IMARC Group has recently released a new research study titled "Canada E-Commerce Market Size, Share, Trends and Forecast by Business Model, Mode of Payment, Service Type, Product Type, and Region, 2026-2034", offering a detailed analysis of the market drivers, segmentation, growth opportunities, trends, and competitive landscape to understand the current and future market scenarios.

Canada E-Commerce Market Size & Share 2026-2034

The Canada e-commerce market size reached USD 672.3 Billion in 2025 and is projected to reach USD 5,353.6 Billion by 2034, expanding at a CAGR of 25.15% during 2026-2034. In 2026, the market continues to gain momentum, propelled by rapid digital adoption, rising mobile commerce penetration, expanding broadband infrastructure, and evolving consumer preference for online retail. The market grew from USD 219.0 Billion in 2020 and is expected to reach USD 2,064.0 Billion by 2030.

Growth in 2026 is further reinforced by Canada’s high internet penetration rate of 95%, the growing use of AI-powered personalization, and the modernization of digital payments. These dynamics are expected to strengthen the Canada e-commerce market share throughout the forecast period.

Key Market Statistics at a Glance

• Base Year: 2025
• Historical Years: 2020-2025
• Forecast Period: 2026-2034
• Market Size (2025): USD 672.3 Billion
• Projected Market Size (2034): USD 5,353.6 Billion
• Growth Rate: CAGR of 25.15% (2026-2034)
• Leading Business Model: B2C (68.4% share in 2025)
• Leading Service Type: E-Tailing (52.6% share in 2025)
• Leading Region: Ontario (39.4% share in 2025)

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Key Growth Drivers and Trends in the Canada E-Commerce Market

Growth in the Canada e-commerce market is being driven by rising internet and mobile penetration. Internet penetration reached 95% in 2025, according to Statistics Canada, providing a vast addressable digital consumer base, while mobile commerce is projected to account for over 50% of e-commerce transactions, with smartphone users reaching 35 million. As consumers rely increasingly on mobile apps for shopping, platforms investing in mobile-first experiences capture higher conversion rates and stronger retention.

One of the leading Canada e-commerce market trends is sustained government investment in digital infrastructure. Federal and provincial broadband initiatives, including the Universal Broadband Fund targeting USD 2.35 billion in investment, are expanding internet access in underserved rural and remote communities, unlocking new consumer segments beyond major metropolitan areas such as Toronto, Vancouver, and Montreal.

Another key factor supporting Canada e-commerce market growth is innovation in digital payments. Canada’s Real-Time Rail (RTR) system under Payments Canada’s modernization program, set to launch in Q4 2026, will introduce instant account-to-account payments, and digital payments already account for approximately 86% of total payment volume. Digital wallets such as Apple Pay, Google Pay, and Interac e-Transfer reduce friction and lift checkout conversion, while AI-driven personalization and social commerce open new paths to purchase.

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Canada E-Commerce Industry Segmentation Insights

Breakup by Business Model:

• B2C (68.4%): Leads the market through marketplace platforms and direct-to-consumer storefronts, supported by consumer preference for convenience, competitive pricing, broad assortments, and mobile-optimized apps and loyalty programs.
• B2B (21.7%): Growing rapidly at approximately 24.8% CAGR through 2034 as enterprises digitalize procurement and integrate supply chains.
• C2C (6.3%): Operates through peer-to-peer platforms such as eBay Canada, Facebook Marketplace, and Kijiji.
• Others (3.6%): Includes government e-procurement, nonprofit digital fundraising, and hybrid models.

Breakup by Mode of Payment:

• Payment Cards: A widely used payment method for online purchases, supported by secure checkout and card-based loyalty programs.
• Online Banking: Supports direct account-based payments, with Canada’s Real-Time Rail set to enable instant account-to-account transfers.
• E-Wallets: Gaining traction through Apple Pay, Google Pay, and Interac e-Transfer, which reduce transaction friction and attract mobile-native consumers.
• Cash-On-Delivery: Offers an alternative for buyers who prefer to pay on receipt of their orders.
• Others: Includes emerging options such as Buy Now Pay Later, which is expanding purchasing power for mid-income consumers.

Breakup by Service Type:

• E-Tailing (52.6%): Dominates through fashion, electronics, home goods, and grocery categories, helped by product variety, competitive pricing, and same-day and next-day delivery investments.
• Financial (18.4%): Includes digital banking, insurance, and investment platforms.
• Travel and Leisure (14.3%): Benefits from growing online booking adoption across airlines, hotels, and experience providers.
• Digital Content (10.2%): The fastest-growing segment at approximately 28.2% CAGR, driven by streaming, gaming, e-learning, and SaaS subscriptions.
• Others (4.5%): Covers government services, healthcare telemedicine, and niche digital platforms.

Breakup by Product Type:

• Groceries: Expanding with the growth of online grocery, ship-from-store, curbside pickup, and same-day delivery options.
• Clothing and Accessories: Benefits from social commerce, influencer-led launches, and shoppable social media content.
• Mobiles and Electronics: Supported by product variety, competitive pricing, and improving logistics for high-value goods.
• Health and Personal Care: Driven by convenience, personalization, and growing interest in beauty and wellness products online.
• Others: Includes home goods and other categories sold through online marketplaces and specialist platforms.

Breakup by Region:

• Ontario (39.4%): Leads thanks to its dense urban population, high household incomes, advanced logistics infrastructure, and concentration of major distribution centers and technology companies.
• Quebec (23.8%): Supported by French-language platform investments, growing mobile commerce, and provincial e-commerce support programs.
• British Columbia (15.6%): Driven by tech-forward consumers in Vancouver, cross-Pacific trade linkages, and strong online tourism bookings.
• Alberta (13.4%): Underpinned by high per-capita income, growing agricultural e-procurement, and enterprise B2B platform adoption.
• Others (7.8%): Includes Saskatchewan, Manitoba, Atlantic Canada, and the Northern territories, contributing through rural e-commerce and government digital services.

Key Challenges and Growth Opportunities in the Canada E-Commerce Market

The Canada e-commerce market faces challenges including cybersecurity and data privacy concerns, with PIPEDA regulations raising compliance costs, and high last-mile logistics costs, with retailers reporting 15-20% higher per-unit delivery costs outside Toronto, Vancouver, and Montreal. Talent gaps in AI and supply chain engineering, along with regulatory complexity such as Quebec’s Bill 96 French-language requirements and cross-border duty rules, also raise operating costs for merchants.

Despite these challenges, the market offers considerable growth opportunities driven by mobile commerce expansion, AI-driven personalization, social commerce, and cross-border e-commerce growth. With about 68% of Canadian consumers preferring Canadian products, domestic merchants can capitalize through “buy Canadian” positioning and stronger fulfillment, while rural broadband rollout and payments modernization broaden the addressable market.

Competitive Landscape

The Canada e-commerce market is moderately concentrated, with the top five players, Amazon.com, Inc., Costco Wholesale Corporation, Walmart Inc., The Home Depot, Inc., and Canadian Tire, holding approximately 40% of the market in 2025. Competition centers on fulfillment speed, platform breadth, payment convenience, AI-powered personalization, and loyalty programs, while strategic investments in logistics automation, retail media networks, and omnichannel integration continue to reshape the competitive environment.

Emerging Trends in the Canada E-Commerce Market

• Mobile Commerce and App-First Shopping: Retailers are investing in native apps, one-click checkout, and push notifications, with sub-3-second mobile load times reported to lift conversions by 20-30%.
• Social Commerce and Influencer-Led Retail: Instagram, TikTok, and Pinterest shopping integrations enable in-feed purchases, particularly in fashion, beauty, and consumer electronics.
• Same-Day and Micro-Fulfillment Expansion: Same-day delivery has become a baseline expectation in Toronto, Ottawa, and Montreal, with micro-fulfillment centers shortening last-mile delivery windows.
• AI-Powered Personalization: Recommendation engines, dynamic pricing, and predictive inventory are improving conversion and order values, with one in five Canadian consumers willing to pay a 20% premium for personalized products.
• Sustainable and Ethical E-Commerce: Younger consumers are prioritizing eco-friendly certifications, carbon-neutral shipping, and ethical sourcing in their online purchases.

Author IMARC Group

IMARC Group is a leading global market research company providing data-driven insights and expert consulting services to businesses seeking to achieve their strategic objectives. With a multidisciplinary team of industry experts, IMARC delivers reliable market intelligence across sectors including Chemicals and Materials, Healthcare, Technology, Agriculture, and Retail.

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