Organic Chemical Manufacturing in Canada - Industry Market Research Report

Organic growth: Modest growth in the United States and emerging economies will translate into greater demand for industry exports

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.

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.

This report covers the scope, size, disposition and growth of the industry including the key sensitivities and success factors. Also included are five year industry forecasts, growth rates and an analysis of the industry's key players and their market shares.