The Chemical and Biochemical industry has been a pillar of the global economy. The industry that turns raw materials such as fossil fuels, minerals, metals, and water into thousands of different products is ubiquitous in our modern lives. From pharma to food, plastics to construction, fertilizers to agriculture, its applications are wide-ranging.
In 2021, the global revenue of the Chemical and Biochemical industry amounted to approximately US $4.73 trillion, marking the highest value recorded in the past 15 years. Looking ahead, the industry is projected to experience growth across all segments, with an overall expected industry growth of 1.8 percent by 2024.
A diverse sector serving a vast domestic and international market
The Canadian Chemical and Biochemical industry is a major economic force, encompassing a wide range of output, including but not limited to, basic chemicals, pharmaceuticals, agricultural chemicals, and paints and adhesives. In 2022, the industry achieved a record shipment value of CA $2.7 billion and employed approximately 90,800 people. Specifically, industrial chemicals made up a substantial portion of this output.
Major players in the Canadian chemical industry include Nutrien and Methanex. Nutrien, headquartered in Saskatchewan, is a global leader in the production of crop inputs like nitrogen, phosphate, and potash. Vancouver-based Methanex, the world’s largest methanol producer, supplies methanol for use in industries such as construction, energy, and textiles.
The United States remains Canada’s largest trading partner, and China is the second most significant destination.
Canada’s Chemical and Biochemical industry is poised for continued growth in 2023 and beyond. Shipment volumes for industrial chemicals are expected to increase by 2-8% as new investments come online, particularly in Alberta and Ontario. The recent decline in natural gas prices has also offered a competitive advantage for Canadian producers, potentially boosting output and exports.
Notably, the pharmaceutical segment has seen remarkable growth, with export values more than tripling between 2010 and 2022. As the eighth largest pharmaceutical market globally, Canada is home to several prominent companies listed on the Toronto Stock Exchange (TSX). Leading firms include Bausch Health Companies, Jamieson Wellness, Knight Therapeutics, Fennec Pharmaceuticals, and Profound Medical. These companies contribute substantially to the industry’s export values and overall economic impact.
Latest investments in the pharmaceutical space also evidence this propulsion, like Switzerland-based Roche investing CA $500 million to establish a global pharma tech operations centre, France’s Sanofi Pasteur building a vaccine facility as part of a CA $925 million investment, and Moderna announced it will build a state-of-the-art mRNA vaccine facility.
Ontario has the largest Chemical and Biochemical manufacturing sector in Canada, hosting operations from nine out of the world’s top 15 chemical firms, making it a significant hub for operations in the country.
Ontario’s Chemical and Biochemical manufacturing sub-sector produced CA $8.8 billion in gross domestic product (GDP) in 2021, representing 10.8% of the overall manufacturing GDP in the province – or 1.2% of Ontario’s total GDP.
The province is an evolving bio-hybrid cluster, it’s Chemical and Biochemical industry manufactures products that cover the entire value chain – from polymers to alternative fuels, fertilizers to gases and adhesives, and even the components for high-tech fabrics and other goods.
NOVA Chemicals, the first company in the world to access Marcellus basin shale gas liquids as feedstock, has converted its Ontario ethylene cracker to handle up to 100% natural gas liquids. Ontario is also home to the Enbridge Gas Dawn Facility – one of North America’s largest integrated natural gas storage facilities.
Most of the activity takes place in three key regions: Sarnia-Lambton, Greater Toronto Area (GTA)/Niagara, and Eastern Ontario.
Ontario is primed with the right talent for chemical engineering and manufacturing roles. With over 27 universities and colleges awarding degrees and diplomas in Chemical Engineering, Applied Chemistry and Chemical Process and Production, Ontario is completely prepared to contribute to the generation of industry experts.
Canada’s trade agreements cover markets valued at over US $50 trillion with 1.7 billion consumers. Canada has free trade agreements with the largest manufacturing markets in the world: the United States (USMCA), the European Union (CETA) and Asia-Pacific (CPTPP).
Your business can have access to 187 million consumers within a day’s drive of the Greater Toronto Area. Ontario has 4 international and 300 regional airports, 250,000 km of roads and highways, a dozen border crossings and the 6th most internationally connected airport in the world.
largest Canadian Chemical and Biochemical industry
of the country’s chemical manufacturing production
contribution to Canada’s
corn and soy supply
chemical manufacturing establishments
in shipments, 75%
exported globally
cubic metres of wood industry accessible
Funding, Resources and Organizations
is a multidisciplinary research institute focused on exploring biorefining topics for the Canadian forest industry. Visit Site
is the voice of Canada’s Chemical and Biochemical industry, representing more than fifty members and partners across the country. Visit Site
is a research facility affiliated with Western University located in Ontario. It specializes in biomass and waste conversion and fluid-coking technologies. Visit Site
provides experience in policy regarding energy and the environment. In 2015, their faculty member Dr. McDonald received the Nobel Prize in Physics. The University has supported over 600 SMEs and startups and attracted over CA $620 million in research and development to Kingston, Ontario, since 2013. Visit Site
is a cutting-edge research program that focuses on developing sustainable biomaterials with a positive impact on the environment and agriculture. Visit Site
is an Ontario-based facility that enables industries to collaborate with university researchers in discovering new materials and processing methods. Visit Site
is conducting a research program to develop energy-efficient lightweight nanomaterials for industrial uses by utilizing natural resources like forests and agro-residues. Visit Site
offers collaboration opportunities for energy R&D, education, training, and commercialization activities. Visit Site
