Market Trends of canada adhesives Industry
Rapid growth of the food and beverage industry and plastic recyclability advancements to boost the packaging demand
- The demand for quick and on-the-go packaged items has been increasing due to consumers' busier lifestyles, greater spending power, and related factors in the country. Due to the COVID-19 pandemic, the nationwide lockdowns and temporary shutdown of manufacturing facilities caused several issues, including disruptions in supply chains and imports and exports trade. As a result, the country's packaging production declined by 6% in 2020 compared to the previous year, significantly affecting the market.
- The Canadian packaging industry has majorly been driven by the rapid growth of the food and beverages industry in recent years. Sales through retail food and beverage stores increased in 2021 and amounted to around USD 143.66 billion in 2021 compared to USD 142.1 billion in 2020.
- Packaging production is majorly driven by paper and paperboard production in the country, which accounted for around 38% of the packaging in 2021. Canada's wrapping paper, packaging paper, and board production capacity in 2021 was 2.45 million ton and is forecast to grow to around 2.8 million ton by 2024. However, with the advancement of plastic recyclability, the plastic production segment is likely to register the fastest CAGR of about 4.37% during the forecast period.
- The growing interest in public health, along with the emerging e-commerce activities across the nation, is likely to continue boosting the growth of the food processing industry and further drive the packaging demand over the coming years.
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Rising investments from OEMs in Electrical Vehicle production in the country is likely to fuel the automotive production
- Canada is the 11th-largest vehicle manufacturing country in the world and the second-largest in North America. The automotive sector in the country employs nearly 117,200 people. Canada's automotive manufacturing industry is highly integrated with the United States. Automotive components may cross Canadian-US-Mexican borders as many as eight times before being installed in a final assembly. Vehicles are Canada's second-most exported products, of which 93% were exported to the United States in 2020. The decline in automotive production from 2017 to 2019 was due to a demand drop in US markets because of rising interest rates and demand saturation.
- Automotive production declined by a staggering 26.3% in 2020 compared to 2019 due to operational and supply chain restrictions resulting from the COVID-19 pandemic. The ongoing semiconductor chip shortage, caused by pandemic-related production issues and a surge in demand for electronics, has restricted the growth of automotive production in the country. Due to these constraints, automotive production in Canada is expected to record a CAGR of just 1.46% during the forecast period.
- However, the prospects for electric vehicle production are bright in Canada as the country ranks sixth globally for heavy-duty EV production. With more than 700 suppliers of parts and raw materials and investments from global Original Equipment Manufacturers (OEMs) like Ford (USD 1.5 billion), GM (USD 785 million), and Stellantis (USD 1.14 billion) to establish production lines for EVs as well as for EV batteries in Canada, the automotive industry is expected to grow over the forecast period.
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OTHER KEY INDUSTRY TRENDS COVERED IN THE REPORT
- With strong Original Equipment Manufacturers (OEMs) and supply chains of international OEMs and Tier1 partners, the country's aerospace industry maintained one of the largest in the world
- Demand for sports footwear is increasing due to rising awareness on fitness among people
- Rapid commercial construction and infrastructure investment of around USD 140 billion by 2028 to boost the construction industry
- Easy purchase and installation of furniture and rising interior spending is increasing the woodworking and joinery demand
