Margarine & Cooking Oil Processing in Canada - Market Research Report (2013-2028)
New York, United States
Last Updated: August 2023
NAICS 31122CARevenue
$17.6bn
Past 5-Year Growth
Profit
$X.Xbn
Employees
4,418
Businesses
90
Wages
$XXX.Xm
Margarine & Cooking Oil Processing in Canada industry analysis
Margarine and cooking oil processors have enjoyed considerable growth over the current period. Massive increases in the price of inputs forced processors to pass increased costs onto consumers, contributing to much of the growth over the current period. Processors pouring capital into their facilities to strengthen their output also contributed to this growth. Also, processors faced minimal declines following the outbreak of COVID-19 as its products are essential for cooking. Exports promoted considerable growth for processors, but trade tensions with China led to some export volatility. Industry-wide revenue has been growing at a CAGR of 9.4% over the past five years and is expected to total $17.6 billion in 2023, when revenue will drop by an estimated 5.4%. Supply shocks following the reopening of the economy in 2021 led to a surge in oilseed prices. Also, supply chain woes following Russia's invasion of Ukraine compounded these price increases, bolstering revenue and profit growth in 2022 as processors passed costs onto consumers. Interest rate hikes and easing supply chain woes have reduced surging input costs resulting in declines in 2023. Margarine and cooking oil processors will face modest declines over the outlook period as input costs begin normalizing, pushing down price-based growth. Health trends will increasingly influence consumers' decisions, forcing manufacturers to focus on producing more nutritious products. Industry revenue is forecast to contract at a CAGR of 1.2% through the end of 2028 to total $16.6 billion.
Trends and Insights
- Much of the growth processors enjoyed was price-based. Supply chain woes pushing up the costs of inputs forced processors to push increased costs onto consumers, strengthening revenue and profit.
- Processors continue to bypass grocery wholesalers. Processors have increasingly entered into contracts with grocery retailers to push down costs associated with using wholesalers.
- Processors establish close to suppliers and downstream markets to reduce transportation costs and secure contracts with agricultural producers and buyers.
- Processors compete on price and quality. Companies producing margarine compete on price with one another and with butter producers. Companies producing products with superior ingredients charge a premium and compete on quality.
Industry Overview
Market size and recent performance (2013-2028)
Industry revenue has grown at a CAGR of 9.4 % over the past five years, to reach an estimated $17.6bn in 2023.
Trends and Insights
Supply chain woes lead to a surge in revenue and profit
- As the economy reopened following COVID-19-induced lockdowns, supply shocks led to surging oilseed prices as dining establishments reopened.
- Additional trends and insights available with purchase
Source: IBISWorld
Industry outlook (2024-2029)
Market size is projected to decline over the next five years.
Trends and Insights
Input costs to begin to contract but remain high
- While interest rate hikes and supply chain woes easing will begin to normalize the price of key inputs, uncertainty surrounding the Russia-Ukraine conflict will keep oilseed prices high.
Biggest companies in the Margarine & Cooking Oil Processing in Canada
| Company | Market Share (%)
2023 | Revenue ($m)
2023 | Profit ($m)
2023 | Profit Margin (%)
2023 |
|---|---|---|---|---|
Archer-Daniels-Midland Company | 1,317.0 | N/A | N/A | |
Bunge Limited | 1,255.9 | 36.0 | 2.9 | |
Richardson Oilseed Limited | 370.3 | N/A | N/A |
To view the market share and analysis for all 5 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 Oilseed processing, Wet corn milling and Fat and oil refining and blending. Oilseed processing is the largest segment of the Margarine & Cooking Oil Processing in Canada.
Trends and Insights
Oilseed processing continues to dominate
- This segment comprises edible oil made from inputs like soybeans, canola, sunflower seeds, rapeseeds and other nuts.
- More insights available in the full report
Widen you competitive advantage with related industries
Competitors
- There are no industries to display.
Complementors
- Soybean Farming in Canada
- Corn Farming in Canada
- Plant & Flower Growing in Canada
- Flour Milling in Canada
International industries
- Margarine & Cooking Oil Processing in the US
- Cooking Oil Recycling in the US
- Cooking Oil and Margarine Manufacturing in Australia
- Oil & Fat Production in the UK
- Cooking Oil Production in China
Table of Contents
About this industry
Industry definition
Operators in the Margarine and Cooking Oil Processing industry in Canada produce cooking oil, shortening and margarine. Activities include wet-milling corn and vegetables, crushing oilseeds and tree nuts, refining and blending cooking oils and blending purchased animal fats with vegetable fats.
What's included in this industry?
Margarine manufacturingVegetable oil, meal or cake manufacturingEdible oils or fats blending and manufacturingDeodorized vegetable oil manufacturingStarch manufacturingRefined tallow manufacturingRefined lard manufacturingCompanies
Archer-Daniels-Midland CompanyBunge LimitedRichardson Oilseed LimitedPurchase this report to view all 5 major companies in this industry.
Related Terms
TRANS FATVERTICAL INTEGRATIONHIGH-FRUCTOSE CORN SYRUP (HFCS)Industry Code
NAICS 31122 - Margarine & Cooking Oil Processing 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
Much of the growth processors enjoyed was price-based. Supply chain woes pushing up the costs of inputs forced processors to push increased costs onto consumers, strengthenin...
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
Processors continue to bypass grocery wholesalers. Processors have increasingly entered into contracts with grocery retailers to push down costs associated with using wholesa...
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
Processors establish close to suppliers and downstream markets to reduce transportation costs and secure contracts with agricultural producers and buyers.
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
Processors compete on price and quality. Companies producing margarine compete on price with one another and with butter producers. Companies producing products with superior...
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 processors are strengthening their production capabilities. ADM and Cargill are constructing new facilities to boost the output of their core operations.
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 Archer-Daniels-Midland Company's performance by revenue, market share and profit margin from 2017 through 2023
- Overview of Bunge Limited's performance by revenue, market share and profit margin from 2017 through 2023
- Overview of Richardson Oilseed Limited's performance by revenue, market share and profit margin from 2017 through 2023
- Overview of revenue, market share and profit margin trend for 2 additional companies
Detailed analysis
- Description and key data for Archer-Daniels-Midland Company, and factors influencing its performance in the industry
- Description and key data for Bunge Limited, and factors influencing its performance in the industry
- Description and key data for Richardson Oilseed Limited, and factors influencing its performance in the industry
- Description, key data and performance trends for 2 additional companies
External Environment
Understand the demographic, economic and regulatory factors that shape how businesses in an industry perform.
Analyst insights
Several agencies regulate processors. The Minister of Employment, Workforce Development and Disability Inclusion sets national labour standards and minimum wage requirements....
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 surges alongside input costs. Supply chain woes have induced massive increases in the price of key inputs enabling processors to expand profit by passing these increas...
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 Margarine & Cooking Oil Processing industry in Canada in 2024?
The market size of the Margarine & Cooking Oil Processing industry in Canada is $17.6bn in 2024.
How many businesses are there in the Margarine & Cooking Oil Processing in Canada industry in 2023?
There are 90 businesses in the Margarine & Cooking Oil Processing industry in Canada, which has grown at a CAGR of 0.2 % between 2018 and 2023.
Has the Margarine & Cooking Oil Processing industry in Canada grown or declined over the past 5 years?
The market size of the Margarine & Cooking Oil Processing industry in Canada has been growing at a CAGR of 9.4 % between 2018 and 2023.
What is the forecast growth of the Margarine & Cooking Oil Processing industry in Canada over the next 5 years?
Over the next five years, the Margarine & Cooking Oil Processing industry in Canada is expected to decline.
What are the biggest companies in the Margarine & Cooking Oil Processing market in Canada?
The biggest companies operating in the Margarine & Cooking Oil Processing market in Canada are Archer-Daniels-Midland Company, Bunge Limited and Richardson Oilseed Limited
What does the Margarine & Cooking Oil Processing in Canada include?
Margarine manufacturing and Vegetable oil, meal or cake manufacturing are part of the Margarine & Cooking Oil Processing industry.
Which companies have the highest market share in the Margarine & Cooking Oil Processing in Canada?
The company holding the most market share in Canada is Archer-Daniels-Midland Company.
How competitive is the Margarine & Cooking Oil Processing industry in Canada?
The level of competition is high and steady in the Margarine & Cooking Oil Processing industry in Canada.
