Canada Focuses On Niche Products
The Canadian chemical and plastics industry is supported by safe access, low raw material prices and infrastructure.
According to the latest report from IBISWorld, the plastic and resin manufacturing industry in Canada will continue to grow in the five years to 2022, but it will be much slower than in the previous five years. Part of the reason for the slowdown is the appreciation of the Canadian dollar.
In addition, the industry situation is very vulnerable to foreign economic conditions, especially the United States. However, as per capita disposable income and consumer spending increase, downstream demand will drive growth.
IBISWorld estimates that the market share of plastics and resin manufacturing in Canada is relatively low. The proportion of the top four companies in the total revenue of the industry in 2017 is estimated to be 29.2%. This figure is fairly stable in the five years before 2017.
Other companies in the industry are small and medium-sized manufacturers. Their strategy is to supply niche products to make up for their lack of economies of scale.
Considering that most of the demand for Canadian products comes from abroad, such as the United States, Canada’s plastics industry is extremely competitive.
According to data from the Canada Trade Commissioner Service, it is expected that by 2020, the Canadian chemical industry alone will grow by 27%.