Least Risky Industries in Canada in 2022

1. Cannabis Production in Canada

2022 Overall Risk Score: 2.97

The Cannabis Production industry in Canada has blossomed over the five years to 2021 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 52.8% in... Learn More

2. Waste Treatment & Disposal Services in Canada

2022 Overall Risk Score: 3.24

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. Beauty, Cosmetics & Fragrance Stores in Canada

2022 Overall Risk Score: 3.24

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

4. Warehouse Clubs & Supercentres in Canada

2022 Overall Risk Score: 3.26

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 4.2% to $46.5 billion... Learn More

5. Couriers & Local Delivery Services in Canada

2022 Overall Risk Score: 3.35

The Couriers and Local Delivery Services industry in Canada comprises two distinct segments, which include large couriers and small-scale delivery companies. These segments cater to a wide variety of consumers, with demand for each segment differing based on the services offered. For instance, while downstream demand for courier services primarily stems from manufacturers and retailers that require couriers to transport commercial goods over relatively long distances, demand for local delivery services is typically derived from local businesses and individual consumers. Demand for these services is generally cyclical, however, the COVID-19 (coronavirus) pandemic supported industry services in 2020. Overall, industry revenue... Learn More

6. Sewage Treatment Facilities in Canada

2022 Overall Risk Score: 3.35

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

7. Public Transportation in Canada

2022 Overall Risk Score: 3.35

Operators in the Canadian Public Transportation industry operate passenger transit systems over fixed routes and regular schedules within a metropolitan area. Transportation systems involve multiple modes of transportation, including subways, streetcars and buses. Due to the high capital costs associated with running a large public transportation system, most industry operators rely on government subsidies. As a result, government funding is a key driver of industry revenue. Government stimulus programs, such as the Building Canada Plan and the Infrastructure Stimulus Fund, has fuelled industry revenue growth over the five years to 2021. Ultimately, industry revenue is expected to increase an annualized... Learn More

8. Convention & Visitor Bureaus in Canada

2022 Overall Risk Score: 3.36

The Convention and Visitor Bureaus industry in Canada markets local communities to both leisure and business travellers. Operators assist organizations in finding facilities and booking spaces for events, such as conventions, conferences and meetings. In addition, participants provide information on local attractions and accommodations. For much of the five years to 2022, rising levels of disposable income and increased consumer spending have generated demand for industry services among domestic consumers, while favourable exchange rates caused by the weak Canadian dollar have encouraged several international clients to host conventions and plan vacations in Canada. However, despite the COVID-19 (coronavirus) pandemic causing... Learn More

9. Freight Forwarding Brokerages & Agencies in Canada

2022 Overall Risk Score: 3.37

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

10. Gasoline & Petroleum Bulk Stations in Canada

2022 Overall Risk Score: 3.37

Companies in the Canadian Gasoline and Petroleum Bulk Stations industry manage bulk storage tanks and terminals for crude oil and petroleum products such as gasoline, diesel fuel, fuel oil and liquid petroleum gases. These bulk stations are often located near major refineries, ports and industrial centres to quickly and efficiently receive product and unload it to customers. These stations play an important role in the supply chain of crude oil and petroleum products. Given that the industry serves as a conduit between petroleum refiners and markets further downstream, the industry's performance is intimately linked to the supply of and demand... Learn More