Canada Plastics Market Projected To Grow At A CAGR Of 3.3% During The Forecast Period 2020 To 2025

Increasing usage of plastics in various end use industries in Canada, along with the rising initiatives by governments towards the bio plastics is expected to drive the market growth during the forecast period 2020-2025 - Canada Plastics Market size is forecast to reach $29.8 billion by 2025, after growing at a CAGR of 3.3% during 2020-2025.

Plastic waste reduction and various recycling programmes have become a priority around the globe for both developed and developing nations. As a result, governments in various regions are introducing policies and regulations to regulate the production of waste, to promote the reuse and recycling of plastic waste, and to encourage the comprehensive disposal of waste. In order to encourage efficient waste management, governments also implement landfill taxes, waste disposal taxes, recycling credit programs, deposit rebate systems, etc. It is expected that these steps by governments in different states will further promote the growth of the plastics industry.

The production and demand in top countries for Canada Plastics is expected to boom over the next five years. In terms of revenue in 2019, synthetic type held the largest share with 99.8%, in Canada Plastics market. In 2010 about 2422 establishments in Canada had as their principal activity the processing of synthetic plastics which has increased on higher scale to that in 2019. In Montreal Canada, the government regulations has been introduced at state level or city level Ban on the use of light weight synthetic plastics. In Canada, Synthetic Resin costs typically account for 30 to 50 percent of the final value of a plastic product. Moreover Growth in the Canadian plastics industry was fueled by a dramatic increase in the domestic capacity for producing synthetic resins in the region. In Canada, environmental concerns regarding use of synthetic plastic packaging have arisen in recent years. This trend is likely to continue soon, which could cut demand for certain industry products. Synthetic Plastic represents the most significant input to the plastics processing industry. Synthetic resins costs typically account for 30 to 50 percent of the final value of a plastic product. 40% of the Synthetic plastic production is used for packaging purpose and a significant portion of which is used for the food and drink sector.

Packaging sector held the largest share in the Canada plastics market in 2019 and is estimated to rise at a CAGR of 3.1% in terms of revenue during the forecast period from 2020-2025.  Canada’s food packaging market is anticipated to grow owing to an increasing demand for convenience by consumers, increase in disposable income and changing consumer behavior. Furthermore, with the country witnessing an increasing growth in food services sales, which, in turn, is boosting the market studied. According to the USDA Foreign, Agricultural Service studies 2019, the anticipated sales growth of packaged food in Canada, between 2017 and 2022, may be driven by sweet biscuits, snack bars, and fruit snacks with 19.8% growth, followed by spreads, edible oils, and dairy with 15.8%, 13.8%, and 12.3%, respectively. With the recent outbreak of COVID-19, the market is poised to witness a significant slowdown in production, owing to lockdown of the country. However, packaging manufacturers are trying to close the gaps, by ensuring that food supplies should reach the people in the time of crisis, thereby, maintaining the performance of the food packaging market in the region.

Ontario country dominated the Canada plastics market in terms of revenue with a share of 38.6% in 2019 and is projected to dominate the market during the forecast period (2020-2025). Plastics are used in various industries and according to Canadian Government statistics, about 39% are used in packaging, 33% in construction, 14% in automotive and 14% in other applications. In 22 October 2020, The Ontario government is providing pollution probe to collect plastic waste from marinas by using innovative plastic- capture technology which is largest initiative to tackle plastic pollution in provincial lakes and waterways which are declining the growth of Canada plastic market. Every year an estimated 22 million pounds of plastic pollution end up in the Great Lakes. The government of Ontario are taking actions to reduce plastic pollution in the Great lakes. So, they are innovating new technologies such as nanotechnology, genetic modification and advanced chemical processes to help reduce plastic pollution by developing natural substitutes and producing more biodegradable plastics. 

The market growth is expected to be driven by compliance and upgrading of different infection prevention standards, combined with a rising amount of surgical, hospital, and outpatient procedures. The increased buyer power in the next few years is projected to be high production volumes coupled with the ease of availability of plastics in medical sector. There has been an increased affinity for recycling of plastics among the governing agencies in the states in Canada. In the development of disposable devices such as syringes, inhalation masks, catheters, and other surgical instruments, cost-effective medical plastics have paved their way. These plastics, as an alternative to other raw materials, provide greater protection and antimicrobial functionality. Thereby, medical plastics industry acquires huge demand from healthcare sector owing to decontamination and secured containment of diagnostic samples. 

According to World Health Organization, 2020, about 3, 06,468 people in Canada is affected with COVID-19 with total fatality rate of 11,086 till now. COVID-19 is said to be one of the leading causes of death globally. The increasing incidence of virus has increased the need for Plastics in the form of LDPE disposable medical gloves which are required during treatment of COVID-19 and packaging material for the vaccines. With a growing number of COVID-19 cases and deaths caused by a lack of preventive measures, the need for virus protection is rising. Thus, the Plastics Market is majorly driven by this factor and government’s focus on protective healthcare products for the reduction of COVID-19 cases. Increasing healthcare expenditure is also contributing to the market growth. Rising geriatric populations, growing cardiovascular diseases, inflating disposable incomes, and constant product advances can be accredited to the growth of the healthcare industry. In this context, the use of plastic products has necessitated higher production costs for virgin resins, thus improving the growth of the plastics industry.

Rising plastic consumption is expected to drive the demand for plastic over the forecast period in the building, automotive, and electrical and electronics industries. Demand of plastics for interior components in automotive industry is expected to increase largely owing to the increased focus on lightweight and fuel-efficient vehicles. Demand is expected to gain more traction with the improvement in economic conditions. Regulations aimed at lowering gross vehicle weight in order to increase fuel efficiency and ultimately minimize carbon emissions have facilitated the use of plastics for the manufacturer of automotive components as a replacement for metals, including aluminium and steel. Also, owing to the strict regulations on carbon emissions and price sensitivity of some end-users, vehicle manufacturers choose plastics in their designs. The growth of the industry has been instrumental in boosting the demand for plastics in 2019 as the local governments across the countries are changing policies to improve the production and effectiveness of medical devices and associated healthcare services in areas such as IT convergence, advanced materials, and others in the healthcare industry.

Technology launches, acquisitions, and R&D activities are key strategies adopted by players in the Canada Plastics market. In 2019, the market of Canada Plastics has been consolidated by the top ten players accounting for 24.49% of the share. Major players in the Canada Plastics market are Exxon Mobil Chemicals, DuPont de Nemours, Inc., SABIC, BASF SE, Eastman Chemical Company, Solvay, Evonik Industries, Nova Chemicals, Celanese Corporation, Arkema and among others.

The rapid expansion of coronavirus has had a huge effect on Canadian markets because large markets of the Canada are locked up because of this pandemic. Because of this major lockdown, suddenly all the consumer market has started to show zero interest in purchasing Canada plastics materials. One of the major difficulties, the market is facing is the shutdown of all kinds of domestic transportation within countries. Also, the shutdown of various end use industries due to increasing COVID-19 cases among people working in manufacturing sites in various regions has declined the market growth. Canada crises for all sectors including plastics manufacturing sector have slowed down the demand for goods production and exports of the Canada plastics market.

Mr. Venkat Reddy

Sales Manager         

Email: [email protected]

Contact Sales: +1-970-236-3677

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