Chain reaction: Demand from downstream industries will support industry growth

The Petrochemical Manufacturing industry in Canada primarily produces ethylene, which serves 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, and price increases or decreases tend to get passed along to consumers in the form of higher or lower product prices. Input price volatility will continue, particularly in the early part of the five-year period as the price of oil has been rising and is forecast to continue to do so. Overall, as the economy continues to improve this will foster demand from key buying industries and support ongoing growth...read more.

Industry Statistics & Market Size
Revenue
$7bn
Annual Growth 13-18
-2.2%
Forecast Growth 18-23
Profit
Employment
1,986
Businesses
18

Industry Threats & Opportunities

  • Industry revenue figures are closely linked to crude oil and natural gas prices
  • A depreciating Canadian dollar has made domestic products more affordable
  • Imports will rise as a strengthening loonie will make foreign products more competitive
  • Industry Report - Starting a New Business Chapter

    The Petrochemical Manufacturing industry in Canada with several barriers to entry, including the level of capital required. The industry is capital intensive, with hundreds of millions of dollars required to construct a complex that is globally competitive. For example, a world-class ethylene plant is estimated to cost over $1.0 billion to construct.Given the heavy reliance on various feedstocks, such as natural gas liquids and petroleum, the ability to access a steady supply of competitively priced raw materials is essential. Many of the established players are part of integrated oil companies that operate in integrated oil refining and petrochemical complexes, a position that gives them a significant competitive edge over potential stand-alone newcomers. Sig...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-dollar effective exchange rate index

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

  • Industry Outlook
  • Downstream demand grows
  • Input price volatility and profitability
  • 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
    ProfitPurchasesWages and depreciationOther
  • 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 Ltd., Shell Canada Ltd.,
  • Table: NOVA Chemicals Corporation - financial performance
  • Table: Imperial Oil Ltd. - financial performance
  • Table: Shell Canada Ltd. - 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
    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)
  • World price of crude oil (2009-2023)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Ethylene
  • 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, but 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 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
    • 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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