Canada Plastics Market size is forecast to reach US$31.9 billion by 2027, after growing at a CAGR of 3.3% during 2022-2027. Some of the major plastics used in the end-use industries like building and construction, packaging, transportation and others include polyurethane, polyethylene terephthalate (PET/PETE), polypropylene (PP) and polyvinyl-chloride (PVC), polystyrene, polyurethane and others. Plastic waste reduction and various recycling programs have become a priority around the globe for both developed and developing nations. As a result, governments in Canada 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 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.
Covid-19 Impact
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. However, 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.
Canada Plastics Market Segment Analysis – By Polymer Type
Thermoplastics segment held the largest share of 72% in the Canada Plastics Market in 2021. Polyethylene Terephthalate (PET/PETE), Polypropylene (PP) and Polyvinyl-chloride (PVC) are the utmost used polymers in the world and is a high gloss, crack-resistant transparent plastic. As a raw material, PET is considered as a safe, strong, lightweight, flexible, and non-toxic material that can be effortlessly recycled. It is extensively used in numerous applications such as automotive, food and beverage packaging, and electronics. The growing demand for bottled drinks and glass and metal container replacements finds no better alternatives to PET, due to its versatility in shape and size. It is entirely recyclable and also the highest recycled plastic in the U.S and Canada. It is recycled by carefully washing and re-melting it, or by chemically breaking it down to its component materials to make new PET polymer. For instance, the Canada PET recycling rate was 27.9% in 2019. Rising demand of polyethylene terephthalate in food and beverages packaging such as carbonated soft drinks packaging contributed to the growth of the polyethylene terephthalate market which increasing the growth rate of Canada plastics market.
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Canada Plastics Market Segment Analysis – By End-Use Industry
Packaging sector held the largest share in the Canada plastics market in 2021 and is estimated to rise at a CAGR of 3.1% in terms of revenue during the forecast period from 2022-2027. Increase in disposable income and changing consumer behavior is certainly anticipating the market growth of Canada plastics. Furthermore, Canada is witnessing an increasing growth in food services sales, which, in turn, is boosting the market studied. Besides, a group of more than 40 Canadian companies from leading brands to waste management firms, government institutions, and NGOs have unveiled the Canada Plastics Pact, a plan to recycle or compost 50 per cent of Canada’s plastic packaging by 2025. The companies represent diverse parts of the plastics value chain, and include Canadian Tire Corp., the Circular Plastics Task Force, Coca-Cola Canada, EFS Plastics Inc., Loblaw Companies Ltd., Merlin Plastics, Nestlé Canada, PAC Packaging Consortium, Unilever Canada, and Walmart Canada. Plastic packaging accounts for 47 percent of all plastic waste, it is the immediate focus of the CPP’s collective efforts, which will centre around four targets by 2025. Thus, anticipating the growth of Canada plastics market in the different company in the forecast period.
Canada Plastics Market Drivers
Rising Demand of Recycle Plastic Consumption in Construction and Automotive Sector
Recycling plastics is helping to save energy and landfill space and are used in new building and construction applications. Recycled plastics can be blended with virgin plastic to reduce cost without sacrificing performance and consuming plastics as a primary construction material is sufficient to encounter the average annual energy needs of 4.6 million Canadian households which equivalent of all the households in 11 out of 50 states. The rapid increase in applications like roofing tiles, concrete for sideways, driveways and more for its properties like lighter material, durability, long term energy saving. 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 aluminum 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 as per the Canadian government. For instance, in 2020 Plastic Component Industries (PCI) has introduces its first international facility in Ontario, Canada. And invested US$4 million, which will help to strengthen the company’s global footprint by catering to Ontario’s resilient automotive sector. PCI supplies automotive parts to various tier 1 companies and OEMs. Thus, increasing the demand of plastics in the automotive sector, boosting the Canada plastics market.
Increase in Demand of Medical Grade Plastic
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.
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Canada Plastics Market Challenges
Stringent Government Regulations and Banning of Polymer Products
The FDA has pressurized manufacturers to submit data regarding the long-term health impact of inorganic substances in Plastics particularly hormonal effects and contributors to anti-biotic resistant bacteria, to ascertain the safety of medical use Plastics products like gloves. These regulations are to ensure the safety of consumers by regulating the hygiene quality product by the manufacturers. Material use regulations are likely to impact the growth of the plastics industry. In response to increasing concerns about the harm caused by polymers to the environment, strict government legislation and other policies have come into the picture. Many producers and policymakers have made efforts to introduce greener and non-polymer alternatives to minimize environmental pollution caused by the use of polymers.
Canada Plastics Industry Outlook
Technology launches, acquisitions and R&D activities are key strategies adopted by players in this market. Maleic Acid . Major players in the Canada Plastics Market are
1. Exxon Mobil Chemicals
2. DuPont de Nemours, Inc.
3. SABIC, BASF SE
4. Eastman Chemical Company
5. Solvay
6. Evonik Industries
7. Nova Chemicals
8. Celanese Corporation
9. Arkema and among others.
Recent Developments
In 2021, the Ontario government invested more than US$18.8 million by three Southwestern Ontario companies, some with connections to the plastics industry and to try and help strengthen local manufacturing, create good jobs and attract investment to Cambridge and the surrounding region.
In 2021, Loop launched reusable/returnable plastic packaging platform in Canada with Retail Partner Loblaw, bringing waste-free shopping for a range of food and household products, including Loblaw own-brand items, in reusable packaging to Canada
Key Takeaways
Ontario dominates the Canada Plastics Market owing to rapid increase in packaging and construction sector.
Rising plastic consumption is expected to drive the demand for plastic over the forecast period in the building, automotive, and electrical and electronics industries.
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.
Stringent government regulation on banning polymer products is hampering the market growth.
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Canada Polyamide Market
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