Organic growth: A rise in consumer spending will drive demand from downstream markets

The Organic Chemical Manufacturing industry in Canada is primarily engaged in the manufacturing of organic chemicals, including methanol, alicyclic hydrocarbon, ethylene glycol and fatty acids. Many industrial and consumer products, such as dyes, detergents, paints and adhesives, use organic chemicals as input materials. Consequently, industry performance is closely tied to consumer spending and the performance of the manufacturing sector. Over the past five years, the industry has benefited from steady economic growth domestically and from many export destinations, resulting in rising consumer spending, which has stimulated demand from a variety of downstream manufacturing industries...read more.

Industry Statistics & Market Size
Revenue
$5bn
Annual Growth 13-18
1.5%
Forecast Growth 18-23
Profit
Employment
3,063
Businesses
110
Market Share of Companies
There are no companies with a dominant market share in this industry

Industry Threats & Opportunities

  • Revenue has been volatile due to significant fluctuations in the prices of upstream raw materials
  • The industry experiences high import penetration, primarily from the United States
  • Export markets will continue to drive growth for industry operators
  • Industry Report - Industry Products Chapter

    Organic chemical manufacturers produce carbon-based compounds bonded to hydrogen. The three main product segments comprise cyclic organic crudes and intermediate products, ethyl alcohol and gum and wood chemicals. However, due to the diverse nature of chemical products, other organic chemicals account for the bulk of industry revenue.Ethyl alcoholEthyl alcohol, also known as ethanol, is a high-octane blending component used by gasoline producers to manufacture high performance and cleaner burning gasoline fuels. Industry operators benefit from government programs promoting renewable fuel. Currently, the Federal Renewable Fuel Regulations requires an average of 5.0% renewable fuel blended in gasoline across Canada. Diesel fuel requires an average 2.0% r...purchase to read more.

    Additional Insights for the Organic Chemical Manufacturing Industry

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

  • Ability to negotiate successfully with regulator
  • Downstream ownership links
  • Having a diverse range of clients
  • IBISWorld analysts also discuss how external factors such as Canadian-dollar effective exchange rate index and Industrial capacity utilization in the Organic Chemical Manufacturing industry impact industry performance..

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    What's in this report

    What is the Organic Chemical Manufacturing Industry?

    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.

    Industry Products
  • Ethyl alcohol
  • Cyclic crudes, coal tar, gum wood chemical and intermediate products
  • Other basic organic chemical products
  • Fatty acids
  • Bulk pesticides
  • Synthetic flavour and perfume materials
  • Synthetic organic unmixed alcohols
  • Industry Activities
  • Manufacture ethyl alcohol
  • Manufacture methanol
  • Manufacture wood and gum chemicals
  • Manufacture fatty acids
  • Manufacture cyclic crudes and other chemical intermediates
  • Manufacture all other organic chemical products
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Canadian-dollar effective exchange rate index
  • Industrial capacity utilization
  • Consumer spending
  • Value of nonresidential construction

  • Current Performance
  • Domestic demand and price environment
  • Importance of trade
  • Fluctuating but strong profit margins
  • Government regulation
  • Chart: Revenue Growth

  • Industry Outlook
  • Modest trade growth
  • Government assistance
  • Increasing competition
  • Table: Organic Chemical Manufacturing Industry Revenue Outlook

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

  • Supply Chains
    Key Buying Industries
  • Inorganic Chemical Manufacturing in Canada
  • Organic Chemical Manufacturing in Canada
  • Plastic & Resin Manufacturing in Canada
  • Paint Manufacturing in Canada
  • Soap & Cleaning Compound Manufacturing in Canada

  • Key Selling Industries
  • Laboratory Supply Wholesaling in Canada
  • Oil Drilling & Gas Extraction in Canada
  • Organic Chemical Manufacturing in Canada
  • Petrochemical Manufacturing in Canada
  • Petroleum Refining in Canada

  • Products & Services
  • Other basic organic chemical products
  • Ethyl alcohol
  • Cyclic crudes, coal tar, gum wood chemical and intermediate products
  • Synthetic organic unmixed alcohols
  • Fatty acids
  • Synthetic flavour and perfume materials
  • Bulk pesticides
  • Chart: Organic Chemical Manufacturing Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Exports to the US
  • All other Exports
  • Other domestic manufacturers
  • Food, beverage and tobacco manufacturing
  • Chart: Major Market Segmentation for the Organic Chemical Manufacturing Industry

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

  • Basis of Competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Organic Chemical 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 Organic Chemical 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 Organic Chemical Manufacturing Industry
    Includes:
  • Industry Revenue (2009-2023)
  • Industry Gross Product (2009-2023)
  • Establishments (2009-2023)
  • Businesses (2009-2023)
  • Employment (2009-2023)
  • Exports (2009-2023)
  • Imports (2009-2023)
  • Wages (2009-2023)
  • Industrial capacity utilization (2009-2023)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Ethyl Alcohol
  • Also called ethanol, pure alcohol, grain alcohol or drinking alcohol, ethyl alcohol is a volatile, flammable and colorless liquid.
  • Feedstock
  • Raw material supplied to a machine or processing plant.
  • Vinyl Acetate Monomer (Vam)
  • A colorless, liquid organic compound with a pungent odor; it is the precursor to polyvinyl acetate, an important polymer within the Organic Chemical Manufacturing industry.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Organic Chemical Manufacturing market research report can be used to help you: understand market size and growth potential; major companies; draft business plans and pitch books; and conduct benchmarking and SWOT analysis. Our industry analysis highlights macro industry trends in the overall sector and micro trends faced by companies that do business in the industry. The industry report also provides key industry statistics and 5-year forecasts to anticipate future industry prospects so you can decide with confidence.

    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 Organic Chemical 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 Organic Chemical 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 Organic Chemical Manufacturing, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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