The Canadian bakery industry involves the on-site manufacturing of baked products. These products can include but are not limited to bagels, bread, cakes, croissants, doughnuts, and pastries. This industry overview will discuss the latest statistics and trends for the bakery industry in Canada. For more information on the bakery industry please see our Bakery Guide.

Photo credit: Photo by Pexels

Key Takeaways

  • Modest Growth: The Canadian bakery product market grew by a compound annualized rate of 2.2% during 2013-2017 (Agriculture and Agri-Food Canada, Sector Trend Analysis, 2018).
  • Modest Outlook: The Canadian bakery product market is expected to grow at a compound annualized rate of 3.4% from 2018-2022 (Agriculture and Agri-Food Canada, Sector Trend Analysis, 2018).
  • Food Intolerances: Gluten-free is the fastest growing food intolerance category in Canada (Agriculture and Agri-Food Canada, “Gluten Free”, 2014).
  • Celiac Disease: Canadians with Celiac disease are a small, but important segment of the market for gluten-free bakery products (Agriculture and Agri-Food Canada, “Gluten Free”, 2014; Health Canada, 2018).

Industry Performance Snapshot

During 2013-2017:

  • Retail sales of baked goods grew from $3.2 billion (USD) in 2013 to $3.5 billion (USD) in 2017 (Agriculture and Agri-Food Canada, Sector Trend Analysis, 2018).
  • Per capita expenditure on baked goods increased from $146.7 (USD) in 2013 to $153.5 (USD) in 2017 (Agriculture and Agri-Food Canada, Sector Trend Analysis, 2018).
  • Bread sales accounted for the largest portion of baked goods sales each year. In 2017, bread sales accounted for $3.5 billion (USD) or almost 63% of total sales that years (Agriculture and Agri-Food Canada, Sector Trend Analysis, 2018).

Source: Agriculture and Agri-Food Canada. (2018). Sector Trend Analysis – Baked Goods in the United States and Canada. Retrieved from: http://www.agr.gc.ca/eng/industry-markets-and-trade/international-agri-food-market-intelligence/reports/sector-trend-analysis-baked-goods-in-the-united-states-and-canada/?id=1537381272039

Industry Outlook

For the period 2018-2022:

  • Retail sales of baked goods are expected to grow by a compound annualized growth rate of 3.4%, reaching $6.6 billion (USD) in 2022 (Agriculture and Agri-Food Canada, Sector Trend Analysis, 2018).
  • Per capital expenditure on baked goods is expected to increase by a compound annualized growth rate of 2.5%, reaching $173.2 in 2022 (Agriculture and Agri-Food Canada, Sector Trend Analysis, 2018).
  • Bread sales will continue to dominate the bakery market. In 2022, bread sales are expected to account for $4.2 billion (USD) or almost 64% of baked goods sales that years (Agriculture and Agri-Food Canada, Sector Trend Analysis, 2018).

Source: Agriculture and Agri-Food Canada. (2018). Sector Trend Analysis – Baked Goods in the United States and Canada. Retrieved from: http://www.agr.gc.ca/eng/industry-markets-and-trade/international-agri-food-market-intelligence/reports/sector-trend-analysis-baked-goods-in-the-united-states-and-canada/?id=153738127203

Business Locations

In 2016, 81.4% of industry employers were located in three provinces: Ontario, Quebec, and British Columbia. Quebec was Canada’s top employer with a total of 788 establishments that year.

Source: Statistics Canada. Establishments by Employment Type and Province/Territory (2016). Retrieved from: https://www.ic.gc.ca/app/scr/app/cis/businesses-entreprises/3118

As shown in the table below, the majority of industry establishments were small establishments that employed between 5-99 employees. Overall, these small establishments accounted for 67.9% of all industry establishments in 2016.

Province/Territory

Micro (1-4)

Small (5-99)

Medium (100-499)

Large (500+)

Ontario

218

518

52

0

Quebec

120

322

23

1

British Columbia

90

225

16

0

Alberta

41

107

4

0

Manitoba

15

47

2

0

Nova Scotia

14

27

2

0

Saskatchewan

8

30

1

0

New Brunswick

7

26

2

0

Newfoundland and Labrador

6

10

1

0

Yukon

1

2

0

0

Northwest Territories

0

0

0

0

Nunavut

0

0

0

0

Prince Edward Island

0

0

0

0

Canada

520

1322

103

1

Percentage distribution %

26.7

67.9

5.3

0.0

Source: Statistics Canada. Establishments by Employment Size Category and Province/Territory (2016). Retrieved from: https://www.ic.gc.ca/app/scr/app/cis/businesses-entreprises/3118

Trends and Changes

Health conscious consumers

  • Canadians prefer bakery products that are not only more natural, but also contain less preservatives. As a result, more Canadians are moving away from highly-processed products (Agriculture and Agri-Food Canada, Sector Trend Analysis, 2018).
  • Canadians desire accurate information to make informed purchasing decisions (especially for gluten-free products) (Allergen Control Group, 2017).
  • More Canadians are watching their sugar and salt intake due to concerns over diabetes and high blood pressure (Agriculture and Agri-Food Canada, Sector Trend Analysis, 2018).
  • Increasing popularity of Ketogenic and Paleo diets means that more Canadians are cutting back on their carbohydrate intake (Bell, 2019).
  • Canadian bakery industry is responding to health concerns and consumer trends by increasing the range of baked goods (eg. gluten-free) produced as well as highlighting the health benefits (eg. reduced/low fat) of those goods (Bell, 2019).

Growing awareness of Celiac disease

  • 350,000 Canadians or 1% of the national population has Celiac disease (Agriculture and Agri-Food Canada, “Gluten Free”, 2014).
  • Individuals with Celiac disease must maintain a strict-gluten free diet. As such, they are unable to eat bagels, cakes, doughnuts and other primary products of the Canadian bakery industry (Health Canada, 2018).
  • Despite their relatively small size, Canadians with Celiac disease represent an important and growing segment of the market for gluten-free products (Agriculture and Agri-Food Canada, “Gluten Free”, 2014; Health Canada, 2018).

Gluten-free consumer demands

  • Gluten-free remains the fastest type of food intolerance category in Canada (Agriculture and Agri-Food Canada, “Gluten Free”, 2014).
  • Meeting the demand for gluten-free products may be the biggest challenge facing today’s bakers. This is because more bakers are having to experiment with new (and expensive) alternative grains and flours to create gluten-free products that are flavourful (Bell, 2019).
  • Canadian baking schools are having to adapt their curriculum to help better prepare future bakers to meet the reduced/no gluten demands of consumers (Bell, 2019).
  • Canadians are willing to pay more for gluten-free products. However, there is strong pressure to make these products more affordable for consumers (Allergen Control Group, 2017).

Sources

Agriculture and Agri-Food Canada. (2018). Sector Trend Analysis – Baked Goods in the United States and Canada. Retrieved from: http://www.agr.gc.ca/eng/industry-markets-and-trade/international-agri-food-market-intelligence/reports/sector-trend-analysis-baked-goods-in-the-united-states-and-canada/?id=1537381272039

Agriculture and Agri-Food Canada. (2014). “Gluten Free” Claims in the Marketplace. Retrieved from: http://www.agr.gc.ca/eng/industry-markets-and-trade/canadian-agri-food-sector-intelligence/processed-food-and-beverages/trends-and-market-opportunities-for-the-food-processing-sector/gluten-free-claims-in-the-marketplace/?id=1397673574797

Allergen Control Group. (2017, January 24). Demand for Gluten-free Foods Expected to Substantially Increase as Awareness and Diagnosis of Celiac Continues to Rise. CISION. Retrieved from: https://www.newswire.ca/news-releases/demand-for-gluten-free-foods-expected-to-substantially-increase-as-awareness-and-diagnosis-of-celiac-disease-continue-to-rise-611631355.html

Bell, E. (2019, March 22). Bread Trends for 2019. Bakers Journal. Retrieved from: https://www.bakersjournal.com/news/bread-trends-for-2019-7674

Health Canada. (2019). Celiac Disease: The Gluten Connection. Retrieved from: https://www.canada.ca/content/dam/hc-sc/documents/services/food-nutrition/reports-publications/food-safety/celiac-disease-gluten-connection/26-18-2047-Food%20Allergen-Celiac-EN-FINAL.pdf

Statistics Canada. (2016). Establishments by Employment Size Category and Province/Territory. Retrieved from: https://www.ic.gc.ca/app/scr/app/cis/businesses-entreprises/3118

Industry Trends

The Canadian bakery industry involves the on-site manufacturing of baked products. These products can include but are not limited to bagels, bread, cakes, croissants, doughnuts, and pastries. This industry overview will discuss the latest statistics and trends for the bakery industry in Canada. For more information on the bakery industry please see our Bakery Guide.

Photo credit: Photo by Pexels

Key Takeaways

  • Modest Growth: The Canadian bakery product market grew by a compound annualized rate of 2.2% during 2013-2017 (Agriculture and Agri-Food Canada, Sector Trend Analysis, 2018).
  • Modest Outlook: The Canadian bakery product market is expected to grow at a compound annualized rate of 3.4% from 2018-2022 (Agriculture and Agri-Food Canada, Sector Trend Analysis, 2018).
  • Food Intolerances: Gluten-free is the fastest growing food intolerance category in Canada (Agriculture and Agri-Food Canada, “Gluten Free”, 2014).
  • Celiac Disease: Canadians with Celiac disease are a small, but important segment of the market for gluten-free bakery products (Agriculture and Agri-Food Canada, “Gluten Free”, 2014; Health Canada, 2018).

Industry Performance Snapshot

During 2013-2017:

  • Retail sales of baked goods grew from $3.2 billion (USD) in 2013 to $3.5 billion (USD) in 2017 (Agriculture and Agri-Food Canada, Sector Trend Analysis, 2018).
  • Per capita expenditure on baked goods increased from $146.7 (USD) in 2013 to $153.5 (USD) in 2017 (Agriculture and Agri-Food Canada, Sector Trend Analysis, 2018).
  • Bread sales accounted for the largest portion of baked goods sales each year. In 2017, bread sales accounted for $3.5 billion (USD) or almost 63% of total sales that years (Agriculture and Agri-Food Canada, Sector Trend Analysis, 2018).

Source: Agriculture and Agri-Food Canada. (2018). Sector Trend Analysis – Baked Goods in the United States and Canada. Retrieved from: http://www.agr.gc.ca/eng/industry-markets-and-trade/international-agri-food-market-intelligence/reports/sector-trend-analysis-baked-goods-in-the-united-states-and-canada/?id=1537381272039

Industry Outlook

For the period 2018-2022:

  • Retail sales of baked goods are expected to grow by a compound annualized growth rate of 3.4%, reaching $6.6 billion (USD) in 2022 (Agriculture and Agri-Food Canada, Sector Trend Analysis, 2018).
  • Per capital expenditure on baked goods is expected to increase by a compound annualized growth rate of 2.5%, reaching $173.2 in 2022 (Agriculture and Agri-Food Canada, Sector Trend Analysis, 2018).
  • Bread sales will continue to dominate the bakery market. In 2022, bread sales are expected to account for $4.2 billion (USD) or almost 64% of baked goods sales that years (Agriculture and Agri-Food Canada, Sector Trend Analysis, 2018).

Source: Agriculture and Agri-Food Canada. (2018). Sector Trend Analysis – Baked Goods in the United States and Canada. Retrieved from: http://www.agr.gc.ca/eng/industry-markets-and-trade/international-agri-food-market-intelligence/reports/sector-trend-analysis-baked-goods-in-the-united-states-and-canada/?id=153738127203

Business Locations

In 2016, 81.4% of industry employers were located in three provinces: Ontario, Quebec, and British Columbia. Quebec was Canada’s top employer with a total of 788 establishments that year.

Source: Statistics Canada. Establishments by Employment Type and Province/Territory (2016). Retrieved from: https://www.ic.gc.ca/app/scr/app/cis/businesses-entreprises/3118

As shown in the table below, the majority of industry establishments were small establishments that employed between 5-99 employees. Overall, these small establishments accounted for 67.9% of all industry establishments in 2016.

Province/Territory

Micro (1-4)

Small (5-99)

Medium (100-499)

Large (500+)

Ontario

218

518

52

0

Quebec

120

322

23

1

British Columbia

90

225

16

0

Alberta

41

107

4

0

Manitoba

15

47

2

0

Nova Scotia

14

27

2

0

Saskatchewan

8

30

1

0

New Brunswick

7

26

2

0

Newfoundland and Labrador

6

10

1

0

Yukon

1

2

0

0

Northwest Territories

0

0

0

0

Nunavut

0

0

0

0

Prince Edward Island

0

0

0

0

Canada

520

1322

103

1

Percentage distribution %

26.7

67.9

5.3

0.0

Source: Statistics Canada. Establishments by Employment Size Category and Province/Territory (2016). Retrieved from: https://www.ic.gc.ca/app/scr/app/cis/businesses-entreprises/3118

Trends and Changes

Health conscious consumers

  • Canadians prefer bakery products that are not only more natural, but also contain less preservatives. As a result, more Canadians are moving away from highly-processed products (Agriculture and Agri-Food Canada, Sector Trend Analysis, 2018).
  • Canadians desire accurate information to make informed purchasing decisions (especially for gluten-free products) (Allergen Control Group, 2017).
  • More Canadians are watching their sugar and salt intake due to concerns over diabetes and high blood pressure (Agriculture and Agri-Food Canada, Sector Trend Analysis, 2018).
  • Increasing popularity of Ketogenic and Paleo diets means that more Canadians are cutting back on their carbohydrate intake (Bell, 2019).
  • Canadian bakery industry is responding to health concerns and consumer trends by increasing the range of baked goods (eg. gluten-free) produced as well as highlighting the health benefits (eg. reduced/low fat) of those goods (Bell, 2019).

Growing awareness of Celiac disease

  • 350,000 Canadians or 1% of the national population has Celiac disease (Agriculture and Agri-Food Canada, “Gluten Free”, 2014).
  • Individuals with Celiac disease must maintain a strict-gluten free diet. As such, they are unable to eat bagels, cakes, doughnuts and other primary products of the Canadian bakery industry (Health Canada, 2018).
  • Despite their relatively small size, Canadians with Celiac disease represent an important and growing segment of the market for gluten-free products (Agriculture and Agri-Food Canada, “Gluten Free”, 2014; Health Canada, 2018).

Gluten-free consumer demands

  • Gluten-free remains the fastest type of food intolerance category in Canada (Agriculture and Agri-Food Canada, “Gluten Free”, 2014).
  • Meeting the demand for gluten-free products may be the biggest challenge facing today’s bakers. This is because more bakers are having to experiment with new (and expensive) alternative grains and flours to create gluten-free products that are flavourful (Bell, 2019).
  • Canadian baking schools are having to adapt their curriculum to help better prepare future bakers to meet the reduced/no gluten demands of consumers (Bell, 2019).
  • Canadians are willing to pay more for gluten-free products. However, there is strong pressure to make these products more affordable for consumers (Allergen Control Group, 2017).

Sources

Agriculture and Agri-Food Canada. (2018). Sector Trend Analysis – Baked Goods in the United States and Canada. Retrieved from: http://www.agr.gc.ca/eng/industry-markets-and-trade/international-agri-food-market-intelligence/reports/sector-trend-analysis-baked-goods-in-the-united-states-and-canada/?id=1537381272039

Agriculture and Agri-Food Canada. (2014). “Gluten Free” Claims in the Marketplace. Retrieved from: http://www.agr.gc.ca/eng/industry-markets-and-trade/canadian-agri-food-sector-intelligence/processed-food-and-beverages/trends-and-market-opportunities-for-the-food-processing-sector/gluten-free-claims-in-the-marketplace/?id=1397673574797

Allergen Control Group. (2017, January 24). Demand for Gluten-free Foods Expected to Substantially Increase as Awareness and Diagnosis of Celiac Continues to Rise. CISION. Retrieved from: https://www.newswire.ca/news-releases/demand-for-gluten-free-foods-expected-to-substantially-increase-as-awareness-and-diagnosis-of-celiac-disease-continue-to-rise-611631355.html

Bell, E. (2019, March 22). Bread Trends for 2019. Bakers Journal. Retrieved from: https://www.bakersjournal.com/news/bread-trends-for-2019-7674

Health Canada. (2019). Celiac Disease: The Gluten Connection. Retrieved from: https://www.canada.ca/content/dam/hc-sc/documents/services/food-nutrition/reports-publications/food-safety/celiac-disease-gluten-connection/26-18-2047-Food%20Allergen-Celiac-EN-FINAL.pdf

Statistics Canada. (2016). Establishments by Employment Size Category and Province/Territory. Retrieved from: https://www.ic.gc.ca/app/scr/app/cis/businesses-entreprises/3118

Industry Trends

The Canadian video game industry involves the development, marketing, and monetization of video games in Canada. This industry overview will discuss the latest statistics and trends for the video game industry in Canada. For more information on the video game industry please see our Video Game Industry Guide.

Photo credit: Photo by Alexas_Fotos

Key Takeaways

  • Thriving industry: Canada’s video game industry contributed $3.7 billion to the economy in 2017 (Nordicity, 2017).
  • Export-driven industry: Exports accounted for 75% of industry revenue in 2017 (Nordicity, 2017).
  • Nation of gamers: 61% of the national population currently identifies as video gamers (ESAC, 2018).
  • Shifting demographics: 39 is the average age of Canadian video gamers, with 50% being male, and 50% being female (ESAC, 2018).
  • Consumer preferences: 46% of Canadians prefer to play video games most often on their mobile devices (ESAC, 2018).

Industry Performance Snapshot

  • Total revenue among video game companies in Canada was $3.2 billion in 2017, while total expenditure was $2.6 billion (ESAC, 2017).
  • In 2017, exports accounted for 75% of all revenue generated by video game companies in Canada. The US and Europe were the top sources of export revenue at 46% and 42% respectively (Nordicity, 2017).
  • During 2015-2017, total GDP generated by the Canadian video game industry increased by 24% to just over $3.7 billion (Nordicity, 2017).

Industry Output

  • About 2,100 video game projects were completed in 2017, with web (31%) and mobile platforms (29%) accounting for the largest proportions (Nordicity, 2017).
  • Family-oriented games were the most popular genre in 2017, accounting for 26% of all video game projects completed that year (Nordicity, 2017).
  • Budgets for console projects decreased by 26% to $12.5 million in 2017. Despite this, console games still accounted for 89% of all production spending (Nordicity, 2017).

Cost Breakdown

Source: Nordicity. (2017). Canada’s Video Game Industry in 2017 – Final Report. Retrieved from: http://theesa.ca/wp-content/uploads/2017/11/ESAC-Video-Games-in-Canada-Profile-2017_FINAL.pdf

Consumer Spending

Between July 2017 and June 2018, Canadians spent a total of $8.1 billion on digital products. Online gaming subscriptions, game downloads, and in-game purchases accounted for 16.7% of overall spending. Consumers between the ages of 25-34 were the largest group of spenders. This group accounted for about 35% of total spending or $471 million.

Source: Statistics Canada. Table 3: Total Spending on Digital Products, from July 2017 to June 2018. Retrieved from: https://www150.statcan.gc.ca/n1/daily-quotidien/180829/t003b-eng.htm
 

Source: Statistics Canada. Table 3: Total Spending on Digital Products, from July 2017 to June 2018. Retrieved from: https://www150.statcan.gc.ca/n1/daily-quotidien/180829/t003b-eng.htm

Business Locations

As the following chart illustrates, the majority of Canada’s video game companies are located in three provinces: Quebec, Ontario, and British Columbia. This has remained consistent since 2013.

Source: Nordicity. (2017). Canada’s Video Game Industry in 2017 – Final Report. Retrieved from: http://theesa.ca/wp-content/uploads/2017/11/ESAC-Video-Games-in-Canada-Profile-2017_FINAL.pdf

Employment Statistics

In 2017, the Canadian video game industry directly employed 21,800 employees. Quebec was Canada’s top employer with 10,000 employees or 45.9%% of the total number of employees in Canada’s video game industry in 2017.

Source: Nordicity. (2017). Canada’s Video Game Industry in 2017 – Final Report. Retrieved from: http://theesa.ca/wp-content/uploads/2017/11/ESAC-Video-Games-in-Canada-Profile-2017_FINAL.pdf

Trends and Changes

Changing demographics

  • The average age of Canadian video gamers is on the rise. The average Canadian video gamer was 39 years of age in 2018 (ESAC, 2018), compared to 36 in 2017 (ESAC, 2017).
  • The number of female gamers is on the rise. In 2018, 50% of Canadian video gamers were female (ESAC, 2018), compared with 49% in 2017 (ESAC, 2017).

Parents as gamers

  • Canadian parents are not only purchases of video games, but also active consumers of them. 71% of parents played video games with their children (ESAC, 2018) in 2018, compared with 68% of parents in 2016 (ESAC, 2016).

Popularity of mobile gaming

  • 46% of Canadians played video games most often on their mobile devices in 2018 (ESAC, 2018), compared to 41% in 2016 (ESAC, 2016).
  • Although more Canadians are playing video games on their mobile devices, the market for computers and consoles still remains strong (see below).

Source: ESAC. (2018). Essential Facts about the Canadian Video Game Industry. Retrieved from: http://theesa.ca/wp-content/uploads/2018/10/ESAC18_BookletEN.pdf

Emergence of Virtual Reality (VR) gaming

  • The Canadian game industry is accelerating production of VR games, with companies reporting over 250 new VR projects in 2016 alone (Nordicity, 2017).
  • As of 2018, 8% of Canadians already own a VR system (ESAC, 2018).

Social gaming as a global trend

  • Since 2017, social/casual gaming revenue has overtaken traditional gaming revenue to become the largest component of the video games market (PwC, Entertainment & Media Outlook, n.d.)
  • In Canada, social or casual games are stills the fastest growing area of the video games market. Since 2015, they have made up over 50% of Canada’s total video games revenue (PwC, Entertainment & Media Outlook, n.d.).
  • Online, free-to-play, battle royale games such as Fortnite are at the forefront of the social gaming trends. More video game publishers will likely try and emulate Fortnite’s business model to remain competitive (PwC, Entertainment & Media Outlook, n.d.).

Sources

ESAC. (2018). Essential Facts about the Canadian Video Game Industry 2018. Retrieved from: http://theesa.ca/wp-content/uploads/2018/10/ESAC18_BookletEN.pdf

ESAC. (2017). Essential Facts about the Canadian Video Game Industry 2017. Retrieved from: http://theesa.ca/wp-content/uploads/2017/10/ESAC2017_Booklet_13_Digital.pdf

ESAC. (2016). Essential Facts about the Canadian Video Game Industry 2016. Retrieved from:
http://theesa.ca/wp-content/uploads/2016/11/2016_booklet_Web.compressed2.pdf

Nordicity. (2017). Canada’s Video Game Industry in 2017 – Final Report. Retrieved from: http://theesa.ca/wp-content/uploads/2017/11/ESAC-Video-Games-in-Canada-Profile-2017_FINAL.pdf

PwC. (n.d.). Entertainment & Media Outlook 2019-2023. Retrieved from: https://www.pwc.com/ca/en/industries/entertainment-media/outlook-2019-2023.html

Statistics Canada. (n.d.). Table 3: Total Spending on Digital Products, from July 2017 to June 2018. Retrieved from: https://www150.statcan.gc.ca/n1/daily-quotidien/180829/t003b-eng.htm

Industry Trends

The Canadian video game industry involves the development, marketing, and monetization of video games in Canada. This industry overview will discuss the latest statistics and trends for the video game industry in Canada. For more information on the video game industry please see our Video Game Industry Guide.

Photo credit: Photo by Alexas_Fotos

Key Takeaways

  • Thriving industry: Canada’s video game industry contributed $3.7 billion to the economy in 2017 (Nordicity, 2017).
  • Export-driven industry: Exports accounted for 75% of industry revenue in 2017 (Nordicity, 2017).
  • Nation of gamers: 61% of the national population currently identifies as video gamers (ESAC, 2018).
  • Shifting demographics: 39 is the average age of Canadian video gamers, with 50% being male, and 50% being female (ESAC, 2018).
  • Consumer preferences: 46% of Canadians prefer to play video games most often on their mobile devices (ESAC, 2018).

Industry Performance Snapshot

  • Total revenue among video game companies in Canada was $3.2 billion in 2017, while total expenditure was $2.6 billion (ESAC, 2017).
  • In 2017, exports accounted for 75% of all revenue generated by video game companies in Canada. The US and Europe were the top sources of export revenue at 46% and 42% respectively (Nordicity, 2017).
  • During 2015-2017, total GDP generated by the Canadian video game industry increased by 24% to just over $3.7 billion (Nordicity, 2017).

Industry Output

  • About 2,100 video game projects were completed in 2017, with web (31%) and mobile platforms (29%) accounting for the largest proportions (Nordicity, 2017).
  • Family-oriented games were the most popular genre in 2017, accounting for 26% of all video game projects completed that year (Nordicity, 2017).
  • Budgets for console projects decreased by 26% to $12.5 million in 2017. Despite this, console games still accounted for 89% of all production spending (Nordicity, 2017).

Cost Breakdown

Source: Nordicity. (2017). Canada’s Video Game Industry in 2017 – Final Report. Retrieved from: http://theesa.ca/wp-content/uploads/2017/11/ESAC-Video-Games-in-Canada-Profile-2017_FINAL.pdf

Consumer Spending

Between July 2017 and June 2018, Canadians spent a total of $8.1 billion on digital products. Online gaming subscriptions, game downloads, and in-game purchases accounted for 16.7% of overall spending. Consumers between the ages of 25-34 were the largest group of spenders. This group accounted for about 35% of total spending or $471 million.

Source: Statistics Canada. Table 3: Total Spending on Digital Products, from July 2017 to June 2018. Retrieved from: https://www150.statcan.gc.ca/n1/daily-quotidien/180829/t003b-eng.htm
 

Source: Statistics Canada. Table 3: Total Spending on Digital Products, from July 2017 to June 2018. Retrieved from: https://www150.statcan.gc.ca/n1/daily-quotidien/180829/t003b-eng.htm

Business Locations

As the following chart illustrates, the majority of Canada’s video game companies are located in three provinces: Quebec, Ontario, and British Columbia. This has remained consistent since 2013.

Source: Nordicity. (2017). Canada’s Video Game Industry in 2017 – Final Report. Retrieved from: http://theesa.ca/wp-content/uploads/2017/11/ESAC-Video-Games-in-Canada-Profile-2017_FINAL.pdf

Employment Statistics

In 2017, the Canadian video game industry directly employed 21,800 employees. Quebec was Canada’s top employer with 10,000 employees or 45.9%% of the total number of employees in Canada’s video game industry in 2017.

Source: Nordicity. (2017). Canada’s Video Game Industry in 2017 – Final Report. Retrieved from: http://theesa.ca/wp-content/uploads/2017/11/ESAC-Video-Games-in-Canada-Profile-2017_FINAL.pdf

Trends and Changes

Changing demographics

  • The average age of Canadian video gamers is on the rise. The average Canadian video gamer was 39 years of age in 2018 (ESAC, 2018), compared to 36 in 2017 (ESAC, 2017).
  • The number of female gamers is on the rise. In 2018, 50% of Canadian video gamers were female (ESAC, 2018), compared with 49% in 2017 (ESAC, 2017).

Parents as gamers

  • Canadian parents are not only purchases of video games, but also active consumers of them. 71% of parents played video games with their children (ESAC, 2018) in 2018, compared with 68% of parents in 2016 (ESAC, 2016).

Popularity of mobile gaming

  • 46% of Canadians played video games most often on their mobile devices in 2018 (ESAC, 2018), compared to 41% in 2016 (ESAC, 2016).
  • Although more Canadians are playing video games on their mobile devices, the market for computers and consoles still remains strong (see below).

Source: ESAC. (2018). Essential Facts about the Canadian Video Game Industry. Retrieved from: http://theesa.ca/wp-content/uploads/2018/10/ESAC18_BookletEN.pdf

Emergence of Virtual Reality (VR) gaming

  • The Canadian game industry is accelerating production of VR games, with companies reporting over 250 new VR projects in 2016 alone (Nordicity, 2017).
  • As of 2018, 8% of Canadians already own a VR system (ESAC, 2018).

Social gaming as a global trend

  • Since 2017, social/casual gaming revenue has overtaken traditional gaming revenue to become the largest component of the video games market (PwC, Entertainment & Media Outlook, n.d.)
  • In Canada, social or casual games are stills the fastest growing area of the video games market. Since 2015, they have made up over 50% of Canada’s total video games revenue (PwC, Entertainment & Media Outlook, n.d.).
  • Online, free-to-play, battle royale games such as Fortnite are at the forefront of the social gaming trends. More video game publishers will likely try and emulate Fortnite’s business model to remain competitive (PwC, Entertainment & Media Outlook, n.d.).

Sources

ESAC. (2018). Essential Facts about the Canadian Video Game Industry 2018. Retrieved from: http://theesa.ca/wp-content/uploads/2018/10/ESAC18_BookletEN.pdf

ESAC. (2017). Essential Facts about the Canadian Video Game Industry 2017. Retrieved from: http://theesa.ca/wp-content/uploads/2017/10/ESAC2017_Booklet_13_Digital.pdf

ESAC. (2016). Essential Facts about the Canadian Video Game Industry 2016. Retrieved from:
http://theesa.ca/wp-content/uploads/2016/11/2016_booklet_Web.compressed2.pdf

Nordicity. (2017). Canada’s Video Game Industry in 2017 – Final Report. Retrieved from: http://theesa.ca/wp-content/uploads/2017/11/ESAC-Video-Games-in-Canada-Profile-2017_FINAL.pdf

PwC. (n.d.). Entertainment & Media Outlook 2019-2023. Retrieved from: https://www.pwc.com/ca/en/industries/entertainment-media/outlook-2019-2023.html

Statistics Canada. (n.d.). Table 3: Total Spending on Digital Products, from July 2017 to June 2018. Retrieved from: https://www150.statcan.gc.ca/n1/daily-quotidien/180829/t003b-eng.htm

Industry Trends

Whether you are in the thinking stages of starting a business or are looking for opportunities to expand your business network, there are plenty of interesting events taking place during the month of August. 

We also recommend visiting smallbusinessbc.ca and reviewing their full event calendar and seminar line up. Please note details are accurate at time of publication, all summaries have been reproduced from host descriptions.

Photo Credit: Photo by rawpixel


Supplying Professional Services to the Government of Canada
Host: Small Business BC
Target audience: Aspiring and current professional service providers
Date: August 1
Time: 10:30am – 12pm
Location: Small Business BC – Vancouver (Available to other locations via Webinar)
Cost: FREE
Register
Summary: Learn how to register your business in the Centralized Professional Services System (CPSS) as well as how to find and bid on professional service opportunities.


Business Loan Information Session
Host: Women’s Enterprise Centre
Target audience: Aspiring women entrepreneurs
Date: August 6
Time: 12pm – 1pm
Location: Phone-in
Cost: Free
Register
Summary: A facilitator will provide guidance on how to apply for a loan from the Women’s Enterprise Centre.


Focused Business Planning
Host: Small Business BC
Target audience: Aspiring entrepreneurs and small business owners
Date: August 6-28
Time: See registration page for the start times of each seminar
Location: Small Business BC – Vancouver (Available to other locations via Webinar)
Cost: $419
Register
Summary: A package of nine seminars designed to help you evaluate the viability of your business idea, potential buyers of your product or service and more! Each seminar can also be booked individually.


Starting Your Business: What’s the Plan?
Host: Small Business BC
Target audience: Aspiring entrepreneurs and small business owners
Date: August 6
Time: 9am – 12pm
Location: Small Business BC – Vancouver (Available to other locations via Webinar)
Cost: $59
Register
Summary: Identify key gaps in your business plan as well as how to create a cohesive, compelling argument for your business.

 


Burnaby Entrepreneurs Toastmasters
Host: Burnaby Entrepreneurs Toastmasters
Target audience: Entrepreneurs
Date: Wednesday (Recurring)
Time: 6:45pm
Location: CMPNY Burnaby
Cost: FREE
Register
Summary: Improve your public speaking skills and leadership qualities in this friendly, constructive environment.


Business Mapping: Developing a Smart Business Model
Host: Small Business BC
Target audience: Entrepreneurs
Date: August 7
Time: 1pm – 3pm
Location: Small Business BC – Vancouver (Available to other locations via Webinar)
Cost: $59      
Register
Summary: Learn how to evaluate your business idea, understand the key areas of a successful business model, and discover financing options for your new venture. 


Need to Know: Mindset Mastery for Business Growth
Host: Hervana Coworking Collective
Target audience: Women entrepreneurs and business owners
Date: August 9
Time: 9:30 am – 12:30pm
Location: Hervana Coworking Collective
Cost: $79-$99
Register
Summary: A workshop designed for women entrepreneurs to help them unleash their entrepreneurial mindsets and grow their businesses successfully.


Business Viability 1: The Break Even Analysis
Host: Small Business BC
Target audience: Entrepreneurs; Small business owners
Date: August 13
Time: 9am – 12pm
Location: Small Business BC – Vancouver (Available to other locations via Webinar)
Cost: $69
Register
Summary: Learn how to identify the costs of starting and operating a business in its first year. Discover how to calculate starting capital and annual sales to break even.


Business Viability 2: The Cash Flow Forecast
Host: Small Business BC
Target audience: Entrepreneurs; Small business owners
Date: August 13
Time: 1pm – 4pm
Location: Small Business BC – Vancouver (Available to other locations via Webinar)
Cost: $69      
Register
Summary: Learn how to forecast monthly cash flow, how to calculate cash flow, and the causes of cash flow problems.


Mastering Your Business for Maximum Profit & Success in Surrey
Host: Canadian Business Success Events
Target audience: Aspiring entrepreneurs and small business owners
Date: August 13
Time: 12pm – 2pm
Location: Sheraton Guildford Hotel
Cost: FREE
Register
Summary: Overcome your own fears of starting a business in this 2-hour event designed to help you maximize growth, sales, and profit.


How to Set Up a Business for Newcomers
Host: Burnaby Public Library
Co-host: MOSAIC
Target audience: Newcomers
Date: August 16
Time: 6pm – 8pm
Location: Burnaby Public Library
Cost: FREE
Register
Summary: Intended for newcomers who want to learn the process of starting a small business, including how to write a business plan, register a business, and find financing.


Mastering Social Media to Grow Your Business
Host: Small Business BC
Target audience: Entrepreneurs; Small business owners
Date: August 19
Time: 1pm – 4:30pm
Location: Small Business BC – Vancouver (Available to other locations via Webinar)
Cost: $39
Register
Summary: Learn how to expand your following by incorporating social media into your marketing strategy.


Market Research 1: Finding Data That Works for You
Host: Small Business BC
Target audience: Aspiring entrepreneurs and small business owners
Date: August 20
Time: 9:30am – 3:30pm
Location: Small Business BC – Vancouver (Available to other locations via Webinar)
Cost: $69      
Register
Summary: Discover how to use secondary data — including what it is and where to find it — to analyze your target market, competitors, and industry trends in this seminar that explores the importance of secondary market research.


Business Planning (Penticton, BC)
Host: Community Futures Okanagan Similkameen
Target audience: Aspiring entrepreneurs and business owners
Date: August 21
Time: 9am – 4pm
Location: Community Futures Okanagan Similkameen
Cost: $75
Register
Summary: Learn how to develop an action plan to help make your business model a reality!


Starting a Business Information Session
Host: Women’s Enterprise Centre
Target audience: Aspiring women entrepreneurs
Date: August 22
Time: 12pm – 1pm
Location: Phone-in
Cost: FREE
Register
Summary: Receive guidance on several topics including business structures, registering a business, licenses and permits, and sources of funding for a business.


Creating Your First Business Website
Host: Small Business BC
Target audience: Small business owners
Date: August 26
Time: 1pm – 3pm
Location: Small Business BC – Vancouver (Available to other locations via Webinar)
Cost: $59
Register
Summary: This interactive step-by-step tour of WordPress will provide you with a foundation to build and customize a website for your business.


Market Research 2: Surveys and Focus Groups for Knowing Your Customer
Host: Small Business BC
Target audience: Aspiring entrepreneurs and small business owners
Date: August 27
Time: 9:30am – 3:30pm
Location: Small Business BC – Vancouver (Available to other locations via Webinar)
Cost: $69      
Register
Summary: Learn about the difference between quantitative and qualitative data, discover methods for collecting data, and understand the key tools for gathering information in this seminar that explores the importance of primary market research.


Operations for Small Business
Host: Small Business BC
Target audience: Aspiring small business owners
Date: August 28
Time: 9am – 12pm
Location: Small Business BC – Vancouver (Available to other locations via Webinar)
Cost: $39
Register
Summary: Discover how to plan, set up, and manage small business operations, as well as how to set goals and targets within your team.

Events

Whether you are in the thinking stages of starting a business or are looking for opportunities to expand your business network, there are plenty of interesting events taking place during the month of August. 

We also recommend visiting smallbusinessbc.ca and reviewing their full event calendar and seminar line up. Please note details are accurate at time of publication, all summaries have been reproduced from host descriptions.

Photo Credit: Photo by rawpixel


Supplying Professional Services to the Government of Canada
Host: Small Business BC
Target audience: Aspiring and current professional service providers
Date: August 1
Time: 10:30am – 12pm
Location: Small Business BC – Vancouver (Available to other locations via Webinar)
Cost: FREE
Register
Summary: Learn how to register your business in the Centralized Professional Services System (CPSS) as well as how to find and bid on professional service opportunities.


Business Loan Information Session
Host: Women’s Enterprise Centre
Target audience: Aspiring women entrepreneurs
Date: August 6
Time: 12pm – 1pm
Location: Phone-in
Cost: Free
Register
Summary: A facilitator will provide guidance on how to apply for a loan from the Women’s Enterprise Centre.


Focused Business Planning
Host: Small Business BC
Target audience: Aspiring entrepreneurs and small business owners
Date: August 6-28
Time: See registration page for the start times of each seminar
Location: Small Business BC – Vancouver (Available to other locations via Webinar)
Cost: $419
Register
Summary: A package of nine seminars designed to help you evaluate the viability of your business idea, potential buyers of your product or service and more! Each seminar can also be booked individually.


Starting Your Business: What’s the Plan?
Host: Small Business BC
Target audience: Aspiring entrepreneurs and small business owners
Date: August 6
Time: 9am – 12pm
Location: Small Business BC – Vancouver (Available to other locations via Webinar)
Cost: $59
Register
Summary: Identify key gaps in your business plan as well as how to create a cohesive, compelling argument for your business.

 


Burnaby Entrepreneurs Toastmasters
Host: Burnaby Entrepreneurs Toastmasters
Target audience: Entrepreneurs
Date: Wednesday (Recurring)
Time: 6:45pm
Location: CMPNY Burnaby
Cost: FREE
Register
Summary: Improve your public speaking skills and leadership qualities in this friendly, constructive environment.


Business Mapping: Developing a Smart Business Model
Host: Small Business BC
Target audience: Entrepreneurs
Date: August 7
Time: 1pm – 3pm
Location: Small Business BC – Vancouver (Available to other locations via Webinar)
Cost: $59      
Register
Summary: Learn how to evaluate your business idea, understand the key areas of a successful business model, and discover financing options for your new venture. 


Need to Know: Mindset Mastery for Business Growth
Host: Hervana Coworking Collective
Target audience: Women entrepreneurs and business owners
Date: August 9
Time: 9:30 am – 12:30pm
Location: Hervana Coworking Collective
Cost: $79-$99
Register
Summary: A workshop designed for women entrepreneurs to help them unleash their entrepreneurial mindsets and grow their businesses successfully.


Business Viability 1: The Break Even Analysis
Host: Small Business BC
Target audience: Entrepreneurs; Small business owners
Date: August 13
Time: 9am – 12pm
Location: Small Business BC – Vancouver (Available to other locations via Webinar)
Cost: $69
Register
Summary: Learn how to identify the costs of starting and operating a business in its first year. Discover how to calculate starting capital and annual sales to break even.


Business Viability 2: The Cash Flow Forecast
Host: Small Business BC
Target audience: Entrepreneurs; Small business owners
Date: August 13
Time: 1pm – 4pm
Location: Small Business BC – Vancouver (Available to other locations via Webinar)
Cost: $69      
Register
Summary: Learn how to forecast monthly cash flow, how to calculate cash flow, and the causes of cash flow problems.


Mastering Your Business for Maximum Profit & Success in Surrey
Host: Canadian Business Success Events
Target audience: Aspiring entrepreneurs and small business owners
Date: August 13
Time: 12pm – 2pm
Location: Sheraton Guildford Hotel
Cost: FREE
Register
Summary: Overcome your own fears of starting a business in this 2-hour event designed to help you maximize growth, sales, and profit.


How to Set Up a Business for Newcomers
Host: Burnaby Public Library
Co-host: MOSAIC
Target audience: Newcomers
Date: August 16
Time: 6pm – 8pm
Location: Burnaby Public Library
Cost: FREE
Register
Summary: Intended for newcomers who want to learn the process of starting a small business, including how to write a business plan, register a business, and find financing.


Mastering Social Media to Grow Your Business
Host: Small Business BC
Target audience: Entrepreneurs; Small business owners
Date: August 19
Time: 1pm – 4:30pm
Location: Small Business BC – Vancouver (Available to other locations via Webinar)
Cost: $39
Register
Summary: Learn how to expand your following by incorporating social media into your marketing strategy.


Market Research 1: Finding Data That Works for You
Host: Small Business BC
Target audience: Aspiring entrepreneurs and small business owners
Date: August 20
Time: 9:30am – 3:30pm
Location: Small Business BC – Vancouver (Available to other locations via Webinar)
Cost: $69      
Register
Summary: Discover how to use secondary data — including what it is and where to find it — to analyze your target market, competitors, and industry trends in this seminar that explores the importance of secondary market research.


Business Planning (Penticton, BC)
Host: Community Futures Okanagan Similkameen
Target audience: Aspiring entrepreneurs and business owners
Date: August 21
Time: 9am – 4pm
Location: Community Futures Okanagan Similkameen
Cost: $75
Register
Summary: Learn how to develop an action plan to help make your business model a reality!


Starting a Business Information Session
Host: Women’s Enterprise Centre
Target audience: Aspiring women entrepreneurs
Date: August 22
Time: 12pm – 1pm
Location: Phone-in
Cost: FREE
Register
Summary: Receive guidance on several topics including business structures, registering a business, licenses and permits, and sources of funding for a business.


Creating Your First Business Website
Host: Small Business BC
Target audience: Small business owners
Date: August 26
Time: 1pm – 3pm
Location: Small Business BC – Vancouver (Available to other locations via Webinar)
Cost: $59
Register
Summary: This interactive step-by-step tour of WordPress will provide you with a foundation to build and customize a website for your business.


Market Research 2: Surveys and Focus Groups for Knowing Your Customer
Host: Small Business BC
Target audience: Aspiring entrepreneurs and small business owners
Date: August 27
Time: 9:30am – 3:30pm
Location: Small Business BC – Vancouver (Available to other locations via Webinar)
Cost: $69      
Register
Summary: Learn about the difference between quantitative and qualitative data, discover methods for collecting data, and understand the key tools for gathering information in this seminar that explores the importance of primary market research.


Operations for Small Business
Host: Small Business BC
Target audience: Aspiring small business owners
Date: August 28
Time: 9am – 12pm
Location: Small Business BC – Vancouver (Available to other locations via Webinar)
Cost: $39
Register
Summary: Discover how to plan, set up, and manage small business operations, as well as how to set goals and targets within your team.

Events

This industry overview will discuss the latest statistics and trends for the management consulting industry in Canada. For more information on the consulting industry please see our Consulting Industry Guide.

Photo Credit: Photo by Free-Photos

Key Takeaways

  • Steady growth: The number of consulting firms grew every year during 2013-2018. This is expected to continue through 2018-2023.
  • New entrants: High industry profitability will incentive new entrants into the market during 2018-2023. Many of these new entrants will serve niche industries.
  • Steady competition: Competition is expected to remain steady during 2018-2023, with the main sources of competition coming from the IT consulting industry and in-house service.
  • Stable demand: Strong domestic economic conditions are expected to result in stable demand for industry services during 2018-2023.

Industry Performance Snapshot

The Management, Scientific and Technical Services Consulting sector [5416] achieved operating revenues and operating expenses of $21.3 billion and $15.3 billion respectively in 2016. (Statistics Canada, Consulting Services, Summary Statistics, n.d.).

Source: Statistics Canada. Consulting Services, Breakdown of Sales. Retrieved from: https://www150.statcan.gc.ca/t1/tbl1/en/tv.action?pid=3310016201

Products and Services

The chart above shows that management consulting services accounted for the largest portion of consulting sales in 2017. The following is a breakdown of the management consulting services provided that year (Statistics Canada, Consulting Services, Breakdown of Sales, n.d.):

  • Strategic management consulting services (20.8%)
  • Financial management consulting services (10.6%)
  • Marketing management consulting services (5.5%)
  • Human resources management consulting services (12.0%)
  • Operations and supply chain management consulting services (4.2%)
  • Other management consulting services (18.5%)

Key Markets

In 2017, most sales were made to domestic businesses (67.8%), followed by sales to governments, not-for-profit organizations and public institutions (13.3%) and sales to international clients (13.3%).

Source: Statistics Canada. Consulting Services, Sales by Type of Client. Retrieved from: https://www150.statcan.gc.ca/t1/tbl1/en/tv.action?pid=2110016801

Cost Breakdown

The Top 5 industry expenses in 2017 were (Statistics Canada, Consulting Services, Industry Expenditures, n.d):

  • Salaries, wages, commissions, and benefits (43.2%)
  • Subcontracts (9.2%)
  • Professional and business fees (7.4%)
  • Cost of goods sold (6.4%)
  • All other costs and expenses (9.9%)

Business Locations

Source: Statistics Canada. Establishments by Employment Type and Province/Territory. Retrieved from: https://www.ic.gc.ca/app/scr/app/cis/businesses-entreprises/5416

Trends & Changes

Market Growth

  • During 2018-2023, government expenditure is forecast to grow at an annualized rate of 1.7%. This will create more opportunities for management consultants who specializing in advising public agencies (Ismailanji, 2018)
  • Financial services will be a key driver of industry demand during 2018-2023. Management consultants will benefit as a result of Canadian banks and firms seeking their services (Ismailanji, 2018).

Steady Competition

  • During 2018-2023, more specialized consulting firms will enter the market and provide services to niche industries (Ismailanji, 2018).
  • High industry profitability will lead to more competition, with the total number of enterprises reaching 87,390 by 2023 (Ismailanji, 2018).

Shifting Business Environment

  • During 2018-2023, foreign investment is expected to slow as a result of the US Tax Cuts and Jobs Act (Ismailanji, 2018).
  • Corporate profit and the number of businesses in management consulting are forecasted to increase at annualized rates of 4.8% and 0.7% respectively, creating strong demand for industry services (Ismailanji, 2018).

Growth of the Gig Economy

  • The gig economy (characterized by temporary or contracted employment on an on demand basis) is growing rapidly in Canada (BMO, 2018).
  • Large corporations are hiring more consultants and highly skilled specialists to supplement their permanent staff (BMO, 2018).
  • In September 2017, there were 2.8 million Canadians classified as temporary workers (BMO, 2018). This figure includes management consultants.
  • Millennials are more attracted to the gig economy than other age groups because they are looking for ways to supplement their income (BMO, 2018).

Other Trends

  • Management consultants are developing niche proficiencies and more dynamic skill sets. Being a generalist is less common (CMC, 2016).
  • Big data continues to create new opportunities in information usage, governance, data security, and privacy and information systems (CMC, 2016).
  • Clients are demanding value-based solutions and proof of cost savings. They also expect to be mentored and coached by their consultants (CMC, 2016).

Snapshot of British Columbia

  • Largest age group of consultants were 45-64 (50%), followed by 25-44 (39%), 65+ (9%), and 15-24 (2%) (WorkBC, n.d.).
  • 74.7% of all management consultants worked in the Mainland/Southwest regions of BC (WorkBC, n.d.).
  • Annual median salary of consultants was $75,082 in 2017 (WorkBC, n.d.).
  • Provincial hourly wage rate (WorkBC Industry Outlook Profile, 2018):
    • High: $51.43
    • Median: $36
    • Low: $20
  • 530 management consulting jobs opened in 2018 (WorkBC, n.d.).
  • 4233 people are currently employed in this sector (WorkBC Industry Outlook Profile, 2018).
  • 2126 new job openings are forecasted for 2018-2028, with annual forecasted replacement rates of 2.7% (WorkBC Industry Outlook Profile, 2018).

Sources

BMO Wealth Management. (2018). The Gig Economy. Retrieved from: https://www.bmo.com/assets/pdfs/wealth/bmo_gig_economy_report_en.pdf

CMC Canada. (2016). Management Consulting in Canada: 2016 Industry Report – Executive Summary. Retrieved from:

https://higherlogicdownload.s3.amazonaws.com/CMCCANADA/6ae61369-ed65-4d46-87b4-976096e78fa2/UploadedImages/Executive%20Summary%20-%202016%20Industry%20Study.pdf

Ismailanji, M. (2018). IBISWorld Industry Report 54161CA: Management Consulting in Canada. Retrieved from IBISWorld Industry Reports database.

Statistics Canada. (n.d). Consulting Services, Breakdown of Sales. Retrieved from: https://www150.statcan.gc.ca/t1/tbl1/en/tv.action?pid=3310016201

Statistics Canada. (n.d.). Consulting Services, Industry Expenditures. Retrieved from: https://www150.statcan.gc.ca/t1/tbl1/en/tv.action?pid=2110016701

Statistics Canada. (n.d.). Consulting Services, Sales by Type of Client. Retrieved from: https://www150.statcan.gc.ca/t1/tbl1/en/tv.action?pid=2110016801

Statistics Canada. (n.d.). Consulting Services, Summary Statistics. Retrieved from: https://www150.statcan.gc.ca/t1/tbl1/en/tv.action?pid=2110016601

WorkBC. (2018). WorkBC Industry Outlook Profile: Management, Scientific and Technical Consulting Services (NAICS 5416). Retrieved from: https://www.workbc.ca/getmedia/13b75e6f-8609-4e28-a965-eac561743fc3/profile-5416-management,-scientific-and-technical-consulting-services.pdf.aspx

WorkBC. (n.d.). Professional Occupations in Business Management Consulting (NOC 1122). Retrieved from: https://www.workbc.ca/jobs-careers/explore-careers/browse-career-profile/112

Industry Trends

This industry overview will discuss the latest statistics and trends for the management consulting industry in Canada. For more information on the consulting industry please see our Consulting Industry Guide.

Photo Credit: Photo by Free-Photos

Key Takeaways

  • Steady growth: The number of consulting firms grew every year during 2013-2018. This is expected to continue through 2018-2023.
  • New entrants: High industry profitability will incentive new entrants into the market during 2018-2023. Many of these new entrants will serve niche industries.
  • Steady competition: Competition is expected to remain steady during 2018-2023, with the main sources of competition coming from the IT consulting industry and in-house service.
  • Stable demand: Strong domestic economic conditions are expected to result in stable demand for industry services during 2018-2023.

Industry Performance Snapshot

The Management, Scientific and Technical Services Consulting sector [5416] achieved operating revenues and operating expenses of $21.3 billion and $15.3 billion respectively in 2016. (Statistics Canada, Consulting Services, Summary Statistics, n.d.).

Source: Statistics Canada. Consulting Services, Breakdown of Sales. Retrieved from: https://www150.statcan.gc.ca/t1/tbl1/en/tv.action?pid=3310016201

Products and Services

The chart above shows that management consulting services accounted for the largest portion of consulting sales in 2017. The following is a breakdown of the management consulting services provided that year (Statistics Canada, Consulting Services, Breakdown of Sales, n.d.):

  • Strategic management consulting services (20.8%)
  • Financial management consulting services (10.6%)
  • Marketing management consulting services (5.5%)
  • Human resources management consulting services (12.0%)
  • Operations and supply chain management consulting services (4.2%)
  • Other management consulting services (18.5%)

Key Markets

In 2017, most sales were made to domestic businesses (67.8%), followed by sales to governments, not-for-profit organizations and public institutions (13.3%) and sales to international clients (13.3%).

Source: Statistics Canada. Consulting Services, Sales by Type of Client. Retrieved from: https://www150.statcan.gc.ca/t1/tbl1/en/tv.action?pid=2110016801

Cost Breakdown

The Top 5 industry expenses in 2017 were (Statistics Canada, Consulting Services, Industry Expenditures, n.d):

  • Salaries, wages, commissions, and benefits (43.2%)
  • Subcontracts (9.2%)
  • Professional and business fees (7.4%)
  • Cost of goods sold (6.4%)
  • All other costs and expenses (9.9%)

Business Locations

Source: Statistics Canada. Establishments by Employment Type and Province/Territory. Retrieved from: https://www.ic.gc.ca/app/scr/app/cis/businesses-entreprises/5416

Trends & Changes

Market Growth

  • During 2018-2023, government expenditure is forecast to grow at an annualized rate of 1.7%. This will create more opportunities for management consultants who specializing in advising public agencies (Ismailanji, 2018)
  • Financial services will be a key driver of industry demand during 2018-2023. Management consultants will benefit as a result of Canadian banks and firms seeking their services (Ismailanji, 2018).

Steady Competition

  • During 2018-2023, more specialized consulting firms will enter the market and provide services to niche industries (Ismailanji, 2018).
  • High industry profitability will lead to more competition, with the total number of enterprises reaching 87,390 by 2023 (Ismailanji, 2018).

Shifting Business Environment

  • During 2018-2023, foreign investment is expected to slow as a result of the US Tax Cuts and Jobs Act (Ismailanji, 2018).
  • Corporate profit and the number of businesses in management consulting are forecasted to increase at annualized rates of 4.8% and 0.7% respectively, creating strong demand for industry services (Ismailanji, 2018).

Growth of the Gig Economy

  • The gig economy (characterized by temporary or contracted employment on an on demand basis) is growing rapidly in Canada (BMO, 2018).
  • Large corporations are hiring more consultants and highly skilled specialists to supplement their permanent staff (BMO, 2018).
  • In September 2017, there were 2.8 million Canadians classified as temporary workers (BMO, 2018). This figure includes management consultants.
  • Millennials are more attracted to the gig economy than other age groups because they are looking for ways to supplement their income (BMO, 2018).

Other Trends

  • Management consultants are developing niche proficiencies and more dynamic skill sets. Being a generalist is less common (CMC, 2016).
  • Big data continues to create new opportunities in information usage, governance, data security, and privacy and information systems (CMC, 2016).
  • Clients are demanding value-based solutions and proof of cost savings. They also expect to be mentored and coached by their consultants (CMC, 2016).

Snapshot of British Columbia

  • Largest age group of consultants were 45-64 (50%), followed by 25-44 (39%), 65+ (9%), and 15-24 (2%) (WorkBC, n.d.).
  • 74.7% of all management consultants worked in the Mainland/Southwest regions of BC (WorkBC, n.d.).
  • Annual median salary of consultants was $75,082 in 2017 (WorkBC, n.d.).
  • Provincial hourly wage rate (WorkBC Industry Outlook Profile, 2018):
    • High: $51.43
    • Median: $36
    • Low: $20
  • 530 management consulting jobs opened in 2018 (WorkBC, n.d.).
  • 4233 people are currently employed in this sector (WorkBC Industry Outlook Profile, 2018).
  • 2126 new job openings are forecasted for 2018-2028, with annual forecasted replacement rates of 2.7% (WorkBC Industry Outlook Profile, 2018).

Sources

BMO Wealth Management. (2018). The Gig Economy. Retrieved from: https://www.bmo.com/assets/pdfs/wealth/bmo_gig_economy_report_en.pdf

CMC Canada. (2016). Management Consulting in Canada: 2016 Industry Report – Executive Summary. Retrieved from:

https://higherlogicdownload.s3.amazonaws.com/CMCCANADA/6ae61369-ed65-4d46-87b4-976096e78fa2/UploadedImages/Executive%20Summary%20-%202016%20Industry%20Study.pdf

Ismailanji, M. (2018). IBISWorld Industry Report 54161CA: Management Consulting in Canada. Retrieved from IBISWorld Industry Reports database.

Statistics Canada. (n.d). Consulting Services, Breakdown of Sales. Retrieved from: https://www150.statcan.gc.ca/t1/tbl1/en/tv.action?pid=3310016201

Statistics Canada. (n.d.). Consulting Services, Industry Expenditures. Retrieved from: https://www150.statcan.gc.ca/t1/tbl1/en/tv.action?pid=2110016701

Statistics Canada. (n.d.). Consulting Services, Sales by Type of Client. Retrieved from: https://www150.statcan.gc.ca/t1/tbl1/en/tv.action?pid=2110016801

Statistics Canada. (n.d.). Consulting Services, Summary Statistics. Retrieved from: https://www150.statcan.gc.ca/t1/tbl1/en/tv.action?pid=2110016601

WorkBC. (2018). WorkBC Industry Outlook Profile: Management, Scientific and Technical Consulting Services (NAICS 5416). Retrieved from: https://www.workbc.ca/getmedia/13b75e6f-8609-4e28-a965-eac561743fc3/profile-5416-management,-scientific-and-technical-consulting-services.pdf.aspx

WorkBC. (n.d.). Professional Occupations in Business Management Consulting (NOC 1122). Retrieved from: https://www.workbc.ca/jobs-careers/explore-careers/browse-career-profile/112

Industry Trends

Whether you are in the thinking stages of starting a business or are looking for opportunities to expand your business network, there are plenty of interesting events taking place during the month of July. 

We also recommend visiting smallbusinessbc.ca and reviewing their full event calendar and seminar line up. Please note details are accurate at time of publication, all summaries have been reproduced from host descriptions.

Photo Credit: Photo by rawpixel


Business Mapping: Developing a Smart Business Model
Host: Small Business BC
Target audience: Entrepreneurs
Date: July 3
Time: 1pm – 3pm
Location: Small Business BC – Vancouver (Available to other locations via Webinar)
Cost: $59      
Register
Summary: Discover the key components of a successful business model, methods for evaluating a business idea and more at this introductory seminar!


Need to Know: Financial Management
Host: Hervana Coworking Collective
Target audience: Women entrepreneurs and business owners
Date: July 5
Time: 8am – 12pm
Location: Hervana Coworking Collective
Cost: $49-69
Register
Summary: Learn about cash flow, credit and collections, cost/profit/volume/relationship, business ratios and other topics essential for helping you effectively manage cash and finances to ensure the survival of your business.


Business Model Canvas (Penticton, BC)
Host: Community Futures Okanagan-Similkameen
Target audience: Aspiring entrepreneurs; Entrepreneurs
Date: July 6-7
Time: 9am
Location: Community Futures Okanagan-Similkameen
Cost: $150
Register
Summary: Discover the nine key building blocks of business development, learn about methods for validating customers, and understand how to gather, evaluate, and use consumer feedback to develop a product/service to generate revenue.


Business Loan Information Session
Host: Women’s Enterprise Centre
Target audience: Aspiring Women Entrepreneurs
Date: July 9
Time: 12pm
Location: Phone-in
Cost: FREE
Register
Summary: A facilitator will provide guidance on how to apply for a loan from the Women’s Enterprise Centre.


Inspire Women’s Business Network
Host: Inspire Women’s Business Network
Target audience: Women entrepreneurs and business owners
Date: July 10
Time: 7pm – 9:30pm
Location: North Vancouver (event address will be provided upon registration)
Cost: $29
Register
Summary: Network and share your business with fellow women entrepreneurs and business owners looking to expand their businesses networks in Vancouver.


Burnaby Entrepreneurs Toastmasters Weekly Meeting
Host: Burnaby Entrepreneurs Toastmasters
Target audience: Entrepreneurs
Date: Wednesday (Recurring)
Time: 6:50pm
Location: CMPNY Burnaby
Cost: FREE
Summary: Improve your public speaking skills and leadership qualities in this friendly, constuctive environment.


Starting a Business Information Session
Host: Women’s Enterprise Centre
Target audience: Apsiring women entrepreneurs
Date: July 11
Time: 12pm – 1pm
Location: Phone-in
Cost: FREE
Register
Summary: Receive guidance on several topics incuding business structures, registering a business, licenses and permits, and sources of funding for a business.


Start Smart 1
Host: Small Business BC
Target audience: Aspiring entrepreneurs; Entrepreneurs
Date: July 17
Time: 9am – 12pm
Location: Small Business BC – Vancouver (Available to other locations via Webinar)
Cost: $29
Register
Summary: Attend this seminar and learn about several topics including business planning, market research, and methods for evaluating business ideas. This seminar is well-suited for those who are still in the thinking stage of starting a business.


Start Smart 2
Host: Small Business BC
Target audience: Aspiring entrepreneurs; Entrepreneurs
Date: July 17
Time: 1pm – 4pm
Location: Small Business BC – Vancouver (Available to other locations via Webinar)
Cost: $29
Register
Summary: Learn about how to protect your business through this seminar on Provincial Sales Tax, employment standards, intellectual property, trademarks, patents, and designs.


Raising Capital 101          
Host: Women’s Enterprise Centre
Co-host: Driven by Women
Target audience: Women entrepreneurs
Date: July 17
Time: 10am – 11am
Location: Webinar
Cost: FREE
Register
Summary: Understand the various stages of financing, including the stage that is right for your business, and the risks associated with that stage.


Market Research 1: Finding Data that Works for You
Host: Small BC Business
Target audience: Aspiring entrepreneurs; Entrepreneurs
Date: July 18
Time: 10:30am – 4:30pm
Location: Small Business BC – Vancouver (Available to other locations via Webinar)
Cost: $69
Register
Summary: Discover how to use secondary data — including what it is and where to find it — to analyze your target market, competitors, and industry trends in this seminar that explores the importance of secondary market research.


Marketing Essentials for Small Business
Host: Small Business BC
Target audience: Marketing Essentials for Small Businses
Date: July 24
Time: 1pm – 4pm
Location: Small Business BC – Vancouver (Available to other locations via Webinar)
Cost: $59
Register
Summary: Attend this seminar and learn how to select the right marketing tools to help you reach your target audience effectively.


Market Research 2: Surveys and Focus Groups for Knowing Your Customer
Host: Small Business BC
Target audience: Aspiring entrepreneurs; Entrepreneurs
Date: July 25
Time: 10:30am – 4:30pm
Location: Small Business BC – Vancouver (Available to other locations via Webinar)
Cost: $69
Register
Summary: Learn about the difference between quantitative and qualitative data, discover methods for collecting data, and understand the key tools for gathering information in this seminar that explores the importance of primary market research.


Start Your Own Image Consulting Business
Host: Patti Morrison, Image Consultant
Target audience: Aspiring fashion designers and entrepreneurs
Date: July 30
Time: 7pm – 8:30pm
Location: Details will be sent upon registering for the event
Cost: FREE
Register
Summary: Transform your passion for fashion into a career in image consulting!


Reach More Customers With Google Ads
Host: Small Business BC
Target audience: Small business owners
Date: July 31
Time: 1pm – 4pm
Location: Small Business BC – Vancouver (Available to other locations via Webinar)
Cost: $49
Register
Summary: Understand how Google Adwords works, including how to use it to build and track the results of campaigns.

Events

Whether you are in the thinking stages of starting a business or are looking for opportunities to expand your business network, there are plenty of interesting events taking place during the month of July. 

We also recommend visiting smallbusinessbc.ca and reviewing their full event calendar and seminar line up. Please note details are accurate at time of publication, all summaries have been reproduced from host descriptions.

Photo Credit: Photo by rawpixel


Business Mapping: Developing a Smart Business Model
Host: Small Business BC
Target audience: Entrepreneurs
Date: July 3
Time: 1pm – 3pm
Location: Small Business BC – Vancouver (Available to other locations via Webinar)
Cost: $59      
Register
Summary: Discover the key components of a successful business model, methods for evaluating a business idea and more at this introductory seminar!


Need to Know: Financial Management
Host: Hervana Coworking Collective
Target audience: Women entrepreneurs and business owners
Date: July 5
Time: 8am – 12pm
Location: Hervana Coworking Collective
Cost: $49-69
Register
Summary: Learn about cash flow, credit and collections, cost/profit/volume/relationship, business ratios and other topics essential for helping you effectively manage cash and finances to ensure the survival of your business.


Business Model Canvas (Penticton, BC)
Host: Community Futures Okanagan-Similkameen
Target audience: Aspiring entrepreneurs; Entrepreneurs
Date: July 6-7
Time: 9am
Location: Community Futures Okanagan-Similkameen
Cost: $150
Register
Summary: Discover the nine key building blocks of business development, learn about methods for validating customers, and understand how to gather, evaluate, and use consumer feedback to develop a product/service to generate revenue.


Business Loan Information Session
Host: Women’s Enterprise Centre
Target audience: Aspiring Women Entrepreneurs
Date: July 9
Time: 12pm
Location: Phone-in
Cost: FREE
Register
Summary: A facilitator will provide guidance on how to apply for a loan from the Women’s Enterprise Centre.


Inspire Women’s Business Network
Host: Inspire Women’s Business Network
Target audience: Women entrepreneurs and business owners
Date: July 10
Time: 7pm – 9:30pm
Location: North Vancouver (event address will be provided upon registration)
Cost: $29
Register
Summary: Network and share your business with fellow women entrepreneurs and business owners looking to expand their businesses networks in Vancouver.


Burnaby Entrepreneurs Toastmasters Weekly Meeting
Host: Burnaby Entrepreneurs Toastmasters
Target audience: Entrepreneurs
Date: Wednesday (Recurring)
Time: 6:50pm
Location: CMPNY Burnaby
Cost: FREE
Summary: Improve your public speaking skills and leadership qualities in this friendly, constuctive environment.


Starting a Business Information Session
Host: Women’s Enterprise Centre
Target audience: Apsiring women entrepreneurs
Date: July 11
Time: 12pm – 1pm
Location: Phone-in
Cost: FREE
Register
Summary: Receive guidance on several topics incuding business structures, registering a business, licenses and permits, and sources of funding for a business.


Start Smart 1
Host: Small Business BC
Target audience: Aspiring entrepreneurs; Entrepreneurs
Date: July 17
Time: 9am – 12pm
Location: Small Business BC – Vancouver (Available to other locations via Webinar)
Cost: $29
Register
Summary: Attend this seminar and learn about several topics including business planning, market research, and methods for evaluating business ideas. This seminar is well-suited for those who are still in the thinking stage of starting a business.


Start Smart 2
Host: Small Business BC
Target audience: Aspiring entrepreneurs; Entrepreneurs
Date: July 17
Time: 1pm – 4pm
Location: Small Business BC – Vancouver (Available to other locations via Webinar)
Cost: $29
Register
Summary: Learn about how to protect your business through this seminar on Provincial Sales Tax, employment standards, intellectual property, trademarks, patents, and designs.


Raising Capital 101          
Host: Women’s Enterprise Centre
Co-host: Driven by Women
Target audience: Women entrepreneurs
Date: July 17
Time: 10am – 11am
Location: Webinar
Cost: FREE
Register
Summary: Understand the various stages of financing, including the stage that is right for your business, and the risks associated with that stage.


Market Research 1: Finding Data that Works for You
Host: Small BC Business
Target audience: Aspiring entrepreneurs; Entrepreneurs
Date: July 18
Time: 10:30am – 4:30pm
Location: Small Business BC – Vancouver (Available to other locations via Webinar)
Cost: $69
Register
Summary: Discover how to use secondary data — including what it is and where to find it — to analyze your target market, competitors, and industry trends in this seminar that explores the importance of secondary market research.


Marketing Essentials for Small Business
Host: Small Business BC
Target audience: Marketing Essentials for Small Businses
Date: July 24
Time: 1pm – 4pm
Location: Small Business BC – Vancouver (Available to other locations via Webinar)
Cost: $59
Register
Summary: Attend this seminar and learn how to select the right marketing tools to help you reach your target audience effectively.


Market Research 2: Surveys and Focus Groups for Knowing Your Customer
Host: Small Business BC
Target audience: Aspiring entrepreneurs; Entrepreneurs
Date: July 25
Time: 10:30am – 4:30pm
Location: Small Business BC – Vancouver (Available to other locations via Webinar)
Cost: $69
Register
Summary: Learn about the difference between quantitative and qualitative data, discover methods for collecting data, and understand the key tools for gathering information in this seminar that explores the importance of primary market research.


Start Your Own Image Consulting Business
Host: Patti Morrison, Image Consultant
Target audience: Aspiring fashion designers and entrepreneurs
Date: July 30
Time: 7pm – 8:30pm
Location: Details will be sent upon registering for the event
Cost: FREE
Register
Summary: Transform your passion for fashion into a career in image consulting!


Reach More Customers With Google Ads
Host: Small Business BC
Target audience: Small business owners
Date: July 31
Time: 1pm – 4pm
Location: Small Business BC – Vancouver (Available to other locations via Webinar)
Cost: $49
Register
Summary: Understand how Google Adwords works, including how to use it to build and track the results of campaigns.

Events

a place of mind, The University of British Columbia

UBC Library

Info:

604.822.6375

Renewals: 

604.822.3115
604.822.2883
250.807.9107

Emergency Procedures | Accessibility | Contact UBC | © Copyright The University of British Columbia

Spam prevention powered by Akismet