Bagged up: Increased import competition with stifle industry growth

The Plastic Film, Sheet and Bag Manufacturing industry in Canada has experienced improving domestic demand conditions over the five years to 2019 due to increased employment across the country and strong Canadian consumer spending. Nevertheless, industry growth has been limited, stifled by increasing import competition from US manufacturers that have competitive advantages, such as shared borders and economies of scale. Global commodity prices dropped over the past five years, which encouraged profitability since commodities, such as crude oil and natural gas, are needed for the production of industry goods. However, the United States continues to supply a high level of Canadian demand for plastic bags, sheets and films...read more.

Industry Statistics & Market Size
Revenue
$5bn
Annual Growth 14-19
3.7%
Forecast Growth 19-24
Profit
Employment
13,100
Businesses
252
Market Share of Companies
There are no companies with a dominant market share in this industry

Industry Threats & Opportunities

  • Foreign competition and environmental concerns will challenge industry operators
  • The bulk of the industry’s costs are concentrated in raw material purchases
  • Industry operators will endure strong competition from US and Chinese companies
  • Industry Report - Industry Investment Chapter

    The Plastic Film, Sheet and Bag Manufacturing industry in Canada has a medium level of capital intensity. On average, for every dollar spent on labour, operators allocate $0.15 toward machinery, equipment and other capital expenses. Industry products are manufactured through a large-scale, complex and capital-intensive process that depends on heavy-duty mixers, extruders and other equipment to mix, heat and format finished plastic products. The manufacturing process is somewhat energy-intensive and requires the proper disposal of hazardous waste, which also contributes to significant capital costs...purchase to read more.

    Additional Insights for the Plastic Film, Sheet & Bag Manufacturing Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Plastic Film, Sheet & Bag Manufacturing Industry are

  • Undertaking technical research and development
  • Use of production techniques that add value to base products
  • Supply contracts in place for key inputs
  • IBISWorld analysts also discuss how external factors such as Consumer spending and Demand from food manufacturing in the Plastic Film, Sheet & Bag Manufacturing industry impact industry performance..

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    What's in this report

    What is the Plastic Film, Sheet & Bag Manufacturing Industry?

    This industry converts plastic resins into various films, sheets and bags. Industry products are used by manufacturers for packing and storing products, by retailers for transporting merchandise and by consumers for household purposes. Industry operators also form, coat or laminate plastic film and sheets into single-wall or multiwall plastic bags.

    Industry Products
  • Plastic packaging film and sheets
  • Plastic bags and pouches
  • Plastic film and sheets, excluding packaging
  • Industry Activities
  • Manufacturing plastic film for food storage bags
  • Manufacturing plastic film for grocery bags
  • Manufacturing plastic film for merchandise bags
  • Manufacturing plastic film for trash bags
  • Manufacturing plastic film for packaging
  • Manufacturing plastic film, except for packaging
  • Plastic film and unlaminated sheet, except packaging,
  • Manufacturing unlaminated plastic sheets, except packaging
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Consumer spending
  • Demand from food manufacturing
  • Consumer price index for food
  • US dollar exchange rate
  • World price of crude oil
  • World price of natural gas

  • Current Performance
  • Foreign competition persists
  • Profit constraints
  • Industry structure
  • Chart: Revenue Growth

  • Industry Outlook
  • Foreign competition persists
  • Profit constraints
  • Industry structure
  • Table: Plastic Film, Sheet & Bag Manufacturing Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Plastic Film, Sheet & Bag Manufacturing Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Snack Food Production in Canada
  • Soda Production in Canada
  • Cigarette & Tobacco Manufacturing in Canada
  • Supermarkets & Grocery Stores in Canada
  • Warehouse Clubs & Supercentres in Canada

  • Key Selling Industries
  • Inorganic Chemical Manufacturing in Canada
  • Plastic & Resin Manufacturing in Canada

  • Products & Services
  • Plastic packaging film and sheets
  • Plastic film and sheets, excluding packaging
  • Plastic bags and pouches
  • Chart: Plastic Film, Sheet & Bag Manufacturing Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Exports
  • Food and beverage manufacturers and retailers
  • Other
  • Pharmaceutical, medical and hygiene manufacturers and retailers
  • Chart: Major Market Segmentation for the Plastic Film, Sheet & Bag Manufacturing Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
    WagesPurchasesProfitDepreciationMarketingRentUtilitiesOther
  • Chart: Cost Structure Benchmarking – Sector vs Plastic Film, Sheet & Bag Manufacturing

  • Basis of Competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Plastic Film, Sheet & Bag Manufacturing Industry

  • Industry Globalization
    There are no major players in this industry. This report includes analysis of other companies.
    Capital Intensity
  • Chart: Level of Capital Intensity for the Plastic Film, Sheet & Bag 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 Plastic Film, Sheet & Bag Manufacturing Industry
    Includes:
  • 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)
  • Consumer spending (2010-2024)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Extrusion
  • A process of shaping melted plastic into a single, undeviating form, such as a tube.
  • Hopper
  • A funnel-shaped machine that is used to move substances from one container to another.
  • Polyethylene
  • A tough, light, flexible synthetic resin made by polymerizing ethylene, chiefly used for plastic bags, food containers and other packaging. It is one of the most common plastics.
  • Polymer
  • A molecule made from joining together many small molecules called monomers.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Plastic Film, Sheet & Bag 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
    • Inform your decisions for marketing, strategy and planning
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    This report on Plastic Film, Sheet & Bag 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 Plastic Film, Sheet & Bag 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 Plastic Film, Sheet & Bag Manufacturing, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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