Industries with the Biggest Increase in Profit Margin in Canada in 2023

1. Tour Operators in Canada

Percentage Point Increase for 2023: 28.7pp

Canadian tour operators have been extremely volatile in recent years. With the domestic economy's expansions prior to the COVID-19 pandemic, international trips taken by Canadians increased. Greater international exposure for the Canadian tourism industry, coupled with overall global economic growth, motivated more foreigners to visit and book tours in Canada, leading to increased inbound international travel. The COVID-19 pandemic shocked the global tourism sector, with countries closing borders, government authorities keeping only essential businesses open and strict travel restrictions being put in place. Many travellers cancelled their trips while people that were planning trips ended up delaying them indefinitely, decimating... Learn More

2. Travel Agencies in Canada

Percentage Point Increase for 2023: 9.8pp

Travel agencies have struggled due to COVID-19, and the rise of internet travel booking has interfered with the core services of travel agencies. Online travel agents now play a larger role alongside traditional brick-and-mortar businesses. Most agencies suffered in 2020 as governments imposed restrictions on travel, leading revenue to fall at a CAGR of 7.7% to $1.9 billion through the end of 2023, including a 11.5% increase in 2023 alone.

This has led to an unprecedented level of cancellations. Despite the economy showing signs of recovery in 2021, the overall travelling industry continued to endure difficulties. While many countries continued vaccinating... Learn More

3. Movie Theatres in Canada

Percentage Point Increase for 2023: 8.1pp

The performance of the Canadian Movie Theatres industry largely depends on the success or failure of major film releases. Although per capita disposable income directly influences households' ability to spend on discretionary services, such as movies, the marketing efforts and popularity of blockbuster films strongly determine revenue, as movie-going is a relatively low-cost entertainment option. Cineplex Inc. (Cineplex), the industry's dominant player, also drives industry performance, as it typically accounts for more than 60.0% of the domestic market. The COVID-19 (coronavirus) pandemic created significant disruptions for the industry as theatres temporarily closed, and audiences stayed home, which resulted in industry... Learn More

4. Spectator Sports in Canada

Percentage Point Increase for 2023: 8.0pp

The Spectator Sports industry in Canada entertains millions of Canadian consumers on an annual basis and the diversity of service offerings typically helps to stabilize the industry's performance. There are few industry-specific organizations that can generate significant revenue, such as the Canadian Football League and the National Hockey League (NHL), with most industry operators instead consisting of small operations that provide sport entertainment on local or regional levels. Industry revenue has experienced a return to growth over much of the five years to 2022. Industry revenue was poised to grow strongly prior to the COVID-19 (coronavirus) pandemic, which ultimately caused... Learn More

5. Trade Show & Event Planning in Canada

Percentage Point Increase for 2023: 5.5pp

Growth in the Trade Show and Event Planning industry in Canada is dependent on corporate profit and corporate marketing budgets, as most of the industry's revenue comes from business-to-business (B2B) events. The industry organizes, promotes and manages events, such as business and trade shows, conventions, conferences and meetings. Revenue is also determined by the ability of consumers to spend, as business-to-consumer (B2C) revenue comes from consumer attendance to events, such as automobile or home improvement shows. Thus, revenue is also correlated with employment and disposable income. Over the five years to 2022, disposable income has grown alongside corporate profit and... Learn More

6. Plant & Flower Growing in Canada

Percentage Point Increase for 2023: 4.0pp

Over the five years to 2022, the Plant and Flower Growing industry in Canada has volatile performance. Operators in this industry grow nursery and floriculture products, such as shrubbery, cut flowers, ornamental plants and short rotation woody crops, such as Christmas trees. The industry has performed well over the five years to 2022, aided by economic growth domestically and in the United States. Industry revenue is expected to grow an annualized 1.5% to $2.2 billion over the five years to 2022. However, industry revenue is expected to fall 3.4% in 2022 alone as economic uncertainty is expected to shift spending... Learn More

7. Train, Subway & Transit Car Manufacturing in Canada

Percentage Point Increase for 2023: 3.1pp

Over the five years to 2022, the Canadian Train, Subway and Transit Car Manufacturing industry has experienced significant volatility, which has been driven by cyclical purchases of industry goods and in commodity prices. Ultimately, the industry has expanded over the past five years, partially due to expanding exports stemming from a regulatory landscape that instigated increased capital expenditures. As a result, industry revenue is expected to rise an annualized 5.1% to $3.0 billion over the five years to 2022, including forecast growth of 9.3% in 2022 as demand is expected to grow following increased vaccinations for COVID-19 (coronavirus). Industry profit,... Learn More

8. Oxygen & Hydrogen Gas Manufacturing in Canada

Percentage Point Increase for 2023: 2.0pp

The Oxygen and Hydrogen Gas Manufacturing industry in Canada produces industrial gases that are key inputs for a variety of markets, ranging from chemical manufacturing and oil refining to beverage production and medical research. Although the industry manufactures hundreds of unique gases, these products can be categorized into three well-defined product segments, which include air-separated, process and specialty gases. Industrial gases are used by a broad range of markets and customers, so demand for industry goods is dependent on Canada's overall economic performance, industrial output levels and consumer spending.

The industry is forecast to grow over the five years to 2022... Learn More

9. Scheduled Air Transportation in Canada

Percentage Point Increase for 2023: 1.8pp

The Scheduled Air Transportation industry in Canada has performed well over much of the five years to 2022 as rising levels of disposable income enabled more consumers to purchase airline tickets, while a relatively weak Canadian dollar has encouraged inbound travel from foreign consumers visiting Canada. However, the COVID-19 (coronavirus) pandemic has resulted in many airlines suspending international service and governments imposing social distancing guidelines to prevent the spread of coronavirus, severely constraining industry revenue in 2020. Overall, industry revenue is estimated to decrease an annualized 3.4% to $30.7 billion over the five years to 2022. This includes a projected... Learn More

10. Renewable Power in Canada

Percentage Point Increase for 2023: 1.6pp

Over the five years to 2022, the Renewable Power industry in Canada has grown. While the industry has benefited from an improving economy, industrial output has slightly decreased. This has been in response to the COVID-19 (coronavirus) pandemic, which dampened demand from some of the industry's major markets, specifically, commercial and industrial markets, as many industries were forced to shut down to help mitigate the spread of coronavirus. Overall, industry revenue is anticipated to increase at an annualized rate of 2.1% to $36.7 billion over the five years to 2022. This includes a 1.2% increase in 2022 alone. This growth... Learn More