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

1. Scientific Research & Development in Canada

Percentage Point Increase for 2025: 4.4pp

The industry includes organizations conducting physical, engineering and life sciences research, but does not include private research and development (R&D) conducted in-house at corporations. Private enterprises represent most industry clients and funding.

Government funding for R&D has grown as the current administration has made investment in Canadian research a priority. New enterprises have entered the market, encouraged by targeted funding toward technological and innovative research areas. This has led to fragmentation in the industry, with an increase in smaller-scale research initiatives. As a result, due to a significant economic expansion after the peak of the COVID-19 pandemic and low interest rates... Learn More

2. Chocolate Production in Canada

Percentage Point Increase for 2025: 4.3pp

Canadian chocolate producers transform raw materials, such as cacao beans, sugar and milk, into various products, including chocolate bars, stuffed chocolates and premium chocolate boxes. Demand has fluctuated due to strong disposable income, increased health consciousness and volatile input prices. Chocolate producers have benefited from greater demand for premium chocolates and steady export growth. Rising discretionary spending has bolstered chocolate producers considerably. Rising chocolate prices have weighed on demand in recent years, as major players bolster profit via more expensive chocolates. Industry revenue is expected to decrease at a CAGR of 1.2% to $2.6 billion through the end of 2023,... Learn More

3. Gold & Silver Ore Mining in Canada

Percentage Point Increase for 2025: 3.8pp

Gold and silver ore mining continue to thrive as production outputs expand. While the industry does contain silver mining, Canada's vast deposit of gold mines leads to more than 97.0% of revenue coming straight from gold product sales. Rising gold prices amid the pandemic led to an influx of investor buyouts since gold is countercyclical to the market and hedges against inflation and market volatility. Revenue continued to expand even as production dipped following limited operational capacity as miners abided by health and safety regulations. Even so, as the economy recovered, investors began resuming interest in other asset classes. Gold... Learn More

4. Nonferrous Metal Rolling & Alloying in Canada

Percentage Point Increase for 2025: 3.3pp

The Nonferrous Metal Rolling and Alloying industry in Canada processes precious metals, nickel, zinc and other nonferrous metals, except for aluminum and copper, which operators purchase from primary producers or recover from scrap. In recent years, the industry has experienced tremendous swings in metal prices, which comprise operators' primary inputs. Supply chain issues which arose in the wake of the COVID-19 pandemic drove up prices for metals such as nickel, supporting revenue growth. Still, the pandemic disrupted industrial activity to the detriment of this industry. IBISWorld estimates industry revenue has been decreasing at a CAGR of 5.6% over the past... Learn More

5. Chicken & Turkey Meat Production in Canada

Percentage Point Increase for 2025: 3.1pp

As with most other industries under the supply management system, Canada's Chicken and Turkey Meat Production industry exhibits low to moderate volatility. Fortunately for farmers, effective supply management has helped offset dips in revenue. Industry revenue is expected to grow an annualized 2.6% to $4.3 billion over the five years to 2023 as a result of increased poultry consumption among consumers. In 2023 alone, industry revenue is expected to decrease 0.1% due to a forecast decline in the price of poultry meat alongside general economic uncertainty, which will likely reduce spending on premium industry goods. Due largely to the high... Learn More

6. Cigarette & Tobacco Manufacturing in Canada

Percentage Point Increase for 2025: 2.2pp

Cigarette and tobacco manufacturers in Canada have struggled throughout 2023 due to tough regulatory pressures, taxation and declining cigarette consumption. The government has increased excise taxes several times over the past five years in an effort to curb smoking by forcing industry operators to increase prices to salvage profit. This strategy has been successful in part, since cigarette consumption and the number of smokers in Canada have both declined during the period, to the detriment of the industry. However, as a result of tobacco's inelastic demand, operators have been able to increase prices at a faster rate than demand has... Learn More

7. Ski & Snowboard Resorts in Canada

Percentage Point Increase for 2025: 2.1pp

The Ski and Snowboard Resorts industry in Canada has experienced meager growth over the five years to 2023 due to steep declines caused by COVID-19. However, rising per capita disposable income during most of the period gave consumers more discretionary income, enabling them to spend more on recreational activities, such as skiing and snowboarding. Overall, industry revenue is expected to increase an annualized 0.2% to $1.5 billion over the five years to 2023.

The COVID-19 pandemic had a remarkable impact on all tourism-related industries as travel restrictions enacted to prevent the spread of the virus ultimately prevented tourism. Provincial lockdowns... Learn More

8. Sawmills & Wood Production in Canada

Percentage Point Increase for 2025: 2.0pp

Sawmill and wood producers in Canada have experienced revenue growth throughout 2023. The industry has experienced complicated operating conditions due to the lingering effects of several wildfires in the area and the spread of COVID-19. The industry has experienced strong demand from key downstream consumers during most of the period, such as the US housing market, which is the largest buyer of industry goods. But increased operating costs related to a fibre shortage and volatile exports are expected to reduce industry profit. Profit, measured as earnings before interest and taxes, is expected to decrease, accounting for 7.2% in 2023. While... Learn More

9. Cannabis Production in Canada

Percentage Point Increase for 2025: 1.9pp

Cannabis producers in Canada have blossomed in recent years as recreational products were legalized in 2018, opening up massive growth. Since Health Canada opened up medicinal cannabis production to more players in 2013, producers have grown continuously as they invest in production capabilities to produce quality products. As consumers shifted from illegal cannabis purchases to the licensed recreational market, cannabis growers have grown significantly, but revenue is expected to expand 17.5% in 2023 alone as the novelty of legal cannabis has worn off and most the black market has shifted to licensed purchases, which has decreased growth. Revenue has ballooned... Learn More

10. Battery Manufacturing in Canada

Percentage Point Increase for 2025: 1.8pp

The Battery Manufacturing industry in Canada has experienced strong growth in recent years; there is growing demand for batteries in various applications, including portable electronics, electric vehicles, and renewable energy storage. This has created opportunities for Canadian battery manufacturers to expand their operations and increase production. The Canadian government has made significant investments in the development and commercialization of battery technology, including funding research and development programs, providing tax incentives and supporting the growth of the electric vehicle industry. This support has helped to attract investment and create opportunities for Canadian battery manufacturers. Consequently, industry revenue is anticipated to grow... Learn More