Canada extruded plastic market is expected to grow at a compound annual growth rate of 2.76% over the forecast period to reach a market size of US$2.937 billion in 2027, from US$2.427 billion in 2020. Plastic Extrusion is a process through which raw material like thermoplastic resin is melted to reshape it into plastic products like weather stripping, pipe/tubing, wire insulation, window frames, plastic sheets, etc. This process involves the deformation of resin and with the presence of suitable properties, it is shaped again and formed into a continuous profile. Plastic Extrusion is applied in various industries including construction, automotive, packaging, electronics, etc.
Market trends:
The major driving factor behind the Canada Extruded Plastic Market is the increasing construction activities that have increased the demand for products like PVC Pipes, and other fittings that apply the extrusion process in their formation. Besides the construction industry, the packaging industry is also expected to drive the Canada Extruded Plastic Market due to the high consumption of ready-to-eat food in Canada that requires extruded plastic packaging. Besides that, the growing automotive segment and the electrical sector are also expected to drive up the demand for extruded plastic in Canada.
The growing pollution due to the use of plastic has become a major concern around the globe and the expected ban of single-use plastic in Canada due to these concerns is expected to impact the growth of the market negatively.
Growth Factors
Construction activities widely apply the use of Plastic Extrusion from constructing new buildings to renovation. Architects heavily rely on plastics as plastic extrusion is well suited for producing such parts that have a consistent wall thickness, and have desired features in length and width. Plastic Extrusion includes the generation of components like panels, seals, tubes, door components, window components, wall protection, window trim, etc. Increasing construction in Canada is expected to drive up the demand for Plastic Extrusion in the coming years. According to a report by Statistics Canada, investment in residential construction has been continuously rising in Canada, and in February 2021, the mark reached $12.3 billion. This rising investment is mostly driven up by single-family home construction. This rising investment is expected to drive up the demand for plastic components as well thus affecting the Extruded Plastic Market in Canada in a positive direction. In October 2021, the residential construction investment rose 1.4% to reach $12.9 billion while that in building construction increased 1.6% to $17.8 billion.
Another reason behind the growth of the extruded plastic market in Canada is the rising demand for extruded plastic in the packaging industry. With the change in living standards, the nation has witnessed wide-scale consumption of ready-to-eat food which is the main applicant of extruded plastics. Plastics are used in packaging for frozen food as well to maintain its quality over time. Statistics Canada data says that on average Canadian households spent around 29.6% of their food and budget on snacks and meals purchased from the restaurant in 2019. Consuming FAFH (Food Away from Home) has become an enduring aspect of Canadian life which is expected to affect the market for extruded plastic in Canada as well.
Restraint
The growing environmental concerns regarding the impact of single-use plastic waste on nature has forced governments of the various nation to ban the use of single-use plastic and the Canadian government is not far behind. Single-use plastic includes disposable plastic like plastic bags, straws, food packaging stuff, coffee stirrers, etc. To achieve zero plastic waste by 2030, the ban on single-use plastic is expected to be introduced by the end of 2022, which can serve as a restrain to extruded plastic market.
With the outburst of the pandemic in Canada, the Extruded Plastic market witnessed a dip. Due to the increased spreading of disease, the lockdown restrictions were imposed globally, which not just resulted in the shutting down of production and industries but also hampered the supply chains both on a domestic level and global level. The lack of labor, raw material, and the other effects followed by the disease affected every industry including construction, packaging, automotive, etc. This hampered the growth of Canada’s Extruded Plastic Market growth.
| Report Metric | Details |
|---|---|
| Study Period | 2021 to 2031 |
| Historical Data | 2021 to 2024 |
| Base Year | 2025 |
| Forecast Period | 2026 – 2031 |
| Report Metric | Details |
| Market size value in 2020 | US$2.427 billion |
| Market size value in 2027 | US$2.937 billion |
| Growth Rate | CAGR of 2.76% from 2020 to 2027 |
| Base year | 2020 |
| Forecast period | 2022–2027 |
| Forecast Unit (Value) | USD Billion |
| Segments covered | Type, And End-User Industry |
| Companies covered | Amcor plc, Berry Global Inc., Trident Extrusion Systems, Caledonia Plastics Inc., BASF SE, Saudi Basic Industries Corporation, E.I. DuPont De Nemours and Company, ExxonMobil Chemical, Dow Inc., Sigma Plastics Group |
| Customization scope | Free report customization with purchase |
Segmentation: