Economic Overview & Current Insights: Canadian Recreational Marine Industry
By Chris Cook and Chantal Robin
The Canadian marine industry continues its gradual transition from the extraordinary highs experienced during and immediately following the pandemic toward a more normalized operating environment. While retail activity remains below peak levels, many of the indicators we monitor suggest the industry is finding greater balance as dealers, manufacturers and lenders adapt to today’s market conditions.
The Canadian marine industry continues its gradual transition from the extraordinary highs experienced during and immediately following the pandemic toward a more normalized operating environment. While retail activity remains below peak levels, many of the indicators we monitor suggest the industry is finding greater balance as dealers, manufacturers and lenders adapt to today’s market conditions.
According to NMMA Canada, the Canadian recreational boating market generated approximately $2.8 billion in retail sales value during 2025, with more than 32,000 new boats sold across the country. While total sales declined modestly year-over-year, demand remains well above historical pre-pandemic levels and continues to demonstrate the enduring appeal of the boating lifestyle across Canada. Ontario, Quebec and British Columbia continue to lead the industry, accounting for more than three quarters of total retail volume nationally.
DEALER & INVENTORY ENVIRONMENT
One of the most notable themes we continue to observe throughout our portfolio is the increased focus on inventory discipline. Following several years of inventory correction and shifting consumer demand, dealers have become more strategic in their purchasing decisions. The emphasis today is less about maximizing inventory levels and more about maintaining healthy inventory turns, preserving margins and managing cash flow effectively.
Encouragingly, retail activity has remained relatively stable across many segments, allowing dealers to gradually work through inventory while reducing the pressure that many experienced during the height of the market adjustment cycle. Conversations with dealers across the country suggest a more measured level of optimism than we observed a year ago.
SEGMENT PERFORMANCE
Outboard-powered boats continue to anchor the Canadian market, representing roughly half of all new boat sales. Aluminum fishing boats, pontoons and other practical family-oriented products remain key performers, particularly in central and western Canada.
Personal watercraft also continue to be an important category, representing nearly 30 percent of total unit sales nationally. Their lower entry price points and broad appeal continue to attract new participants to recreational boating.
At the premium end of the market, larger inboard and cruiser segments still generate the greatest share of retail value. However, these products remain more sensitive to economic conditions, financing costs and consumer confidence than smaller boat categories.
INDUSTRY DEVELOPMENTS
One of the most positive developments for the Canadian marine industry has been the repeal of the federal luxury tax on boats. NMMA Canada’s significant advocacy efforts helped bring attention to the unintended impacts of the tax on dealerships, manufacturers and consumers. The industry’s focus has now shifted toward maintaining trade stability, protecting waterway access and supporting investments that encourage future boating participation.
LOOKING FORWARD
While challenges remain, we believe the overall tone of the Canadian marine market is improving. Dealer inventories are more balanced; industry sentiment has strengthened; and consumer interest in outdoor recreation remains firmly intact.
Growth may not return to the pace experienced during the pandemic years, nor should it. A healthier industry is one built on sustainable retail demand, disciplined inventory management and profitable dealer operations. Based on what we are hearing from dealers, manufacturers and industry associations across the country, the Canadian marine sector appears to be moving steadily in that direction.
As always, we appreciate the opportunity to support our dealer and manufacturer partners throughout Canada and look forward to working together as the industry continues to evolve.
Sources
• NMMA Canada 2025 Retail Markets Report
• NMMA Canada Advances Recreational Boating Priorities During 2026 Day on the Hill
• LTN5 Luxury tax not payable on subject aircraft and subject vessels – Canada.ca
