In light of the new year, IBISWorld has identified five Canadian industries that are poised for significant growth in 2020. The following industries are representative of Canada's diverse economy and are thus subject to a variety of external factors that affect their performance. However, the common denominator among these industries is their outsized potential to capitalize on emerging economic trends and changing consumer preferences. Check out IBISWorld’s analysis below regarding which domestic industries are most likely to start to the decade exceptionally well.
Cannabis Production in Canada
The Cannabis Production industry in Canada has remained the country’s fastest-growing industry since 2018’s federal marijuana legalization, so its top slot on this list doesn’t exactly come as a surprise. However, industry growth is projected to decelerate compared with its performance in recent years due to rising competition among industry operators. Furthermore, the industry’s regulatory environment is now stabilizing as the fledging industry begins to find more solid footing within the broader landscape of the Canadian agricultural sector.
To this end, marijuana growers are optimizing their operations and improving efficiency, ultimately driving down the cost of production per gram of marijuana product. This will likely place downward pressure on revenue from a pricing standpoint as time goes on. Nevertheless, revenue for the Cannabis Production industry is projected to increase 15.8% in 2020, cementing its position as the fastest-growing industry in Canada.
Electric Power Transmission in Canada
The Electric Power Transmission industry in Canada is expected to surge in 2020, growing an anticipated 8.6%. This comes on the heels of a projected 0.4% decline as of year-end 2019, brightening the industry’s performance moving forward. The industry is likely to perform well over 2020 chiefly as a result of an increase in electric power consumption. IBISWorld anticipates electric power consumption in Canada to increase 1.6% in 2020.
Moreover, improved industrial performance, an improving business climate and continued population growth have supported industry expansion, and are expected to continue to do so. In particular, the Canadian population is projected to grow an annualized 0.9% over the five years to 2025, providing the industry with a larger base of downstream consumers which will inevitably require the services of industry operators. The Electric Power Transmission industry, which transmits and distributes electricity to residential, commercial and industrial consumers, will therefore capitalize on this opportunity, solidifying its position as the runner-up on this list.
Corn Farming in Canada
The Corn Farming industry in Canada is expected to experience an 8.4% increase in revenue over 2020. In the coming years, Canadian corn farmers are expected to increase output due to strong corn prices. Global demand for corn feed is expected to increase in tandem with rising demand for meat products, augmenting the industry’s projected growth and simultaneously underscoring a forecast resurgence in exports. Over the next five years, industry exports are anticipated to increase as a share of revenue due to newly established European markets, affording operators plenty of opportunities to perform well throughout the year.
Gold and Silver Ore Mining in Canada
Revenue for the Gold and Silver Ore Mining industry in Canada is estimated to increase 7.8% in 2020 due to increasing gold prices. In 2019, the world price of gold rose 8.3%, and over 2020 the price of gold is forecast to rise another 3.1%. Rising gold prices will remain the primary driver of industry performance going into the new year. An anticipated increase in the price of gold will also likely facilitate the expansion of new and existing mines for domestic gold and silver ore mining and production, with silver comprising a less-significant share of the industry’s production activities (2.3% of the industry’s product segmentation, compared with gold’s 97.7%).
E-Commerce and Online Auctions in Canada
The E-Commerce and Online Auctions industry in Canada is poised for robust growth over the five years to 2020, with industry revenue forecast to increase 7.5% in 2020. Perhaps two of the most-important downstream demand conditions for this industry are the number of fixed broadband connections in Canada and the number of mobile internet connections in Canada, which are forecast to rise at annualized rates of 1.7% and 3.5%, respectively, over the five years to 2025.
With increased connectivity due to internet-enabled smartphone devices, more Canadian consumers are expected to buy items online moving forward. This trend has established e-commerce as a commonly accepted platform through which retail sales are conducted. Furthermore, Canadians’ per capita disposable income is expected to rise 1.0% in 2020. Rising incomes are expected to encourage further consumption, adding to the industry’s potential for future growth, rounding out IBISWorld’s anticipated top industry performers of 2020.
