Industries with the Biggest Increase in Profit Margin in Canada in 2025

1. Chocolate Production in Canada

Percentage Point Increase for 2025: 4.3pp

Canadian chocolate producers transform raw materials, such as cacao beans, sugar and milk, into various products, including chocolate bars, stuffed chocolates and premium chocolate boxes. Demand has fluctuated due to strong disposable income, increased health consciousness and volatile input prices. Chocolate producers have benefited from greater demand for premium chocolates and steady export growth. Rising discretionary spending has bolstered chocolate producers considerably. Rising chocolate prices have weighed on demand in recent years, as major players bolster profit via more expensive chocolates. Industry revenue is expected to decrease at a CAGR of 1.2% to $2.6 billion through the end of 2023,... Learn More

2. Nonferrous Metal Rolling & Alloying in Canada

Percentage Point Increase for 2025: 3.3pp

The Nonferrous Metal Rolling and Alloying industry in Canada processes precious metals, nickel, zinc and other nonferrous metals, except for aluminum and copper, which operators purchase from primary producers or recover from scrap. In recent years, the industry has experienced tremendous swings in metal prices, which comprise operators' primary inputs. Supply chain issues which arose in the wake of the COVID-19 pandemic drove up prices for metals such as nickel, supporting revenue growth. Still, the pandemic disrupted industrial activity to the detriment of this industry. IBISWorld estimates industry revenue has been decreasing at a CAGR of 5.6% over the past... Learn More

3. Chicken & Turkey Meat Production in Canada

Percentage Point Increase for 2025: 3.1pp

As with most other industries under the supply management system, Canada's Chicken and Turkey Meat Production industry exhibits low to moderate volatility. Fortunately for farmers, effective supply management has helped offset dips in revenue. Industry revenue is expected to grow an annualized 2.6% to $4.3 billion over the five years to 2023 as a result of increased poultry consumption among consumers. In 2023 alone, industry revenue is expected to decrease 0.1% due to a forecast decline in the price of poultry meat alongside general economic uncertainty, which will likely reduce spending on premium industry goods. Due largely to the high... Learn More

4. Credit Unions in Canada

Percentage Point Increase for 2025: 2.6pp

The Credit Unions industry in Canada experienced growth over the past five years. As household incomes and borrowing needs have grown, credit unions' balance sheets have continued to expand. Encouraged by improving macroeconomic developments, the Bank of Canada raised the overnight rate target several times in 2018 and 2019, in turn raising the price of borrowing and boosting credit unions' incomes. Easing financial conditions in 2020 in response to the coronavirus compressed interest margins but expanded demand for credit, namely residential mortgages offered by industry players. Additionally, expanding disposable incomes and high savings rates due to government stimulus and altered... Learn More

5. Ski & Snowboard Resorts in Canada

Percentage Point Increase for 2025: 2.1pp

The Ski and Snowboard Resorts industry in Canada has experienced meager growth over the five years to 2023 due to steep declines caused by COVID-19. However, rising per capita disposable income during most of the period gave consumers more discretionary income, enabling them to spend more on recreational activities, such as skiing and snowboarding. Overall, industry revenue is expected to increase an annualized 0.2% to $1.5 billion over the five years to 2023.

The COVID-19 pandemic had a remarkable impact on all tourism-related industries as travel restrictions enacted to prevent the spread of the virus ultimately prevented tourism. Provincial lockdowns... Learn More

6. Sawmills & Wood Production in Canada

Percentage Point Increase for 2025: 2.0pp

Sawmill and wood producers in Canada have experienced revenue growth throughout 2023. The industry has experienced complicated operating conditions due to the lingering effects of several wildfires in the area and the spread of COVID-19. The industry has experienced strong demand from key downstream consumers during most of the period, such as the US housing market, which is the largest buyer of industry goods. But increased operating costs related to a fibre shortage and volatile exports are expected to reduce industry profit. Profit, measured as earnings before interest and taxes, is expected to decrease, accounting for 7.2% in 2023. While... Learn More

7. Cannabis Production in Canada

Percentage Point Increase for 2025: 1.9pp

Cannabis producers in Canada have blossomed in recent years as recreational products were legalized in 2018, opening up massive growth. Since Health Canada opened up medicinal cannabis production to more players in 2013, producers have grown continuously as they invest in production capabilities to produce quality products. As consumers shifted from illegal cannabis purchases to the licensed recreational market, cannabis growers have grown significantly, but revenue is expected to expand 17.5% in 2023 alone as the novelty of legal cannabis has worn off and most the black market has shifted to licensed purchases, which has decreased growth. Revenue has ballooned... Learn More

8. Battery Manufacturing in Canada

Percentage Point Increase for 2025: 1.8pp

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

9. Generic Pharmaceutical Manufacturing in Canada

Percentage Point Increase for 2025: 1.7pp

Over the five years to 2023, Canadian generic pharmaceutical manufacturers have accounted for a climbing share of total drug prescriptions dispensed by volume. According to 2021 data from the Patented Medicine Prices Review Board (latest data available), average generic drug prices in Canada have declined more than 50.0% over the past decade. To cut healthcare costs, many provinces and territories have set more stringent price caps for generic drugs, effectively preventing generics from exceeding a set share of the brand-name drug equivalent's price.

Still, robust generic drug usage rates have buoyed demand, offsetting the influence of compressed drug prices. Also, prescription... Learn More

10. Commercial Banking in Canada

Percentage Point Increase for 2025: 1.7pp

Despite low interest rates and some hiccups in economic growth, commercial banks in Canada have expanded throughout 2023. Banks have done an exceptional job diversifying revenue streams, 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. Industry revenue has been growing at a CAGR of 2.2% over the past five years and is expected to total $275.4 billion in 2023, when revenue will likely jump an... Learn More