Industry Statistics and Trends
Market size and recent performance (2015-2030)
Industry revenue has grown at a CAGR of 2.5 % over the past five years, to reach an estimated $10.1bn in 2025.
Trends and Insights
Recreational cannabis legalization presents opportunities and challenges
- The 2018 legalization of recreational cannabis in Canada opened a new consumer market, driving initial growth for small specialty retailers, especially independent cannabis stores. Companies like Fire & Flower and High Tide Inc. capitalized early on, rapidly expanding their store networks in key provinces. These stores are now able to offer a wider variety of products, such as cannabis-infused edibles, oils and accessories.
- Additional trends and insights available with purchase
Source: IBISWorld
Industry outlook (2025-2030)
Market size is projected to grow over the next five years.
Trends and Insights
Digital payment methods become more popular
- The pandemic accelerated the adoption of contactless payments, which will continue in the coming years. Retailers will need to integrate the latest digital payment options to enhance customer convenience. While these technologies are more sanitary, the biggest reasons for the climb in popularity are better security and faster transaction times.
Biggest companies in the Small Specialty Retail Stores in Canada
| Company | Market Share (%)
2025 | Revenue ($m)
2025 | Profit ($m)
2025 | Profit Margin (%)
2025 |
|---|
There are no companies that hold a large enough market share in the Small Specialty Retail Stores in Canada industry for IBISWorld to include in this product.
Products & Services Segmentation
Source: IBISWorld
Industry revenue is measured across several distinct product and services lines, including Tobacco products and smokers' accessories, Recreational cannabis products and Art materials and supplies. Tobacco products and smokers' accessories is the largest segment of the Small Specialty Retail Stores in Canada.
Trends and Insights
Tobacco products and smokers' accessories
- This segment includes cigars, cigarettes, chewing tobacco, e-cigarettes and snuff. Accessories such as lighters, pipes, rolling papers and grinders are also included in this category. The popularity of nicotine alternatives has boosted sales of this segment, as the tobacco industry undergoes massive changes.
- More insights available in the full report
Table of Contents
About this industry
Industry definition
Canadian small specialty retailers sell specialized goods, such as art supplies, cigarettes and cigars, paper goods, collectors’ items, fireworks, religious merchandise, trophies and beer- and wine-making supplies. This industry also includes general merchandise auction houses, but it excludes mass merchandisers, department stores, warehouse clubs and supercentres.
What's included in this industry?
Products and services covered in the Small Specialty Retail Stores industry in Canada include Retailing general merchandise , Retailing art supplies, Retailing calendars, Retailing candles, Retailing collectors' items (e.g. autographs, cards, coins and stamps), Retailing firework products, Retailing religious goods (except books) , Retailing specialized occupational supplies, Retailing tobacco and tobacco products (e.g. cigarettes and cigars) and Retailing trophies.Companies
Companies covered in the Small Specialty Retail Stores industry in Canada include .Purchase this report to view all major companies in this industry.
Related Terms
Related terms covered in the Small Specialty Retail Stores industry in Canada include mass merchandiser, brick-and-mortar store, electronic data interchange, e-tailer and point-of-sale.Industry Code
NAICS 45399 - Small Specialty Retail Stores in Canada
Performance
Get an indication of the industry's health through historical, current and forward-looking trends in the performance indicators that make or break businesses.
Analyst insights
Revenue has grown swiftly, largely driven by the legalization of recreational cannabis. Stores have also endured challenges like a slump in tobacco sales, stiffer competition...
In this chapter (4)
- Current Performance
- Outlook
- Volatility
- Life Cycle
Key metrics
- Annual Revenue, Recent Growth, Forecast, Revenue Volatility
- Number of Employees, Recent Growth, Forecast, Employees per Business, Revenue per Employee
- Number of Businesses, Recent Growth, Forecast, Employees per Business, Revenue per Business
- Total Profit, Profit Margin, Profit per Business
Charts
- Revenue, including historical (2015-2024) and forecast (2025-2030)
- Employees, including historical (2015-2024) and forecast (2025-2030)
- Businesses, including historical (2015-2024) and forecast (2025-2030)
- Profit, including historical (2015-2025)
- Industry Volatility vs. Revenue Growth
- Industry Life Cycle
Detailed analysis
- Trends in supply, demand and current events that are driving current industry performance
- Expected trends, economic factors and ongoing events that drive the industry's outlook
- Key success factors for businesses to overcome volatility
- How contribution to GDP, industry saturation, innovation, consolidation, and technology and systems influence the industry's life cycle phase.
Products and Markets
Learn about an industry's products and services, markets and trends in international trade.
Analyst insight
Stores rely on consumers from the third- and fourth-lowest income quintiles. The lowest and second-lowest income quintiles are also important for small specialty retail store...
In this chapter
- Products & Services
- Major Markets
Key metrics
- Largest market segment and value in 2025
- Product innovation level
Charts
- Products & services segmentation in 2025
- Major market segmentation in 2025
Detailed analysis
- Trends impacting the recent performance of the industry's various segments
- Innovations in the industry's product or service offering, specialization or delivery method
- Key factors that successful businesses consider in their offerings
- Buying segments and key trends influencing demand for industry products and services
Geographic Breakdown
Discover where business activity is most concentrated in an industry and the factors driving these trends to find opportunities and conduct regional benchmarking.
Analyst insights
Ontario has the largest share of establishments, with Toronto as its central hub. Quebec has the second-highest concentration, thanks to high sales of specialty tobacco produ...
In this chapter (1)
- Business Locations
Charts
- Share of revenue, establishment, wages and employment in each province
- Share of population compared to establishments in each region in 2025
Tables
- Number and share of establishments in each province in 2025
- Number and share of revenue each province accounts for in 2025
- Number and share of wages each province accounts for in 2025
- Number and share of employees in each province in 2025
Detailed analysis
- Geographic spread of the industry across North America, and trends associated with changes in the business landscape
- Key success factors for businesses to use location to their advantage
Competitive Forces
Get data and insights on what's driving competition in an industry and the challenges industry operators and new entrants may face, with analysis built around Porter's Five Forces framework.
Analyst insights
High competition exists between stores selling similar or identical products, intensifying price competition. Consumers tend to compare prices among stores for unique items a...
In this chapter (4)
- Concentration
- Barriers to Entry
- Substitutes
- Buyer & Supplier Analysis
Key metrics
- Industry concentration level
- Industry competition level and trend
- Barriers to entry level and trend
- Substitutes level and trend
- Buyer power level and trend
- Supplier power level and trend
Charts
- Market share concentration among the top 4 suppliers from 2020-2025
- Supply chain including upstream supplying industries and downstream buying industries, flow chart
Detailed analysis
- Factors impacting the industry’s level of concentration, such as business distribution, new entrants, or merger and acquisition activity.
- Key success factors for businesses to manage the competitive environment of the industry.
- Challenges that potential industry entrants face such as legal, start-up costs, differentiation, labor/capital intensity and capital expenses.
- Key success factors for potential entrants to overcome barriers to entry.
- Competitive threats from potential substitutes for the industry’s own products and services.
- Key success factors for how successful businesses can compete with substitutes.
- Advantages that buyers have to keep favorable purchasing conditions.
- Advantages that suppliers have to maintain favorable selling conditions.
- Key success factors for how businesses can navigate buyer and supplier power.
Companies
Learn about the performance of the top companies in the industry.
Analyst insights
Nearly all specialty retailers are small establishments that service local customers. The wide range of items retailed by these stores makes it difficult for one enterprise t...
In this chapter
- Market Share Concentration
- Companies
- Company Spotlights
Charts
- Industry market share by company in 2021 through 2025
- Major companies in the industry, including market share, revenue, profit and profit margin in 2025
Detailed analysis
External Environment
Understand the demographic, economic and regulatory factors that shape how businesses in an industry perform.
Analyst insights
The Retail Council of Canada plays a crucial role in strengthening retail communities. Industry associations provide valuable market research and insights.
In this chapter
- External Drivers
- Regulation & Policy
- Assistance
Key metrics
- Regulation & policy level and trend
- Assistance level and trend
Charts
- Regulation & Policy historical data and forecast (2015-2030)
- Assistance historical data and forecast (2015-2030)
Detailed analysis
- Demographic and macroeconomic factors influencing the industry, including Regulation & Policy and Assistance
- Major types of regulations, regulatory bodies, industry standards or specific regulations impacting requirements for industry operators
- Key governmental and non-governmental groups or policies that may provide some relief for industry operators.
Financial Benchmarks
View average costs for industry operators and compare financial data against an industry's financial benchmarks over time.
Analyst insights
Some specialty retailers focus on providing value-added retail experiences, while others are forced to lower prices. Adopting unique strategies that enhance customer experien...
In this chapter
- Cost Structure
- Financial Ratios
- Key Ratios
Key metrics
- Profit margin, and how it compares to the sector-wide margin
- Average wages, and how it compares to the sector-wide average wage
- Largest cost component as a percentage of revenue
- Industry average ratios for days' receivables, industry coverage and debt-to-net-worth ratio
Charts
- Average industry operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2025
- Average sector operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2025
- Investment vs. share of economy
Data tables
- Liquidity Ratios (2018-2023)
- Coverage Ratios (2018-2023)
- Leverage Ratios (2018-2023)
- Operating Ratios (2018-2023)
- Assets (2018-2023)
- Liabilities (2018-2023)
- Cash Flow & Debt Service Ratios (2015-2030)
- Revenue per Employee (2015-2030)
- Revenue per Enterprise (2015-2030)
- Employees per Establishment (2015-2030)
- Employees per Enterprise (2015-2030)
- Average Wage (2015-2030)
- Wages/Revenue (2015-2030)
- Establishments per Enterprise (2015-2030)
- IVA/Revenue (2015-2030)
- Imports/Demand (2015-2030)
- Exports/Revenue (2015-2030)
Detailed analysis
- Trends in the cost component for industry operators and their impact on industry costs and profitability
Key Statistics
Industry Data
Data Tables
Including values and annual change:
- Revenue (2015-2030)
- IVA (2015-2030)
- Establishments (2015-2030)
- Enterprises (2015-2030)
- Employment (2015-2030)
- Exports (2015-2030)
- Imports (2015-2030)
- Wages (2015-2030)
Top Questions Answered
Unlock comprehensive answers and precise data upon purchase. View purchase options.
What is the market size of the Small Specialty Retail Stores industry in Canada in 2025?
The market size of the Small Specialty Retail Stores industry in Canada is $10.1bn in 2025.
How many businesses are there in the Small Specialty Retail Stores industry in Canada in 2025?
There are 15,391 businesses in the Small Specialty Retail Stores industry in Canada, which has grown at a CAGR of 4.5 % between 2020 and 2025.
How may import tariffs affect the Small Specialty Retail Stores industry in Canada?
The Small Specialty Retail Stores industry in Canada is unlikely to be materially impacted by import tariffs with imports accounting for a low share of industry revenue.
How may export tariffs affect the Small Specialty Retail Stores industry in Canada?
The Small Specialty Retail Stores industry in Canada is unlikely to be materially impacted by export tariffs with exports accounting for a low share of industry revenue.
Has the Small Specialty Retail Stores industry in Canada grown or declined over the past 5 years?
The market size of the Small Specialty Retail Stores industry in Canada has been growing at a CAGR of 2.5 % between 2020 and 2025.
What is the forecast growth of the Small Specialty Retail Stores industry in Canada over the next 5 years?
Over the next five years, the Small Specialty Retail Stores industry in Canada is expected to grow.
What does the Small Specialty Retail Stores industry in Canada include?
Retailing general merchandise and Retailing art supplies are part of the Small Specialty Retail Stores industry in Canada.
How competitive is the Small Specialty Retail Stores industry in Canada?
The level of competition is high and increasing in the Small Specialty Retail Stores industry in Canada.
Methodology
How are IBISWorld reports created?
IBISWorld has been a leading provider of trusted industry research for over 50 years to the most successful companies worldwide. With offices in Australia, the United States, the United Kingdom, Germany and China, we are proud to have local teams of analysts that conduct research, data analysis and forecasting to produce data-driven industry reports.
Our analysts start with official, verified and publicly available sources of data to build the most accurate picture of each industry. Analysts then leverage their expertise and knowledge of the local markets to synthesize trends into digestible content for IBISWorld readers. Finally, each report is reviewed by one of IBISWorld’s editors, who provide quality assurance to ensure accuracy and readability.
IBISWorld relies on human-verified data and human-written analysis to compile each standard industry report. We do not use generative AI tools to write insights, although members can choose to leverage AI-based tools within the platform to generate additional analysis formats.
What data sources do IBISWorld analysts use?
Each industry report incorporates data and research from government databases, industry-specific sources, industry contacts, and our own proprietary database of statistics and analysis to provide balanced, independent and accurate insights.
Key data sources in Canada include:
- Statistics Canada
- Industry Canada
- Canadian Business Patterns
Analysts also use industry specific sources to complement catch-all sources, although their perspective may focus on a particular organization or representative body, rather than a clear overview of all industry operations. However, when balanced against other perspectives, industry-specific sources provide insights into industry trends.
These sources include:
- Industry and trade associations
- Industry federations or regulators
- Major industry players annual or quarterly filings
Finally, IBISWorld’s global data scientists maintain a proprietary database of macroeconomic and demand drivers, which our analysts use to help inform industry data and trends. They also maintain a database of statistics and analysis on thousands of industries, which has been built over our more than 50-year history and offers comprehensive insights into long-term trends.
How does IBISWorld forecast its data?
IBISWorld’s analysts and data scientists use the sources above to create forecasts for our proprietary datasets and industry statistics. Depending on the dataset, they may use regression analysis, multivariate analysis, time-series analysis or exponential smoothing techniques to project future data for the industry or driver. Additionally, analysts will leverage their local knowledge of industry operating and regulatory conditions to impart their best judgment on the forecast model.
IBISWorld prides itself on being a trusted, independent source of data, with over 50 years of experience building and maintaining rich datasets and forecasting tools. We are proud to be the keystone source of industry information for thousands of companies across the world.
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