Lubricant Oil Manufacturing in Canada - Market Research Report (2013-2028)
New York, United States
Last Updated: October 2023
NAICS 32419CARevenue
$3.4bn
Past 5-Year Growth
Profit
$XXX.Xm
Employees
2,177
Businesses
55
Wages
$XXX.Xm
Lubricant Oil Manufacturing in Canada industry analysis
The Lubricant Oil Manufacturing industry in Canada produces industrial and automotive lubricants for manufacturers and consumers, including motor oil, transmission fluid, rust inhibitors and machine oils. Most industry goods are based on petroleum products and industry revenue tends to track the price of crude oil. The industry has experienced mixed results, which is in line with volatility in the price of crude oil. The COVID-19 pandemic initially led to a steep decline in demand for oil as manufacturers reduced their production and drivers reduced travel. Downstream demand for oil was weaker than expected despite increased overall economic activity. Revenue has been growing at a CAGR of 2.1% over the past five years and is expected to reach $3.4 billion through the end of 2023. This includes a decrease of 5.5% in 2023 alone. Profit is expected to expand during the period as restricted supply and distribution drive up demand.Industry revenue has grown despite some negative indicators over the past five years. For example, new vehicle sales and the total distance driven in Canada are both expected to fall through the end of 2023. Notably, the industry structure has changed slightly in recent years. The industry's largest player, Petro-Canada Lubricants Inc. was sold by Suncor Energy Inc. to the HollyFrontier Corporation (HollyFrontier) for $1.1 billion in 2017. Also, Valvoline Inc. was spun off by Ashland Global Holdings Inc. (Ashland) in 2017. This has had minimal effect on the industry's market share concentration, as HollyFrontier and Ashland have no industry-relevant operations.IBISWorld forecasts industry revenue to drop from recent highs moving forward. Industry revenue is expected to decrease at a CAGR of 0.9% to $3.3 billion through the end of 2028. Oil prices are forecast to decline from current-period highs, lowering product prices. Slower growth in oil-related manufacturing industries is also likely to weigh on industry performance as the broader economy stabilizes.
Trends and Insights
- The industry has been aided by high oil prices in the lead-up to 2023. Manufacturers were able to pass this increased cost down to consumers.
- Automotive lubricant is the top product the industry offers. These oils are necessary for the day-to-day operation of motor vehicles.
- Alberta serves as the industry’s hub in Canada. Alberta is known for its manufacturing activity and oil production, a key input for manufacturers.
- Manufacturers compete through brand recognition. Well-established manufacturers dominate the industry, making it difficult for up-and-comers to find their footing.
Industry Overview
Market size and recent performance (2013-2028)
Industry revenue has grown at a CAGR of 2.1 % over the past five years, to reach an estimated $3.4bn in 2023.
Trends and Insights
Demand remains consistent across downstream markets
- The primary source of demand for lubricants is generated by the automotive sector, with automotive lubricants accounting for more than half of industry production.
- Additional trends and insights available with purchase
Industry outlook (2024-2029)
Market size is projected to decline over the next five years.
Trends and Insights
Oil prices and manufacturing output may create a drag on performance
- Falling oil prices will likely lower purchase costs and dampen industry profit.
Biggest companies in the Lubricant Oil Manufacturing in Canada
| Company | Market Share (%)
2023 | Revenue ($m)
2023 | Profit ($m)
2023 | Profit Margin (%)
2023 |
|---|---|---|---|---|
Imperial Oil | 1,101.0 | 116.8 | 10.6 | |
Petro-Canada | 816.6 | 2.4 | 0.3 | |
Shell Canada Limited | 97.1 | 12.3 | 12.7 |
To view the market share and analysis for all 4 top companies in this industry, view purchase options.
Products & Services Segmentation
Lubricant Oil Manufacturing in Canada
Products & Services
Industry revenue is measured across several distinct product and services lines, including Automotive lubricants , Industrial lubricants and Other . Automotive lubricants is the largest segment of the Lubricant Oil Manufacturing in Canada.
Trends and Insights
Automotive lubricants can be broken down to many product types
- This segment mainly consists of products used to keep various moving parts oiled and keeping dirt out of combustion chambers.
- More insights available in the full report
Widen you competitive advantage with related industries
Competitors
- Petroleum Refining in Canada
- Petrochemical Manufacturing in Canada
Complementors
- Asphalt Manufacturing in Canada
- Organic Chemical Manufacturing in Canada
International industries
- Lubricant Oil Manufacturing in the US
- Lubricants and Other Petroleum Product Manufacturing in Australia
- Petroleum Refining in the UK
Table of Contents
About this industry
Industry definition
This industry manufactures petroleum products (except for asphalt paving, roofing and saturated materials) such as blended motor oils, brake fluids, lubricating greases and other oil-based additives. Key buyers include downstream automobile manufacturers, wholesalers and automotive retail chains.
What's included in this industry?
Manufacturing lubricating oils and greases made from refined petroleumManufacturing brake fluids made from refined petroleumManufacturing petroleum jelly made from refined petroleumManufacturing petroleum waxes made from refined petroleumRe-refining used petroleum lubricating oilsCompanies
Imperial OilPetro-CanadaShell Canada LimitedPurchase this report to view all 4 major companies in this industry.
Related Terms
LUBRICANTGREASESYNTHETIC OILIndustry Code
NAICS 324190 - Lubricant Oil 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
The industry has been aided by high oil prices in the lead-up to 2023. Manufacturers were able to pass this increased cost down to consumers.
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
Automotive lubricant is the top product the industry offers. These oils are necessary for the day-to-day operation of motor vehicles.
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
Alberta serves as the industry’s hub in Canada. Alberta is known for its manufacturing activity and oil production, a key input for manufacturers.
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
Manufacturers compete through brand recognition. Well-established manufacturers dominate the industry, making it difficult for up-and-comers to find their footing.
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
Petro-Canada is the industry’s largest manufacturer. The company has been able to operate more or less unimpeded despite its acquisition by HollyFrontier in 2017.
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 Imperial Oil's performance by revenue, market share and profit margin from 2017 through 2023
- Overview of Petro-Canada's performance by revenue, market share and profit margin from 2017 through 2023
- Overview of Shell Canada Limited's performance by revenue, market share and profit margin from 2017 through 2023
- Overview of revenue, market share and profit margin trend for one additional company
Detailed analysis
- Description and key data for Imperial Oil, and factors influencing its performance in the industry
- Description and key data for Petro-Canada, and factors influencing its performance in the industry
- Description and key data for Shell Canada Limited, and factors influencing its performance in the industry
- Description, key data and performance trends for one additional company
External Environment
Understand the demographic, economic and regulatory factors that shape how businesses in an industry perform.
Analyst insights
Heavy regulation by the Canadian government keeps the industry in check. Most regulations concerning the industry are found in the Canada Environmental Protection Act.
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
The price of oil greatly influences the industry. Sharp increases in the price of oil in 2020 and 2021 ensured profitability despite COVID-19-related losses.
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 Lubricant Oil Manufacturing industry in Canada in 2024?
The market size of the Lubricant Oil Manufacturing industry in Canada is $3.4bn in 2024.
How many businesses are there in the Lubricant Oil Manufacturing in Canada industry in 2023?
There are 55 businesses in the Lubricant Oil Manufacturing industry in Canada, which has declined at a CAGR of 3.6 % between 2018 and 2023.
Has the Lubricant Oil Manufacturing industry in Canada grown or declined over the past 5 years?
The market size of the Lubricant Oil Manufacturing industry in Canada has been growing at a CAGR of 2.1 % between 2018 and 2023.
What is the forecast growth of the Lubricant Oil Manufacturing industry in Canada over the next 5 years?
Over the next five years, the Lubricant Oil Manufacturing industry in Canada is expected to decline.
What are the biggest companies in the Lubricant Oil Manufacturing market in Canada?
The biggest companies operating in the Lubricant Oil Manufacturing market in Canada are Imperial Oil, Petro-Canada and Shell Canada Limited
What does the Lubricant Oil Manufacturing in Canada include?
Manufacturing lubricating oils and greases made from refined petroleum and Manufacturing brake fluids made from refined petroleum are part of the Lubricant Oil Manufacturing industry.
Which companies have the highest market share in the Lubricant Oil Manufacturing in Canada?
The company holding the most market share in Canada is Imperial Oil.
How competitive is the Lubricant Oil Manufacturing industry in Canada?
The level of competition is moderate and steady in the Lubricant Oil Manufacturing industry in Canada.
