Industries with the Biggest Increase in Profit Margin in Canada in 2025

• 1. Beer, Wine & Liquor Stores in Canada

  Percentage Point Increase for 2025: 19.7pp

  Canada’s beer, wine and liquor retailers have faced a turbulent five years since 2020. Even as the number of retail locations increased, driven by provincial liberalization and new agency or grocery channels, overall retail revenue kept sliding. Shrinking per-capita alcohol consumption, weaker real incomes and persistent inflation squeezed consumers’ purchasing power and fundamentally changed how and what Canadians bought. Established segments like beer and wine ceded share, while retailers s...

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• 2. Bottled Water Production in Canada

  Percentage Point Increase for 2025: 13.4pp

  The Canadian bottled water industry stands at a crossroads. In recent years, it's felt the push and pull of mounting environmental scrutiny and a strong shift toward health-conscious consumption. While bottled water remains a staple across the country, government actions—such as the 2022 ban on certain single-use plastics—have sparked a renaissance in packaging innovation. Leading companies have leaned into eco-friendly commitments, with alternatives like recycled plastic and paper-based cart...

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• 3. Petrochemical Manufacturing in Canada

  Percentage Point Increase for 2025: 4.7pp

  Revenue for petrochemical manufacturers closely tracks commodity price movements because crude oil and natural gas are essential feedstocks in petrochemical production. Manufacturers buy these commodities from suppliers and are subject to the market price. Since petrochemicals are essential for various downstream markets, companies can raise their prices accordingly to keep profitability from falling despite higher costs.

  High prices and limited supply drove Canadian chemical shipments...

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• 4. Wood Panelling Manufacturing in Canada

  Percentage Point Increase for 2025: 4.6pp

  Over the past five years, the wood panel manufacturing industry in Canada has experienced modest growth, primarily supported by the residential construction market. A significant trend has been its sensitivity to interest rate fluctuations, which directly impact demand for wood panel products. As interest rates rose in 2022, housing-related spending weakened, causing a notable shift in demand. Despite these challenges, the surge in housing starts driven by urbanization and population growth b...

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• 5. Scientific Research & Development in Canada

  Percentage Point Increase for 2025: 4.4pp

  Scientific R&D companies have benefited from consistent growth in national R&D expenditures, heightened spending on military equipment and a positive incline in institutional involvement within the research space. Government funding for R&D has grown as the federal government made investment in Canadian research a priority, focusing primarily on life sciences and engineering research initiatives. Strong growth in corporate profit, which spiked 6.5% over the past five years, provid...

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• 6. Wood Pulp Mills in Canada

  Percentage Point Increase for 2025: 4.4pp

  The Canadian wood pulp industry has navigated a dynamic landscape over the past five years, marked significantly by the surge in e-commerce and an increasing emphasis on sustainability. As consumer behavior shifts towards online shopping, there has been a notable rise in demand for packaging materials like paperboard and cardboard. This evolution has partly offset the declining need for traditional paper products, driven by the widespread adoption of digital tools and paperless solutions in v...

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• 7. Chocolate Production in Canada

  Percentage Point Increase for 2025: 4.3pp

  The chocolate production industry in Canada has shown resilience and adaptability in the face of evolving consumer preferences and market dynamics. Recent years have highlighted a growing demand for premium, artisanal and sustainably sourced chocolate products, which has driven growth in this sector. Despite facing challenges like rising ingredient costs and supply chain disruptions, the industry has maintained its performance, with producers innovating to meet the diverse tastes of Canadian ...

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• 8. Gold & Silver Ore Mining in Canada

  Percentage Point Increase for 2025: 3.8pp

  Gold and silver ore mining continues to thrive as production levels remain elevated, driven largely by Canada's significant gold deposits, which account for over 98.0% of revenue garnered from gold product sales. Early in the current period, in 2021 and 2022, industry returns fell from pandemic-era highs; during the pandemic, escalating gold prices attracted investor attention because of gold's unique properties as a countercyclical asset, offering a hedge against inflation and market volatil...

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• 9. Uranium & Metal Ore Mining

  Percentage Point Increase for 2025: 3.7pp

  Uranium and metal ore miners have exhibited constant shifts in revenue as commodity prices have fluctuated amid global supply and demand conditions. While the pandemic severely hampered production as lockdowns shut down mining activities, miners benefited from the overall positive movement of platinum and uranium. As mines reopened and the need for these minerals remains strong, production and prices swelled, providing miners with a robust recovery period. Overall, industry revenue has climbe...

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• 10. Satellite TV Providers in Canada

  Percentage Point Increase for 2025: 3.5pp

  Canadian Satellite TV Providers have been grappling with a significant shift in consumer preferences, primarily driven by the prevalence of online streaming services. Over recent years, a growing number of Canadians have been cutting the cord, favouring digital streaming options over traditional satellite TV. High-speed internet and data compression technologies have only accelerated this trend, making streaming platforms more competitive with their convenience, variety...

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