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. Movie Theatres in Canada

Percentage Point Increase for 2023: 21.0pp

The performance of the movie theatre 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, 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 pandemic created significant disruptions for the industry as theatres temporarily closed and audiences stayed home, which resulted in industry revenue dropping 71.7% in... Learn More

3. Cannabis Production in Canada

Percentage Point Increase for 2023: 10.8pp

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

4. 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

5. Hotels & Motels in Canada

Percentage Point Increase for 2023: 8.0pp

Hotels and motels have benefited from rising incomes and population growth in recent years as consumers spent freely on vacations and hotel stays. But, when COVID-19 shut down tourism, hotel rooms were left empty, creating long-lasting financial and operational challenges. A travel slump through early-2021 left the industry struggling, as bookings stayed at a fraction of what they were in 2019. Yet, long periods at home left consumers with savings and pent-up demand to spend on trips as travel restrictions lifted. While enormous demand for travel led to a rapid recovery at hotels between 2022 and 2023, supply chain disruptions... Learn More

6. Coal Mining in Canada

Percentage Point Increase for 2023: 7.8pp

Operators in the Coal Mining industry in Canada have experienced considerable fluctuations in prices of industry goods. Canadian coal mining revenue has been increasing at an annualized 11.3% over the past five years, including an estimated 32.3% decrease in 2023, and is expected to total $19.0 billion. In 2023, profit is set to increase to 32.1%. The industry has two primary products, metallurgical coal used for steel production and thermal coal used in energy generation. At the start of the current period, global oversupply and falling demand resulted in low prices and revenue. Subsequent price growth between 2016 and 2018... Learn More

7. Parking Lots & Garages in Canada

Percentage Point Increase for 2023: 5.5pp

Over the current period, parking lot companies faced declines. The outbreak of COVID-19 hammered parking lot companies alongside many key downstream markets. While parking lot companies returned to growth in 2022, they have not recovered from pre-pandemic levels. Industry-wide revenue has been falling at a CAGR of 2.8% over the past five years and is expected to total $372.4 million in 2023, when revenue will inch up by an estimated 0.5%.

Driving activity plummeted following the outbreak of COVID-19. Remote work and schooling decreased growth from parking lots and garages at offices and institutions. Travel restrictions subdued growth from rail stations... Learn More

8. Trade Show & Event Planning in Canada

Percentage Point Increase for 2023: 5.5pp

The events that the Trade Show and Event Planning industry in Canada organizes, promotes and manages, including business and trade shows, conventions, conferences and meetings, are heavily dependent on the state of the overall economy. Specifically, the health of corporate marketing budgets that pay for business-to-business (B2B) events and consumers' ability to attend events, such as automobile and home improvement shows, which generate business-to-consumer (B2C) revenue, determine the performance of the industry. While corporate profit has grown alongside consumer disposable income, driving spending by businesses and consumers alike, the COVID-19 pandemic generated both vast economic volatility and disrupted the fundamental... Learn More

9. Flour Milling in Canada

Percentage Point Increase for 2023: 5.1pp

The Flour Milling industry in Canada has experienced strong growth over the five years to 2023 amid a surge in demand for Canadian flour milling products in 2022 and 2023. The industry includes operators that produce flour products from milling grains, rice millers, and malt manufacturers. Flour is the largest product segment, and heightened demand for Canadian flour has buoyed industry growth. Malt manufacturing has also driven the industry's growth, given that Canada is the second-largest exporter of malt in the world. Overall, industry revenue is expected to expand an annualized 11.4% to $4.7 billion over the five years to... Learn More

10. Funeral Homes in Canada

Percentage Point Increase for 2023: 4.4pp

Funeral homes in Canada provide memorial services and facilitate the arrangement of the deceased's burial or cremation. Demand for industry services does not strongly fluctuate alongside changes in the business cycle, and is instead dependent on demographic factors such as age and consumer preferences. Canada's growing and aging population has resulted in the number of deaths trending upward throughout 2023. However, more Canadians are now opting for cremations or other less expensive alternatives to alleviate the financial pressure of honouring their loved ones. Moreover, consumers are increasingly purchasing their merchandise (e.g. caskets) online to save on costs, with operators unable... Learn More