Industries with the Highest Profit Margin in Canada in 2020

1. Snack Food Production in Canada

Profit Margin 2020: 35.3%

The Snack Food Production industry in Canada produces goods such as potato and corn chips, pretzels, roasted and salted nuts, peanut butter, popcorn and other similar snacks. This industry benefited from increased demand over the five years to 2020 as discretionary income levels increased. In turn, renewed consumer spending has boosted sales of potato and tortilla chips, along with nuts and seeds. Buyers also tend to purchase more expensive and healthier products as they have more to spend on snack foods, keeping industry profit high. While many industry products are unhealthy and demand for such goods has slowed, many operators... Learn More

2. Plastic & Resin Manufacturing in Canada

Profit Margin 2020: 33.6%

Operators in the Plastic and Resin Manufacturing industry in Canada primarily convert petrochemicals, such as ethylene and propylene, into resins, which are used to produce downstream plastics and adhesives with a wide variety of applications, including in automobiles and in single-use plastic bags. The industry is highly globalized and has benefited from steady growth in downstream industries, both domestically and in the United States, over the five years to 2020. However, price volatility in key inputs, such as crude oil and natural gas, has caused complicated operating conditions and has put downward pressure on prices, resulting in declines. IBISWorld forecasts... Learn More

3. Payroll & Bookkeeping Services in Canada

Profit Margin 2020: 33.6%

The Payroll and Bookkeeping Services industry in Canada is expected to experience moderate expansion over the five years to 2020. This industry includes companies that focus on the provision of payroll processing and bookkeeping transactions for other businesses. This enables time-scarce managers and businesses to focus on their core functions rather than minor administrative tasks such as payroll processing. The act of outsourcing business functions has become increasingly common over the past five years, which has increased demand for the industry's services. Additionally, favourable macroeconomic trends have spurred demand and supported revenue growth. As a result, industry revenue is expected... Learn More

4. Soybean Farming in Canada

Profit Margin 2020: 32.7%

The Soybean Farming industry in Canada has declined over the five years to 2020 as a result of the spillover from trade war between China and the United States. China had traditionally been the largest export market for industry products, consistently accounting for over 50.0% of industry exports. However, geopolitical tension between China and Canada, which developed toward the end of the five-year period, caused a dramatic decline in the trade of industry products between the two countries. This, combined with lower prices and increased competition from US soybeans, are expected to result in the industry declining at an annualized... Learn More

5. Uranium & Metal Ore Mining

Profit Margin 2020: 25.6%

Companies in the Uranium and Metal Ore Mining industry in Canada mine molybdenum, platinum, palladium, uranium, cobalt and a variety of metal bearing ores sold to various markets. As a result, industry revenue is closely linked to the underlying prices of the commodities, which themselves are a function of global supply and demand conditions. Over the five years to 2020, the prices of these major commodities experienced significant volatility, driving down industry revenue at an annualized rate of 0.6% to $3.6 billion, while leading to significant growth in industry profit.

The largest source of industry revenue is uranium, which typically accounts... Learn More

6. Coal Mining in Canada

Profit Margin 2020: 22.3%

Operators in the Coal Mining industry in Canada have experienced wild fluctuations in prices of industry goods over the five years to 2020. Ultimately, industry revenue is forecast to grow an annualized 6.5% to $9.0 billion during the period, growing an estimated 2.9% in 2020 alone. The industry has two primary products, such as 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 fuelled revenue growth. Domestic production of both metallurgical... Learn More

7. Dating Services in Canada

Profit Margin 2020: 21.7%

The Dating Services industry in Canada has exhibited strong growth over the five years to 2020 as a growing number of Canadians are using the internet to find love. The proliferation of broadband internet connections, along with greater cultural legitimacy surrounding online dating, have helped the industry outpace the overall economy and capture a rising share of the consumer dollar. Further, companies that are able to take advantage of rising smartphone adoption in Canada have been highly successful, with many operators offering services exclusively through mobile apps. Consumers are increasingly accessing mobile dating applications through their smartphones as functionality and... Learn More

8. Gold & Silver Ore Mining in Canada

Profit Margin 2020: 21.1%

Operators in the Gold and Silver Ore Mining industry in Canada are primarily engaged in mining, beneficiating or otherwise preparing gold or silver ore. Industry revenue is a function of domestic gold and silver production alongside prices, which are informed by global supply and demand. The industry has experienced growth over the five years to 2020, largely driven by increasing gold production and prices. Though the world price of silver has also increased, decreased production has diminished it as an increasingly minor source of industry revenue. This has further increased the amount of industry revenue generated by gold production, with... Learn More

9. Human Resources & Benefits Administration in Canada

Profit Margin 2020: 18.1%

The Human Resources and Benefits Administration industry in Canada provides a wide range of everyday office administrative services to businesses in Canada. Industry operators provide financial planning, billing and record keeping, personnel management, physical distribution and logistics on a day-to-day or contract basis. Since operators specialize in outsourced business management and employment-related services, industry performance is correlated with unemployment, corporate profit and the number of businesses operating within Canada. Over the five years to 2020, the industry has struggled with volatile corporate profit that has forced businesses to reconsider paying for extra value-added services and high levels of competition that... Learn More

10. Dairy Farms in Canada

Profit Margin 2020: 17.9%

The Dairy Farms industry in Canada consists of farms that primarily raise cattle for milking, and the majority of industry revenue comes from the sale of milk to dairy processors. Industry performance has been slow, with revenue stagnating at $8.2 billion over the five years to 2020. Industry revenue is forecast to decline 1.7% in 2020 alone, primarily associated with the economic slowdown attributed to COVID-19 (coronavirus). While consumer spending has risen, fluid milk consumption has fallen in recent years in favour of substitutes, cutting into demand for one of the industry's primary products. However, downstream demand for other dairy... Learn More