Are you a foreign entrepreneur interested in doing business in Canada? Look no further, as we have compiled a list of Canada's top 9 profitable businesses for 2023 to help you make an informed decision. The profits below are forecast based on the previous performance of the industry. Market trends in and outside of Canada have been considered. Canada offers a tremendous opportunity for entrepreneurs looking to start a business. Whatever your background is, with the right vision and work ethic, you can find a profitable business opportunity that fits your unique skill set and start a business in Canada.
What is the Profitable Business in Canada in 2023?
The most profitable business in Canada is Payroll & Bookkeeping Services. Businesses in this industry, on average, have a profit margin of 35%! The industry itself reported over $2B in profits in the previous year. However, a close second is businesses in the Dairy Farming industry, which usually have a profit of 24.3%.
- 1 - Payroll & Bookkeeping Businesses
- 2 - Dairy Farming Businesses
- 3 - Hotel Businesses
- 4 - Restaurant Businesses
- 5 - Construction Businesses
- 6 - Automotive Businesses
- 7 - Landscaping Businesses
- 8 - Plastic Product Manufacturing Businesses
- 9 - Machinery Maintenance & Heavy Equipment Repair Businesses
Top 9 Most Profitable Businesses in Canada
Below you will find 9 most successful types of business in Canada for 2023:
1 - Payroll & Bookkeeping Businesses
Businesses in the outsourcing payroll and bookkeeping industry are increasingly popular as many companies in Canada are concentrating on their primary operations. The industry's recovery has surpassed pre-pandemic levels thanks to the stable economic environment. This encourages business creation and generates more outsourcing opportunities. With a remarkable 35% profit surge, the industry's expansion persists, supported by the country's sturdy economic performance and historically low unemployment rates. Businesses in this industry will continue to harness technology to deliver value-added services, pushing profits upward.
- Profit for 2023: $2.1B
- Profit Margin: 35%
- Barriers to Entry: Low
- Revenue (2022): $25M-$30M
- Headquarters: Toronto, Ontario
- What it does: Accounting services focused on the real estate industry.
- Revenue (2022): $15M-$20M
- Headquarters: Mississauga, Ontario
- What it does: Accounting, advisory, and tax services for private companies.
- Revenue (2022): $18M-$23M
- Headquarters: Kingston, Nova Scotia
- What it does: Provides continuing education programs to accountants in Canada and the U.S.
2 - Dairy Farming Businesses
The Canadian dairy farmers who work tirelessly are at the center of a flourishing and dynamic industry. These dedicated individuals focus on breeding cattle primarily for milk production, which is later sold to dairy processors. The sector's revenue has been progressively increasing, with expected revenue of $11.3 billion by 2023. With growing consumer spending and a rise in the Consumer Price Index for food, 2023 is predicted to experience an even better 3% expansion.
- Profit for 2023: $2B
- Profit Margin: 24%
- Barriers to Entry: Medium
Examples of Successful Dairy Farming Businesses
- Revenue (2022): $13M-$16M
- Headquarters: Toronto, Ontario
- What it does: Production of dairy products.
- Revenue (2022): $4M-$6M
- Headquarters: Alberta, Ontario
- What it does: Produces a range of dairy products.
- Revenue (2022): $2M-$6M
- Headquarters: Sussex, New Brunswick
- What it does: Focuses on production of various dairy products.
3 - Hotel Businesses
The hotel industry is also experiencing growth and evolution as more companies recognize the importance of providing quality lodging options to travelers. The industry has rebounded from the pandemic, and occupancy rates are steadily climbing. This growth is driven by the stable economic environment, which has encouraged travel and tourism. With a high travel demand, hotel businesses will likely experience growth and generate more revenue. We expect to see significant foreign investment in the coming years to help the industry recover as many international investors will be looking to expand their investment portfolios.
- Profit for 2023: $2.1B
- Profit Margin: 11.8%
- Barriers to Entry: Easy
Examples of Successful Hotel Businesses
- Revenue (2022): $35M-$42M
- Headquarters: Toronto, Ontario
- What it does: Oversees management and operation of major hotels in Canada.
- Revenue (2022): $31M-$35M
- Headquarters: Toronto, Ontario
- What it does: Provides hospitality and lodging services.
Glenmore Inn & Convention Centre
- Revenue (2022): $19M-$22M
- Headquarters: Calgary, Alberta
- What it does: Provides hospitality services for hotel guests and catering and convention space for weddings and large events.
4 - Restaurant Businesses
The restaurant industry in Canada has experienced steady growth and profitability in recent years. The industry's revenue has consistently increased due to Canada's strong economy and growing tourism sector, which has led to higher consumer spending on dining out. In 2019, the restaurant industry in Canada generated $93.6 billion in revenue, up 5.1% from the previous year, making it one of the largest contributors to the country's economy. Despite challenges faced due to the COVID-19 pandemic, the industry has shown resilience and adapted by offering takeout, delivery, and outdoor dining options. The government has also provided financial assistance, such as wage subsidies, to support struggling businesses. As the pandemic subsides and restrictions ease, the restaurant industry is expected to bounce back, with an estimated growth rate of 8% in 2023. The future looks promising for the industry, with continued economic growth and innovation in the food service sector driving profitability and growth.
- Profit for 2023: $1B
- Profit Margin: 2.4%
- Barriers to Entry: Easy
Examples of Successful Restaurant Businesses
- Revenue (2022): $160M-$189M
- Headquarters: Moncton, New Brunswick
- What it does: A franchise chain of pizza restaurants.
- Revenue (2022): $105M-$118M
- Headquarters: Edmonton, Alberta
- What it does: Specializes in offering juice, smoothie, and other nutritious drinks at its brand-name juice bars.
- Revenue (2022): $15M-$22M
- Headquarters: Toronto, Ontario
- What it does: A chain of spectacular restaurants serving delicious food.
5 - Construction Businesses
The construction industry in Canada is currently progressing at a steady pace, thanks to the strong demand for housing, commercial, and institutional buildings. The industry has been experiencing a significant uptick in recent years, with its revenue expected to grow at an annual rate of 2.9% by 2025. This growth is attributed to several factors, including population growth, urbanization, and government investments in infrastructure development projects. Furthermore, low-interest rates, increased access to credit, and a growing number of first-time homebuyers are also driving the growth of the construction industry in Canada. Overall, the industry's profitability is quite impressive, making it an attractive sector for investment and growth opportunities. Below you will see statistics that are averages between the following construction industries: commercial construction, industrial construction, and apartment & condominium construction.
- Profit for 2023: $1.4B
- Profit Margin: 5.2%
- Barriers to Entry: Easy
Examples of Successful Construction Businesses
- Revenue (2022): $2M-$5M
- Headquarters: Ottawa, Ontario
- What it does: Provides various roofing services in the Greater Ottawa Region.
- Revenue (2022): $2M-$4M
- Headquarters: Toronto, Ontario
- What it does: Provides residential and commercial plumbing services.
- Revenue (2022): $100M-$200M
- Headquarters: Calgary, Alberta
- What it does: Specializes in constructing deep foundations for residential and commercial properties.
6 - Automotive Businesses
The automotive industry in Canada has been making steady progress, with the country being one of the top automobile manufacturing nations in the world. The high demand for light trucks and SUVs in the North American market, the largest market for Canadian-made vehicles, has buoyed the sector. Additionally, the industry has benefited from the trend toward electric and hybrid cars, with several significant automakers investing in developing and producing such vehicles in Canada. The industry's profitability has been robust, with automakers generating healthy profits in recent years. The sector is also responsible for creating jobs and supporting the Canadian economy, making it a crucial part of the country's manufacturing sector. Below you will see statistics that are averages between the following automotive industries: auto parts wholesaling, automobile wholesaling, auto mechanics, and car wash & auto detailing.
- Profit for 2023: $1.43B
- Profit Margin: 7.25%
- Barriers to Entry: Easy
Examples of Successful Automotive Businesses
- Revenue (2022): $1M-$2M
- Headquarters: Scarborough, Ontario
- What it does: Sells different types of used and new vehicles.
- Revenue (2022): $3M-$5M
- Headquarters: Courtenay, British Columbia
- What it does: Provides oil changes and other quick automotive services.
- Revenue (2022): $25M-$35M
- Headquarters: Burlington, Ontario
- What it does: Reputable seller of used and new cars.
7 - Landscaping Businesses
Despite the economic challenges in recent years, the landscaping industry has displayed remarkable resilience and steady growth. Even during the COVID-19 pandemic, while many other service industries struggled, the landscaping industry witnessed a boost in revenue as Canadians redirected their spending toward home improvements. This trend has led to an impressive total revenue of $18.4 billion by the end of 2023. The sector is expected to grow, propelled by a robust residential market and expanding nonresidential construction. Over the next five years, revenue is anticipated to increase to $20.0 billion, showcasing the industry's sustained success.
- Profit for 2023: $1.7B
- Profit Margin: 9%
- Barriers to Entry: Easy
Examples of Successful Landscaping Businesses
- Revenue (2022): $1M-$3M
- Headquarters: Greely, Quebec
- What it does: Provides creative landscape design along with reliable work and quick service.
- Revenue (2022): $1M-$2M
- Headquarters: St. Jacobs, Ontario
- What it does: A retailer that focuses on selling products for the landscaping industry.
- Revenue (2022): $2M-$3M
- Headquarters: Bolton, Ontario
- What it does: Provides complete landscaping and snow removal services.
8 - Plastic Product Manufacturing Businesses
Thanks to its versatile applications, the Plastic Product Manufacturing sector in Canada has exhibited remarkable resilience in the face of fluctuating demand. Its revenue has grown steadily over the past half-decade, amounting to $21.0 billion. The industry owes its growth to the steady demand from the domestic automotive and construction markets, particularly for plastic doors, windows, and plumbing fixtures. Furthermore, sustained consumer expenditure on home improvements has also played a role.
- Profit for 2023: $1.5B
- Profit Margin: 7.2%
- Barriers to Entry: Low
Examples of Successful Plastic Product Manufacturing Businesses
- Revenue (202): $100M-$115M
- Headquarters: Brampton, Ontario
- What it does: Provides creative packaging solutions for major brands.
- Revenue (2022): $3M-$6M
- Headquarters: Richmon, British Columbia
- What it does: Focuses on shipping boxes and restaurant boxing solutions.
- Revenue (2022): $7M-$10M
- Headquarters: Mississauga, Ontario
- What it does: Manufactures various plastic products for numerous industries around the world.
9 - Machinery Maintenance & Heavy Equipment Repair Businesses
The industry's expansion into various downstream markets has served as a safeguard against significant downturns. The manufacturing sector's and the broader economy's growth have been bolstered by consumer expenditure, which has fueled demand for industry services. Secondary downstream markets require repair and maintenance services, which are substantial enough to offset the slump in commodity-driven industries. Over the next 5 years, the industry is projected to grow at an annual rate of 1.0% and reach $10.3 billion.
- Profit for 2023: $873M
- Profit Margin: 8.9%
- Barriers to Entry: Medium
Examples of Successful Machinery Maintenance & Heavy Equipment Repair Businesses
One Touch Heavy Equipment Repair
- Revenue (2022): $5M-$6M
- Headquarters: Milton, Ontario
- What it does: Provides repair services for various types of heavy equipment.
- Revenue (2022): $4M-$7M
- Headquarters: Calgary, Alberta
- What it does: Provides repair and maintenance services for various types of heavy machinery.
- Revenue (2022): $3M-$5M
- Headquarters: Wellesley, Ontario
- What it does: Provides farm, landscaping, and snow removal maintenance, repair and sales.
Please note that the source of the industry statistics is primarily data from IBISWorld Reports for 2023.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
