Industries with the Highest Profit Margin in Canada in 2022

1. Cigarette & Tobacco Manufacturing in Canada

Profit Margin 2022: 46.3%

The Cigarette and Tobacco Manufacturing industry in Canada has flourished over the five years to 2022 despite having to contend with 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, which has nonetheless decreased due to the COVID-19 (coronavirus) pandemic. 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... Learn More

2. Hospitals in Canada

Profit Margin 2022: 39.4%

The Hospitals industry in Canada, which includes medical and surgical hospitals, has exhibited stable growth over the five years to 2022. Canada's healthcare system is predominately public, with nearly three-quarters of funding coming from the public sector and the remainder from the private sector, according to the Canadian Institute for Health Information (CIHI). Therefore, the industry is heavily reliant on both federal and provincial funding, which is mostly allocated via global budgets systems, where a fixed payment amount is allocated to a provider to cover operating expenses for a period of time.

While industry operators initially benefited from increased federal funding,... Learn More

3. Physical Therapists in Canada

Profit Margin 2022: 34.7%

The role of physical therapy in promoting health and wellness has increased over the five years to 2022, benefiting the Physical Therapists industry in Canada. The industry exhibited strong growth through the period due to an aging population and rising per capita disposable income. According to Statistics Canada, the population of people aged 65 and older represents the fastest-growing age group in the country. As the population ages, the number of seniors with conditions requiring physiotherapy, such as hip and knee replacements and arthritis, will likely increase. Additionally, the COVID-19 (coronavirus) pandemic did not harm industry revenue, as the industry... Learn More

4. Accounting Services in Canada

Profit Margin 2022: 34.6%

Over the five years to 2022, an expanding Canadian economy has bolstered demand for the Accounting Services industry in Canada. Operators in this industry provide a variety of services, including financial statement preparation, budget development and the review of auditing records for small, medium and large businesses. Industry revenue dropped only slightly in 2020 despite COVID-19 (coronavirus) pandemic-related disruptions due to steady demand for the various services provided by industry operators. Client advisory services were crucial for many businesses seeking to navigate the financial hardships that arose due to disruptions related pandemic. A robust economic recovery in 2021 further boosted... Learn More

5. Wireless Telecommunications Carriers in Canada

Profit Margin 2022: 34.2%

The Wireless Telecommunications Carriers industry in Canada has performed well over much of the five years to 2022 as wireless coverage expanded and a greater number of Canadians adopted smartphones and tablets, thus boosting demand for high-margin mobile broadband services. The number of mobile telephone subscriptions is expected to rise an annualized 3.6% over the five years to 2022, while the number of fixed broadband connections is expected to climb an annualized 3.4% during the same period. However, the COVID-19 (coronavirus) pandemic cut into revenue over 2020, as price-sensitive consumers opted to reduce their spending on industry products. Consequently, industry... Learn More

6. Payroll & Bookkeeping Services in Canada

Profit Margin 2022: 33.8%

The Payroll and Bookkeeping Services industry in Canada is expected to experience slight expansion over the five years to 2022. This industry includes companies that focus on 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 through much of the period have spurred demand and supported revenue growth. As a result, industry revenue... Learn More

7. Cement Manufacturing in Canada

Profit Margin 2022: 32.4%

The Cement Manufacturing industry in Canada produces a variety of cement products that are used for making concrete, mortar and stucco. Industry products are used in a range of construction projects. As a result, industry performance is linked to the level of activity in residential and nonresidential construction markets domestically and in the United States, the industry's largest trading partner. Infrastructure construction, which relies heavily on concrete, also generates demand for cement products. Over the five years to 2022, industry revenue is expected to grow as recovering domestic construction markets raise demand for industry products. The broader economic expansion following... Learn More

8. Commercial Banking in Canada

Profit Margin 2022: 32.2%

Despite low interest rates and some hiccups in economic growth, the Commercial Banking industry in Canada has expanded over the five years to 2022. Banks have done an exceptional job of diversifying revenue streams and overcoming limits imposed by low interest rates and increasing regulations. The industry primarily generates revenue through interest income sources, such as business loans and mortgages, but it also generates income through noninterest sources, which include fees on a variety of services and commissions. Consequently, industry revenue is expected to grow an annualized 1.8% to $211.8 billion over the five years to 2022, including an increase... Learn More

9. Management Consulting in Canada

Profit Margin 2022: 31.7%

The Management Consulting industry in Canada is composed of companies that provide consulting services to private businesses and the public sector. These advisory services are tailored to provide strategic, financial, marketing, operational and supply chain management consulting services. For instance, businesses partake in mergers and acquisitions, joint ventures, divestitures and initial public offerings based on their expectations of what the future holds. Although the company provides countercyclical services that support industry revenue during economic downturns, the COVID-19 (coronavirus) pandemic hindered industry operations in unprecedented ways in 2020. Still, IBISWorld projects industry revenue to increase an annualized of 1.9% to $18.7... Learn More

10. Dentists in Canada

Profit Margin 2022: 30.3%

The Dentists industry in Canada has exhibited growth over the five years to 2022 due to an uptick in the use of dental services and increased expenditure on dental services. Household spending for dental services has risen an annualized 7.1% to $430.00 between 2014 and 2017, up from $350.00 in 2014, according to the latest data available from the Canadian Dental Association. At the same time, dental care spending accounts for the second-largest share of private sector medical spending. With per capita disposable income growing during the period, dental practices have had to secure fewer reimbursements from health insurance providers... Learn More