Canada has stepped up to become the world’s tenth-largest exporter of cosmetics, proving it's more than capable of dealing in natural resource exports.
Canada's overall trade growth in recent years has been less than stellar in sectors other than primary products, but a new Conference Board of Canada report reveals some hidden success stories has saved the day.
Cosmetic exports are among these 'success stories' which has enabled Canada to reach such a high rank on the global exports list.
According to this report, Canada's competitiveness is down to its' proximity to the U.S. and on companies’ ability to establish themselves at an early stage in fast-growth markets.
Common perception is Canada only does well at exporting natural resources
Economist Kristelle Audet with Canadian Industrial Outlook says the common perception is that Canada only does well at exporting natural resources and very few people think of it as being a global player in the cosmetics industry or being competitive at manufacturing and exporting high-tech equipment or chemicals.
"However, they are among some of Canada's hidden export success stories - it comes down to creating innovative products for niche markets."
Among the five little-known products exported from the country, sectors include pet food, synthetic rubber, inorganic chemicals, and photonic devices.
According to the Conference Board, although they are very different, the products all sell well in other countries, develop and innovate the market and establish an early presence in fast-growth markets.
Cosmetics strong on Canadian domestic market too
Market research firm Euromonitor also reckons the anti-aging and skin-whitening sectors are currently big business in Canada’s skin care sector.
An increasing number of mature women and a rising immigrant population in the country is fueling demand for the demographic-relevant products.
In a more generalized trend, the research firm noted that Canadian consumers are increasingly drawn to convenience when it comes to skin care, with both product purchase and application.