic Chemical Manufacturing in Canada.
Ethyl alcohol has widened its considerable market share
Operators in this industry manufacture basic organic chemicals (excluding petrochemicals), industrial gases and synthetic dyes and pigments. Key product groups include gum and wood products, cyclic crudes and intermediates and ethyl alcohol, along with other basic organic chemicals. These products are predominantly intermediates that are used as raw material inputs by other manufacturing industries in the production of downstream products.
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NAICS 325190 - Organic Chemical Manufacturing in Canada
Get an indication of the industry's health through historical, current and forward-looking trends in the performance indicators that make or break businesses.
Volatile commodities hurt Canadian organic chemical manufacturers in recent years. They made it difficult to increase fees, while also harming profit.
Learn about an industry's products and services, markets and trends in international trade.
Ethyl alcohol is the largest product segment. Organic chemical manufacturers produce ethanol for fuels.
Discover where business activity is most concentrated in an industry and the factors driving these trends to find opportunities and conduct regional benchmarking.
Alberta is a significant location for organic chemical manufacturers. Upstream petroleum refiners are concentrated in the province, reducing transportation costs.
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.
Imports are the primary substitute for Canadian organic chemical manufacturers. Imports satisfy nearly 90.0% of demand.
Learn about the performance of the top companies in the industry.
The largest organic chemical manufacturers are multinational corporations. This includes Methanex and Dow Chemical.
Understand the demographic, economic and regulatory factors that shape how businesses in an industry perform.
Regulation is tight for Canadian organic chemical manufacturers. They must consider several environmental factors.
View average costs for industry operators and compare financial data against an industry's financial benchmarks over time.
Organic chemical manufacturing is highly capital intense. This pushes depreciation high as a share of revenue.
Including values and annual change:
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Key data sources in Canada include:
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:
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.
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.
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The market size of the Organic Chemical Manufacturing industry in Canada is $7.2bn in 2024.
There are 121 businesses in the Organic Chemical Manufacturing industry in Canada, which has declined at a CAGR of 0.5 % between 2018 and 2023.
The market size of the Organic Chemical Manufacturing industry in Canada has been declining at a CAGR of 1.1 % between 2018 and 2023.
Over the next five years, the Organic Chemical Manufacturing industry in Canada is expected to grow.
The biggest companies operating in the Organic Chemical Manufacturing market in Canada are Dow, Greenfield and Methanex
Manufacture ethyl alcohol and Manufacture methanol are part of the Organic Chemical Manufacturing industry.
The company holding the most market share in Canada is Dow.
The level of competition is low and steady in the Organic Chemical Manufacturing industry in Canada.