Market Research in Canada Industry Report Now Available from IBISWorld

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Over the five years to 2014, the Market Research industry experienced moderate growth, increasing in line with the overall economy. For this reason, industry research firm IBISWorld has added a report on the Market Research in Canada industry to its growing industry report collection.

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With revenue growth over the past five years, industry operators have also experienced an increase in profit margins

Over the five years to 2014, the Market Research industry experienced moderate growth, increasing in line with the overall economy. In large part, the growth of the industry was attributed to rising corporate profit over the past five years. According to IBISWorld Industry Analyst Edward Rivera, “As corporations experienced upticks in their bottom lines, businesses emerged from their recessionary cost-consciousness and began to revamp their products and services.” This resurgence of production, necessitated extensive research in consumer and business markets, some of which was provided by industry operators. Further, many of these companies, whether they were in the manufacturing or media sector, required advertisement, which typically requires large swaths of consumer analysis. With all of these improving economic factors, industry revenue is expected to slightly increase in the five years to 2014.

With revenue growth over the past five years, industry operators have also experienced an increase in profit margins. Additionally, over the five-year period, more single-operator firms have entered the industry. In the wake of the global recession, many of these operators struggled in the poor operating environment and exited the industry. With recovering revenue growth and higher profit margins, these firms have returned to the industry, accounting for most of enterprise and establishment growth. With the growth of these establishments, however, employment has remained fairly depressed with employer firms becoming more compact. Consequently, the number of employees per establishment has decreased over the past five years.

The Market Research industry exhibits a low level of concentration, with the top three players accounting for a little more than a quarter of industry revenue. The majority of the industry comprises small companies with almost half being owner-operator companies. In the five years to 2014, revenue growth facilitated a rise in the number of small companies entering the industry. “Despite being highly fragmented, the three largest companies in the industry are significantly larger than the remaining companies in the industry,” says Rivera. This is largely attributed to the large acquisitions that transpired in recent years. For example, the merger between WPP's Kantar Group and TNS combined two of the five largest companies in the industry. This merger is representative of a larger overall trend in the industry involving the global marketing and advertising-related major players acquiring complimentary businesses, such as PR agencies and market research firms. This trend is the reason why Ipsos is now the third largest industry operator in 2014.

In the following five years, media, a large market for industry operators, and how it is consumed are likely to undergo significant changes, which will require more consumer research and new research methods. This will likely require industry operators to adapt to new trends and business structures; if successful, operators will find new opportunities to grow. As consumer spending and corporate profit continue to rise, businesses will be more likely to increase their demand for market research, prompting both revenue and profit growth. Consequently, IBISWorld forecasts industry revenue will marginally rise over the five years to 2019.

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Gavin Smith
IBISWorld
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