Least Risky Industries in Canada in 2022

1. Cannabis Production in Canada

2022 Overall Risk Score: 2.79

The Cannabis Production industry in Canada has blossomed over the five years to 2022 as a massive market was introduced into the industry, driving up revenue late during the period. Since Health Canada opened up medicinal cannabis production to more players in 2013, the industry has grown continuously as operators invest in production capabilities to produce quality products. However, the legalization of recreational cannabis in 2018 has been the primary driver of the industry boom during the period. As consumers shifted from illegal cannabis purchases to the licensed recreational market, the industry has grown significantly, with revenue growing 26.7% in... Learn More

2. Waste Treatment & Disposal Services in Canada

2022 Overall Risk Score: 3.15

The Waste Treatment and Disposal Services industry in Canada consists of enterprises engaged in operating a variety of waste treatment and disposal sites, including landfills, incinerators or other types of disposal facilities. While demand for recycling has been a long-term trend, waste production has continued to grow. However, the industry has been hampered by a decline in crude oil prices that have reduced investment in the energy sector and cut demand from related activities, which prompted a strong decline in industry revenue, thus cutting into profit. Moreover, the COVID-19 (coronavirus) pandemic further hindered the energy market and industry performance in... Learn More

3. Ocean & Coastal Transportation in Canada

2022 Overall Risk Score: 3.23

Operators in the Canadian Ocean and Coastal Transportation industry transport freight, bulk cargo and passengers along international and coastal shipping routes. The industry is expected to experience a decline in revenue over the five years to 2022. Economic growth in emerging markets and the growing need for Canadian natural resources enabled industry-relevant shipping companies to benefit from Canada's substantial dry and liquid-bulk exports early in the period. Stable, pre-pandemic economic growth in the United States also has increased demand for industry services, as shipping to the United States makes up a substantial share of the industry's total export traffic. Moreover,... Learn More

4. Beauty, Cosmetics & Fragrance Stores in Canada

2022 Overall Risk Score: 3.41

The Beauty, Cosmetics and Fragrance Stores industry in Canada has contracted over the five years to 2022, as industry operators have continued to endure external competition from department stores and other mass merchandisers. However, a growing Canadian economy has increased consumer confidence and simultaneously bolstered per capita disposable income during the five-year period, which consumers have increasingly used to purchase the industry's many products. In addition, major international beauty chains such as Sephora and Bath & Body Works Inc. have aggressively expanded into Canada, winning back industry revenue from external competitors that have siphoned it away, such as department stores... Learn More

5. Freight Forwarding Brokerages & Agencies in Canada

2022 Overall Risk Score: 3.45

The Freight Forwarding Brokerages and Agencies industry in Canada arranges the transportation of cargo, helping manufacturers, importers and wholesalers ship cargo in the most timely and cost-effective manner. Industry operators advise clients on shipment rates and trade routes and subcontract transportation services to truck, rail, marine and air freight carriers. Additionally, industry participants provide customs brokering services, helping importers determine commodity classifications and calculate the value of shipments. Consequently, demand for industry services is largely determined by domestic and international trade volumes, in addition to the propensity of businesses to outsource freight forwarding and customs brokering operations.

Industry revenue is expected... Learn More

6. Warehouse Clubs & Supercentres in Canada

2022 Overall Risk Score: 3.51

The Warehouse Clubs and Supercentres industry in Canada comprises stores that retail discount groceries, along with other basic goods, such as appliances, and achieve cost savings by leveraging economies of scale, offering products in bulk or charging membership fees. Due to the low-cost, high-value products offered by warehouse clubs and supercentres, the industry typically performs well regardless of the macroeconomic climate. However, when businesses and consumers have deeper pockets, they are likely to spend more at industry establishments. As a result of rising per capita disposable income, industry revenue has increased at an annualized rate of 3.4% to $58.5 billion... Learn More

7. Sewage Treatment Facilities in Canada

2022 Overall Risk Score: 3.65

The Sewage Treatment Facilities industry in Canada includes facilities that collect, treat and dispose of wastewater generated by homes, businesses and stormwater runoff. The majority of its funding emanates from municipalities, which serves to minimize revenue volatility. These municipal services are funded through water rates, property taxes, development charges and government contributions. Over the five years to 2021, the industry has remained stable despite a growing population, stimulating demand for industry services. Further, continued investment into facilities to meet new regulatory requirements helped keep demand for industry services stable during the COVID-19 (coronavirus) pandemic. IBISWorld estimates revenue to remain stagnant... Learn More

8. Restaurant & Hotel Equipment Wholesaling in Canada

2022 Overall Risk Score: 3.67

The Restaurant and Hotel Equipment Wholesaling industry in Canada distributes commercial cooking, dishwashing, tableware and food service equipment to restaurants, hotels and drinking establishments. Industry performance depends on economic factors that affect these downstream markets, including employment, consumer spending and tourism trends. Additionally, since most restaurant expansions are financed by loans, the availability of credit is crucial to the industry, making the overnight rate a salient indicator of demand.

Over the five years to 2021, as employment shortages and minimum wage hikes become more prominent, industry operators have experienced the pressure of higher costs and fewer workers, causing revenue to decrease.... Learn More

9. Industrial Laundry & Linen Supply in Canada

2022 Overall Risk Score: 3.76

The Industrial Laundry and Linen Supply industry in Canada, which supplies linen, uniforms and dust-control items to food services, hospitality and manufacturing operators, is expected to experience a decline over the five years to 2021, primarily due to the COVID-19 (coronavirus) pandemic. The industry has experienced fluctuating levels of revenue growth and declines during the period, but revenue is expected to decrease overall, falling at an annualized rate of 2.8% to $922.9 million over the five years to 2021. During the period, industry revenue growth has been sustained primarily by declining unemployment and rising demand from the healthcare, food services... Learn More

10. Car Body Shops in Canada

2022 Overall Risk Score: 3.79

Most operators in the Canadian Car Body Shops industry have experienced low revenue volatility over the five years to 2021. Increasing demand for repairs and discretionary services has boosted demand for industry services. Existing vehicles are increasingly being fixed and upgraded, bolstering industry revenue over the past five years. As a result, IBISWorld projects industry revenue to increase an annualized 2.7% to $6.8 billion over the five years to 2021, including an increase of 10.7% in 2021 alone as the economy begins to recover from the COVID-19 (coronavirus) pandemic, which severely reduced both revenue and profit in 2020 as the... Learn More