Canada Caustic Soda Market Research Report: Forecast (2026-2032)

Canada Caustic Soda Market Size: Forecast (2026-2032)

The Canada Caustic Soda Market size is valued at around 1.4 Million Tons in 2025 and is projected to reach 2.06 Million Tons by 2032. Along with this, the market is estimated to grow at a CAGR of around 4.88% during the forecast period, i.e., 2026-32.

Canada Caustic Soda Market Outlook:

Canada’s Caustic Soda Market continues to be shaped by the structure and scale of its major end-use industries, including the food & beverages industry, which is one of the largest industries in the country. For instance, in 2024, the food & beverages processing sector produced USD123.4 billion worth of goods and accounted for about 20.3% of Canada’s total manufacturing sales. This scale matters because food-grade caustic soda is widely used in cleaning, sanitation, peeling, oilseed processing, and equipment maintenance. As plants operate at high capacity and continue adopting stricter hygiene and automation standards, caustic soda demand rises in parallel, particularly in higher-purity grades.

Moreover, on the investment and industrial-transition front, the federal industrial-innovation Programme Strategic Innovation Fund (SIF) has been employed to support large-scale projects in heavy industry and chemical production. For instance, the SIF under its “Net Zero Accelerator” stream offers up to USD5.6 billion in funding to decarbonise heavy industries, including chemicals, which ultimately increases the market growth.

Similarly, Canada’s pharmaceutical industry adds growing specialized demand. For reference, the country’s R&D-linked pharmaceutical sector generated USD13.1 billion in gross value added in 2022. This sector requires high-purity, tightly regulated grades for pH adjustment, formulation processes, and cleaning systems. This segment, therefore, plays an important role in shifting part of the market toward value-added, specialty chemical supply. Similarly, the water treatment activities, paper & pulp industry, etc., are contributing to the substantial growth of this market.

Canada Caustic Soda Market Recent Developments:

• January 2025: Brenntag Essentials announced that it has expanded its caustic soda storage capacity in Canada by locking in exclusive access to two deep-water storage terminals at the Port of Bancour in Quebec.
• April 2025: Chemtrade announced a new agreement with the Vancouver Fraser Port Authority to extend the land lease for its North Vancouver chlor-alkali plant until 2044. The company, which owns part of the site, will apply for rezoning to continue producing caustic soda and liquid chlorine and to make planned safety improvements at the facility.

Canada Caustic Soda Market Scope:

Canada Caustic Soda Market Drivers:

Pulp & Paper Industry Increasing the Market Demand

The Canadian pulp & paper industry is the largest and most influential driver of the country’s Caustic Soda Market because NaOH is indispensable in kraft pulping, bleaching, and dissolving pulp operations. Canada maintains one of the world’s largest softwood-fibre baskets and a deeply integrated network of kraft mills across British Columbia, Québec, and Ontario. For instance, as of 2023, Canada had approximately 367 million hectares of forest, which serves as a major contributor to paper & pulp production, thereby increasing the demand for caustic soda in the country.

Major producers such as Paper Excellence, Resolute Forest Products, Catalyst Paper, Irving Pulp & Paper, and Canadian Kraft Paper Industries operate large-scale facilities that anchor national pulp production and consistently rely on caustic soda for core process chemistry. For instance, Paper Excellence Canada alone has a production capacity of over 2.5 million tonnes per year across its pulp, specialty, printing, writing, and packaging paper operations, highlighting its role as one of the country’s largest integrated end users of caustic soda.

Expanding Chemical Manufacturing & Downstream Processing

Canada’s growing chemical-manufacturing sector is an important driver of caustic-soda demand because many chemical processes require NaOH for cleaning, neutralizing, and removing acidic impurities. A major player is Canada’s ethylene industry, which is one of the country’s largest industrial-chemical producers. For instance, Canada produced 5.1 million tonnes of ethylene in 2023, making it the highest-volume industrial chemical in the country. Ethylene plants use caustic soda in their gas-scrubbing and purification units to remove CO₂ and acidic compounds before polymer production. Similarly, soap and detergent production also relies on sodium hydroxide. For instance, in 2023, the net revenues for the soap & cleaning-compound manufacturing industry in Canada reached USD200 million. Also, Canadian soap & cleaning-compound manufacturers reported shipments of USD101.9 million in June 2024, increasing market demand.

Additionally, downstream operations such as polyethylene manufacturing, sodium-hypochlorite production, detergents, and other organic and inorganic chemicals also use NaOH for pH control, catalyst treatment, and equipment cleaning. For reference, NOVA Chemicals stands as Canada’s leading polyethylene manufacturer, with the Joffre facility alone contributing around 1 million tons of production each year, increasing the demand for caustic soda for its downstream processing.

Canada Caustic Soda Market Trends:

Automation and Digital Monitoring in Canada’s Caustic-Soda Industry

Canada’s Caustic Soda (NaOH) and chlor-alkali plants are increasingly adopting automation, advanced process controls, and digital-monitoring systems to boost efficiency, safety, and product quality. For instance, supplier Yokogawa Electric Corporation confirms that modern chlor-alkali operations help manufacturers, such as sodium hydroxide, through automation. In electrolysis units, smart instruments monitor brine quality, cell voltage, membrane integrity, and pH levels continuously, replacing older manual checks. Chlor-alkali plants using advanced sensors and analytics can achieve real-time corrosion monitoring, inline measurement of critical parameters, and reduced operator rounds.

These upgrades help Canadian producers reduce downtime, lower maintenance costs, improve NaOH purity, and support downstream users needing a high-quality, consistent supply. As Canada’s chemical, water-treatment, and pulp & paper sectors demand more from caustic soda supply, automation becomes a key enabler of the market’s growth and reliability.

Canada Caustic Soda Market Challenges:

Limited Domestic Production & Import Dependence

Canada’s caustic soda market faces a major challenge because the country has very limited domestic production capacity, forcing heavy reliance on imports. At present, Chemtrade’s North Vancouver facility is the only large-scale chlor-alkali plant producing caustic soda in Canada, while others are on a very small scale.

Most provinces, especially Ontario, Québec, and Atlantic Canada, have no local production, which pushes the country toward foreign suppliers. For instance, imports of the broader caustic-soda category totaled 329,665 tons in 2024 in Canada, further reflecting the gap between domestic demand and national production capacity. Because only one major plant operates today, compared with five mercury-cell plants active during the past decades, Canada lacks supply diversity, making its market more vulnerable to U.S. production or logistics disruptions.

Canada Caustic Soda Market (2026-32) Segmentation Analysis:

The Canada Caustic Soda Market Report and Forecast 2026-2032 offers a detailed analysis of the market based on the following segments:

Based on Product Type

• Flake Caustic Soda
• Solid Caustic Soda
• Lye Caustic Soda

Lye dominates the Canadian Caustic Soda Market because most domestic industries require caustic soda in a liquid, pumpable form that supports continuous, large-scale processing. Pulp and paper mills, water-treatment facilities, and chemical manufacturers all rely on liquid caustic for digestion, bleaching, pH control, and neutralization, making lye the most practical grade for daily operations. For instance, Canada imported 293,62 tons of liquid (lye) sodium hydroxide, and the United States supplied about 76% of these imports. This large amount shows the high demand, efficiency, and scale of lye, solidifying its dominance in the national market.

Moreover, its dominance is reinforced by the logistical advantages of bulk liquid transport. For reference, companies like Chemtrade and Olin operate extensive rail-tank and tanker-truck distribution networks, supporting seamless delivery across provinces. Similarly, storage systems in industrial plants are optimized for lye, reducing conversion requirements, thus contributing to its dominance.

Based on the Application

• Pulp and Paper Industry
• Soap and Detergent Manufacturing
• Water Treatment
• Chemical Industry
• Food Industry
• Petroleum Refining
• Textile and Leather Industry
• Pharmaceuticals
• Biodiesel and Biofuels
• Cleaning and Maintenance

The pulp & paper industry leads caustic soda use in Canada because it consumes large volumes of sodium hydroxide in essential production steps. For instance, the Kraft pulping process uses caustic soda to break down lignin in wood chips and separate cellulose fibers. For instance, one of the major Canadian facilities, Cariboo Pulp and Paper in British Columbia, has a capacity of 340,000 metric tons per year of Northern Bleached Softwood Kraft (NBSK) pulp, which has significantly increased the demand for caustic soda in the country.

Additionally, Canada’s “Pulp, paper, and paperboard mills” manufacturing sector reported revenues of USD13.8 billion in 2023 under the North American Industry Classification System code 3221, signaling the scale of the end-user base. Hence, because pulp & paper mills need a continuous supply of caustic soda for pulping, bleaching, deinking, and effluent treatment, and because Canada ranks among the world’s top pulp-and-paper producers, the segment remains the largest consumer of caustic soda by application in Canada.

Leading Players of the Canada Caustic Soda Market:

• Sodium Solutions Inc.

Sodium Solutions specializes in supplying industrial chemicals, including caustic soda, to Canadian oil & gas, food processing, and manufacturing sectors. The company focuses on domestic distribution, custom packaging, and reliable local service. Its customer-centric approach and flexible logistics make it a strong mid-sized supplier in the market.

• Brenntag Canada Inc.

Brenntag is one of Canada’s leading chemical distributors and plays a significant role in the caustic soda supply chain through bulk storage, logistics, and distribution services. With expanded deep-water storage in Québec and a national distribution network, Brenntag ensures steady and efficient delivery of caustic soda to customers across multiple industries.

• Chemtrade Logistics Income Fund

Chemtrade is one of Canada’s largest producers of chlor-alkali chemicals, including caustic soda and chlorine. Through its North Vancouver facility and multiple distribution terminals, the company ensures strong regional availability for industries like textiles, mining, and pulp & paper. Its focus on infrastructure upgrades and long-term supply reliability strengthens its role in the Canadian caustic soda market.

Olin Corporation, BASF, Covestro AG, Westlake Chemical Corporation, Formosa Plastics Group, INEOS Group Holdings S.A., and Others are the key players in the Canada Caustic Soda Market.

Canada Caustic Soda Market (2026-32): Regional Projection

Ontario’s dominance in Canada’s Caustic Soda Market is underpinned by a very large and growing chemical-manufacturing infrastructure. With over 800 chemical-plant sites and more than 40% of the country’s chemical production located in the province, the region supports a significant upstream supply. The city of Sarnia-Lambton and other clusters house integrated chlor-alkali operations that feed caustic soda production and distribution. For instance, in 2023 alone, Ontario’s chemical-industry shipments reached about USD 20.8 billion, up 18 % over the previous year, showing strong momentum.

Further, Ontario has over 723 municipal water and wastewater treatment facilities, more than any other province in Canada, which has ultimately increased the demand for caustic soda as an essential ingredient. Consequently, the province stands out as the most influential region for caustic soda supply and usage in Canada.

Gain a Competitive Edge with Our Canada Caustic Soda Market Report

• Canada Caustic Soda Market Report by MarkNtel Advisors provides a detailed & thorough analysis of market size & share, growth rate, competitive landscape, and key players. This comprehensive analysis helps businesses gain a holistic understanding of the market dynamics & make informed decisions.
• This report also highlights current market trends & future projections, allowing businesses to identify emerging opportunities & potential challenges. By understanding market forecasts, companies can align their strategies & stay ahead of the competition.
• Canada Caustic Soda Market Report aids in assessing & mitigating risks associated with entering or operating in the market. By understanding market dynamics, regulatory frameworks, and potential challenges, businesses can develop strategies to minimize risks & optimize their operations.

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