Industries with the Highest Profit Margin in Canada in 2025

1. Cigarette & Tobacco Manufacturing in Canada

Profit Margin 2025: 41.3%

Cigarette and tobacco manufacturers in Canada have struggled throughout 2023 due to tough regulatory pressures, taxation and declining cigarette consumption. The government has increased excise taxes several times over the past five years in an effort to curb smoking by forcing industry operators to increase prices to salvage profit. This strategy has been successful in part, since cigarette consumption and the number of smokers in Canada have both declined during the period, to the detriment of the industry. However, as a result of tobacco's inelastic demand, operators have been able to increase prices at a faster rate than demand has... Learn More

2. Coal Mining in Canada

Profit Margin 2025: 36.0%

Operators in the Coal Mining industry in Canada have experienced considerable fluctuations in prices of industry goods. Canadian coal mining revenue has been increasing at an annualized 11.3% over the past five years, including an estimated 32.3% decrease in 2023, and is expected to total $19.0 billion. In 2023, profit is set to increase to 32.1%. The industry has two primary products, metallurgical coal used for steel production and thermal coal used in energy generation. At the start of the current period, global oversupply and falling demand resulted in low prices and revenue. Subsequent price growth between 2016 and 2018... Learn More

3. Physical Therapists in Canada

Profit Margin 2025: 34.8%

Physical therapists have continued gaining popularity and have become essential to promoting health and wellness. Therapists have benefited from an aging population as adults aged 65 and older endure health conditions that require physiotherapy (think hip and knee replacements and arthritis). While the pandemic caused issues for many sectors, healthcare was deemed essential and therapists continued to treat patients at a limited rate. Some offices implemented several barriers and precautions to prevent the spread of the virus, while others conducted virtual sessions through video calls. Overall, industry revenue is expected to grow at a CAGR of 3.0% to $4.3 billion... Learn More

4. Day Care in Canada

Profit Margin 2025: 33.2%

The industry provides care for infants or young children that are typically under the age of five. Additionally, operators may offer prekindergarten programs and care for older children when they are not in school. Over the five years to 2023, increased government consumption and investment and the rising number of women in the workforce have driven industry demand. As the maternal labour participation rate increases, fewer parents are available to take care of infants, toddlers and preschool-aged children. In addition, government subsidies have been critical in enabling families to afford the cost of day care. The COVID-19 pandemic is expected... Learn More

5. Property Management in Canada

Profit Margin 2025: 32.8%

Property management is expected to marginally decline over the five years to 2023. Operators provide a variety of services related to the management of residential and nonresidential properties, which include collecting rent, screening tenants and general maintenance. As a result, the industry relies on Canadian residential and nonresidential construction. During most of the period, investment has driven demand for industry services. While the value of nonresidential construction has been muted over most of the five years to 2023, sustained growth in the value of residential construction and other favourable trends during have supported the industry. Property managers were able to... Learn More

6. Accounting Services in Canada

Profit Margin 2025: 32.1%

Accounting firms benefit from near constant need, regardless of economic activity. Even during particularly poor conditions, like at the pandemic's height, consumers and businesses still filed taxes, requiring accountants. Even businesses forced to shutter their doors often required bankruptcy and receivership services, benefitting accounting firms. The evergreen nature of many services offered by accounting firms keep revenue growth relatively stable. In fact, over the past five years, revenue has been growing at a CAGR of 1.8% and is expected to reach $17.4 billion in 2023, when revenue will rise 2.7%.

Wages account for the highest share of an accounting firm's revenue,... Learn More

7. Commercial Banking in Canada

Profit Margin 2025: 31.0%

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

8. Dentists in Canada

Profit Margin 2025: 29.5%

While the Canada Health Act only covers dental care for certain groups, leaving most consumers to pay out of pocket or with private insurance for dental services, dental practices typically experience strong, steady growth. The pandemic introduced an uncommon level of volatility, as social-distancing measures resulted in visits sinking before swiftly rebounding as vaccines rolled out. As health expenditure dipped following the pandemic's height, revenue followed. As a result of the fluctuations, revenue has been growing at a CAGR of 1.8% and is expected to reach $21.7 billion in 2023 when revenue is expected to rise 2.6%.

Despite volatility, dentists are... Learn More

9. Apartment Rental in Canada

Profit Margin 2025: 29.1%

Revenue for Canadian apartment lessors has grown in recent years. Apartment lessors collect rental income from properties they lease, where the rates they charge are largely determined by market forces. The supply of apartment rentals has grown at a slower rate than demand, which has elevated rental rates to the benefit of lessors. Favourable economic conditions and demographic trends during most of the period have driven growth in demand. In 2020, the spread of COVID-19 lessened demand for apartment rentals, but the nature of apartment leases prevented a decline in revenue until 2021. Revenue has grown since 2022 as higher... Learn More

10. Management Consulting in Canada

Profit Margin 2025: 28.8%

Management consulting in Canada is composed of companies that provide consulting services to private businesses and the public sector. These advisory services are tailored to provide strategic, financial, marketing, operational and supply chain management consulting services. Businesses partake in mergers and acquisitions, joint ventures, divestitures and initial public offerings based on their expectations of what the future holds. Although the company provides countercyclical services that support industry revenue during economic downturns, the COVID-19 pandemic hindered industry operations in unprecedented ways in 2020. Revenue is expected to grow at a CAGR of 2.0% to $23.9 billion over the years to 2023,... Learn More