Organic Chemical Manufacturing in Canada - Market Research Report (2013-2028)
New York, United States
Last Updated: October 2023
NAICS 32519CARevenue
$7.2bn
Past 5-Year Growth
Profit
$XXX.Xm
Employees
3,497
Businesses
121
Wages
$XXX.Xm
Organic Chemical Manufacturing in Canada industry analysis
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.
Trends and Insights
- Volatile commodities hurt Canadian organic chemical manufacturers in recent years. They made it difficult to increase fees, while also harming profit.
- Ethyl alcohol is the largest product segment. Organic chemical manufacturers produce ethanol for fuels.
- Alberta is a significant location for organic chemical manufacturers. Upstream petroleum refiners are concentrated in the province, reducing transportation costs.
- Imports are the primary substitute for Canadian organic chemical manufacturers. Imports satisfy nearly 90.0% of demand.
Industry Overview
Market size and recent performance (2013-2028)
Industry revenue has declined at a CAGR of 1.1 % over the past five years, to reach an estimated $7.2bn in 2023.
Trends and Insights
Ethanol subsidies have boosted revenue
- Ethyl alcohol, also known as ethanol, is the largest product segment for Canadian organic chemical manufacturers. It's primarily used as an ingredient in gasoline that makes the fuel burn cleaner and before at a higher level.
- Additional trends and insights available with purchase
Industry outlook (2024-2029)
Market size is projected to grow over the next five years.
Trends and Insights
Electric vehicles could erode revenue
- In recent years, increased use of ethanol in fuel for gasoline engines has been a boon for revenue, as the product segment has grown as a share of revenue. This makes fuel burn cleaner, but the emergence of electric cars could limit this benefit moving forward.
Biggest companies in the Organic Chemical Manufacturing in Canada
| Company | Market Share (%)
2023 | Revenue ($m)
2023 | Profit ($m)
2023 | Profit Margin (%)
2023 |
|---|---|---|---|---|
Dow | 588.6 | 8.7 | 1.5 | |
Greenfield | 447.5 | 34.2 | 7.6 | |
Methanex | 414.7 | 69.3 | 16.7 |
To view the market share and analysis for all 4 top companies in this industry, view purchase options.
Products & Services Segmentation
Organic Chemical Manufacturing in Canada
Products & Services
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.
Trends and Insights
Ethyl alcohol has widened its considerable market share
- Nearly two-fifths of revenue for Canadian organic chemical manufacturers comes from ethyl alcohol, otherwise known as ethanol, which is the largest single product they produce, a share that has increased in recent years.
- More insights available in the full report
Widen you competitive advantage with related industries
Competitors
- Petrochemical Manufacturing in Canada
Complementors
- Inorganic Chemical Manufacturing in Canada
- Plastic & Resin Manufacturing in Canada
- Synthetic Fibre Manufacturing in Canada
International industries
- Dye & Pigment Manufacturing in the US
- Organic Chemical Manufacturing in the US
- Activated Carbon Manufacturing in the US
- Carbon Fiber & Graphene Manufacturing in the US
- Basic Organic Chemical Manufacturing in Australia
Table of Contents
About this industry
Industry definition
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.
What's included in this industry?
Manufacture ethyl alcoholManufacture methanolManufacture wood and gum chemicalsManufacture fatty acidsManufacture cyclic crudes and other chemical intermediatesManufacture all other organic chemical productsCompanies
DowGreenfieldMethanexPurchase this report to view all 4 major companies in this industry.
Related Terms
VINYL ACETATE MONOMER (VAM)FEEDSTOCKETHYL ALCOHOLIndustry Code
NAICS 325190 - Organic 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
Volatile commodities hurt Canadian organic chemical manufacturers in recent years. They made it difficult to increase fees, while also harming profit.
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
Ethyl alcohol is the largest product segment. Organic chemical manufacturers produce ethanol for fuels.
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 is a significant location for organic chemical manufacturers. Upstream petroleum refiners are concentrated in the province, reducing transportation costs.
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
Imports are the primary substitute for Canadian organic chemical manufacturers. Imports satisfy nearly 90.0% of demand.
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
The largest organic chemical manufacturers are multinational corporations. This includes Methanex and Dow Chemical.
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 Dow's performance by revenue, market share and profit margin from 2017 through 2023
- Overview of Greenfield's performance by revenue, market share and profit margin from 2017 through 2023
- Overview of Methanex'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 Dow, and factors influencing its performance in the industry
- Description and key data for Greenfield, and factors influencing its performance in the industry
- Description and key data for Methanex, 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
Regulation is tight for Canadian organic chemical manufacturers. They must consider several environmental factors.
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
Organic chemical manufacturing is highly capital intense. This pushes depreciation high as a share of revenue.
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 Organic Chemical Manufacturing industry in Canada in 2024?
The market size of the Organic Chemical Manufacturing industry in Canada is $7.2bn in 2024.
How many businesses are there in the Organic Chemical Manufacturing in Canada industry in 2023?
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.
Has the Organic Chemical Manufacturing industry in Canada grown or declined over the past 5 years?
The market size of the Organic Chemical Manufacturing industry in Canada has been declining at a CAGR of 1.1 % between 2018 and 2023.
What is the forecast growth of the Organic Chemical Manufacturing industry in Canada over the next 5 years?
Over the next five years, the Organic Chemical Manufacturing industry in Canada is expected to grow.
What are the biggest companies in the Organic Chemical Manufacturing market in Canada?
The biggest companies operating in the Organic Chemical Manufacturing market in Canada are Dow, Greenfield and Methanex
What does the Organic Chemical Manufacturing in Canada include?
Manufacture ethyl alcohol and Manufacture methanol are part of the Organic Chemical Manufacturing industry.
Which companies have the highest market share in the Organic Chemical Manufacturing in Canada?
The company holding the most market share in Canada is Dow.
How competitive is the Organic Chemical Manufacturing industry in Canada?
The level of competition is low and steady in the Organic Chemical Manufacturing industry in Canada.
