Based on the expert analysis and our database of 480+ CA industries, IBISWorld presents a list of the Industries with Least Risky Business Environments in Canada in 2025
The 10 Industries with Least Risky Business Environments in Canada
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View a list of the Top 25 industries with least risky business environmentsIndustries with Least Risky Business Environments in Canada in 2025
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1. Auto Mechanics in Canada
Business Environment Risk for 2025: 3.40
Auto mechanics in Canada have been providing widely accepted and increasingly diverse automotive repair services to individual and business customers. Revenue growth is determined by demand from consumers, businesses and government agencies, most of which have increasingly sought out industry services due to rising total vehicle-kilometres and motor vehicle registrations. But industry revenue declined at a CAGR of 0.2% to $11.5 billion through the end of 2023, including a 4.5% increase in 2023, when profit reached 7.8%. This increase in 2023 can be mainly attributed to improving economic conditions after the pandemic. As more people get back on the road,... Learn More
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2. Car Wash & Auto Detailing in Canada
Business Environment Risk for 2025: 3.52
An expanding economy has moderated revenue declines in the car wash industry over the five years to 2023. Businesses have benefited from higher disposable income and increased vehicle registration, which has supported demand for industry services. However, the COVID-19 (coronavirus) pandemic led to a considerable drop in industry performance in 2020 as less travel translated to lower need for industry-relevant services. Recovery following these disruptions has been bogged down by rising consumer prices, which has decreased inflation-adjusted industry revenue. Car wash and auto detailing revenue has been decreasing at a CAGR of 2.1% over the past five years, and is... Learn More
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3. Auto Parts Stores in Canada
Business Environment Risk for 2025: 3.54
Despite broader economic volatility in recent years, auto parts stores have had success growing revenue, which is determined by demand from both household and commercial clients. The COVID-19 pandemic severely eroded revenue in the retail sector over 2020, but due to the essential nature of auto parts stores, they remained open and experienced expansion. This contributed to solid growth for auto parts stores in recent years, as revenue has grown an annualized 2.4% to reach $7.5 billion over the five years to 2023, including 1.1% over 2023 alone. Profit has fallen over the past five years as price-based competition has... Learn More
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4. Oil Change Services in Canada
Business Environment Risk for 2025: 3.60
The Oil Change Services industry in Canada has experienced growth over the five years to 2023. Industry establishments provide motor oil change services for cars, in addition to lubricating car chassis and providing other repair and maintenance services. Typically, demand for oil changes and other vehicle maintenance services is determined by the total number of vehicles on the road. Over the past five years, industry demand has grown with an increasing number of motor vehicle registrations; however, the COVID-19 pandemic and high fuel prices have posed a challenge to many businesses. Overall, industry revenue is forecast to increase at CAGR... Learn More
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5. Eyeglasses & Contact Lens Stores in Canada
Business Environment Risk for 2025: 3.76
The Eyeglasses and Contact Lens Stores industry in Canada sells eyeglasses, contact lenses, sunglasses, safety eyewear and optical accessories. Over the five years to 2023, the industry has benefited from favourable population demographics. The burgeoning elderly population has boosted the number of optometrist visits to address age-related eyesight issues. Meanwhile, changing fashion trends have hastened many consumers' replacement cycles and have caused a shift toward high margin, designer eyewear. Further, the industry has been relatively insulated from external competitors, such as online retailers that lack brick-and-mortar establishments and deliver directly to the customers via mail. Dispensing prescription glasses is highly... Learn More
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6. Motorcycle, Boat & ATV Dealers in Canada
Business Environment Risk for 2025: 3.81
Revenue for the Motorcycle, Boat and ATV Dealers industry in Canada is poised for a modest expansion. The industry sells and repairs motorcycles, ATVs and personal watercraft. Since the industry caters primarily to consumers, it is heavily reliant on discretionary spending and national unemployment levels. While disposable income levels have risen overall, unemployment has contracted, slightly hindering revenue growth. Nonetheless, industry revenue is anticipated to rise 3.2% in 2023 alone, as growing consumer spending and confidence are expected to propel demand for industry products. Overall, industry revenue is projected to grow at a CAGR of 0.5% to $9.4 billion over... Learn More
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7. Auto Parts Wholesaling in Canada
Business Environment Risk for 2025: 3.82
Auto parts wholesalers in Canada has contracted over the five years to 2023, stemming from COVID-19, which substantially impacted demand from downstream markets in 2020 and 2021. These wholesalers struggled with cementing its place within the automotive supply chain with auto parts manufacturers expansively solidifying their ties with automakers directly. In 2020, a steep reduction in the production and sales of new vehicles, as well as less driving by consumers, reduced demand for auto parts. Overall, auto parts wholesalers are expected to drop at a CAGR of 1.2% to $18.9 billion through the end of 2023, despite higher downstream demand... Learn More
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8. Children's & Infants' Clothing Stores in Canada
Business Environment Risk for 2025: 3.84
The Children's and Infants' Clothing Stores industry includes stores specializing in retailing apparel for children under the age of 17 and online sales. While macroeconomic growth has encouraged shoppers to splurge on high-end children's clothing through the end of 2023, many apparel purchases have been captured by industries that directly compete for consumer dollars. For example, online-only shopping retailers have become increasingly acceptable and preferable, siphoning demand away from brick-and-mortar establishments. This digitization push resulted in revenue falling at a CAGR of 2.3% to an estimated $2.1 billion in 2023, despite 2.1% revenue growth in 2023. The average profit margin... Learn More
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9. Small Specialty Retail Stores in Canada
Business Environment Risk for 2025: 3.87
The Small Specialty Retail Stores industry in Canada, which relies on discretionary purchases of products, such as tobacco, art supplies, candles and trophies, has experienced strong revenue growth over the five years to 2023. Upon its legalization in 2018, the recreational cannabis market has experienced strong expansion, leading to exceptional industry revenue growth. While the COVID-19 pandemic had posed a considerable challenge to many traditional industry operators due to lower sales and closures, the opening of recreational cannabis shops and their resulting sales volume is expected to offset pandemic-related declines. External competition has limited industry growth among traditional industry retailers,... Learn More
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10. Dairy Wholesaling in Canada
Business Environment Risk for 2025: 3.88
Companies in the Dairy Wholesaling industry in Canada wholesale various dairy products, including raw milk, processed milk, butter, cheese, cream, ice cream and yogourt, to downstream customers, such as grocery stores and food service establishments. Over the past five years, the industry has experienced solid growth as consumers have increased consumption of various dairy products, resulting in increased demand from downstream customers and rising production of many industry goods. While the industry has consolidated to compete more effectively with vertically integrated dairy processors, it has performed well overall. Overall, revenue has risen an annualized 1.5% to $11.5 billion over the... Learn More
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Based on the expert analysis and our database of 480+ CA industries, IBISWorld presents a list of the Most Profitable Industries in Canada in 2025
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Based on the expert analysis and our database of 480+ CA industries, IBISWorld presents a list of the Fastest Growing Industries in Canada by Revenue Growth (%) in 2025
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