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. 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

3. Movie Theatres in Canada

Percentage Point Increase for 2023: 8.1pp

The performance of the Canadian Movie Theatres 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 Inc. (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 (coronavirus) pandemic created significant disruptions for the industry as theatres temporarily closed, and audiences stayed home, which resulted in industry... Learn More

4. Spectator Sports in Canada

Percentage Point Increase for 2023: 8.0pp

The Spectator Sports industry in Canada entertains millions of Canadian consumers on an annual basis and the diversity of service offerings typically helps to stabilize the industry's performance. There are few industry-specific organizations that can generate significant revenue, such as the Canadian Football League and the National Hockey League (NHL), with most industry operators instead consisting of small operations that provide sport entertainment on local or regional levels. Industry revenue has experienced a return to growth over much of the five years to 2022. Industry revenue was poised to grow strongly prior to the COVID-19 (coronavirus) pandemic, which ultimately caused... Learn More

5. Trade Show & Event Planning in Canada

Percentage Point Increase for 2023: 5.5pp

Growth in the Trade Show and Event Planning industry in Canada is dependent on corporate profit and corporate marketing budgets, as most of the industry's revenue comes from business-to-business (B2B) events. The industry organizes, promotes and manages events, such as business and trade shows, conventions, conferences and meetings. Revenue is also determined by the ability of consumers to spend, as business-to-consumer (B2C) revenue comes from consumer attendance to events, such as automobile or home improvement shows. Thus, revenue is also correlated with employment and disposable income. Over the five years to 2022, disposable income has grown alongside corporate profit and... Learn More

6. 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

7. Plant & Flower Growing in Canada

Percentage Point Increase for 2023: 4.0pp

Over the five years to 2022, the Plant and Flower Growing industry in Canada has volatile performance. Operators in this industry grow nursery and floriculture products, such as shrubbery, cut flowers, ornamental plants and short rotation woody crops, such as Christmas trees. The industry has performed well over the five years to 2022, aided by economic growth domestically and in the United States. Industry revenue is expected to grow an annualized 1.5% to $2.2 billion over the five years to 2022. However, industry revenue is expected to fall 3.4% in 2022 alone as economic uncertainty is expected to shift spending... Learn More

8. Train, Subway & Transit Car Manufacturing in Canada

Percentage Point Increase for 2023: 3.1pp

Over the five years to 2022, the Canadian Train, Subway and Transit Car Manufacturing industry has experienced significant volatility, which has been driven by cyclical purchases of industry goods and in commodity prices. Ultimately, the industry has expanded over the past five years, partially due to expanding exports stemming from a regulatory landscape that instigated increased capital expenditures. As a result, industry revenue is expected to rise an annualized 5.1% to $3.0 billion over the five years to 2022, including forecast growth of 9.3% in 2022 as demand is expected to grow following increased vaccinations for COVID-19 (coronavirus). Industry profit,... Learn More

9. Caterers in Canada

Percentage Point Increase for 2023: 2.8pp

Over the past five years, the Caterers industry in Canada has benefited from rising disposable income and a steady growth in the number of Canadian businesses. Specifically, improving economic conditions at the beginning of the period encouraged many companies to increase spending on events requiring catering, such as office parties, corporate conferences, team-building seminars and client events. Additionally, rising consumer spending and improving consumer confidence before 2020 increased spending on private events such as weddings and birthdays. In 2020, the social distancing measures restricted caterers' operations, hurting revenue and increasing costs. Simultaneously, reduced corporate profit and household income and mass... Learn More

10. Battery Manufacturing in Canada

Percentage Point Increase for 2023: 2.7pp

The Battery Manufacturing industry in Canada has experienced strong growth in recent years; there is growing demand for batteries in various applications, including portable electronics, electric vehicles, and renewable energy storage. This has created opportunities for Canadian battery manufacturers to expand their operations and increase production. The Canadian government has made significant investments in the development and commercialization of battery technology, including funding research and development programs, providing tax incentives and supporting the growth of the electric vehicle industry. This support has helped to attract investment and create opportunities for Canadian battery manufacturers. Consequently, industry revenue is anticipated to grow... Learn More