Chain reaction: Improving economic conditions across North America has benefited the industry

The Petrochemical Manufacturing industry in Canada primarily produces ethylene, alongside a range of other chemicals that serve as a precursor for several other chemical products that are ultimately used in the consumer and industrial sectors. Industry revenue figures are closely linked to crude oil and natural gas prices, as those are key inputs in the manufacturing process. Price changes have affected an otherwise positive period for the industry. In terms of units, the industry has benefited from improving economic conditions across North America, which have stimulated consumer spending domestically and in the United States, the industry's largest trade more.

Industry Statistics & Market Size
Annual Growth 14-19
Forecast Growth 19-24

Industry Threats & Opportunities

  • Industry revenue has been highly volatile due to commodity price fluctuations
  • The housing sector is a key buyer of downstream products made with industry goods
  • Continued economic growth will lead to increased per capita disposable income
  • Industry Report - Industry Locations Chapter

    In 2019, establishments in the Canadian Petrochemical Manufacturing industry are almost exclusively located in Alberta, Ontario and Quebec. Alberta accounts for the single largest amount of industry establishments, with 56.5% according to data sourced from Statistics Canada. Alberta is an attractive region for industry operators because of its abundant supply of low-cost natural gas and ethane feedstock, so transportation costs can be minimized. Additionally, the region’s oil sands are the world’s second-largest known source of oil, a key industrial input, according to the Central Alberta Economic Partnership. Commodities manufactured in Alberta are primarily shipped to central and western US markets or offshore. Alb...purchase to read more.

    Additional Insights for the Petrochemical Manufacturing Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Petrochemical Manufacturing Industry are

  • Having contracts that are favourable to purchaser
  • Degree of globalization in the Company
  • Ability to accommodate environmental requirements
  • IBISWorld analysts also discuss how external factors such as Demand from plastic and resin manufacturing and World price of crude oil in the Petrochemical Manufacturing industry impact industry performance..

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    What's in this report

    What is the Petrochemical Manufacturing Industry?

    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, and inorganic chemicals, such as carbon black, are excluded from the industry.

    Industry Products
  • Ethylene
  • Propylene
  • Styrene
  • All other
  • Industry Activities
  • Manufacturing benzene from refined petroleum or liquid hydrocarbons
  • Manufacturing butadiene/butane and butylene from refined petroleum or liquid hydrocarbons
  • Manufacturing cumene from refined petroleum or liquid hydrocarbons
  • Manufacturing ethane made from refined petroleum or liquid hydrocarbons
  • Manufacturing ethylene made from refined petroleum or liquid hydrocarbons
  • Manufacturing isobutene/isoprene made from refined petroleum or liquid hydrocarbons
  • Manufacturing propylene made from refined petroleum or liquid hydrocarbons
  • Manufacturing styrene made from refined petroleum or liquid hydrocarbons
  • Manufacturing toluene made from refined petroleum or liquid hydrocarbons
  • Manufacturing xylene made from refined petroleum or liquid hydrocarbons
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Demand from plastic and resin manufacturing
  • World price of crude oil
  • World price of natural gas
  • Canadian effective exchange rate index

  • Current Performance
  • Price collapse
  • Mixed downstream demand
  • Trade
  • Profitability and industry structure
  • Chart: Revenue Growth

  • Industry Outlook
  • Downstream demand grows slowly
  • Profitability and participation
  • Regulatory burdens
  • Table: Petrochemical Manufacturing Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Petrochemical Manufacturing Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Textile Mills in Canada
  • Plastic & Resin Manufacturing in Canada
  • Soap & Cleaning Compound Manufacturing in Canada
  • Plastic Bottle Manufacturing in Canada

  • Key Selling Industries
  • Oil Drilling & Gas Extraction in Canada
  • Petrochemical Manufacturing in Canada

  • Products & Services
  • Ethylene
  • Propylene
  • All other
  • Styrene
  • Chart: Petrochemical Manufacturing Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Plastic, resin and synthetic rubber manufacturers
  • Exports
  • Other domestic chemical manufacturers
  • Polystyrene foam manufacturers
  • Chart: Major Market Segmentation for the Petrochemical Manufacturing Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Chart: Cost Structure Benchmarking – Sector vs Petrochemical Manufacturing

  • Basis of Competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Petrochemical Manufacturing Industry

  • Industry Globalization
    NOVA Chemicals Corporation, Imperial Oil Limited, Shell Canada Limited,
  • Table: NOVA Chemicals Corporation - financial performance
  • Table: Imperial Oil Limited - financial performance
  • Table: Shell Canada Limited - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Petrochemical Manufacturing Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Petrochemical Manufacturing Industry
  • Industry Revenue (2010-2024)
  • Industry Gross Product (2010-2024)
  • Establishments (2010-2024)
  • Businesses (2010-2024)
  • Employment (2010-2024)
  • Exports (2010-2024)
  • Imports (2010-2024)
  • Wages (2010-2024)
  • Wages (2010-2024)
  • Purchases (2010-2024)
  • Profit (2010-2024)
  • Depreciation (2010-2024)
  • Marketing (2010-2024)
  • Rent (2010-2024)
  • Utilities (2010-2024)
  • Other (2010-2024)
  • World price of crude oil (2010-2024)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
  • A gaseous organic compound used in chemical reactions to make other chemicals. It is used in polymerization, oxidation and halogenation.
  • Petrochemical
  • A chemical product derived from petroleum that can also be obtained from other fossil fuels like coal or natural gas.
  • Propylene
  • An unsaturated organic compound used in the production of polypropylene, a versatile polymer used in packaging and other plastic products.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Petrochemical Manufacturing market research report offers insightful industry analysis and research into the market at the national level. IBISWorld’s in-depth industry market research is presented in a logical and consistent format. The industry report contains key industry statistics, market size, industry trends, and growth and profit forecasts for a 5-year outlook period.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
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    • Quickly build competitive intelligence
    This report on Petrochemical Manufacturing:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Petrochemical Manufacturing market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Petrochemical Manufacturing, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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