Industry Statistics and Trends
Market size and recent performance (2013-2028)
Industry revenue has declined at a CAGR of 1.0 % over the past five years, to reach an estimated $8.2bn in 2023.
Trends and Insights
Manufacturers have been rocked by low commodity prices
- Since plastic manufacturers often need petrochemicals to make their products, demand for them is fairly inelastic.
- Additional trends and insights available with purchase
Source: IBISWorld
Industry outlook (2024-2029)
Market size is projected to decline over the next five years.
Trends and Insights
Rising incomes will boost industrial production in Canada
- Despite challenges from high inflation, rising interest rates and recessionary fears, the Canadian economy will grow during the outlook period.
Biggest companies in the Petrochemical Manufacturing in Canada
| Company | Market Share (%)
2023 | Revenue ($m)
2023 | Profit ($m)
2023 | Profit Margin (%)
2023 |
|---|---|---|---|---|
Shell Canada | 1,948.2 | 89.3 | 4.6 | |
NOVA Chemicals | 1,285.5 | 138.1 | 10.7 | |
Imperial Oil | 820.0 | 103.0 | 12.6 |
To view the market share and analysis for all 4 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 Ethylene, Propylene and Styrene. Ethylene is the largest segment of the Petrochemical Manufacturing in Canada.
Trends and Insights
Ethylene is essential for plastic production
- Ethylene is the most important petrochemical, as it comprises more than two-thirds of revenue.
- More insights available in the full report
Table of Contents
About this industry
Industry definition
This industry manufactures petrochemicals, which are chemicals derived from petroleum and natural gas. Key products include ethylene, propylene, butylene, benzene, toluene, styrene, xylene, ethyl benzene and cumene. These products are used in the production of consumer products, automotive components and various durable and nondurable goods. Organic compounds, such as ethyl alcohol, in addition to inorganic chemicals, such as carbon black, are excluded from the industry.
What's included in this industry?
Manufacturing benzene from refined petroleum or liquid hydrocarbonsManufacturing butadiene/butane and butylene from refined petroleum or liquid hydrocarbons Manufacturing cumene from refined petroleum or liquid hydrocarbonsManufacturing ethane made from refined petroleum or liquid hydrocarbonsManufacturing ethylene made from refined petroleum or liquid hydrocarbonsManufacturing isobutene/isoprene made from refined petroleum or liquid hydrocarbonsManufacturing propylene made from refined petroleum or liquid hydrocarbonsManufacturing styrene made from refined petroleum or liquid hydrocarbonsManufacturing toluene made from refined petroleum or liquid hydrocarbonsManufacturing xylene made from refined petroleum or liquid hydrocarbonsCompanies
Shell CanadaNOVA ChemicalsImperial OilPurchase this report to view all 4 major companies in this industry.
Related Terms
PROPYLENEETHYLENEPETROCHEMICALIndustry Code
NAICS 325110 - Petrochemical 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
Petrochemical manufacturers in Canada have seen their revenue decline during the current period. They've been negatively impacted by low commodity prices, COVID-19 and soarin...
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
Ethylene is used to produce plastics, alcohols and solvents. Demand for plastics and resin has declined in recent years, so ethylene's revenue share has fallen.
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 has a massive supply of natural gas, oil and ethane. These resources are used to make petrochemicals, so manufacturers locate there to be near key suppliers.
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
Since only a handful of players control most of the industry, internal competition is intense. Petrochemical manufacturers in Canada compete on price, product quality and rep...
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 top four players comprise more than nine-tenths of revenue. Market share concentration is high because of hefty barriers to entry and the complexity of the industry's sup...
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 Shell Canada's performance by revenue, market share and profit margin from 2017 through 2023
- Overview of NOVA Chemicals's performance by revenue, market share and profit margin from 2017 through 2023
- Overview of Imperial Oil'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 Shell Canada, and factors influencing its performance in the industry
- Description and key data for NOVA Chemicals, and factors influencing its performance in the industry
- Description and key data for Imperial Oil, 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
Petrochemical manufacturers are regulated by the Canadian government in a variety of ways. These relate to environmental protection, chemical inspection and regulations impos...
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
When COVID-19 hit, demand for plastics and other products declined, reducing spending on petrochemicals and revenue for the industry. Declining revenue caused profit to fall ...
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)
Top Questions Answered
Unlock comprehensive answers and precise data upon purchase. View purchase options.
What is the market size of the Petrochemical Manufacturing industry in Canada in 2024?
The market size of the Petrochemical Manufacturing industry in Canada is $8.2bn in 2024.
How many businesses are there in the Petrochemical Manufacturing in Canada industry in 2023?
There are 23 businesses in the Petrochemical Manufacturing industry in Canada, which has grown at a CAGR of 10.4 % between 2018 and 2023.
Has the Petrochemical Manufacturing industry in Canada grown or declined over the past 5 years?
The market size of the Petrochemical Manufacturing industry in Canada has been declining at a CAGR of 1.0 % between 2018 and 2023.
What is the forecast growth of the Petrochemical Manufacturing industry in Canada over the next 5 years?
Over the next five years, the Petrochemical Manufacturing industry in Canada is expected to decline.
What are the biggest companies in the Petrochemical Manufacturing market in Canada?
The biggest companies operating in the Petrochemical Manufacturing market in Canada are Shell Canada, NOVA Chemicals and Imperial Oil
What does the Petrochemical Manufacturing in Canada include?
Manufacturing benzene from refined petroleum or liquid hydrocarbons and Manufacturing butadiene/butane and butylene from refined petroleum or liquid hydrocarbons are part of the Petrochemical Manufacturing industry.
Which companies have the highest market share in the Petrochemical Manufacturing in Canada?
The company holding the most market share in Canada is Shell Canada.
How competitive is the Petrochemical Manufacturing industry in Canada?
The level of competition is high and increasing in the Petrochemical Manufacturing industry in Canada.
Related Industries
Widen your competitive advantage with related industries
Competitors
- Inorganic Chemical Manufacturing in Canada
Complementors
- Oil Drilling & Gas Extraction in Canada
- Petroleum Refining in Canada
- Organic Chemical Manufacturing in Canada
International industries
- Petrochemical Manufacturing in the US
- Lubricants and Other Petroleum Product Manufacturing in Australia
- Organic Basic Chemical Manufacturing in the UK
- Organic Chemical Material Manufacturing in China
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.
